Eurostep

PAF - ProActive File

Regular News Update From Eurostep, No. 356

23 April 2004


1. NGOs Debate Mid-Term Reviews and EPAs

The meeting of the CONCORD Cotonou Working Group on 22-23 April brought together representatives from the ACP Secretariat, European Commission and European & ACP NGOs to discuss the recent developments relating to the Cotonou agreement between the EU and ACP countries. Helia Mateus from the Commission (DG Development) briefed the participants on the current situation of the Mid-Term Reviews of the Country Strategy Papers. The deadline for the Joint Annual Reports was in February and the deadline for draft MTR conclusions in March. Currently the Commission is holding Country Team meetings, with participants from various DGs. Three of these meetings have already been concluded in March, 22 will be conducted during April, another 22 during May and one meeting is scheduled for June.

In the discussion on the Economic Partnership Agreements (EPAs) Ahmed Ndyeshobola from the ACP Secretariat warned that some ACP countries might not accept the proposed agreement if they are not seen as being positive for development. In response to the question on whether there are any economic interests for Europe in the negotiations Claude Maerten from the Commission (DG Trade) replied that some European companies may benefit from the trade arrangements, but the main priority for EU is not to have access to ACP markets. He stated that the EPAs are part of the EU's global policy of supporting economic and political stability and promoting development.

The minutes of the meetings will be available from Eurostep next week.

2. African NGOs Call for a Rethink of EU-Africa Relations

At a conference in the European Parliament, organised by the United European Left/Green Nordic Left-group,  representatives of African NGOs met to discuss the causes of poverty and the impact of globalisation on sub-Saharan Africa. The trade agreements between Africa and EU came under heavy criticism: Yassine Fall from the NGO Aide Transparence in Senegal argued that the agreements are failing to take into account the role of women as farmers and processors of food. Yash Tandon from SEATINI  added that the main cause of poverty in sub-Saharan Africa is the establishment of economic partnerships based on unequal strength. The Neo-liberalist approach to trade was condemned and Yassine Fall called for a rethink in EU's relations with Africa. Demba Moussa Dembele (Forum pour l'alternance africaine, Senegal) reminded that debt was one of the causes why Africa's economy is not developing and is a constant source of domination and exploitation of the rich over the poor.

3. EU Changes Tactics with Mercosur

Following reports (see PAF #355) that the EU is planning a deal with Mercosur (the South American Customs Union) to water down demands for subsidy and tariff reduction at the WTO in exchange for preferential access to otherwise protected EC markets such as dairy and beef, EU and  Mercosur have suspended plans to present each other with formal offers in bilateral trade negotiations; opting instead to proceed on an informal basis. Switching to an informal basis means that either side can withdraw their offers if they feel they have not gained equivalent benefits in other areas.

According to the Financial Times a high-ranking Mercosur official said on Wednesday that there had been "too much noise" to continue with formal offers. One Mercosur official involved in the high-level talks over the weekend in Buenos Aires confirmed that the EU had offered to extend the deal to include all goods currently produced by Mercosur with the important exception of sugar, which is heavily protected in the EU.

The countries that are members of both Mercosur and G-20: Argentina, Brazil, Paraguay have now sought to reassure their G-20 partners that the WTO negotiations and the EU-Mercosur bilateral talks were two separate tracks, and that the WTO negotiating stance of the group would not be affected. Some had warned earlier that the EU could make an attempt to split the G-20 by conditioning increased import quotas for key Mercosur products through the regional agreement on the latter group easing pressure on the EU to significantly reduce its subsidies and agricultural tariffs at the WTO.
(FT, Bridges)


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