ACP-EU-TRADE

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The acp-eu-trade.org newsletter -- No. 1/July 2006
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In this issue:
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Welcome to the first issue of acp-eu-trade.org newsletter!
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Three questions to…:
Frederick ALIPUI, Managing Director of AFRIVEST Consult Ltd., Accra, Ghana.
Frederick Alipui is the co-author of the study “Strategic options for the future role and for strengthening the capacity of the AU Commission in the area of REC integration and trade and enhance its capacity to follow-up adequately the EPA process”.This study was recently submitted for validation to the European Commission’s Project Management Unit (PMU) and the African Union Commission.
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Focus on…:
The Technical Centre for Agricultural and Rural Cooperation (CTA) - work on ACP-EU agricultural trade issues
by Vincent Fautrel, Programme coordinator at CTA
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Keeping Track...:
The 2006 review of the Economic Partnership Agreements negotiations
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EPA Negotiations Update
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News: Highlights of the Month
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Selection from www.acp-eu-trade.org Library
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Resources from Recent Events
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Welcome to the first issue of the acp-eu-trade.org newsletter!

It is with great pleasure that we deliver the first issue of our long-awaited acp-eu-trade.org newsletter in your mailbox.

With this newsletter, we hope to increase the visibility of the acp-eu-trade.org website and enhance the dissemination of the wide variety of publicly available information and initiatives on trade issues between the African, Caribbean and Pacific (ACP) group of States and the European Union (EU). The negotiations of the Economic Partnership Agreements (EPAs) on-going between these two groups of countries, take centre stage of our ACP-EU trade agenda coverage.

Compiled on a monthly basis by ECDPM, the various sections of our newsletter seek to assist readers in accessing key ACP-EU trade-related information, in a complementary way to the two-monthly Trade Negotiations Insights. Whilst this joint ECDPM-ICTSD publication focuses on the major issues faced by African and ACP countries in their international trade negotiations at the WTO and with the EU in the context of the Cotonou Agreement, the acp-eu-trade.org newsletter aims to shed a non partisan light on what is also happening away from the table of negotiations of the Economic Partnership Agreements (EPAs) and closer to official and non-official inputs and outcomes that contribute towards adding perspective to - and shaping - the debate.

Our "Three Questions to..." section will provide you with the views, ideas and experiences of a key contributor to the EPAs' negotiating process. The "Focus On..." section briefly describes the work of a partner institution on ACP-EU trade issues, authored by a staff member of that organisation. "Keeping Track..." will assist readers in accessing up-to-date information on selected key topics of relevance to the ACP-EU trade negotiations. The next section of our newsletter provides a more detailed version of the TNI EPA Update May-June 2006 issue; Following sections then focus on the contents of the acp-eu-trade.org website, providing you with a selection of ACP-EU trade(-related) main news of the month, documents from our Library, and a presentation of available resouces from recent events.

**About the acp-eu-trade.org website: non-partisan sourcing and knowledge sharing on ACP-EU trade**

The ACP-EU Trade website is a joint initiative by ECDPM and ECORYS, with the support of DFID and OIF. Within the context of six ACP regions and the European Union actively engaged in the preparation and the conduct of regional EPA negotiations, this website is an on-line non-partisan information hub that provides a reliable support to policy-makers, negotiators and other ACP-EU trade(-related) stakeholders in their search for the most relevant, up-to-date and easily accessible background and policy-related information pertaining to ACP-EU trade matters.

For more information on the rationale behind www.acp-eu-trade.org, click here.

The www.acp-eu-trade.org team are: Davina Makhan (dm@ecdpm.org), responsible, inter alia, for network building activities with ACP and EU partners, Camille Donnat (cd@ecdpm.org), maintaining and further developing the website and its services. The team works under the editorial supervision of ECDPM’s ACP-EU Economic and Trade Cooperation Coordinator, Dr. Sanoussi Bilal.

Its current focus lies on further developing the publicly accessible database of trade and development experts hosted on-line on www.acp-eu-trade.org. This database of experts aims at giving interested parties, looking for a particular expertise in various trade and development related disciplines, information on - and/or contact details of - relevant internationally recognized experts or consultants.

There are currently more than 70 experts in the acp-eu-trade.org database of experts. For more information on this database, contact us at acpeutrade@ecdpm.org.

