1. MOMENTUM BUILDS UP FOR WTO MEETING IN SEATTLE
As part of their final preparations for the WTO Ministerial Conference in Seattle the European Parliament and the European Commission both held meetings on the forthcoming WTO Millennium round of Negotiations. The European Parliament’s meeting consisted of an Exchange of Views on the Millennium Round with invited experts during the Development Committee’s session on 23 November.
In a presentation to the Committee, a representative from Oxfam GB, called on the delegation of European Parliamentarians who will be going to Seattle to support the following proposals: 1) Developed countries should improve market access to developing countries through broader and faster liberalisation. During the Uruguay Round developed countries cut their tariffs by smaller amounts than developing countries did. As a result, tariffs facing the least developed countries are about a third higher than those facing industrialised countries. According to UNCTAD, the export earning of developing countries could rise by $ 700 billion a year if rich developed countries opened their markets. This figure alone represents 14 times the amount of aid that the developing world receives. 2) Developing countries should not be pressured to liberalise at the rapid rate at which they have done to date. 3) Multilateral rule making on investment, procurement and competition should be deferred until there is wide spread agreement that rules in these areas are development friendly. 4) The EU and other developed countries should make commitments in 3 vital areas during the Seattle meeting to reassure developing countries of their intentions for the new round. a) A commitment to address the problems caused by the Uruguay Round for developing countries; b) All industrialised countries should make binding commitments to provide zero-tariff access for all exports from the poorest by 2003; c) Donor countries should make substantial commitments to assist developing countries to take advantage of export market opportunities.
The EP’s Development Committee will hold a further hearing on Millennium Round in January 2000.
The European Commission’s meeting represented the final meeting between the Commission and civil society organisations before the Seattle Ministerial meeting. During the meeting, participants were informed that the Commission had agreed to include 6 representatives from civil society organisations in its official delegation. One representative was chosen from each of the following categories of civil society organisations: developmental, social, consumer, environment, trade union and the employers. Mr Peter With of DanChurch Aid will be representing the Liaison Committee of EU NGDOs and in turn EU development organisations. The Commission plans to hold regular briefing meetings with civil society organisations. The Commission designated NGO contact person in Seattle is Mr H. Siemers. The Commission plans to provide mobile phone numbers and email addresses on Monday 29 December to facilitate contact with the Commission during their stay in Seattle. Two Commission documents – “WTO New Round Sustainability Impact Assessment Study”, and “The Millennium Round: An Economic Appraisal” are available from the website: http://europa.eu.int/comm/trade/2000_round/index_en.htm
2. EU AND MEXICO CONCLUDE FREE TRADE AGREEMENT
EU Trade Commissioner, Pascal Lamy, and Mexican Trade Minister Mr H. Blanco concluded negotiations on the EU-Mexico Free Trade Agreement this week. The Agreement will lead to total liberalisation of industrial trade in 2007 and agricultural trade in 2010. A last minute compromise was reached on the difficult issues, i.e. rules of origin, the level of industrial liberalisation in 2003 and public procurement in agriculture. Approval now has to be sought from the EU Member States.
The compromise on the rules of origin, defines Mexican products as products of 50% Mexican origin. Exceptions are however made for car spare parts and assembled vehicles, and the rules will change as liberalisation progresses. Regarding public procurement, the EU will have access to Mexican electricity, petroleum and transport markets, at the same level as in EFTA. Concerning industrial products the compromise makes provision for a) 82% dismantling of European duties at the entry into force of the agreement and the remainder in 2003 b) dismantling of 47% of Mexican duties immediately (50-60% in 2003). Concerning agriculture, products will be liberalised in stages up to 2010. There is no agreement on the liberalisation of services and capital movements, with the parties undertaking to resume talks in three years after the WTO multilateral negotiations.
According to Mr Lamy, the Agreement is the most ambitious free trade agreement the EU has ever negotiated. The EU’s share in Mexican trade has fallen from 17 to 6% since the North American Free Trade Agreement (NAFTA) involving Mexico, Canada and the US came into force. Mexico is now the world’s 12th trading power, however, wages in the country are low and unemployment is high. According to the Action Against Free Trade network in Mexico, made up of trade unionists and economists, opening up Mexico’s market has only brought about unemployment, greater dependence on foreign trade, a drop in wages and the loss of labour rights. A spokesman for the Association of Industrialists of the Transformation Industry in Mexico states that, “the EU-Mexico free trade accord deals one more blow to small businesses, many of which will have no option but to shut down in the face of overwhelming competition.” Only 6% of Mexican companies have the capacity to export.
With the anticipated enlargement of NAFTA to include the entire American continent, the EU will also be looking to progress in its negotiations for another free trade agreement with MERCOSUR launched this week. MERCOSUR’s membership comprises of Argentina, Brazil, Paraguay and Uruguay. Chile and Bolivia are associated members. EU officials believe an EU-MERCOSUR free trade area could mean additional profits for the EU of over 6 billion euros and 5.15 billion for MERCOSUR. But according to the Institute for European-Latin American Relations, negotiations between the two parties will be complicated by the number of sensitive products involved, particularly agricultural goods. The MERCOSUR countries have vigorously campaigned in international fora against the EU’s agricultural subsidies, which distort prices in international markets.
Next month the EU will also be hoping to reach an agreement for future trade arrangements with the ACP to be based on free trade agreements, following the so called compromise between the EU and the ACP in their negotiations (see PAF 154-156).
3. FORTHCOMING EVENTS
| 3 December Tampere, Finland | Citizen’s
Agenda 2000 NGO Forum Contact: +358 9 350 97 690 |
| 6-7 December, Brussels | EU Foreign Ministers meet, Agenda includes EU Africa summit, ACP-EU negotiations and the EDF |
| 6 December, Brussels | ACP Ministers meet |
| 7-8 December, Brussels | ACP-EU Ministerial Negotiations |
4. IN BRIEF
The European Research Office, ERO has produced two publications on ACP-EU trade to coincide with the ACP-EU Ministerial Negotiations meeting on, 7-8 December 1999. The publications titled:
Mind the Gap: Avoid a damaging hiatus in ACP-EU Trade Relations; and The Lomé Trade Debate: Addressing Common Misconceptions depict the underlying reality of ACP-EU trade and hope to address some of the misunderstandings that have clouded the debate on future ACP-EU trade arrangements. The publications were produced in consultation with Eurostep, APRODEV, Enda-Senegal, the Liaison Committee of EU NGDOs and CIDSE. You may contact Paul Goodison of the ERO office at [email protected] for a copy of the publication.
The European
Parliament adopted a resolution on the situation in Burundi this
week. The resolution condemns the violence in the country that
has been perpetrated against the civilian population. It urges
the Burundian Government to authorise the deployment of UN
military observers and or observers from the Organisation of
African Unity to ensure the protection of aid workers and
implementation of humanitarian aid. It also places emphasis on
the organisation of an international conference on peace in the
Great Lakes region as well as an international embargo on arms to
Burundi.