ACP-EC-ACP-EC-COOPERATION and COOPERATION and

Trade NegotiationsTrade Negotiations

Joyce Anne-Marie Joyce Anne-Marie van Genderen-Naarvan Genderen-Naar

Lawyer, Journalist, Lecturer, Lawyer, Journalist, Lecturer, AdvisorAdvisor

History

EEC Treaty of Rome 1957: association of 18 African States and Madagascar (AASM)

Preferential trade system and European development funds (EDF)

Yaoundé Conventions 1963 and 1969

1975 ACP Group, 6 June 1975 Georgetown Agreement, Lomé Conventions 1975, 1980, 1985, 1990, 1995

Cotonou Agreement 2000 – 2020

ACP Group of States

79 ACP States

48 African 16 Caribbean 15 Pacific

6 ACP regions

4 African 1 Caribbean 1 Pacific

ACP Africa

Angola*, Benin*, Botswana, Burkina Faso*, Burundi*, Cameroon, Cape Vert*, Central African Republic*, Comores*, Congo, Democratic Republic Congo*, Côte d’Ivoire, Djibouti*, Eritrea*, Ethiopia*, Equatorial-Guinea*, Gabon, Gambia*, Ghana, Guinee*, Guinée-Bissau*, Kenya, Lesotho*, Liberia*, Madagascar*, Malawi*, Mali*, Mauritania*, Mauritius, Mozambique*, Namibia, Niger*, Nigeria, Rwanda*, Sao Tomé and Principe*, Senegal, Seychelles, Sierra Leone*, Somalia*, Sudan*, South Africa, Swaziland, Tanzania*, Togo*, Tchad*, Uganda*, Zambia*, Zimbabwe.

ACP Caribbean

Antigua & Barbuda Bahamas Barbados Belize Cuba Dominica Dominican Republic Grenada

Guyana Haiti Jamaica St. Kitts & Nevis

St. Lucia St. Vincent & Grenadines Suriname Trinidad & Tobago

ACP Pacific

Cook Islands Fiji Kiribati* Marshall Islands Micronesia Nauru Niue Palau

       

Papua New Guinea Samoa* Solomon Islands* Timor Leste Tonga Tuvalu* Vanuatu*

Objectives

Poverty eradication

Sustainable development

The gradual integration of the ACP countries into the world economy

Fundamental Principles

Equality of the partners (ACP and EC) and ownership of the development strategies; dialogue between ACP and EC, differentiation and regionalisation

Participation : state and non-state actors (private sector, economic and social partners, civil society). Strengthening of the role of civil society. Encouragement of networking and links between ACP and EC Actors.

ACP – EC Cooperation

Development cooperation Regional Cooperation and Integration Ecnomic and trade cooperation Cooperation in the international fora Development Finance cooperation Technical cooperation Social sector development Cultural development

European Development Funds (EDFs)

1959 – 20079 European Development Funds (EDF) for each 5 years one EDF financial assistance/contributions from the EC

Member States to the ACP statesGrants

9th EDF 2000 - 2005 (2007) : 15 EU Member StatesEUR 13 500 million

10th EDF 2008 – 2013 : 27 EU Member States EUR 22 682 million

10th EDF: 22 682 million EUR

EUR 21 966 million allocated to the ACP Group of States

EUR 286 million allocated to the Overseas Countries and Territories (OCT)

EUR 430 million allocated to the Commission for support expenditure as referred to in Article 6, linked to programming and implementation of the EDF by the Commission

Official Journal of the European Union, L 247/32, 9.9.2006.

EDF: own financial rules

EDF: intergovernmental fund, outside main EU budget.

EDF Management Committee (= EU Member States who voluntarily fund the EDF) agrees and ratifies the EDF budget, approves all ACP Country and Regional Support Strategy Papers (the main instruments for determining how and where EDF resources are spent).

Mid Term Review EC – ACP Aid programming process

http://ec.europa.eu/development/geographical/methodologies/regiopapers_en.cfm

http://ec.europa.eu/development/geographical/methodologies/strategypapers10_en.cfm

National Indicative and Regional Indicative Programmes.

Mid-Term Review : Tool for Commission to revise the strategies and resource allocation and to adjust the envelope allocated based on measurable results and progress.