ACP-EU stakeholders are encouraged to participate in the various services provided via this website with the aim to exchange relevant information, build up trade negotiating capacity and facilitate networking activities. We therefore invite our readers to take an active role in www.acp-eu-trade.org by:

- Registering on-line as a trade and development expert to help mobilise the best expertise in ACP-EU trade and development matters and give interested parties easier access to information on relevant internationally recognized experts or consultants;
- Submitting relevant background and policy documents, news and links that will enrich the ACP-EU trade debate;
- Subscribing to our monthly newsletter as well as other partners’ to be kept informed of latest developments in the ACP-EU trade realm;
- Sharing your views on the current ACP-EU Trade debate and providing feedback on the relevance and future focus areas of www.acp-eu-trade.org

We appreciate any feedback on this newsletter and look forward to your reactions. You may send your comments to acpeutrade@ecdpm.org.
Enjoy your reading!
The acp-eu-trade.org website team

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Three Questions to…
Frederick Alipui, Managing Director of AFRIVEST Consult Ltd., Accra, Ghana.
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Frederick Alipui has extensive experience in regional integration and trade issues in Africa. He has previously worked for the Ministry of Finance and Economic Planning in Ghana, before joining the Organisation of the African Unity, now African Union, where he worked for more than 20 years and was the Director of Trade and Industry when he left the organisation. Frederick Alipui is also the co-author of the study “Strategic options for the future role and for strengthening the capacity of the AU Commission in the area of REC integration and trade and enhance its capacity to follow-up adequately the EPA process”. This study was recently submitted for validation to the European Commission’s Project Management Unit (PMU) and the African Union Commission.

What is the impact of Economic Partnership Agreements (EPAs) on the regional integration process in Africa?
The impact of EPAs on Africa cannot be assessed without first considering its impact on the individual African countries that are participating in the EPA process. Therefore in order to assess the EPA impact, one would need to examine a sample number of impact studies that have been conducted for the African countries. On the basis of the same, then one would relate those anticipated results to the overall process of regional economic integration process within the Regional Economic Communities (RECs) on the continent. To cite an example, the ECOWAS case impact studies that have been undertaken for Ghana and Nigeria indicate that the immediate impact of the EPA, would be revenue losses due to the decrease of import duties on more competitive European products. This will not only have an immediate negative impact on the region’s productive sectors, causing job losses and diminishing households’ ability to maintain their livelihood, but will also lead to a shift in the sourcing of imports into the region, notably from Asia to Europe. There is a need for a comprehensive study that would sum up the impact of the EPA process on each RECs’ own regional integration process, on the one hand and at the continental level, on the other hand. This would have to be done within the context of Article 6 of the Abuja Treaty of 1991 establishing the African Economic Community which is an integral part of the Constitutive Act of the African Union. These agreements seek to create over a period 34 years since its entry into force Africa’s own continental Free Trade Area/Customs Union, African Common Market and the African Monetary Union and the African Economic Community (AEC).

How can the EU support African regional integration in the context of EPAs?
According to the provisions of the Cotonou Partnership Agreement (CPA), the EPA is expected to contribute to the deepening of the regional economic integration process in Africa and thereby also contribute to poverty reduction in Africa. But with the expected elimination of customs tariffs on imports from the EU to African countries within the RECs with which they would establish Free Trade Areas (FTAs), cheaper and “subsidized” European imports would surge into their economies, which may also result in increased competition with local manufacturers and their industries. In this respect, I would recommend, inter-alia, that the RECs and the AU may have to negotiate with the EU to put in place, firstly, a substantial investment programme to expand the infrastructure sector in Africa, such as transportation, communication, but also trade facilitation, information and communication technologies (ICT), etc. A second investment programme should give special attention to African countries’ production capacities. Market access programmes have been on the table since the Yaoundé Conventions in the sixties, maintained under the Lomé Conventions throughout the seventies, up to the nineties. Yet, African countries have not been able to benefit from their special and preferential access to the European markets. Then how could EPAs do the trick? Hence the challenge to assist the African countries to expand their production base. We strongly recommend a comprehensive intervention programme with PROINVEST of the EU. Furthermore, assuming that African countries’ production capacities will be enhanced, Africa’s private sector capacities also need to be built. This should include technical assistance to help increase the quality of their export products to the European market and therefore comply with sanitary and phyto-sanitary measures (SPS), notably for fisheries, agricultural products as well as horticultural products.

