PAF ProActive File - Regular News Update from Eurostep

No. 329

3 October 2003

1. LAUNCH OF THE FIRST ACP-EU NEGOTIATION ON EPAS

ACP Trade Ministers on the eve of their trade negotiations with the EU issued a press release stating the ACP’s position on the eve of the negotiations. The Ministers reiterated their call for the 1^st phase of the negotiations to result in an legally binding agreement between all ACP countries and the EU but stated that it was willing to accept in place of such an agreement, a joint document in form of either a Memorandum of Understanding or a Joint Declaration that will reflect the commitments of both sides arising out of the 1^st Phase. This document would provide the guidelines for regional negotiations.

The ACP also decided in view of preserving ACP solidarity and unity to establish an all ACP follow-up mechanism for phase 2, which involves separate negotiations between the ACP sub regions and the EU. The mechanism’s highest political oversight body for the negotiations will be the ACP Council of Ministers assisted by the ACP Ministerial Trade Committee.

The Ministers recommend that phase 1 negotiations continue all through 2004. Outstanding issues to be addressed in this phase include: WTO-compatibility; Dispute settlement; Non-execution clause; Definition of parties to Economic Partnership Agreements (EPAs); Modalities for entry into force of EPAs; Trade-related areas; Rules of origin; Safeguards; Commodity Protocols; All ACP-EU Framework Agreement on fisheries; Fiscal, economic, balance of payments and social implications of EPAs; Additional resources; Treatment of non-LDCs not in a position to enter into EPAs; SPS issues; Regular, formal and comprehensive reviews of preparations and negotiation of EPAs; Implementation mechanism for EPAs.

On Agriculture, the Council underlines the divergence of view on the sequencing of EPA negotiations vis-à-vis the provision of support for the development of agricultural sector to the ACP countries and regions. The ACP side considers that more assistance is needed for the ACP countries and regions before EPA negotiations could start in this area. The Council further recommends the creation of an all-ACP-EC Technical Monitoring Committee. Representation on the ACP side would be comprised of members of the ACP follow-up mechanism for Phase II negotiations.

The ACP Secretariat this week also issued a press release expressing concern that the recent EU communication on the Market of Sugar neglects the interests of both ACP and European stakeholders. The ACP States, like the European sugar producers and growers, simply cannot understand why the Commission has decided to exclude consideration of the option most favoured by both ACP and European stakeholders, that of the "return to fixed quotas", and has instead chosen to pursue options which would undoubtedly lead to immense hardships in ACP States, most of which are small, vulnerable, landlocked and island developing countries.

The ACP States are concerned that liberalisation of the EU Sugar Regime would benefit a few larger developing countries at the expense of most ACP States, which might be forced out of sugar production with the consequential political, social and economic instability. The Commission has also disregarded the position of the Least Developed Countries (LDCs), which have stated that the EBA initiative will only be of benefit to them if they obtain "remunerative prices" for their sugar exports.

2. SECOND ROUND OF NEGOTIATIONS FOR A NEW EU-CENTRAL AMERICA CO-OPERATION AGREEMENT

Second round of negotiations for a new EU-Central America Political Dialogue and Co-operation Agreement take place in Brussels from 29 September to 1 October.

This Agreement stems from the decision taken by Heads of State and Government at the Madrid EU-Latin America and Caribbean Summit in 2002. The main aim of the agreement is to strengthen relations and co-operation between the two regions as well as to foster regional integration among Central American countries. The EU negotiating team will be led by Mr. Francisco da Camara Gomes, Director for Latin America of Directorate-General for External Relations of the Commission on the EU side. The Central American team will be led by Panamanian Minister of Foreign Affairs, Harmodio Arias, in his capacity as current holder of the rotating presidency of the Central American Integration System (SICA), alongside representatives from Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua.
The new Agreement will formalise the San Jose Dialogue process, which was launched in 1984 and forms the cornerstone of relations between the EU and Central America. This dialogue was instrumental in bringing about peace and restoring democracy in the region.
Historically, the EU has granted significant levels of development co-operation to Central America, averaging some €145 million per annum over the past seven years. Co-operation has so far mostly focused on human rights and democracy, integrated rural development, disaster prevention and reconstruction, social development and regional integration. In addition to upgrading political dialogue, the new Agreement will expand current co-operation to new areas, including migration, counter-terrorism and economic co-operation.

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