Priority areas 10th EDF trade and regional integration environment and sustainable management of

natural resources infrastructures, communications, transport water energy rural development governance, democracy, human rights conflict prevention and fragile states human development social cohesion and employment

10 th EDF Contributions of the EC Member States 2008 - 2013

Belgium 800 674 600 EUR Bulgaria (*) 31 754 800 Czech Republic 115 678 200 Denmark 453 640 000 Germany 4 649 810 000 Estonia 11 341 000 Greece 333 425 400 Spain 1 780 537 000 France 4 434 331 000 Ireland 206 406 200 Italy 2 916 905 200

Cyprus 20 413 800 Latvia 15 877 400 Lithuania 27 218 400 Luxembourg 61 241 400 Hungary 124 751 000 Malta 6 804 600 Netherlands 1 100 077 000 Austria 546 636 200 Poland 294 866 000

10th EDF Contributions of the EC Member States

Portugal 260 843 000 Romania 83 923 400 Slovenia 40 827 600 Slovakia 47 632 200 Finland 333 425 400 Sweden 621 486 800 UK 3 361 472 400

(Official Journal of the European Communities L317/355; Volume 43, 15/12/2000)

ACP Focal Areas

Infrastructure Roads (Africa) Harbour (Suriname)

Health (Africa)

Education (Barbados)

Non Focal areas: Capacity Building and Institutional Strengthening

Institutions Council of Ministers

Committee of Ambassadors

Joint Parliamentary Assembly http://www.europarl.europa.eu/intcoop/acp/10_01/default_en.htm

CDE (enterprise); CTA (agriculture): http://brusselsbriefings.net

ACP – Secretariat, Brussel: www.acp.int

ACP-EU TRADE

non-reciprocal trade preferences from 1959 – 2007

WTO waivers 1994 and 2001

2008: EPAs = WTO compatible trade arrangements

Art. 36 ACP-EC Agreement 2000: ‘The Parties (ACP and EC) agree to conclude new World Trade Organisation (WTO) compatible trading arrangements, removing progressively barriers to trade between them and Enhancing cooperation in all areas relevant to trade’.

Article 37 Economic Partnership Agreements (EPA) shall be

negotiated during the prepatory period which shall end by 31 December 2007 at the latest

Formal negotiations shall start in September 2002 The new trade arrangements shall enter into force

by 1 January 2008.

Negotiations of the economic partnership agreements (EPAs) shall aim at Establishing the timetable for the progressive removal

of barriers to trade between the Parties. In accordance with the relevant WTO rules.

ACP-EC EPA negotiations

Negotiations from 2002 – 2007 - 2010 - ?

Between EC and 6 ACP regions

Africa: 4 regions (West, Central, East, Southern) Caribbean: 1 region (Cariforum) Pacific: 1 region

Negotiating Structure of the ACP Phase I negotiations at all ALL ACP level

77 ACP states 2002 – 2003

Phase II regional negotiations 2002 – 2007 6 ACP regions regional organisations mandated by the ACP states regional negotiators CARIFORUM: the Caribbean Regional Negotiating

Machinery (CRNM)

Political responsibility: ACP-ministers and ambassadors Coordination of the ACP-Regions with the ACP- countries

and the ACP-Secretariat in Brussels Global strategy and Coordinating Body

The negotiating structure of the EC side

The European Commission

DG Trade

EU Commissioner Trade

DG Development: development aspects

Council of the European Union : formalize

Negotiating Issues

Market access and tariff liberalisation

Rules of origin (reform of preferential rules)

Services: integration and opening of ACPmarkets

Rules: investment, competition, trade facilitation, public procurement, intellectual property rights

Development finance: EDF, Aid for Trade

Results of the EPA negotiations

One complete EPA between EC and 15 Caribbean/ CARIFORUM countries concluded December 2007, signed in 2008, 3 ratifications in 2010, no implementation institutions in 2010.

20 Interim EPAs concluded with 18 African and 2 Pacific countries (Fiji and Papua New Guinea) December 2007. Access free of tariffs and quota to the EU market starting January 1 2008, with transition periods for sugar and rice.

Duty-free, quota-free access to the EU market .

Liberalization of markets, loss of import tariffs.

EPA negotiations continue

2008 – 2010 EPA negotiations continue between EC and 42 ACP states (29 in Africa and 13 in the Pacific)

32 LDCs and 10 non LDC ACP States

Free market access of “Everything but Arms” for the 32 Least Developed Countries (LDCs)

NON LDCs face tariffs on their key exports to the EU market if they do not sign the EPAs.

