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The acp-eu-trade.org newsletter -- No. 4/October 2006  
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In this issue:
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Three questions to…:
Bertram Zagema, Policy lead of Oxfam International's EPA Campaign
Bertram Zagema is the policy lead of Oxfam International's EPA Campaign, which is part of the Make Trade Fair campaign (www.maketradefair.com). Make Trade Fair was launched in 2002 calling on governments, institutions and multinational companies to change the rules so that trade can become part of the solution to poverty, not part of the problem. Oxfam International is a confederation of thirteen organisations working together with over 3,000 partners in more than 100 countries to find lasting solutions to poverty, suffering and injustice.
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Focus on…:
The South African Institute of International Affairs (SAIIA)
by Nkululeko Khumalo
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Keeping Track...:
Aid for Trade (A4T) and the Economic Partnership Agreement (EPA) 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's Library
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Resources from Recent Events

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Dear readers,

Welcome to the fourth issue of the acp-eu-trade.org Newsletter.

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!

Editor: Davina Makhan (dm@ecdpm.org), with the participation of Vincent Roza (vr@ecdpm.org)


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Three Questions to…
Bertram Zagema, Policy lead of Oxfam International's EPA Campaign
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Bertram Zagema is the policy lead of Oxfam International's EPA Campaign, which is part of the Make Trade Fair campaign (www.maketradefair.com). Make Trade Fair was launched in 2002 calling on governments, institutions and multinational companies to change the rules so that trade can become part of the solution to poverty, not part of the problem. Oxfam International is a confederation of thirteen organisations working together with over 3,000 partners in more than 100 countries to find lasting solutions to poverty, suffering and injustice.

1 - Would you consider that the comprehensive review of the Economic Partnership Agreements (EPAs), the recent decision of the Council of the European Union on aid for trade and its agreement on a financing instrument for development cooperation of which ACP countries would be beneficiaries as positive steps towards the conclusion of EPAs?

These are definitely positive steps but they are also far from sufficient, especially when you consider that EPAs are Free Trade Agreements (FTAs) between the European Union (EU) and the African, Caribbean and Pacific countries (ACP) which will have real impact on the ACP. EPAs must in themselves be good for development.

It is important to note that the comprehensive review and Aid for trade (A4T) are also two different issues. With A4T, there is recognition that it is not good enough to talk only about market access and that supply-side constraints also need to be addressed. And with the comprehensive review, a fundamental rethink of the EPAs is possible. We indeed welcome the terms of reference of the review adopted in July as it gives a broad mandate to the exercise. Parties will thus not only examine the time needed to complete the negotiations, but also look at issues within.

So it is good that these are happening. But this does not mean that we are closer to reaching a good agreement between the EU and the ACP, and we are not convinced that the best answer is EPAs.

2 - Why do you consider that EPAs are not good and that they cannot provide for the development prospects of ACP countries?

The EU and ACP partners are very unequal partners, in particular in terms of economic weight. In a study we published recently, “ Unequal Partners: How EU-ACP Economic Partnership Agreements (EPAs) could harm the development prospects of many of the world poorest countries ” (Editor's note: this study was published end of September 2006 and is also available in French), we show that even the largest ACP group in terms of GDP, the West Africa region (162 billion US dollars in 2005), is more than 80 times smaller than the EU (13,300 billion US dollars in 2005). The smallest group, the Pacific islands, has a combined GDP of only 9 billion dollars in 2005, which is 1,400 times smaller than the EU's!

It is therefore not realistic to expect ACP countries, among which are many of the poorest countries of the world, to adapt to an FTA with the EU when there are such enormous differences in economic power.

EPAs will have a massive impact on the productive sectors of ACP countries, and because of this, even a longer timeline of implementation of 10-20 years is too short a period. And, if the EU allows ACP countries to exclude 20% of their imports from liberalisation, this still leaves 80% of productive sectors open to competitors. In fact, many ACP economies are already very open but they lack in diversification. Yet, it has been shown that successful economies are those that have diversified on the basis of their own markets, meaning that there were protective measures that provide the necessary room for a domestic market to develop. But countries need policy space to do so, and this is made impossible with EPAs.

Furthermore, regional integration in ACP countries is not helped by opening up markets to the EU. With EPAs, trade within the ACP regions would be diverted to the benefit of trade with Europe .

With the lowering of tariffs, EPAs will also impact heavily on ACP governments' revenue and that loss of income cannot easily be replaced.