What role should and can the African Union Commission play in the EPAs?
The African Union already has the mandate to coordinate the regional integration programme of Africa spelt out in the Abuja Treaty. In July 2003, the Maputo Summit reiterated this and gave the AU Commission an extra mandate to coordinate the EPA negotiations process. However, although the decisions have been taken, the AUC has not been able to play these two coordinating roles. Firstly, it does not have the material time to do so due to a lack of human and financial resources. Indeed the staffing situation is critical and has to be urgently improved especially in the Economic Affairs Department as well as the Trade and Industry Department respectively. Secondly, legally speaking, the AUC is not a party to the Cotonou Partnership Agreement and hence does not have a direct legal involvement in the EPA negotiating process. This could be resolved, This could be resolved by amending the Cotonou Partnership Agreement and consequently the negotiating structure accordingly. Furthermore, stronger institutional linkages between the AUC and the RECs should be established, in the form, for example, of Permanent Delegations of the AUC to each of the RECs, with the adequate technical expertise to contribute to the integration process. Another instrument that we strongly recommended in our study is the setting up of a Trade Policy Review Mechanism that would operate as a sub-Committee of the African Peer Review Mechanism. That Mechanism should provide for sanctions for non-compliance of both the EPA and the Abuja Treaty respectively. We further recommend that the AU Panel of Trade Experts, which has already been set up at the AUC level to assist on key technical issues under negotiation, be reactivated. A joint AUC/RECs Secretariat should be established to provide the operational structure to support the African regional integration and the EPA processes, as well as an Integrated Task Force of Sector Directors. This Task Force would meet at least twice a year to develop joint programmes for implementation and undertake joint Annual Reporting to the AU Summit. Between the AUC and the EU there should also be an informal Joint Secretariat to mobilise the required financial and technical support through the European Development Fund instrument for the Joint EU-AUC EPA Monitoring Mechanism which was already put in place by the Maputo Summit of the AU in July 2003. In the most optimistic scenario and notwithstanding funding and staffing issues, this should be decided upon at the next AU Summit in Banjul, so that the AUC and the RECs have the time to develop a joint pre-EPA programme in view of their conclusion in December 2007. But over and above these legal, structural and financial questions, the issue of the AUC’s role in the regional integration and EPA processes has more to do with the political willingness of Member States to actually involve the AUC in their negotiating schemes.

Frederick Yao Alipui
Managing Director,
AFRINVEST Consult Ltd.,
AVIATION HOUSE, Suite 204,
Airport Residential Area,
Accra-Ghana.
Tel: Office: 233-21762367
email: falipui@yahoo.co.uk
Frederick Alipui has also registered in www.acp-eu-trade.org database of experts.

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Focus On...
The Technical Centre for Agricultural and Rural Cooperation (CTA) - work on ACP-EU agricultural trade issues
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by Vincent Fautrel,
Programme coordinator
Technical Centre for Agricultural and Rural Cooperation (CTA) (EC-ACP)
P.O. Box 380, NL 6700 AJ Wageningen, The Netherlands
Telephone: +31 (0) 317 467184 (direct); Fax: +31 (0) 317 460067
E-mail: fautrel@cta.int

Since 2001, agricultural trade in general and trade negotiations in particular have been one of the key thematic areas of CTA’s work. The Agritrade website, CTA’s flagship on ACP agricultural trade issues, aims primarily at keeping ACP stakeholders abreast of the latest developments in agricultural trade negotiations and providing them with an understanding of the key issues (Economic Partnership Agreements, WTO agriculture negotiations, reform of the EU Common Agricultural Policy, Market Access, Food safety, Commodities, ACP-EU fisheries trade relations, etc.). It provides regular updates and non partisan analysis of the implications of these trade issues for ACP countries which contributes to improving their capacity to effectively participate in these trade negotiations. While CTA’s focus is increasingly on EPA negotiations and especially on the agricultural component of the development dimension of EPAs, the Centre is also closely monitoring the latest developments in Geneva as they relate to the WTO agriculture negotiations. Having published a special issue of Agritrade in preparation of the Hong Kong ministerial meeting in December 2005 and subsequently reported from Hong Kong on the daily agriculture negotiations, CTA is currently moderating an electronic forum on the post Hong Kong negotiations.
Information provision, communication facilitation and capacity building are the three main intervention areas of the Centre and are key to the success of any trade negotiations. As an ACP-EU organisation, CTA has a unique position which allows it, in the framework of the EPA negotiations, to facilitate and promote dialogue among ACP regions and between ACP and EU.

* Agritrade’s website
EN: http://agritrade.cta.int
FR: http://agritrade.cta.int/indexfr.htm
* Agritrade Special Edition: In the run-up to Hong Kong
EN: http://agritrade.cta.int/Agritrade%20HK_final_EN.pdf
FR: http://agritrade.cta.int/Agritrade%20HK_final_FR.pdf
* Hong Kong daily zoom on agriculture:
EN: http://agritrade.cta.int/HKD_n7_181205_en.pdf
FR: http://agritrade.cta.int/HKD_n7_181205_fr.pdf
* E-forum on the preparation of ACP countries for the post-Hong Kong agriculture negotiations
EN: http://www.dgroups.org/groups/cta/wtohong-kong/
FR: http://www.dgroups.org/groups/cta/wtohong-kong/index.cfm?setlang=2

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Keeping Track...
The 2006 review of the Economic Partnership Agreement (EPA) negotiations
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As foreseen by the Cotonou Agreement (Article 37.4), 2006 will be the year when parties to the EPA negotiations will carry out "a formal and comprehensive review of the arrangements planned for all countries to ensure that no further time is needed for preparations or negotiations." With the December 2007 deadline for completion closing in, EPA negotiations have now reached a more technical phase and are taking place at the regional level. However, while all parties agree that EPAs should be first and foremost about development, the exact content of an EPA is still unclear and the question remains as to whether EPA will effectively foster development. The 2006 review mechanism may thus be the opportunity for parties to adjust accordingly or eventually consider alternative routes.

