The introduction of the social and environmental clauses to the EU's Generalised System of Preferences (GSP) that allow developing countries to benefit from reductions in supplementary customs duties if they abide by certain environmental and social rules is still the subject of negotiations between the Member States and the Commission.
In October last year, the Vice President of the Commission, Manuel Marin presented the EU Council with a draft regulation supplementing the GSP. The draft set out the conditions and levels at which developing countries could benefit from social and environmental clauses if they so wished. These incentive conditions were based on the International Labour Organisation standards such as the right to collective bargaining and the minimum working age.
EU Member States and the Commission are still in disagreement over two major points of the proposal, i.e.:
1) The level of reduction of supplementary customs duties - Britain, Sweden and the Netherlands are of the opinion that any reduction in customs duties has to be substantial in order for it to serve as a true incentive. But Italy, Greece and Portugal are of the view that substantial reductions would open the market up too wide to products which are sensitive for the European market.
2) The institution that would decide whether supplementary preferences should be granted - The Commission believes that the issue of preferences is technical, thus falling in its sphere of competence, within the framework of the European trade policy, according to the Community comitology procedure. (comitology procedure determines which EU institution has competence on any issue) Spain however, is of the view that the issue is of a political nature and thus the EU Council should take decisions on supplementary preferences. Though a majority of the EU Member States are in agreement with Spain, only unanimity amongst the Member States can reverse the Commission's aim to decide on supplementary preferences.
The Council and the Commission have two weeks to consider the issue. The initial intention was that the social and environmental clauses would be applied in the GSP from 1 January 1998. The entire EU GSP is set to expire for industrial products at the end of 1998 and for agricultural products at the end of 1999.
The Commission is to present a reform of all comitology procedures within the next three months in attempt to address past conflicts of power between the Member States and the Commission.
2. CAMBODIA TO RECEIVE EU AID FOR ITS ELECTIONS DESPITE CRITICISM OF ITS REGIME BY NGOs
The EU will press ahead in providing Cambodia with election aid despite growing criticism that aid is helping prop up the current Cambodian regime that seized power in a coup last July. The EU decision follows a deal brokered by the Japanese government that allowed ousted Prime Minister Prince Norodom Ranariddh back in the country.
The Union's decision comes at a time when evidence is mounting on political killings and harassment of opposition parties by the current regime's supporters. Amnesty International claims that following the coup, scores of the ex-prime minister's associates were executed and hundreds more detained. According to Amnesty, further violence in the run up to the July 1998 elections in Cambodia cannot be ruled out. The human rights organisation asked the Union, at the recent ASEM (Asia Europe Meeting) II, conference to seek guarantees from the Cambodian Government that fundamental rights would be upheld. The European Parliament has also called on the Commission and other donors to make any election aid dependent on minimum democratic standards being guaranteed.
3. NGOs SUSPECT SPONSORS OF CHILD LABOUR MARCH OF HAVING A HIDDEN AGENDA OF PROTECTIONISM
As the Global March against Child Labour entered Delhi, India last week some NGOs working on child labour have began to question the motives of the sponsors of the march. The heavy presence of US activists at a press conference intended to explain the motives of the march in Delhi led many NGOs to believe that it is the US that was actually behind the march. Doubts over whether the real motive of the march was in protecting children's rights were heightened when several activists called for boycotts of all products of third world countries where child labour was involved. Swami Agnivesh the Chairperson of a local NGO said, “As a human rights activist I extend my support against child labour. However, doubts are there in our minds about the actual role being played by foreigners in the Global March ... The organisers of the march have not spoken a single word so far about the plight of children in Iraq who are suffering due to the American ban.” The Swami described the protectionist agenda of the developed countries in the march as obvious. He also criticised the tactic of employing a costly march to address the problem of child labour saying, “The march has been funded to the tune of two million US dollars directly and the like amount indirectly, this money could have been used more compassionately for the children.”
4. CUBA AND THE ACP
Spain have given its support to Cuba's bid to join the ACP. During the Cuban Minister of Foreign Affairs, Roberto Rabaiana's, visit to Spain, Spanish Prime Minister, José Maria Aznar, expressed his support for Cuba's request and hoped the country would be able to participate in the forthcoming negotiations on the future relationships between the ACP and the EU. At the same time the Bureau of the ACP Council of Ministers supports Cuba's request to attend the ACP Council meeting on 5 and 6 May in Barbados as an observer. If this is endorsed by the Council itself it opens tha way for Cuba's involvement in ACP discussions about the future negotiations with the EU.
5. EU MEMBER STATES AGREE MAJOR PRINCIPLES FOR NEXT CONVENTION WITH THE ACP
The 15 EU Member States have agreed the basic objectives they wish to see for the next Convention. These are based on giving a new dynamism to the partnership which integrates political dialogue, development co-operation and a revised trade regime. The new Convention should emphasise poverty reduction, the deepening of political dialogue, the enlargement of the partnership with civil society and the private sector in development co-operation strategies. These strategies should be based on effective management of public resources and increased regional integration. The financial instruments and management need to be rationalised and simplified, giving a greater role to the private sector and NGOs.
It also seems that there is no basic disagreement on the future institutional framework and final provisions of an agreement (i.e. duration, non-implementation clause, etc.).
However, the Member States have not been able to yet agree on what reforms are needed to the trade regime for a future Convention. This remains the main issue for negotiation between the fifteen.