Finally, the ACP and the EU are unequal in terms of negotiating capacity. It is not easy for ACP countries to negotiate on areas the EU is imposing. For instance, developing countries, including ACP countries, refused to negotiate on the so-called Singapore issues at the level of the WTO and they are certainly not in a better position to do so now.

3 - What would then be your positive agenda and what would you propose as alternatives to EPAs?

There is a need for a solution to the expiry of the WTO waiver. As the study on “Alternative (to) EPAs” (Editor's note: this study, commissionned by Oxfam International together with Both ENDS and conducted by ECDPM, is also available in French) concludes, there are many options that can be considered.

For us, the best option lies in expanding the “GSP +”, and although it is quite a technical issue, we believe it is something the EU has to do. Such an option would also mean that ACP countries would have to share certain preferences with other developing countries, as the differentiation among them would be of objective nature. But our analysis to date suggests that the downsides are not as big as people tend to think they are.

Another element of our positive agenda is in the area of A4T. Supporting supply-side constraints is a very good thing to do for the EU. But improving the enabling environment, including the regulatory environment of ACP countries, is really of ACP regions' responsibility themselves. While they could get technical assistance from the EU in this respect, it is indeed a much more logical sequencing to have a regional ACP framework before any agreement with the EU. Therefore it is good that the Caribbean and West Africa are developing a regional framework in that sense. But it does not have to be laid in an international legally binding obligation to the EU.

Bertram Zagema
Policy lead of Oxfam International's EPA Campaign
Oxfam Novib
Mauritskade 9
Postbus 30919
2500 GX  Den Haag
The Netherlands
Email: bertram.zagema@novib.nl

Websites:
http://www.novib.nl/
http://www.maketradefair.com

 

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Focus On...
The South African Institute of International Affairs (SAIIA)
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By Nkululeko Khumalo
Senior Researcher: Trade Policy
Jan Smuts House, University of Witwaterand ,
P.O. Box 31596 , Braamfontein
Johanneburg, 2017
South Africa
Tel: +27 11 339 2021
Fax: +27 11 339 2154
E-mail: khumalon@saiia.wits.ac.za
Web: www.saiia.org.za

The South African Institute of International Affairs is an independent, non-governmental organisation which aims to promote a wider and more informed understanding of international issues among South Africans. It also seeks to educate, inform and facilitate public engagement on South Africa 's role and place: locally, regionally and globally; and to contribute to the public debate on foreign policy.

Through its Development through Trade Programme, SAIIA provides policy input into the South African government and business community's trade strategy development processes and regional economic institutions, particularly with respect to international, regional, and bilateral trade negotiations. One stream of work is area studies, covering current and potential free trade negotiations with: the United States ; China ; India ; Singapore and ASEAN. Work is also being conducted on South Africa 's regional trade relations, encompassing the Southern African Customs Union (SACU) and the broader Southern African Development Community (SADC) region.

SAIIA is involved in the EPA negotiations process in two ways. Firstly, it engages through research projects on, inter alia, how regional economic communities are likely to evolve in eastern and southern Africa against a background of overlapping memberships in SADC, SACU, COMESA, and EAC; and how the regional configurations arising from the EPA negotiations have a created an additional layer of complexity to an already complicated situation. Secondly, SAIIA has over the last few years organised high level conferences attended by all critical stakeholders (senior EU officials, SACU negotiators, civil society, South African government officials, etc.) in the EPA negotiations. These conferences aim to, inter alia, provide an honest assessment of the challenge posed by the negotiations on the regional integration agenda, and to enable the parties to jointly craft pragmatic solutions. Useful publications have arisen from our EPA conferences.

Useful links from SAIIA:

SAIIA has suggested the following publications:

Books  

  1. Bertelsmann-Scott T, and Draper P., 2006, Regional Integration and Economic Partnership Agreements: Southern Africa at the Crossroads http://www.saiia.org.za/modules.php?op=modload&name=News&file=article&sid=946 , Johannesburg , SAIIA.
  2. Draper P., 2005, Reconfiguring the Compass: South Africa's African Trade Diplomacy , http://www.saiia.org.za/modules.php?op=modload&name=News&file=article&sid=684 Johannesburg , SAIIA.

