1. EU NEGOTIATING MANDATE FOR FUTURE LOME CONVENTION TAKES THE FREE MARKET LINE
According to senior European Commission sources, the Commissioner for relations with the ACP, Mr Joao de Deus Pinheiro is to call for an end to the privileges of market access granted to ACP countries under current and past Lomé Conventions. ACPs will be asked to face global conditions by 2005 in the Commission negotiating mandate with the ACP countries for a replacement for the current Lomé Convention. EU officials claim this departure from the long-standing policy of preferential treatment for ACPs will help ease them (ACPs) into the market.
NGDOs are of the contrary view that the proposed plan dangerously overestimates the ability of developing countries to adapt to the free market. ACP secretary-general Peter Magande, in a reaction to the Commission’s proposed move, expressed concern over the measures the Commission plans to take during the transition period to the free market. The Union will keep certain preferences under commodity specific trade protocols and allow more transition periods of up to ten years following 2005. Mr Philip Lowe, Director General of the Commission’s DG VIII (Directorate General for Development) insists that these proposals will help ACPs adapt to liberal trade conditions.
While the Commission has argued that it cannot maintain the current system of preferences under WTO rules, critics are of the view that the Commission could utilise its own influence within the WTO to better effect. Moreover the Commission has discounted the new degree of flexibility the WTO is showing towards developing countries.
The Commission’s negotiating mandate should be agreed to by the entire Commission by 28 January. It will however not be made available to the public before its presented to the EU Council the following month.
2. RWANDAN VICE PRESIDENT DENIES ACCUSATIONS OF MASSACRES AT THE EUROPEAN PARLIAMENT
Paul Kagame, the Vice President and Defence Minister for Rwanda, defended his government’s position on its handling of the ethnic strife before the European Parliament’s Development Committee chaired by MEP Michel Rocard (French socialist). Responding to questions of the fate of thousands of prisoners detained without trial, Mr Kagame said his government was in the process of setting up an adequate legal system along with legislation that would clarify who was responsible for the genocide. He added that the government would make every effort to hold free and fair elections to encourage the respect of human rights, but he said this was dependent on international aid.
Speaking on the general situation in Africa, Mr Kagame said that the continent was experiencing a wind of change despite the persistence of numerous crisis in African societies. He added that the relations between donors and beneficiaries of aid needed to be reviewed, in a reference to Community regime on aid which he feels is too inflexible and politicised with a bias towards certain NGOs.
In a separate meeting with Development Commissioner, Joao Pinheiro, Mr Kagame asked the Commission to broaden its assistance in the reconstruction of Rwanda. He said "It is time to begin a new period, speaking frankly on political and economic issues as well as the Country’s development."
3. MISGIVINGS ALL ROUND ON NEW COMMISSION BANANA PROPOSAL
The Commission’s proposals to reform its banana trade regime seems to be already dissatisfactory to all involved. As reported last week’s PAF (75), the Commission plans to change the licensing system for exporters while maintaining the present tariff quota for ACP bananas. This move is in response to last year’s WTO ruling against the Commission banana system. However the US, the major critic of the EU banana system, has described the proposals as unacceptable and may well challenge the plan after the deadline from the WTO calling on the EU to reform its banana system passes. Within the Community Austria and Germany both large banana consumers say the Commission has not gone far enough and fear that the WTO will not accept the Commission’s proposals. Spain, Portugal and France, on the other hand, are of the view that the proposals are too far reaching and threaten their overseas producers. In addition the UK, after being handed the Presidency, faces a thorny conflict of interest . The Presidency has declared that resolving the banana issue is one of its priorities, however there are speculations that the British may side with France, Spain and Portugal to form a blocking minority against the proposals if France were to show more flexibility over allowing beef exports from Northern Ireland.
The Commission’s proposal has also been criticised by some MEPs. Glenys Kinnock (UK, socialist) of the Development Committee is of the view that the negative effects of the Commission proposal will far outweigh any aid the EU may offer as compensation and will transform traditional banana producers in the ACP from entrepreneurial traders to passive receivers of aid. Mrs Kinnock describes the current EU licensing system, which is set to be revised, as indispensable in its current state. The Commission’s plan to accord all ACPs a single quota is however the most worrying. This would in effect force out weaker suppliers in the Caribbean off the market by countries such as Cameroon and Ivory Coast where capital intensive plantations are run by US multinationals such as Dole. She argues that the Community could unite with the ACP countries to form a force within the WTO (together they have more than half of all votes) to keep its present regime.
Not surprisingly representatives of the Latin American banana producers who are behind the WTO ruling, are of a different view. According to a European managing director of a banana exporter from Ecuador, the option of completely dismantling the licensing system that allocates only limited licences to Latin America forcing them to buy more licences from the European and ACP producers is the best. "We have no interest in seeing people in the Caribbean being even poorer than they are today. But you should remember that the gross domestic product of places like Ecuador is less than the Windward Isles (a Caribbean banana producer)". He favours subsidies along the lines of that granted to EU producers in the Canary Islands and Guadeloupe. Surprisingly the managing director is not against the tariff preferences favour ACPs over Latin American countries. Latin American countries can afford the discrimination as its bananas cost just US $ 162 a tonne compared to the US $ 515 from ACP states.
4. MEPs APPROVE BUDGET HEADING FOR DEMOCRATISATION IN NIGERIA
At the European Parliament Development Committee session last Thursday, it was revealed that the EP had approved a budget heading earmarked for a special democratisation programme in Nigeria. During the Committee, Ledun Mitee, one of the defendants in the trial that led to the execution of Ken Saro Wiwa, criticised Shell’s policy in Nigeria. Mr Mitee said also that the abuses committed by the military dictatorship risked causing an exodus that could affect all of Western Africa. Ms Glenys Kinnock called for the UK Presidency to show a firm attitude towards Nigeria.
5. ANNOUNCEMENT
The Eurostep secretariat was informed this week of the sad passing of Mr Ignacio de Senillosa, the Studies Director of member organisation Intermon. Many of us who worked with Mr de Senillosa on a variety of causes will sorely miss his friendship, warmth, commitment and contribution towards the building of a more just world for all.