Latest developments - from our weekly News section on www.acp-eu-trade.org

* 14-06-06: EU Member States discuss ACP-EC statement on the EPA review process
The EU Council ACP Working Group discussed this week the draft ACP-EC statement on the EPA review process under Article 37.4 of the Cotonou Agreement. Several EU Member States proposed amendments to make sure the review is completed before the negotiations. The final text is to be presented to the Joint Ministerial Trade Committee meeting to be held on 28 June in Geneva.
http://www.acp-eu-trade.org/news/news_detail.php?2179

* 12-06-06 : The EC is proposing that the EPA review process first have a joint declaration with the ACP
The EC is proposing that the EPA review process first have a joint declaration with the ACP (a joint framework for review document, the ACP, at least the Secretariat, also want this).
http://www.acp-eu-trade.org/news/news_detail.php?2146

* 15-05-06 : EPA review and a kind of 3rd ACP-EU Ministers meeting
The ACP are considering requesting an ACP Council and then a Joint Ministerial Trade Committee meeting to be held in the 2nd ½ of this year to consider the EPA review and a kind of 3rd ACP-EU Ministers meeting on the EPAs review (there was a similar type meeting held to launch the first and second phases of the EPA negotiations). The EC reportedly seems open to this idea.
http://www.acp-eu-trade.org/news/news_detail.php?2014

Below, you will find a selection of sources of information to keep track of the review process of the EPAs
Official sources:

* The Secretariat of the ACP Group of States www.acpsec.org
* The European Commission’s DG Trade page on ACP relations
http://ec.europa.eu/comm/trade/issues/bilateral/regions/acp/index_en.htm
* For regional negotiations road maps:
http://ec.europa.eu/comm/trade/issues/bilateral/regions/acp/regneg_en.htm
* DG Trade’s I-centre database of official documents on trade relations with the ACP countries:
http://trade-info.cec.eu.int/doclib/cfm/doclib_section.cfm?order=date&sec=148&lev=2&sta=1&en=20
* The European Commission’s DG Development
http://ec.europa.eu/comm/development/body/cotonou/links_en.htm
* Links to various ACP organisations : http://www.acp-eu-trade.org/index.php?loc=links/

Internet resources:

* EPAwatch : http://www.epawatch.net
* CTA’s Agritrade page : http://agritrade.cta.int/
* Tralac’s EPA page : http://epa.tralac.org/
* Friedrich Ebert Stiftung’s webpage on Cotonou : http://fesportal.fes.de/pls/portal30/docs/FOLDER/COTONOU/content/en.html
* Traidcraft's "Stop EPA campaign" page:http://www.traidcraft.co.uk/template2.asp?pageID=1902
* CUTS International London Resource Centre’s EPA page: http://www.cuts-epa.org/

Other sources:

* Reviewing EPAs negotiations and alternative scenarios, San Bilal and Francesco Rampa, Trade Negotiations Insights, Vol.5 No.1, January-February 2006.
http://www.acp-eu-trade.org/library/files/TNI_EN_5-1.pdf
* Every two months, keep informed of the state of play of EPA negotiations in each region with Trade Negotiations Insights’ EPA negotiations update
http://www.acp-eu-trade.org/index.php?loc=tni/
* Check our “Development through dialogue” forum (Dgroup) on Key EU and ACP Debates impacting ACP-EU relations
http://www.dgroups.org/groups/CoOL/

Find background information and more resources on the review of the EPA negotiations on www.acp-eu-trade.org

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EPA Negotiations Update
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This section elaborates on the EPA Update provided in the latest issue of the two-monthly “Trade Negotiations Insights From Doha to Cotonou”. To read it in full visit our E-Newsletter section on www.acp-eu-trade.org, and select EPA Negotiations Update (long version) under acp-eu-trade.org newsletter, or click here

Summary

*EU Member States confirm EPA development focus...
*...But are unable to agree on the European Development Fund
*The ACP continue to voice concerns on the development aspects of EPAs
*WTO negotiations deadlock - implications for EPAs
*Central Africa
*West Africa
*SADC
*ESA
*African Trade Ministers adopt EPA Declaration
*Caribbean
*Pacific

*EU Member States confirm EPA development focus …
EU Foreign Ministers adopted EPA conclusions in April confirming the need to ensure strong coherence with the EU's Development Policy Statement and extending previous Council conclusions on EPAs and Africa to all ACP regions. The EPA conclusions outline the types of EU support which should be provided to assist the ACP to effectively negotiate and implement EPAs which will deliver development objectives. They also explicitly recognise that the ACP’s political choices on what to include in the EPA must be respected. The Council instructed the EC ... [click here to read more]

