1. ACP/EU COUNCIL OF MINISTERS - EU STRONGLY DEFEND ITS PROPOSALS ON GOOD GOVERNANCE AND TRADE - ACP REITERATE THAT SEVERAL IT CANNOT PROMISE TRADE RECIPROCITY
At a press-conference this Thursday the confidence expressed in the opening remarks by the two Co-chairs - Ms. Satu Hassi, Finland’s Minister for Development Co-operation, representing the European side, and Mr. Séverin Adjovi, Benin’s Minister for Trade, Crafts Industry and Tourism, for the ACP-side – were more revealing of hopes that major divergences separating the negotiations on the future trading system and on the issue of good governance might be ironed out, than of real perspectives for substantial progress made on these two issues at the session.
Mr. Adjovi made a point of highlighting the progress already achieved " in the drafting of key sentences" in the general provisions of the future agreement, for issues related to the private sector, investment and other development strategies and of financial co-operation, before going on to discuss the difficulties to be overcome on trade aspects. Pointing out that the ACP states have benefited greatly from Lomé’s preferential arrangements, based on non-reciprocity and protocols on commodities, he remarked that the ACP countries had "closely examined the Union’s trade proposals", but that "many of them cannot, at this stage, guarantee the Union reciprocity in the framework of free trade areas.
Regarding "unsettled" questions concerning good governance and the suspension clause in the event of violation of the agreement’s essential elements, he said he was "convinced that the minor differences of view on this subject can be resolved at ministerial level".
2. ACP/EU: TRADE ISSUES (BANANAS, CHOCOLATE, WTO)
The ACP/EU Council devoted to the implementation of the revised 4th Lomé Convention focused on trade issues in the context of the rules for liberalisation of world trade.
Concerning Negotiations at WTO: With a view to the Conference in Seattle in November, the Council adopted a statement confirming its intention to introduce a "development" component in the next round of trade liberalisation talks. While supporting the aim of liberalisation "as an essential element for sustainable development" it stresses the importance of taking account of the economic and social constraints of developing countries, mainly in less developed countries (LDC), which should benefit from special and differentiated treatment. The WTO countries should, to this end, undertake to guarantee access to zero duties on their respective markets of all products from LDCs by the end of the new round of talks at the latest. Furthermore, in order to facilitate active participation by developing countries in these talks, the Council calls for the negotiating programme to include: a) assistance to developing countries to help the overcome their difficulties in implementing WTO agreements; b) the guarantees that the new rules will strengthen sustainable development; c) the obligation for WTO to duly take the needs of the developing countries into account. Finally, the Council invites the ACP States and the EU Member States to cooperate and co-ordinate their actions closely.
On bananas, speaking through their spokesperson, the Dominican Minister, the ACP countries restated their request to the Union to guarantee ACP bananas have the same access to the European market (in terms of volume and tariffs). The EU gave its assurance that the change in its regime would be made in close co-ordination with ACP States. Regarding sugar the Council noted the defence by the Mauritanian Agriculture Minister in favour of keeping the Sugar Protocol beyond 30 June 2001 (date set for its expiry), which is essential for the economic and social development, the rural development and the environment of producer countries. On commodities, the Foreign Trade Minister for the Ivory Coast restated the concerns of ACP countries concerning the revision of the 1973 "chocolate" directive. He hoped (given the lack of assurance from European ministers) that the European Parliament would, at second reading: a) make implementation of the amended text subject to finalisation of a reliable scientific method of allowing compliance with "Ersatz" cacao percentages; b) limit such substitutes to products of tropical origin only; c) improve labelling provisions. Concerning UNCTAD X, the Council holds exchange of views in preparation for the tenth UN Conference on sustainable development (Bangkok, February 2000). Consultations will continue between ACP and EU in order to identify and promote subjects of common interest. On Somalia, the Council confirmed this country’s political accession to the Lomé Convention and the willingness to make earmarked financial resources available, as soon as Somalia ratifies Lomé IV.
At the close of the session, the ministers formed four groups to tackle the Post-Lomé partnership negotiation. In the evening, the central group endeavoured to reach a compromise on the definition of "good governance" that the Union essentially considers as a guarantee of transparency and a fight against corruption in the management of the financial resources allocated. The ACP States, who consider this requirement to be already covered by respect of rule of law - one of the essential elements of the Convention, hope it will not be linked to a clause on aid suspension except in the case of flagrant violation. No progress had been recorded in trade negotiations or on the issue of "good governance" by the end of the 2 days negotiations.
3. FIRST DONOR CONFERENCE FOR KOSOVO
High level officials from more than 100 donor countries and international organisations met in Brussels on 28 July for a first donor’s conference on Kosovo. The meeting was co-chaired by the EC and the World Bank.
The discussion took place on the basis of a preliminary survey of identifiable physical damage. A more comprehensive assessment of needs and priorities for assistance will be completed in the coming months. The conference focused on meeting outstanding urgent humanitarian financing needs, winterisation of housing, as well as restarting the economy, and build up local civil administration under the auspices of UNMIK, the UN interim administration for Kosovo. Donors were updated on the various damage assessments currently underway and on the rapidly evolving situation in Kosovo, including the faster than expected refugee return and the changing security situation. Specific attention was asked to be given to priority reconstruction needs and institution building in preparation for a pledging conference to be held in October 1999. The process of donor conferences will continue.
Urgent financial requirements were estimated as follows: 1) US$45 million to cover the budgetary deficit presented by UNMIK. 2) US$200 million to cover immediate basic needs identified by UN agencies. 3. Euro300 million as the immediate requirements for reconstruction estimated by the EC on the basis of the first damage assessment presented at this conference. Pledges made at the conference added up to a total of USD$2.082 billion, including funding already disbursed during 1999, and actually more that had been asked for.
On behalf of UNHCR and UNMIK, Mr. Mc Namara presented the urgent humanitarian needs for Kosovo. This includes essential assistance for displaced or conflict affected people and preparation for the winter in particular to ensure suitable accommodation and food security for all Kosovars, education for children in early fall, and the delivery of basic health services. ECHO underlined the high quality of cooperation with UNHCR on the ground and in the assessment of needs. Donors agreed on the immediate needs assessment for Kosovo and agreed that the so-called "consolidated Inter-Agency Appeal" for Southeast Europe deserved support. Donors pointed to the need to ensure a proper transition from humanitarian assistance to food development and reconstruction in order to avoid duplication of effort.
The EU announced recently that it has earmarked US$507million for Kosovo, but the money will come from allocations included in the EU's 2000-2005 budget, rather than from breaching its tight budget ceilings this year.
The fact that EU officials are expected to raise money for Kosovo by cutting other foreign spending has heightened concerns that the bill for reconstruction would reduce aid flows to other regions of the world, particularly developing countries.
4. EUROSTEP PAPER ON RESTRUCTURING OF THE EUROPEAN COMMISSION
As announced in last week’s PAF (142), Eurostep
have produced a paper on the restructuring of the European
Commission and its implications for international development.
The paper outlines a number of Eurostep’s concerns include
the de-linking of trade from development and the separation of
development policy from its implementation. You can
contact the Eurostep Secretariat for a copy of this paper