Trade Policy Reports

Bertelsmann-Scott T, and Draper P., 2005, ‘The TDCA: Impacts, Lessons and Perspectives for EU-South and Southern Africa Relations'. Report on the SAIIA Conference, 4-5 November 2004. Available online at: http://saiia.org.za/images/upload/Trade%20Report%20No.%207_reduced.pdf


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Keeping track on…
Aid for Trade (A4T) and the Economic Partnership Agreement (EPA) negotiations
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African, Caribbean and Pacific ( ACP ) countries and regions are experiencing significant capacity constraints, which impede their ability both to negotiate economic partnership agreements (EPAs) with the European Union (EU) and to adequately implement an EPA. In order for ACP countries and regions to take advantage of the potential benefits of an EPA, they need to engage in complementary reforms and adopt appropriate accompanying measures, address their supply side constraints and the competitiveness of their products. Closely intertwined with this is the Aid for Trade (A4T) debate that has been ongoing at both the WTO and the EPA levels and recognizes the developing countries' needs for (financial) assistance to be able to take advantage of the potential benefits from liberalized trade and increased market access and to facilitate their integration into the multilateral trading system (see August edition of this newsletter).

Although these constraints are well acknowledged in Europe , the European Commission (EC) has been very reluctant to take this approach, despite numerous formal requests from the ACP to include development support as part of the EPA negotiations. The EC instead argued that (1) the EPA negotiations as foreseen in the Cotonou Agreement were about trade and trade-related issues only, (2) development assistance is already covered by the Cotonou Agreement through the European Development Fund (EDF) and lastly (3) that the European Commission does not have the mandate from EU member states to enter negotiations or agreements on development assistance.

Nevertheless, at the General Affairs and External Relations Council (GAERC) on 16-17 October, the EU Member States agreed to provide bilateral funds for A4T on top of the EDF administered by the EC (which the Council agreed in June 2005 to amount to EUR 22.7 billion for the 2008-13 period). A substantial share of such trade-related assistance (EUR 1 billion each by the EC and collectively by MS) will be earmarked for the A4T effort to support the EPAs currently being negotiated.

However, it is unclear to which extent such resources will be in addition to all existing ongoing trade-related support provided by the EU to developing countries or simply constitute a re-packaging of existing aid commitments towards trade and regional integration objectives. In addition, delivery mechanisms and procedures need to be carefully designed to ensure the effective disbursement of funds. Indeed, given the operational weaknesses of the EDF (such as low levels of disbursement or cumbersome procedures) recognized by many observers, both inside and outside the European institutions, appropriate rules and procedures will be crucial for effective, timely and efficient delivery of A4T resources.

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Latest Developments:
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*17-10-06: 2756th EXTERNAL RELATIONS Council meeting, Luxembourg 16 and 17 October 2006 (provisional version)

* 17-10-06 : PRESS NOTE GAERC – Development and Trade ( Luxembourg , 16-17 October 2006)

* 17-10-06 : Council Conclusions on the annual report 2006 on the European Community's Development Policy and the Implementation of External Assistance in 2005

* 17-10-06 : Council Conclusions on complementarity and Division of Labour: preparations for the Orientation Debate on Aid Effectiveness

*17-10-06: Conclusions du Conseil sur l'intégration des questions de développement dans le processus de décision du Conseil

*17-10-06 : Conclusions du Conseil sur le partenariat stratégique entre l'Union européenne et l'Afrique du Sud

* 17-10-06  : Council reaches political agreement on financing instrument to provide EUR 17 billion for development cooperation

* 10-10-06 : WTO General Council Endorses Aid for Trade
Although the Doha Round negotiations remain at an impasse, WTO Members at the 10 October General Council meeting were able to agree to endorse the course of action set out in July by the Aid for Trade Task Force. Work on aid for trade will proceed separately from the troubled trade talks. Members also agreed on a set of recommendations aimed at making it easier for small and vulnerable economies to implement their WTO obligations.
WTO Director-General Pascal Lamy said there was clear "progress and momentum" on aid for trade "despite the current temporary setback in the negotiations," and that it was important to move forward on it. [click here to read more]

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Official Sources:
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* World Trade Organisation portal on Aid for Trade
See also the recommendations by the WTO Taskforce on Aid for Trade (WT/AFT/1)

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Internet resources:
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* Overseas Development Institute's portal on Aid for Trade

* GMF Trade & Development site on Aid for Trade

* International Lawyers and Economists Against Poverty - ILEAP
ILEAP is currently focussing on Aid for Trade and has published a series of briefs and papers on this topic, over the last few months
(also available in French)

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Other sources:
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* Suspension of Doha Round and EPAs: the case of Aid for Trade , by San Bilal and Francesco Rampa, ECDPM, Trade Negotiations Insights, Vol. 5 No. 5, September-October 2006
How will developments of the Aid for Trade (A4T) initiative at WTO affect the identification of development support measures and mechanisms in the EPA negotiations, and vice versa?
EN
FR