*… But are unable to agree on the European Development Fund
A principal source of EPA support will be provided through the 10th EDF (European Development Fund). In December, EU Heads of Government finally agreed (months after the signing of the revised CPA when they were scheduled to have agreed) to provide 22.682 billion euro for the 10th EDF to cover support from 2007-2013 (a disputable amount (the EU Presidency says it is an 37% increase (or 1 billion euro) over the 9th EDF in absolute terms, but the European Parliament and other observers (including ECDPM) question if the EU’s funding commitments to the ACP have been honoured in real terms). But formal agreement of the EDF’s financial protocol has been blocked in Council due to ... [click here to read more]

*The ACP continue to voice concerns on the development aspects of EPAs
The ACP Technical Follow-up Group on the EPA negotiations met on 8-9 March to take stock of the status of the EPA negotiations. Presentations highlighted several common problems including the EC’s reluctance to make effective commitments to deal with the development dimension of the EPAs. Sources indicate that specific issues raised included the EC’s refusal to include support measures in the text of the EPA and to make commitments to guarantee these are effectively implemented; pressure from the EC to include in the negotiations issues that some ACP regions were not yet ready to address; pressure from the EC for the creation of a Customs Union and to open up markets before regions are ready for this; EC refusal to allow for variable geometry so as to grant LDCs special and differential treatment in order to take account of their special circumstances; and a lack of transparency on the part of the EC. ... [click here to read more]

*WTO negotiations deadlock – implications for EPAs (See Bridges Weekly for details on the WTO deadlock)
The WTO negotiations are in a very difficult/critical phase and will have a bearing on EPAs in terms of what will be WTO compatible in each region. In particular, the review of the WTO rules on Regional Trading Arrangements (GATT Article 24) and the issues of preference erosion and revenue loss in the context of liberalisation of agricultural and non-agricultural market access need to be addressed (an ACP Non Paper on Preference Erosion has been prepared on this). WTO negotiations on services and trade related issues have also to be considered. ... [click here to read more]

*Central Africa
Central African and EC technical level negotiators met from 15-17 March in Bangui and continued with the drafting of the EPA structure and fleshing out areas of the agreement where the parties had reached a consensus. But there were very tough discussions on many areas, including the development dimension, productive capacity building and impact studies. The first joint meeting on productive capacity building and EPA Impact was also held though discussions focussed only on the groups’ terms of reference. The group is meant to eventually analyse the challenges and opportunities for key productive sectors and put recommendations to the Committee of Negotiators and the RPTF with a view to helping prepare for future discussions on group 5. Sources from both sides indicate that ... [click here to read more]

*West Africa
According to West Africa's EPA road map, the region should also now be negotiating the structure and content of the EPA, but sources indicate that negotiations have stalled due to disagreement on whether these Phase II negotiations can go ahead while Phase I issues are still outstanding.
West African and EC technical experts level negotiators met from 9-11 March. The joint reports on intellectual property rights and services were virtually agreed (see below for outstanding issues). There was also a presentation by West Africa of their draft report on the impact of an EPA on productive sectors. And an exchange of views on the structure of the EPA, based on a draft text prepared by the EC. The RPTF also met with representatives of the EU Member States, the EIB and the World Bank to ... [click here to read more]

*SADC
At the March meeting of SADC-EC Senior Officials, SADC presented its proposed framework for the EPA negotiations between SADC and the EU. (see previous issue of TNI for an outline of the SADC proposal The EC is currently analysing this. Sources indicate that while the proposal appears WTO compatible, it complicates the agreement by offering separate treatments for members (the TDCA may have to be “retrofitted” by lowering some of its current tariffs to accommodate BLNS (Botswana, Lesotho, Namibia and Swaziland who have a customs union with South Africa) and allow EBA market access (“Everything But Arms”) for least developed countries). There is also concern that the proposed exclusion of commitments on trade related issues ... [click here to read more]

*ESA
EC and ESA technical level negotiators (RPTF) met on 13 March to discuss market access issues. Sources indicate that draft joint reports on sanitary and phytosanitary and technical barriers to trade were agreed for further consideration. These draft texts set out the objectives, principles and areas of cooperation necessary in these areas. ESA reportedly presented a draft paper on rules of origin which calls for simplified rules, improving the current cumulation provisions with other countries and simplified administration procedures. ESA also reiterated its preference for a change in tariff sub-heading criterion and the maintenance of the wholly obtained criterion for some products. The EC is currently reforming its rules of origin regime and will put forward proposals in the coming weeks. Sources indicate that ESA called on the EU to provide ... [click here to read more]

*African Trade Ministers adopt EPA declaration
African Union Trade Ministers met on 12-14 April and adopted an EPA Declaration as well as on the Doha Work Programme detailing Africa's position on these issues. A paragraph in the EPA declaration covers on development aspects/adjustment costs and takes up the ACP call for an EPA Financing Facility. This request is expected to be taken further in the ACP and ACP-EU Council of Ministers meetings from 28 May-2 June.

