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1. EU STRATEGY ON BANANA TRADE REGIME FACES MORE OPPOSITION - EU-CARICOM COMMITTEE TO STUDY PROPOSAL ON QUOTA SYSTEM
According to the European press the ACP seems to be moving towards a common position that is hostile towards the use of customs quotas, while asking the EU to ensure that a new EU banana trade regime allows the ACP continued market access to the EU on a sustainable and remunerative basis. Many ACP countries have expressed their misgivings on the European Commission’s proposal of a ‘first come-first served’ quota system (See PAF 187 & 189). Edwin Laurent the Ambassador of Saint Lucia to the EU, last week speaking to the European press, said, “We have small producers, and without a certain security and guarantee that they will be able to sell their ripe bananas, they could see a whole year of work and investment spoiled”. The Ambassador added however that a tariff only solution would be the worst solution for the ACP and called for a historical reference system in allocation of quotas to be used.
Further to the Commission’s proposal on the first come-first served quota system, a mixed EU-CARICOM (Caribbean Community and Common Market) Committee will, in the coming weeks, examine the technical problems that may arise from such a system. Many observers are of the view that such a system would lead to a ‘boat race’ to grab the Community market share, with only the large multinational banana producers benefiting.
The Commission’s strategy to resolving the banana dispute also led to a wave of protests from within the European Parliament’s Agriculture Committee in a meeting with EU Trade Commissioner Pascal Lamy. Many MEPS have also voiced the concern that that EU and ACP producers will lose out to the powerful multinationals under the ‘first come-first served system’. Spanish MEP Isidoro Sanchez Garcia described the European Commission’s proposal of a transitional quota solution based on a ‘first come-first served’ basis and/or an exclusively tariff system as agricultural genocide for EU banana producers.
Mr Lamy in his response, attempted to assure the MEPs that the Commission is seeking to protect Community and ACP producers. He promised to present the results of a Commission feasibility study on the first come-first served system between mid-September and mid-October.
In a related side event, a report in the BRIDGES newsletter this week states that, a WTO panel has ruled in favour of the EU with a decision that US sanctions against the EU regarding the banana dispute in early 1999 were imposed prematurely. The US required importers of certain goods from the EU to post bonds to cover anticipated duties on 3 March 1999, almost seven weeks before the duties were officially authorised by the WTO. The panel decision has been welcomed by the EU. According to EU trade spokesman Anthony Gooch, the decision shows that the US "cannot act as judge, jury and executioner. That's the job of the WTO." EU companies hit by the sanctions before WTO authorisation can now take up the matter in US courts and claim damages, the decision does not affect the duties themselves, which will remain in place.
2. EU WELCOMES CONTINUATION OF MINISTERIAL DIALOGUE WITH ASEAN
French Minister for Development Co-operation and President in Office of the EU Development Council, Mr Charles Josselin has on behalf of the EU welcomed the exercise of political dialogue between the ASEAN countries (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar/Burma, Philippines, Singapore, Thailand, and Viet Nam) and the EU and other powers, that was held last week. This dialogue between took place on the margins of the Forum on Regional Security in Asia in Bangkok.
EU Commissioner for External Relations, Chris Patten, expressed the hope that dialogue between the EU and ASEAN countries would no longer be held hostage to issue of human rights in Burma. But EU sanctions on Burma will continue as long as Burmese leaders do not stop human rights violations he said. The Commissioner argued that it is simply not a question of lining up against Burma. “We are simply working to convince the regime in Burma to change its misguided ways of acting”. The Commissioner confirmed that an EU Troika would be going to Rangoon.
The EU also initiated informal relations with North Korea on the sidelines of the Forum. While the EU expressed its aim to contributing to modernise North Korea, EU High Representative for Common Foreign and Security Policy, Javier Solana stated that the EU will maintain its critical attitude towards North Korea as long as the problem of weapons of mass destruction has not been resolved and the human rights situation is not improving.
3.COMMISSION PROPOSE MEASURES THAT COULD LEAD TO SUSPENSION OF AID TO FIJI AND HAITI
If authorities in Fiji do not provide guarantees on returning to democratic government, the European Commission may propose to the EU Council, the consultation process provided under the revised Lomé IV Convention, which could lead to suspension of EU aid.
The Commission, which was waiting for the outcome of the crisis that triggered armed resurrection in Fiji on 19 May, has observed that the situation in Fiji has not improved. Under article 366 of the Lomé IV bis Convention, an ACP country that is adjudged to have violated its obligations relating to human rights, democracy and the rule of law, will be invited to consultation with the EU on resolving the issue. If no solution is found following consultations over a fixed duration, EU aid may be fully or partially suspended to the accused ACP country.
According to a report made by the Inter Press Service (IPS) last week, the economic toll of the armed insurrection in Fiji is mounting. The Fiji Reserve Bank predicts a 15 % drop in Fiji’s economy as a result of the insurrection. The number of tourists visiting Fiji has plummeted by 70 % and the Fiji Finance Ministry is considering cuts in public expenditure by 30 % to compensate for the drop in the revenue from sugar and tourism.
The Commission also seems set to propose the same procedure for consultations with Haiti. According to a spokesman for the EU Commissioner for Development, Poul Nielson, the Commission is motivated by the absence of credibility in the electoral process, and the non-respect of democratic principles and the rule of law in Haiti
4. PRODI WELCOMES RESULT OF G8 SUMMIT IN OKINAWA
The President of the European Commission, Romano Prodi, has welcomed ‘progress’ made in Okinawa regarding contagious diseases (AIDS, malaria, tuberculosis), food safety, information technology and world trade. He said Europe and its partners would act rapidly to implement decisions taken at the Summit. The Commission has highlighted five of Mr Prodi’s concerns on which the G8 announced initiatives. These are the following:
A new strategy on the fight against infectious diseases to be set out at a conference in Japan in September.
The establishment of a panel on world food security
The adoption of the Okinawa Charter on the Global Information Society
The commitment to intensify efforts to launch a new WTO round before the end of the year
The commitment to launch a new partnership with non G8 countries and civil society
5. IN BRIEF
The European Commission has adopted a Council proposal aiming to ban imports of diamonds originating in Sierra Leone. The Commission is proposing sanctions in case of violation of this ban. This move comes a week after the diamond industry adopted new measures to regulate the diamond industry
Less than two weeks before the entry into force of the EU-South Africa Agreement on Wine and Spirits, problems have arisen between the two parties on the compromise on the protection on the terms ‘port’ and ‘sherry’ and the arrangements for support for restructuring the South African wine and spirits sector. According to EC sources South Africa is seeking to re-open discussions on these issues.
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