* EU to give €2bn a year in aid-for-trade
Financial Times, 17 October 2006
Developing countries will receive €2bn (£1.3bn) a year of aid from the European Union to help them integrate into the global economy. Ministers from the 25 EU member states yesterday agreed to assign the bulk of the cash - first promised at a World Trade Organisation meeting in Hong Kong in 2005 - to countries negotiating controversial economic partnership agreements with the EU. The accords are expected to come into force in January 2008…

* Can Aid Fix Trade? Assessing the WTO's Aid for Trade Agenda
Carin Smaller - 20 years - Institute for Agriculture and Trade Policy - Trade and Global Governance Programme
The debate about Aid for Trade is important because it firmly places questions about aid - how much, to whom, for what purpose - within the context of the WTO. There is a risk that Aid for Trade will distort multilateral trade negotiations and further complicate already delicate relations between developed and developing countries. Is Aid for Trade a consolation prize for a failed Doha Agenda? Will Aid for Trade be used to pressure developing countries to open markets more than they otherwise would? Are donors serious about embracing Aid for Trade according to recipients' needs? Will there be enough money? And is the WTO the best forum to operationalize Aid for Trade?

* Aid for Trade and Agro-based private sector development in Africa. Lessons from Tanzania and Zambia - Executive Summary
OECD Development Centre, 11 September 2006 , OECD
The objective of the study was to review how donors are contributing through their assistance programmes to the efforts of the African countries in overcoming trade-related obstacles and strimulating the supply-side response to increase productivity and competitiveness of the private sector. In particular, the study aims to identify and analyse the gaps between the demand for and supply of donor assistance in the agricultural sector. An initial focus on agro-food supply chains...

* Doha Development Agenda and Aid for Trade
Prepared by the Staffs of the IMF and the World Bank
This paper summarizes recent developments in the Doha Round negotiations, and aid for trade. As requested by the Development Committee last September, it reviews existing mechanisms for cross-country and regional aid for trade needs. It proposes possible options to overcome the coordination and capacity problems affecting regional cooperation.

* Aid for Trade, a report for the Commonwealth Secretariat
by Joseph Stiglitz and Andrew Charlton

* Event: Aid for Trade and the Doha Agenda – Implications for Southern Africa
Date: August 23-24, 2006
SAIIA's Development through Trade Programme, in partnership with South Africa's National Treasury and the Commonwealth Secretariat, hosted a seminar on the recently released recommendations emanating from the WTO's Aid for Trade Task Force in Pretoria on August 23rd and 24th. Discussions were wide-ranging, covering the content of aid for trade; perspectives from key multilateral institutions; the task force's recommendations and their implications for Southern and Eastern Africa; whether Economic Partnership Agreement negotiations also have an aid for trade content and if so how that could be aligned with the Geneva process; and possible next steps for the Southern African region in moving towards a more integrated regional approach to these issues.
The conference programme; selected presentations; a communiqué based on deliberations; and a discussion paper contextualising the process and putting forward recommendations may be found by clicking the link above. 

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EPA Negotiations Update
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By Melissa Julian and Davina Makhan
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 Trade Negotiations Insights - Longer version of the EPA Negotiations Update, or click here.

September-October 2006

Summary

*EPA Review Process Launched
*Central Africa
* West Africa
* SADC
* ESA
* Caribbean
* Pacific

EPA Review Process Launched

In July, the ACP-EU Committee of Ambassadors agreed a joint declaration setting out the modalities and terms of reference for the implementation of the Review of the Economic Partnership Agreements (EPAs) negotiations set out in the Cotonou Agreement's Article 37.4. […]

The results of each review, together with inputs from the all-ACP level, shall be finalised in 2006 and presented in a consolidated document to the ACP-EU Joint Ministerial Trade Committee. The ACP-EU Council of Ministers Meeting scheduled for the first half of 2007 will consider the report of the JMTC which may include recommendations and pave the way for the finalisation of the EPA negotiations at the end of 2007.

While the review has been broadened from its initial proposal to incorporate provisions called for by ACP and EU Member States and civil society, there remains disappointment in some circles that the reviews do not… [click here to read more]

Central Africa

There has been little progress in the negotiations between Central Africa and the European Union in July and August, the main divergences being the issues of the reinforcement of production capacities and of the inclusion of financing mechanisms in the EPAs. The joint technical group met in Libreville , from the 22 to 25 July 2006 and discussed the CEMAC document on the reinforcement of production capacities.