*Caribbean
CARIFORUM and EU Principal Negotiators met in Barbados from 27-28 March. A number of issues were discussed related to approaches to trade liberalisation, identifying areas of convergence and issues requiring further discussion. The Caribbean Regional Negotiating Machinery published the joint statement adopted after the meeting which shows that both sides acknowledged the importance of sequencing of market strengthening relative to market opening and the pace of market opening in relation to the internal and external realities facing CARIFORUM countries. Caribbean sources indicate, however, that there remains disagreement with the EC on how to achieve this. The EC is still ... [click here to read more]

*Pacific
With key divergences appearing at the 21-22 March Joint Technical Working Group meeting of Senior Pacific and EC Negotiators – namely over the issue of adjustment – there has been little movement in the Pacific-EPA negotiations since the last TNI EPA Update. During those late-March talks, discussions were held on, inter alia, the EPA architecture, modalities for goods and services, rules of origin, Mode 4 (mobility of labour), investment, fisheries and the EPA review mandated by the Cotonou Agreement. The adjustment discussions were held under the broader umbrella of the development dimension. On EPA architecture, the Pacific reiterated its position, which reportedly consists of an overall framework agreement which all Pacific ACP countries ... [click here to read more]

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News: Highlights of the Month
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From our News section on General ACP-EU Trade News (general EPA)

* 14-06-06: EU Member States discuss ACP-EC statement on the EPA review process
The EU Council ACP Working Group discussed this week the draft ACP-EC statement on the EPA review process under Article 37.4 of the Cotonou Agreement. Several EU Member States proposed amendments to make sure the review is completed before the negotiations. The final text is to be presented to the Joint Ministerial Trade Committee meeting to be held on 28 June in Geneva.

* 07-06-06 : Main results of the ACP-EC Joint Council of Ministers
Press release from the Council of the European Union
The ACP-EU Council of Ministers, meeting in Papua New Guinea on 1-2 June 2006, concluded a major agreement on financing the Cotonou Partnership Agreement from 2008 to 2013 with a financial package of over EUR 24 billion. This package is known as the 10th European Development Fund (EDF). The amount agreed represents an increase of about 35% on the 9th EDF that draws to an end in December 2007.
An innovation in the 10th EDF will be the creation of "incentive amounts" for each country. Countries can earn these extra resources by imporving governance, for which an agenda will be agreed between the European Commission and each individual country. In reaching the financing agreement, the joint Council took note of the impact of Economic Partnership Agreements (EPAs) on the ACP States.

* 06-06-06: ACP members are calling for the creation of what is to be known as an EPA Adjustment Facility
At the joint ACP-EU Council this week, ACP members are calling for the creation of what is to be known as an EPA Adjustment Facility. The special fund would help assist with the development of the agreements and lessen the short-term impact of any tariff reduction. EU officials are continuing to rule out the granting of any additional funds, both before and after the implementation of the agreements

* 31-05-06: ACP COUNCIL OF MINISTERS
ACP Press Release
Call for greater ACP solidarity - Meeting in Port Moresby, Papua New Guinea from 29 to 31 May 2006, under the chairmanship of ACP Council President, Dr. Onofre Rojas of the Dominican Republic, Secretary of State and National Authorising Officer for the European Development Fund (EDF), the ACP Council of Ministers reaffirmed the need to strengthen solidarity among Member States both within the intra-ACP cooperation and with the European Union. At the end of their deliberations, the Council adopted declarations on the situation in Timor Leste and the earthquake in Indonesia, as well as decisions and resolutions regarding in particular the Economic Partnership Agreements (EPA) and commodities (sugar and bananas). The Council also endorsed declarations from the 1 st meeting of ACP Ministers responsible for Asylum, Migration and Mobility.

* 29-06-06: EU Agrees ACP-EU partnership agreement – Financial assistance for 2008-2013
22 May EU Agriculture Council adopted - ACP-EU partnership agreement – Financial assistance for 2008-2013. The Council adopted a decision on the position to be adopted by the Community within the ACPEU council of ministers concerning the financial framework for 2008-2013 to be provided for under the ACP-EU partnership agreement, so as to enable ministers to approve the new framework at a meeting in Papua New Guinea on 1-2 June. The joint decision to be adopted by the ACP-UE council of ministers will specify the total amount of EU financial assistance to ACP countries and its allocation between the different cooperation instruments provided for by the partnership agreement. The ACP-EU agreement states that the EU will maintain its aid effort to ACP countries at least at the same level as that of the 9th EDF, but does not specify the exact period covered, the amount or the financing instrument (general budget of the EU or new EDF). Last December the European Council decided on the exact period to be covered (six years), the amount (EUR 22.68 billion) and the financing instrument (10th EDF).

