Commissioner Nielson's Speech on Economic Partnership Agreement West Africa

Summary: October 6, 2003: Poul Nielson, European Commissioner for Development and Humanitarian Aid. Economic Partnership Agreement. Opening of Regional Negotiations on Economic Partnership Agreements (EPA) West Africa - EC Ministerial Meeting (Cotonou, Benin)

Honourable President,
Honourable President of the ECOWAS ministerial meeting,
Honourable Executive Secretariat of ECOWAS,
Honourable Commissioner of UEMOA Commission,
Honourable Ministers,
Ladies and Gentlemen

It is a distinct pleasure for me to meet with you at this Ministerial meeting on the opening of the Economic Partnership Agreement.

I wish, first of all, to express my appreciation to the regional authorities, to the Government of Benin and President Kérékou for the gracious hospitality extended to the Commission's delegation to this meeting.

It is a happy coincidence that I speak to you in the same place where we signed the Cotonou Agreement, the framework for our partnership, three years a go. Here we signed our common strategy centred on the objective of reducing and eventually eradicating poverty, sustainable development, and the gradual integration of the ACP countries into the world economy.

At this occasion I spoke of "the beginning of a new era of a relationship, based on a profound reform of spirit."

It was indeed the beginning of a new era, in terms of the objectives and practice of our co-operation, but also because of its innovations on the trade policy. Since then we have well progressed in devising together the road to the new EPA agreements. We started preparations for EPAs a year a go in Brussels. During this year we have clarified the main principles of EPAs. The development dimension of EPAs has been at the core of the discussion, which reflects well that development is at the very centre of EPAs. This is one of our main conclusion from the Ministerial ACP-EC meeting we had some days a go in Brussels.

Today, we begin the process for establishing an Economic Partnership Agreement between West Africa Region and the EC. At the signing ceremony here in Cotonou, I also pointed out how the "elaboration a new framework for a true partnership between the two groups of countries with a view to addressing together major challenges such and poverty…this was not an easy task". But that was achievable "thanks to the shared political willingness to give an ambitious response to these problems, building on the "acquis" of twenty-five years of co-operation under the Lome Convention".

This is valid for the regional process we are launching today: the challenge in front of us, the responsibility of preparing together one of the main components of the Cotonou Agreement, the Economic Partnership Agreements.

The meeting today is a good start.

EPAs are one of the building pillars of the Cotonou Agreement, and as such an instrument for development. As the Commissioner for Development and Humanitarian Aid, I wish to reaffirm the engagement of the European Commission of making of EPAs an instrument to improve the prospects of the whole population in the ACP States.

How can EPA respond to our common development objectives? Let me underline some of the main issues on the development dimension of EPAs, as we see them.

A stable, transparent and predictable framework for trade will allow for economies of scale and increased competition. This will contribute to economic growth and poverty reduction. The regional groupings may allow for a better integration in the world economy, by providing a learning field, a better bargaining power and increased attraction of foreign investment.
EPAs constitute therefore a developmental framework by themselves. Development will be mainstreamed all over the process of "building" the EPA, it will guide the discussion on every topic while negotiating.
Moreover, an EPA has to be adapted to the economic, social and environmental conditions and specificities of the ACP countries and regions, as well as of their capacity to adapt their economies to the process. The EPA process will be flexible. I believe this is one of the big advantages of negotiating at a regional level, close to the realities of the region.
Regional Integration. My colleague Commissioner Lamy already elaborated on regional integration as the foundation of the new EPAs. Closer economic integration between the ACP and the EU will also foster deeper economic integration between your countries. As you well know, Regional Integration is also put forward as a key development co-operation strategy in the Cotonou Agreement. Within the Regional Indicative Programs we've developed a deep dialogue with the region on economic integration matters. The focal sectors of the 8th and 9th EDF reflect this and are precisely "support to regional integration and trade". EPAs will benefit and will be founded on this basis.
We believe that the creation of regional spaces and market, more integrated in economic, but also political terms, could have a positive impact on reducing violent crisis and conflicts. This is especially relevant for this region. Peace is both a prerequisite and a consequence of the deepening of economic relations. The crises in Ivory Cost or Liberia this year have had an unavoidable impact on the economies of the region.

For all these reasons, we expect that EPAs will foster growth. And in any case, we believe that the benefits of the EPAs will offset all the costs of their "building". Nevertheless, we do believe that EPAs need to be accompanied by appropriate development support measures, so as to minimise the transitional costs, and to allow ACP countries end regions to maximise the benefits they should be deriving from EPAs.

I would like to draw your attention on two points that seems key to me in this respect.

First of all, the calendar for the EPAs implementation. We will agree on the terms of the EPA at the end of 2007, as foreseen in the Cotonou Agreement. But the period for implementation can be long, which would allow for adjustment both at a fiscal and economy level.

Secondly, the adjustments and supporting measures that would enable the region to benefit greatest from an EPA are mainly measures that are not specific to the EPAs but directly linked to the needs to integrate into the world economy. These adjustments are also essential to promote the integration of your countries in the world economy and to contribute to the eradication of poverty. Therefore, they would need in any case to be fully incorporated into your development policy, of course with the support of the international community.

Again: EPAs and development financing, two of the pillars of the Cotonou Agreement must be complementary and mutually reinforcing. I believe that our common strategy should be to put everything in place to seek an optimal synergy among all cooperation instruments, in order to achieve the central objective, which is sustainable development and poverty reduction through enhanced integration of West Africa into the world economy. EPAs are above all a tool for development

Several instruments are available to support the preparation and the implementation of the EPAs in the Cotonou Agreement. I'm referring, in particular, to the Regional Indicative Program, the National Indicative Programs and the Investment Facility.

We need to work together to make use of them in the most effective way. The Regional Indicative Program is well adapted to the needs of the EPA, with both focal sectors concerning "support to regional integration and trade", and "transport facilitation", which is a vital component of the economic integration process.

Concerning the National Indicative Programs, the Cotonou Agreement has introduced the principle of "rolling" programming. This is to ensure that operations are in line with the objective of the agreement and priorities and objectives of the ACP States. This flexibility is attained through a review process of 9th EDF programs, comprising annual and midterm reviews. I encourage you to use these reviews to assess its trade and trade related support as sufficiently well answered in your strategies.

In order to deliver efficiently assistance to the regions in their preparation for the EPAs, we need to establish a link between the EPAs and the financing instruments of the Cotonou Agreement. I strongly believe that the Regional Preparatory Task Forces that we are to create for the negotiations will play this role. Nevertheless, it is equally important to ensure complementarity between them and the mechanisms already existing within RIP, for not to overcharge our human resources.

And finally, this meeting is a clear demonstration that after the disappointing result of Cancun, there is still room for a true relationship between the north and south. I firmly believe the EPAs within the Cotonou Agreement will help us to respond to the challenges of poverty alleviation in a meaningful way.

Thank you for your attention.

Ref: SP03-266EN
EU source: European Commission
UN forum:
Date: 6/10/2003

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