Trade issues proved to be the most contentious point at the ACP EU Joint Council that took place on 8-9 May in Bridgetown, Barbados. UK co-chair of the Council, Mrs Claire Short the UK Minister for International Development, referring to the WTO decision on the EU banana regime said that the EU Council would try to establish a new regime compatible with the WTO and which also respected the commitments of the EU. Fellow co-chair Mr Jean Ping, Gabon's Minister for Planning the Environment and Tourism said that any future EU-ACP relationship should not destroy the fundamental agreements of past Lomé Conventions.
On the subject of the EU banana trade regime, the EU reminded its ACP partners that, following the challenge raised by the WTO regarding the common market organisation, two proposals of regulation were being examined by the Council aimed at amending the Community regulation and establishing a special assistance framework. According to the EU, every effort has been made to find a rapid solution to this technically and politically complex issue. The ACP on their part stressed the importance they attach to the EU's full respect of obligations it had made to the ACP, i.e. providing better protection of the ACP's legitimate interests and guaranteeing their access to European markets. They called for a system with sufficient financing that can be mobilised quickly to cover operational costs for a sufficiently long period to enable both traditional and non-traditional banana suppliers adapt to new market conditions. They rejected the US backed proposal that calls for the EU to replace the tariff quota by a single tariff.
On the WTO, the Council discussed preparation of the Ministerial conference to be held in Geneva from 18 to 20 May. The Union recalled its implementation of measures in favour of LDCs decided at the Singaporean Ministerial Conference, notably with regard to improving market access and technical access for the improvement of export capacities.
On agricultural produce, in general, ACP Ministers regretted the delay of the entry into forced of the revised Lomé Convention and its regulations concerning the scheme for import of certain agricultural and food products originating in ACP States. The Ministers stressed on the necessity of guaranteeing ACP exporters, particularly rice exporters, the repayment of excess duties paid in the course of the interim period.
On Cuba, the ACP Council urged the Joint Council to admit Cuba to the Joint Council as the ACP had done. The EU compromise decision that allowed Cuban diplomats to join other observers for that particular session was accepted by the ACP. On the EU side it was recalled that in order to join the ACP group, Cuba must be made aware of the Lomé Convention's rules which call for respect of human rights, democracy and rules of law.
2. RESULTS OF INTERNATIONAL BANANA CONFERENCE
The International Banana Conference organised in Brussels last week on the initiatives of NGOs and trade union has produced a draft 'International Banana Charter'. The idea behind the Charter is to reconcile the distinct interests of all parties involved - small farmers, multinationals, governments, international organisations such as the WTO, ACP and the EU - by encouraging fair trade, based on the respect of minimum environmental and social standards.
According to the authors of the Charter, a sustainable banana economy requires: a) that prices reflect the real costs of each stage of production; b) that governments and companies respect minimum social and environmental conditions; that consumers accept to pay a higher price, including the social and environment costs and whatever is required to enable the necessary investments to be improves these fields.
To this end the Charter calls for : 1) integrating clauses in trade agreements regulated by the WTO, guaranteeing minimum social and environmental standards; 2) replacing the current EU system of import licences under the common market organisation by a system guaranteeing producers equal access to the Community market. The Charter also stresses the vital role that codes of conduct, collective conventions, freedom of association for workers and the labelling of products can play in creating conditions for a suitable banana economy.
The Charter drawn by the organisers of the Conference and 350 other actors in the sector has no legal status but could serve as a guide for an in-depth reform of international banana trade.
3. EU BEHIND NEW GLOBAL FREE TRADE TALKS
Sir Leon Brittain, the Vice President of the European Commission is to call on the WTO members to launch a Millennium Round of global talks aimed at abolishing all remaining tariffs and other trade barriers with one stroke at the 50th anniversary celebrations of the multilateral trading system. The Uruguay Round of GATT requires the WTO to commence talks on further trade liberalisation in range of sectors including agriculture, services and intellectual property rights by 2000.
According to the Commission officials the advantage of a global round of trade talks is that countries can exchange concessions in one sector for gains in another. "Its a crude view of trade negotiations, but its the only game in town" said a Commission official.
The Commission's aims are however getting a mixed reaction from the US and Canada. US President Bill Clinton is unlikely to be able to convince an increasingly protectionist US Congress to agree to new trade liberalisation. A number of Latin American countries including Brazil, Argentina and Uruguay support the proposal. Asian countries are however divided on the issues. Singapore and Hong Kong are in favour while Japan, India and Pakistan are adopting a wait and see approach. Malaysia is opposed to it.
The EU will argue that since the Uruguay Round, a host of new issues have cropped up that require internationally accepted rules such as cross-border investment flows, competition policy, government procurement, trade facilitation and electronic commerce. Many trade experts are also of the view that a new multilateral round is need to check on regional trade agreements.
4. ALLEGATIONS OF UK SUPPORT TO SIERRA LEONE COUP RE-IGNITES DEBATE OVER EU ARMS EXPORTS
With only weeks before the end of the UK Presidency, the UK/French proposal on an EU code of conduct on arms still has not been agreed to by EU Member States. The draft code calls on EU Member States to inform each other when they export arms to other countries that have been denied arms by other EU members. Disagreement about several loopholes to the agreement is the main sticking point. Critics say that allegations that the UK facilitated the return of to power of ousted Sierra Leone President Ahmed Kabbah and UK Prime Minister Tony Blair's apparent defence of the counter coup in Sierra Leone point to the grey areas in the Code.
The main disagreements among member states are over whether all EU members should be informed when a member sells arms to a country that has been turned down by another member. France believes only the member who turned down the offer to sell arms should be informed. Another sticking point is on how tightly Member States should commit themselves not to sell states which governments that abuse human rights and internally repress its people.
Furthermore there are disagreements over whether the code should be a strong form of European foreign policy law as wanted by the Scandinavian countries and Germany, or a non-binding agreement as favoured by the UK and other countries. France goes even further calling for the code to be single declaration between European States but not formally within the mandate of the EU.