* 29-05-06: European Communities request for an extension of waiver for bananas
Recently, the European Communities presented their request for an extension of Article XIII waiver for the TRQ for bananas of ACP Origin (G/C/W/529). It noted that it would provide legal certainty for both MFN and ACP producers. It also has the benefit of ensuring that both parties have fair access to the EC market for bananas. The request was denied by Honduras, Panama, Nicaragua, and Columbia. They all noted that the EC has denied its obligations even when handed down by a Panel. They noted that the request by the EC does not comply with commercial arrangements, nor is it legal. There have been no “exceptional circumstances” that would require such an extension. The EC noted that they have been engaged in dialogue with the MFN suppliers based on market realities. The Chairman noted the statements and expressed that the CTG would revert back to this item and also continue its consultations.
For further information, please click here

* 02-05-06: Up to 700m euro of EDF due back to EU Member States Could be used for ACP
The European Parliament’s Development Committee meeting on Tuesday in which there were presentations by the EU Development Council President (Winkler), and EC Development Commissioner Louis Michel. In reply to a question, Michel said that EU Member States ignore that this deal to take back uncommitted money in 2007 will likely mean that between 400-700 million euro will go back to EU Member States at the end of 2007. So Member States will have money to do things he said.

ACP/EU News providers

* ACP want additional resources from EU
Fiji Times Online, Wednesday, June 21, 2006
PACIFIC Island countries want the European Union to allocate additional resources to cover the costs of the regions adjustments when the Economic Partnership Agreement comes into effect.
http://www.fijitimes.com/story.aspx?id=43535

* EU promises are hollow: Pacific society groups
Scoop Independant News, Press release: Oxfam, Sunday, June 18, 2006
The Pacific is being short changed. The European Union has promised to support development in the Pacific, but so far these promises have not been fulfilled. Civil Society groups from 12 Pacific countries meeting in Nadi, question what's in it for the Pacific in negotiations on a Pacific Economic Partnership Agreement (EPA) with the EU.
http://www.scoop.co.nz/stories/WO0606/S00367.htm

* Private sector ignoring trade negotiations
Jamaican Gleaner, Friday, June 16, 2006
A Senior Jamaican trade official has complained of a general lack of public interest - even sometimes in the private sector - in the country's trade negotiations while there are often claims of the inability of the public to have input in the shaping of negotiating strategy.
http://www.jamaica-gleaner.com/gleaner/20060616/business/business4.html

* Africa "Profoundly Disappointed" By Europe's anti-development stance in the EPA Negotiations
TWNAfrica, Monday, June 5, 2006
African Trade Ministers, meeting at the African Union Trade Ministers’ Conference in Nairobi, on 14 April adopted a landmark Declaration on Economic Partnership Agreements (EPAs) calling on the European Union (EU) not to press African countries to take on obligations that go beyond their commitments in the WTO in the areas of services and intellectual property. The African Ministers also declared that the three “Singapore issues” (investment, competition, and government procurement) that were removed from the WTO’s Doha work programme should also be removed from EPAs.
http://twnafrica.org/news_detail.asp?twnID=902

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Selection from www.acp-eu-trade.org's Library
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* Services trade liberalisation at the regional level: does Southern and Eastern Africa stand to gain from EPA negotiations?
Staff Working Paper Economic Research and Statistics Division - World Trade Organisation - 2006-06 - May 2006
This paper discusses the opportunities and challenges for Southern and Eastern African ACP countries of services negotiations in the context of European Partnership Agreements. Particular attention is paid to the role of mode 4 in the discussed services sectors.

* Preferential trade in the EU - Making trade policy work for development
Report on EU Market access for developing countries and the potential for preference erosion. 2003-2005. Report from DG Trade of the European Commission to the European Parliament - May 2006
The EU's preferential regimes were described in detail in the previous report to the Parliament (Opening the door to development - Developing country market access to EU markets 1999 - 2003) so this report will give a more general overview, concentrating on any changes to these regimes in the time period covered.

* Studies on the impact of trade agreements on sustainable development: how much do they take development issues into account?
CONCORD - CONCORD Trade Working Group - Position paper - March 2006
Sustainability Impact Assessments (SIAs) - studies of the impact that trade agreements have on sustainable development - were designed by the European Union as a tool to help negotiators (responsible for promoting a "more sustainable" trade policy) in making decisions. More than five years after they were launched, the verdict on them appears mixed...to what extent do they in fact lead to a readjustment of the negotiators' positions, moving them closer to the goals of sustainable development?

* Does Trade Openness Favour or Hinder Industrialization and Development?
A paper prepared for the intergovernmental Group of Twenty-Four on International Monetary Affairs, presented at the Technical Group Meeting, Geneva, 16-17th March 2006
The purpose of this study is to examine whether free trade helps or hinders industrialization and development. The author argues that there is neither a theoretical justification nor historical and empirical evidence to support what he refers to as "trade liberalization hypothesis" (TLH). The theory behing TLH is the doctrine of comparative cost advantage which can not be used as a guide to caching up and achieving comparative advantage which is a policy-based effort...

