PAF ProActive File - Regular News Update from Eurostep

No. 320
11 July 2003

1. THE EUROPEAN PARLIAMENT CALLS ON WTO MEMBERS TO CORRECT THE IMBALANCES IN THE WORLD TRADE SYSTEM

In a resolution on the upcoming WTO Summit, which will be held in Cancun next September, the European Parliament reaffirmed the need for reforms based on equity, democracy, sustainable development and fight against poverty. It called for a solution on the issue of access to medicines and for a reduction of quantitative restrictions on farms imports from developing countries. The European Parliament’ s resolution welcomed the proposal of creating a “food safety” case and appealed to WTO members to respect the principle of non-reciprocity as established in Doha. It also urged the protection of intellectual property and the promotion of fundamental labour standards.

EU Trade Commissioner Pascal Lamy, talking about the state of progress of negotiations of the Doha Agenda, warned that “there is not much time left for us in which to succeed”. However, in a press conference following the informal trade ministers meeting which was held in Palermo on 6 July, Mr Lamy stated that, following the adopted decisions to reform the Common Agriculture Policy, “On agriculture we can now move on to the offensive”. Reportedly, according to Mr Lamy spokesman, on the Doha Development Agenda (DDA), there is also a large consensus between the present EU member states and the accession countries.

On the occasion of the ministerial meeting in Palermo, a document, “European Civil Society Call: Stop the EU’ s Agenda for the WTO Expansion” – drafted by around one hundred NGOs – was addressed to Commissioner Lamy and to the Italian Presidency. NGOs opposed to integrate talks on investment into the DDA and expressed their disappointment, as the Italian Presidency made no commitment in discussing the review of Commissioner Lamy’ s mandate. In the statement, NGOs say

“We call on EU trade ministers to assume their decision-making responsibilities in the run up to Cancun. We encourage EU Member States to voice their concerns about the current position of the European Commission the new issues and support a European negotiating agenda, which is more responsive to the concerns of EU citizens and to the demands of poverty reduction and sustainable development. The new issues have to be withdrawn from the EU position. This means a revision of the negotiating mandate that the Council gave to Commissioner Lamy back in 1999 before the Third Ministerial Conference in Seattle”.

The NGO statement is available on http://www.investmentwatch.org/palermo.html

2. THE COURT OF AUDITORS FINDS ERRORS IN THE EXECUTION OF COMMISSION INFRASTRUCTURE PROJECTS IN ACP COUNTRIES

On 4 July the Court of Auditors published a special report (8/2003) examining the execution of infrastructure works – mainly in the highway sector - financed through the European Development Fund (EDF) in ACP countries. According to the report, “shortcomings and errors in the design and implementation studies are the source of many of the implementation problem fund. The absence of any quality control of these studies means that too many contracts are based on partially incorrect or unrealistic terms and conditions”. The Court of Auditors, examining 30 contracts concluded between 1987 and 2000 by seven ACP countries, found some errors concerning, in particular, the Addis Ababa-Jima and Addis Ababa-Woldiya roads in Ethiopia, the Yaoundé-Ayos road in Cameroon, the port of Zanzibar in Tanzania, the Negril water treatment works in Jamaica. Claiming insufficient monitoring, the Court of Auditors recommended the EU and ACP countries to improve the execution of the contracts and called on the European Commission to improve supervision of the projects implementation.

Road infrastructure building in developing countries is supposed to be one the EU’s areas of expertise and is included in the EU’s six priority areas of its development policy on this basis.

For further information see the report on http://www.eca.eu.int/EN/press_room.htm

3. THE EUROPEAN COMMISSION DEFINES NEW PARTNERSHIP FRAMEWORK WITH SOUTH EAST ASIA

On 9 July the European Commission presented a renewed framework for cooperation with countries of South East Asia (ASEAN). The partnership strategy will cover human rights, good governance, migration, fight against terrorism and would also include the trans-regional EU/ASEAN (TREATI) initiative, which is a trade action plan aimed at facilitating trade and investment between the two blocs. According to Trade Commissioner, Mr Lamy, in this way Europeans open “ a new chapter in EU-ASEAN trade relations. TREATI will help to build trust between both regions: we are ready to match the level of ambition they put in their own process or regional integration”.

The new communication, which will be officially presented by Commissioner Chris Patten and Pascal Lamy on 23 and 24 July, defines six priorities to be submitted to Asia-Europe meetings (ASEM), to ASEAN and to Forum on security in the Asia-Pacific area (ARF) in order to make the institutional framework more productive. The key issues are the following: support to regional stability and fight against terrorism; human rights; justice and home affairs; reactivating trade relations and investment; support to the development of the least wealthy countries; dialogue and cooperation in specific areas such as technology, education and culture, transport, energy, environment and information society.

4. CIVIL SOCIETY RESPONSES TO EU CAP ‘REFORM’

Following the adoption of the EU position of the reform of its Common Agriculture Policy, a number of NGOs reactions including Eurostep members have been critical. (See PAF 318)

The EU’s reform is aimed at decoupling aid to EU farmers from the volume of their production. According to EU Agriculture Commissioner, Franz Fischler, the reforms would put an end to the trade distortions that have been so harmful to developing countries.

But in a press release Oxfam GB states, "These proposals confirm our worst fears, there is nothing to celebrate. It is difficult to see what poor countries will get out of the world trade talks in Cancun this September. … Europe had the opportunity to take global leadership on making trade work for the poor, instead it has chosen to stick its head in the sand."

Coordination Paysanne Européenne, an organisation representing European small farmers, points out « …It is not radical reform towards a more sustainable or fairer agriculture, which would have been forced out of conservative farmers and Member States. Indeed with respect to essential problems, the reform does not change anything.”

Consumers International describes the reform in following way: “This deal is riddled with delays and exceptions, which expose it for the political fudge it really is.. `Without a greater commitment to EU reform, there are no incentives for other countries, including the USA, to tackle tariff barriers and subsidies at the WTO Ministerial. This deal is anti-development, anti-trade and anti-consumer.

5. IN BRIEF

European Commissioner for Development, Mr Poul Nielson, and President in office of the Commission, Mr Romano Prodi, were to take part, as observers, at the Summit of African Union of Heads of State, taking place in Maputo, Mozambique, on 10-12 July. The Summit is mainly aimed at consolidating the Union’s structure by electing ten members of the African Commission. The European Commission published in July a communication on EU-Africa dialogue.

The European Commission has decided to allocate humanitarian aid, valued €10 million to assist population in the Palestinian Territories and Palestinian refugees in Lebanon. The fund is mainly aimed at increasing job opportunities, improving health conditions and providing psychosocial support.

Adopting a resolution on trade in children and the use of child soldiers, the European Parliament stated that the fight against this trade and the use of child soldiers must be a political priority and called on the EU to create a budget line to allocate adequate financial resources. The European Parliament also asked the Commission and the Council to nominate a high level representative for children rights. Reportedly the trade affects over 1.2 million children every year. More than 300,000 are currently enrolled in fighting units in more than 30 countries.