Divisions among EU Member States on the European Commission's proposal to reform the EU trade regime on bananas is set to dominate the next EU Agricultural Council on 20-21 April in Luxembourg. You may recall that the Commission proposed a reform of the system of granting import licensing within the EU banana trade regime with the renewal of amended tariff quotas. This proposal followed last year's WTO's ruling against the present EU banana regime that favours traditional suppliers from the ACP regime.
The Commission proposal is apparently not far reaching enough for several Member States. Germany along with Austria, Belgium, Luxembourg, the Netherlands, Sweden and Finland initially demanded the quantitative restrictions on all quantitative restrictions on the non-preferential import of bananas. However this position is incompatible with the EU's undertakings in the Lomé Convention. The Member States have thus to agree to a set of reforms (probably along the line of the Commission's proposal) that comply with both the Lomé Convention and international trading rules. To this end the Agricultural Council will try to reach guidelines on the main issues still pending; i.e.:
1) The level of the reduced-duty autonomous quota. Germany, Denmark, Sweden and Finland are demanding more than the 353 000 tonnes proposed by the Commission while France, Spain and Portugal demand less.
2) A Customs duty applicable to the additional quota.
3) Ways of managing the import quotas to allow the licence system to be based on traditional trade flows.
4) Compensation for the loss of revenue that the reforms are likely to result in. Many Member States feel compensation is unjustified, arguing that producers enjoy other privileges.
5) Specific measures for the so called 'fair trade' bananas (bananas produced in sound socio-economic and environmental conditions). This request is backed by Austria, Belgium, the Netherlands, Sweden and Denmark. Germany opposes the request on the grounds that there is little demand for such bananas while EU producer Member States oppose it due to doubts over whether Community bananas themselves are produced in environmental and socio-economic friendly conditions. The Commission claims that a specific quota or generalised preference scheme for fair trade bananas is unworkable. It is however considering other options such as promoting the consumption of fair trade bananas in the EU.
A decision on the EU banana regime has to be taken by June at the latest in order to meet the 1 January 1999 deadline to implement the new regime set by the WTO. In addition the 15 Member States have to instruct the Commission to negotiate the distribution of tariff quotas between non-ACP supplier countries with substantial interests such as Costa Rica and Colombia.
2. COMMISSION AND UNDP TO STEP UP CO-OPERATION IN DEVELOPMENT
At a high level meeting between the European Commission and the United Nations Development Programme (UNDP), this week, participants from the two institutions decided to intensify their co-operation in development to face new challenges and exploit new public development aid opportunities. The following four areas were identified for increased co-operation:
1) Building peace and conflict prevention. The Commission and the UNDP have agreed to ensure that aid for rehabilitation and development are used to promote stability, reconciliation and democratisation in the countries concerned.
2) Support and consolidation of human rights, democratic principles and good management of public affairs. The two institutions decided to increase their sharing of information and experience to establish together a framework for assessing progress in this area. The Commission said it is willing to support the second African Governance Forum in Ghana on 25 and 26 June.
3) Support the development of trade and the private sector in the ACP. Both parties confirmed their will to identify together concrete possibilities for co-operation.
4 Sustainable development. The two institutions decided to strengthen collaboration in the implementation of agreements reached at the major UN Conferences and summits of the 1990s and jointly organise a ministerial workshop on poverty and the environment in Spring 1999.
Apart from these identified areas there is a EU-UNDP joint programme for the African Great Lakes region. The Commission confirmed that it would be willing to assist the UNDP in its support for the demobilisation programme in Rwanda, if the Rwandan government so requests.
Notably the two institutions announced their decision to set up a steering committee - a joint body for guiding co-ordinated action to improve co-operation between the two bodies. A similar committee already exists between the World Bank and the Commission.
The UNDP is the most important UN body for development (it manages 2.4 billion US$ annually) while the EU is the largest public aid donor to development. Together with the World Bank, the EU and the UNDP provide 95 % of world public aid to Africa.
3. CHANGES PROPOSED TO EU ARMS CODE OF CONDUCT
Certain changes to the UK proposal on the arms code of conduct were called for when the 15 Member States discussed the UK proposal last week. The proposal for the Code which has been criticised by many observers (see PAF 82) as not precise enough and containing too many exemptions was critiqued by some Member States delegations. Modified aspects are said to concern procedures and criteria allowing exemptions to the general rule prohibiting the supply of weapons that could be used for internal repression. According to the initial text, deliveries would be legal if the end-purpose was legitimate (e.g. protecting members of the security force against violence). Interpretation of these terms are now said to have been made more restrictive. However the principle stating that the maintenance of law and order when confronted by terrorists or other criminals does not represent 'internal repression' is said to have been maintained.
The UK Presidency believe an agreement could be reached in June before the end of their Presidency.
4. LIAISON COMMITTEE ANNUAL CONFERENCE
The major topic for this year's Liaison Committee of Development NGOs (23-24 April, Brussels) to the EU annual conference will be the future relations between an enlarged EU and its southern partners. The conference entitled “Solidarity 2000 - Alliances against Poverty in the Globalisation Era” aims to examine the implications of the EU enlargement process for development co-operation and for North/South partnerships in which the EU is involved. Based on the minimal space assigned to development co-operation in the Agenda 2000 (the Commission document on the EU enlargement process), participating NGOs fear that development co-operation will be relegated to the background in the quest for enlargement. About 300 participants are expected at the meeting including representatives from EU institutions. The Conference 'proper' will be preceded by a preparatory seminar on 21-22 April.
5. FORTHCOMING EVENTS
20-21 April,Luxembourg EU Agricultural Ministers 20-24 April, Mauritius, 26th bi-annual ACP-EU Joint Assembly 23-24 April, Brussels NGO Liaison Committee Annual Conference (see article 4) (contact:00 32 2 743 87 99) 4 May, Brussels International Banana Conference (contact 00 44 1603/761 645) 7-8 May, Barbados EU-ACP meeting