1. EU-LATIN AMERICA/CARIBBEAN SUMMIT - NGOs CALL FOR BETTER DESIGN OF EU AGREEMENTS WITH LATIN AMERICA AND THE CARIBBEAN
Heads of States attending the EU-Latin American/Caribbean Summit, held in Rio de Janeiro on 28-29 June, have adopted the Rio de Janeiro Declaration. This states the goal of the historic summit as "to strengthen political, economic and social ties between the regions to develop a strategic partnership". This partnership must be founded on "shared objectives, such as the enhancement of participatory and representative democracy and individual freedoms, the rule of law, good governance, pluralism, international peace and security, political stability and trust among nations". The partnership should provide ‘new impetus’ in three areas: political dialogue that respects the rule of law; economic and financial relations based on a broad and balanced liberalisation of flows of goods and capital; and co-operation in the scientific, technological, cultural, social and educational fields. These objectives would be pursued at: 1) ministerial level through existing structures for dialogue (Rio and San José group, Mercosur, Andean Community and Lomé Convention) 2) technical level by a group of senior officials who will meet regularly and monitor the priorities defined by the summit. Amongst the priorities for action defined for a number of objectives in the areas were:
1) At political level the Summit plans to work for the modernisation of the structure of the respective states. "Civil society is urged to participate in initiatives between Latin America, the Caribbean and the EU in co-operation with the public sector". According to the European, press this represents a concession to the countries that feared NGO involvement in the political sphere, including Mexico, which is still wary after the Chiapas affair. 2) At economic level, the Summit’s plan calls for, inter alia: the introduction of bi-regional co-operation mechanisms to strengthen national financial systems; business leaders to create a business forum; an examination of current trade barriers in the area of standards and certifications; the conclusion of customs agreements; the European Investment Bank to consider stepping up its activities in Latin America. 3) At cultural, educational, scientific, technological, social and human level, the Summit’s plan envisages, among other things: programmes aimed at fighting marginalisation, social exclusion and extreme poverty; co-operation at all levels of the education system; measures to increase indigenous peoples’ level of participation in social and economic development programmes.
A number of NGOs, including Eurostep member organisations - Action Aid and Oxfam GB, as well as Christian Aid, CIIR and Save the Children, submitted a short paper to the Rio Summit pointing out how the EU’s agreements with the Caribbean and Latin America could be better designed to meet EU commitments to poverty reduction and sustainable socio-economic development. This paper is based on a position paper put out by Oxfam GB, in collaboration with two other Eurostep member organisations - Novib and Intermon.
The paper states that the EU is basing its partnership with the Caribbean/Latin America on the unproven formula that trade and investment liberalisation equals growth in Latin America and the Caribbean, which in turn equals poverty reduction. The recommendations provided by the paper for EU agreements with countries in Latin America and the Caribbean are:
1) The process by which agreements are reached and monitored should involve public participation in all the signatory countries and an active role for national parliaments and the European Parliament. 2) Both the EU and Latin American governments should research and monitor the social, environmental and gender impact of trade and investment liberalisation to better inform the design of agreements. Such assessments should be a pre-condition for approval by EU Member States.3) Economic agreements should define specific objectives within the framework of existing international commitments on poverty, environment and gender, and on labour and children’s rights. 4) The relative economic strength of the EU justifies asymmetries in the agreements designed to benefit poorer people in Latin America and the Caribbean. 5) The EU should not use the agreements to pressurise countries to accede to multilateral conventions, which overprotect transnational companies or unduly favour the advanced industrial countries. 6) The agreements should allow countries flexibility to regulate trade and investment in pursuit of human development goals and to take exceptional measures in moments of economic difficulty such as balance of payments crises. 7) Economic co-operation from the EU, including the European Investment Bank, should prioritise assistance to small and medium enterprises and enable them to compete in a more open economy, encourage and support re-distributive domestic policies, and foster policies in regional economic associations that favour equitable development. 8) The agreements should be conditional upon respect for basic democratic rights, observance of the ILO conventions on Freedom of Association and Collective Bargaining, and respect for minimum environmental standards, all of which should be verified on an annual basis by appropriate independent bodies.
You can contact the Eurostep Secretariat for a copy of the full paper. Further information is also available from Louise Hilditch at: [email protected] or Michael Bailey at [email protected]
2. EU MEMBER STATES DIVERGE ON COMMISSION OPTIONS FOR REFORM EU-ACP BANANA REGIME
Following the European Commission’s submission of its proposals for the reform of the EU banana trade regime with the ACP, EU Member States continue to support a negotiated solution with the agreement of all parties concerned, as a means of ending the dispute between the EU and the US on the issue. They however remain divided over the solution to be adopted should negotiations fail. Germany, Sweden and Finland support ‘a tariff only’ solution, Spain France and Portugal support an ‘all quota solution’.
The tariff solution consists of abolishing all existing quotas and establishing a customs duty at a higher level than the current duty in order to obtain the same effects on prices as the current quota. The ACP would be exempt from this duty. France, Spain and Portugal claim this option represents a lack of a commitment towards the ACP and are also critical of the excessive expenses for the ACP and the EU that would result from compensation paid out to offset price falls and market share losses.
The two other options put forward by the Commission are as follows. 1) Maintaining existing quotas and granting tariff preferences or zero duties to ACPs for an unlimited volume of bananas (The US is opposed to this). 2) An ‘ all quota’ system providing for a new tariff quota of a higher volume than current ACP exports. (The US does not oppose this). However, there are several difficulties due to the fact that there is a need for a system of licenses and a sufficiently but not excessive high duty in order to preserve the presence of EC and ACP bananas without prohibiting access for third country bananas.
3. IN BRIEF
The EU Council seems set to adopt a common position on the proposal amending the 1973 chocolate directive so as to give all EU Member States the possibility of authorising the use of certain clearly defined vegetable products other than cocoa butter in the manufacturing of chocolate. This follows an agreement by EU permanent representatives this week, overriding objections from Belgium and the Netherlands. Belgium still fiercely opposes the new agreement and has already announced that it will not accept the adoption of the text without debate. The proposal will first be submitted to the European Parliament for scrutiny.
Two Danish NGO coalitions – ‘the 92 Group’ and the Danish North/South Coalition co-ordinated by Eurostep’s members - Ibis and MS have put out a paper on the forthcoming WTO Round of Negotiations. The paper states that if the WTO is to live up to its own objective in contributing to sustainable development in a meaningful way, the coming round of negotiations must not focus narrowly on trade liberalisation as the prime and overall objective. Instead the focus must be on the need for increased international trade regulation in which development and environment concerns are integrated. For a full copy of the document you can contact the Eurostep Secretariat.
The European Research Office (ERO) and the Liaison Committee of Development NGOs to the EU have put out a series of Discussion Documents on EU Proposals for Reform of Lomé Financial and Technical Co-operation Instruments on behalf of the Lomé Monitoring Group (Eurostep, Liaison Committee, APRODEV, CIDSE and WIDE). For further information you can contact the Eurostep Secretariat.