* Impact des mesures tarifaires sur l'agriculture et l'agro-alimentaire Guinéens
Rapport final préparé par le Bureau Central d'Etudes et de Planification Agricole, Ministère de l'Agriculture, de l'élevage,des eaux et forêts; Juin 2005
L’objectif général de cette étude est d’évaluer et analyser l’impact sur l'agriculture guinéenne et le secteur de l'agro-alimentaire des mesures de désarmement tarifaire actuellement appliquées ou envisagées par la Guinée dans le cadre: - des discussions au sein de la CEDEAO sur la création d'un TEC harmonisé avec celui de l'UEMOA; - des négociations entre la CEDEAO (+ Mauritanie) et l'UE sur un Accord de Partenariat Economique (APE); - des négociations au sein de l'OMC.

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Resources from Recent Events
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* Event: 83rd Session of the ACP Council of Ministers
Date: May 28 to May 31, 2006
Resources: Decisions, resolutions and declarations of the 83rd session of the ACP Council of Ministers held in Port Moresby (Papua New Guinea) from 28th to 31st of May 2006
EN: http://www.acp-eu-trade.org/library/files/ACP_EN_010606_ACP_Decisions-resolutions-and-declarations-on-the-83rd-ACP-Council-of-Ministers.pdf
FR: http://www.acp-eu-trade.org/library/files/ACP_FR_010606_ACP_Décisions-résolutions-et-déclarations-de-la-83ème-session-du-Conseil-des-Ministres-ACP.pdf

* Event: Caribbean’s Council for Trade and Economic Development (COTED) on External Trade Negotiations
Date: April 27 to April 29, 2006
Resources: Caribbean ministerial statement on the CARIFORUM-EU negotiations for a development oriented Economic Partnership Agreement
http://www.acp-eu-trade.org/library/files/CARIFORUM_EN_290406_CARIFORUM_Caribbean-Ministerial-Statement-on-the-CARIFORUM-EU-negotiations-for-development-oriented-EPA.pdf

* Event: German Government – experts meeting on the development aspects of EPAs
Date: April 27 to April 28, 2006
Resource: Conference’s proceedings
The development dimension of Economic Partnership Agreements – are we still on track?
EN: http://www.inwent.org/ef/events/epa/index.fr.shtml
FR: http://www.inwent.org/ef/events/epa/index.fr.shtml

* Event : 2nd meeting of the ACP Civil Society Forum
Date: April 19 to April 21, 2006
Resources:
-> Brussels Declaration of the 2nd Civil Society Forum
EN: http://www.acp-eu-trade.org/library/files/ACP-Civil-Society-Forum_EN_210406_ACP_Brussels-Declaration-of-the-2nd-ACP-Civil-Society-Forum.pdf
FR : http://www.acp-eu-trade.org/library/files/Forum-Société-Civile-ACP_FR_210406_ACP_Déclaration-de-Bruxelles-du-2eme-Forum-de-la-Société-Civile-ACP.pdf
-> Plan of action for the implementation of the Brussels Declaration
EN: http://www.acp-eu-trade.org/library/files/ACP-Civil-Society-Forum_EN_210406_ACP_Plan-of-action-for-the-implementation-of-the-Brussels-Declaration.pdf
FR: http://www.acp-eu-trade.org/library/files/ACTION-POUR-LA-MISE-EN-OEUVRE-DE-LA-DÉCLARATION-DE-BRUXELLES.PDF

Currently taking place:
7th African Union Summit, June 25 to July 2, 2006, Banjul, The Gambia
Theme of the Summit: "Rationalisation of RECs and regional integration"

Background documents to this event:
* Event: AU Conference of Ministers of Trade - 4th Ordinary Session
Date: April 12 to April 14, 2006
Resources: Nairobi Declaration on Economic Partnership Agreements and Resolution on the rationalisation and the harmonisation of the regional economic communities
-> Nairobi Declaration on Economic Partnership Agreements
-> Resolution on the rationalisation and the harmonisation of the regional economic communities

* Event : Ministerial meeting on the rationalization of Regional Economic Communities (RECs)
Date: March 27 to March 31, 2006
Resources:
->Consultative meetings of Accra and Lusaka: Consolidated report
EN: http://www.acp-eu-trade.org/library/files/AU_EN_280306_AU_Consultative-meetings-of-Accra-and-Lusaka-Consolidated-report.pdf
FR: http://www.acp-eu-trade.org/library/files/AU_FR_310306_AU_Rapport-consolidé-des-réunions-consultatives-Accra-et-de-Lusaka.pdf
->Declaration of the first conference of African ministers of integration
http://www.acp-eu-trade.org/library/files/AU_EN_310306_AU_Declaration-of-the-first-conference-of-African-ministers-of-integration.pdf
->Report of the first conference of African ministers of integration
EN: http://www.acp-eu-trade.org/library/files/AU_EN_310306_AU_Report-of-the-first-conference-of-African-ministers-of-Integration.pdf
FR : http://www.acp-eu-trade.org/library/files/INTÉGRATION.PDF

Check our website for more events and resources! http://www.acp-eu-trade.org

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