The CEMAC stresses the importance of adopting a broad understanding of the reinforcement of production capacities, to include issues such as improving the business environment, putting in place a system of finance for SMEs, support to increase or create basic infrastructure (e.g. electricity, roads) to reduce costs of production.

To the EC, the CEMAC is adopting … [click here to read more]

West Africa

Since their last joint meeting in June, West Africa and the EC have had a series of informal exchanges on the EPA reference framework and the report of negotiating group 5 on the production sectors. On the latter, the EC reportedly considers that the document should not outline specific actions to be taken since the group will continue its work even after the EPA is signed. For West Africa , however, it is important that the axes of intervention be identified and has pursued work in this direction.

Concerning the EPA reference framework, it has been reported that the parties disagree on the modalities of implementation and accompanying measures, to which the EC does not want to commit additional resources. West Africa wants a specific … [click here to read more]

Southern Africa Development Community (SADC)

The EC and EU Member States continue to consider SADC's proposed framework for the EPA negotiations presented in March. There has been positive public response from the EC to some of SADC's proposals, such as associating South Africa with the SADC EPA process and thereby reinforcing the SADC regional integration process. EU Member States sources indicate that the proposal raises very complex political and economic c issues which could also set precedents for other EPA negotiations. So public details of the discussions are limited. An official EU response to the SADC EPA proposal is expected by the end of the year. Technical EPA negotiations are effectively on hold since the EU response will provide the point of departure for the future negotiations.

SADC continues to elaborate its EPA framework proposal and … [click here to read more]

East and Southern Africa (ESA)

ESA and EC EPA negotiators met at Ambassador ial/Senior Officials level in July to continue negotiations on development, fisheries, agriculture, market access and trade related issues.

Both sides agreed that there should be a development chapter in the EPA to link it to the Cotonou Agreement in addition to integrating development components throughout the EPA. ESA reiterated its call for the EC, EU Member States and other donors to provide substantial additional resources to address supply side constraints, support policy reforms and increase competitiveness of ESA productive sectors.

The parties also agreed to include a fisheries chapter in the EPA as well as dealing with market access aspects of it under trade cooperation.

Market access discussions focussed on … [click here to read more]

Caribbean

Caribbean Heads of Government met on 3 July and reaffirmed the region's commitment to the conclusion of an EPA with the EU which is supportive of the development objectives of CARIFORUM countries. They called on the EU to give practical effect to its undertaking that the EPA will support CARIFORUM market strengthening before market opening. Heads called on the EU to provide without further delay the required development support to facilitate the mutually agreed strengthening of the capacity of CARIFORUM countries to fully implement the EPA.   Jamaica 's Prime Minister, Portia Simpson-Miller, in her capacity as Chairman of the Prime Ministerial Sub-Committee on External Negotiations, made clear at the meeting the region's concern that a previously common perspective on development was no longer reflected in the positions being taken by European officials in the third and detailed phase of the negotiations. The Prime Minister expressed regret that ... [click here to read more]

Pacific

A Joint Technical Working Group (JTWG) meeting of Pacific ACP (PACP) and EC EPA negotiators held in Brussels at the end of July had first discussions on a draft EPA text presented by the Pacific as a non-paper. The text covers inter alia, objectives and principles, the scope and development, the institutional framework, trade facilitation and promotion, agricultural development, trade in services tourism development investment protection and promotion, financial mechanisms and consultation and dispute resolution. Pacific representatives reiterated their call for additional financial resources to be provided for the adjustments that would be required from undertaking an EPA with the EU to enable them to benefit from EPAs and for trade rules to be development oriented. They called for all this to be included as binding commitments within the EPA. They also called for effective mechanisms for delivering assistance and specifically for a separate and additional EPA financing instrument.

The EC maintained its position that it was a fallacy to see EPAs basically as cost factor instead of … [click here to read more]

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News: Highlights of the Month
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* EU-Africa e-alert -- No. 2 / October 2006
Contents
I - Focus: The EC Support to Good Governance
II- The African Union : Africa in a Broader Context and the RECs
III - EU External Aid: EDF 10, Development Cooperation Instrument and EU Development Policy
IV - Peace and Security
V - EPA Negotiations
VI - Migration and development
VII - EU-AU Relations and Follow-up of the EU Strategy Towards Africa

Click here to access directly the EU-Africa e-alert
Contact: europafrica.e-alert@ecdpm.org . Please also send a mail to this address if you want to unsubscribe from this e-alert.