Concerns Through the EPA the markets of ACP states will be

put in direct competition with the European market.

This will be very unfair for small ACP countries that are just an emerging economy.

The EPAs could easily destroy the grow potential of ACP States.

Asia is an upcoming economic power which might potentially be a better alternative.

Africa

Until now only 18 out of 47 African countries have concluded the EPA with the EC

EPAs provide wrong development model for Africa and do not reflect the food, financial and climate crises

EPAs jeopardize African countries’ development and regional integration prospects

EPAs should focus on food security and production, regional infrastructure and needs.

Pacific “a harsh and unnecessarily domineering approach of the EC;

we came out of there feeling like we had been totally run over; there's a style, there's a protocol - .”

EPA means no barriers for EU and trade barriers for ACP such as Rules of Origin, non-tariff barriers and standards.

The constraints and cumulative provisions hinder the development of opportunities.

Need to improve the Rules of origin and to make them user friendly for ACP trade.

Alternatives to the EPA

EU GSP+ scheme for non-LDCs for preferential EU market access

Renegotiate WTO’s Art. XXIV (Doha round)

‘Moldova preferential Treatment’for LDCs (EBA)

Goods-only EPA (not services)

GSP EXPIRES 31 DECEMBER 2011

The EU's Generalised System of Preferences (GSP) is a trade arrangement through which the EU provides preferential access to the EU market to 176 developing countries and territories, in the form of reduced tariffs for their goods when entering the EU market. The present GSP Regulation expires on 31 December 2011. Public Consultation open until 31 May 2010.

View the consultation document

Cariforum-EC EPA 15 Caribbean States: ‘full EPA’, liberalisation of trade in goods

and services (tourism, ICT, entertainment, financial sector).

To make the region attractiveto long-term investment in the area of services, to secure access to the European services market.

Concluded on 16 Dec 2007, signed in October 2008.

2010: only 3 Caribbean countries and? EU Member States ratified. No implementation institutions .

Burning issues The EU-Latin America bananas agreement and its

impact on ACP and EU banana producers, JPA Declaration adopted in Tenerife on 1 April 2010.

Free Trade Agreements with third parties with potential to undermine the benefits of the ACPstates.

EC Regulation on Illegal, Unregulated and Unreported fishing (IUU).

Cotton, sugar, bananas and rum in the WTO negotiations and its implications for ACP countries

BANANA ISSUE Cariforum EPA and Interim EPAs signed to

safeguard Banana exports to the EU market

EC-Latin American Banana Agreement reducing the tariffs for the Latin American countries (Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Nicaragua, Panama), destroying Caribbean and African banana industries : Belize, Cape Verte, Cameroun, Cote d’Ivoire, Dominica, Dominican Republic, Eritrea, Grenada, Ghana, Jamaica, Kenya, Madagascar, OECS, Suriname, St. Lucia, St. Vincent & the Grenadine and Tanzania

ACP Agricultural Trade and EU CAP Reform

lowering of internal EU agricultural prices has driven ACP suppliers out of the EU market (e.g. exporters of low-quality beef);

emphasis on quality and food safety is increasing the costs for ACP producers of exporting to the EU market, in some cases eroding net income earned by ACP exporters (e.g. in the horticultural sector);

implications for the distribution of export-oriented agricultural production across the ACP and for different modes of production within the ACP.

ACP constraints

Commodities, raw materials, no processing High production costs Energy needs A limited export base Widespread operational inefficiencies Ineffective or non-existent regulatory institutions High transportation costs Vulnerabilities due to small scale.

ACP PMDT POLICY P: Processing of raw materials; energy needs (water power plants, solar

energy) M: Marketing D: Distribution T: Transport

Furthermore

Need to develop decent jobs Better use of raw materials Diversity of food and processed products.

 

MDGs Goal 1: Eradicate extreme poverty and hunger

Goal 2: Achieve universal primary education

Goal 3: Promote gender equality and empower women

Goal 4: Reduce child mortality

Goal 5: Improve maternal health

Goal 6: Combat HIV/AIDS, malaria and other diseases

Goal 7: Ensure environmental sustainability

Goal 8: Develop a Global Partnership for Development  

Impact of Global crises

ACP countries have been pushed deeper into poverty by:

high food prices rising fuel prices planting of crops for the production of biofuel and

destruction of forests and land available to grow crops for food

financial crisis economic crisis climate change