* Pacific ACP united against pressure
Fiji Times Online, 24 October 2006
The Pacific ACP region will not give in to pressure from the European Commission regarding the Economic Partnership Agreement. Opening the Pacific ACP leaders meeting in Nadi yesterday, Papua New Guinea prime minister Sir Michael Somare said after much negotiation, the European Commission had conceded that not all Pacific ACPs would need to sign up to a single, comprehensive EPA. [click here to read more]

* EU, ACP trade pacts date may be reviewed
The Standard Online, Narobi, Kenya, 24 October 2006
Negotiations on a new trade pact between the European Union and the African, Caribbean and Pacific (ACP) countries on market access may extend beyond the January 2008 deadline. [...] The EU Trade Commissioner Mr Peter Mandelson hinted that the deadline could be extended but only with approval from other members of the World Trade Organisation (WTO). "Our deadline to negotiate Economic Partnership Agreements (EPAs) is January 2008 when the Cotonou waiver expires, Mandelson said in a statement released by the EU offices in Nairobi. "We can be flexible - after all development is our goal, not deadlines." [click here to read more]

* Mandelson answers criticism on EPAs
European Commission's DG Trade website, 19 October 2006
In a speech in the European Parliament to the PSE Conference on Economic Partnership Agreements, Peter Mandelson, EU Trade Commissioner, made clear his belief in the Economic Partnership Agreements (EPA) as a key tool to put together trade and development.
According to the Trade Commissioner, it is necessary to go beyond rhetoric and stick to the facts, taking into consideration the positive effects of such agreements for the populations of developing countries.
Peter Mandelson declared: "The Economic Partnership Agreements are a road out of dependency - out of a contracting share of export trade. They are designed to help build regional markets, build up productive capacity and diversify ACP economies. And ultimately they are designed to develop trade between the EU and the ACP regions - not because we want to force open ACP markets to our imports, but because a market that is open to imports is a healthy market. It means lower cost goods, downward pressure on inflation and a platform for a country's exports".
Read the full speech
Read the Questions and answers

* ACP, UK anxious about EU demands in EPA talks
Bridges Weekly Trade News Digest, Vol. 10 Number 34, 18 October 2006
EU Trade Commissioner Peter Mandelson has defended plans for new trade agreements with some of the world's poorest countries, in spite of increasing criticism of the EU's demands from its would-be partners, development campaign groups, and most recently from the UK government.
Speaking to EU trade and development ministers in Luxembourg on 16 October, Mandelson insisted that Brussels had "no mercantilist objectives" in the 'economic partnership agreements' (EPAs) it was negotiating with 79 members of the African, Caribbean, and Pacific (ACP) group of countries, mostly former colonies of EU member states. [click here to read more]

* The Commonwealth urges greater EU responsiveness to concerns of developing countries
African News Dimension Network, Johannesburg, South Africa, 17 October 2006
The EU can become a greater force for good in the world if it puts local concerns first in developing countries, and makes better use of local partnerships, said Commonwealth Secretary-General Don McKinnon. [click here to read more]

* Trade: Small nations' doubts about EU get bigger
Peter Dhondt, Terraviva, IPS, 13 October
A proposal by Senegalese Trade Minister Mamadou Diop to postpone the 2008 deadline for signing trade agreements with the European Union found much support at a meeting in Brussels on the 12 th of October. The meeting was attended by ministers and ambassadors from the ACP group of countries ahead of EU ministers' trade and development talks next week. Some of the leaders from Pacific nations among the 79-member ACP group said they would consider opting out of the controversial Economic Partnership Agreements (EPAs) between the EU and ACP regions. Several ACP countries feel betrayed by the direction the negotiations have taken. The Cotonou text says EPAs should promote development, contribute to poverty eradication and foster the integration of ACP countries in the world economy. But that is not how things are looking now. At the start of the EPA negotiations, the ACP countries assumed that there would be a World Trade Organisation agreement on trade liberalisation by 2004 allowing for special and flexible treatment of poor countries. But the WTO trade liberalisation talks have stalled, which means that the current, more rigid trade rules would apply. [click here to read more]

* APE - Réunis à Niamey : Les pays de la Cedeao veulent accélérer l'accord
Le Quotidien, Sénégal, 11 octobre 2006
Le Comité ministériel de suivi de l'Accord de partenariat économique (Ape) entre l'Afrique de l'Ouest et la Communauté européenne a recommandé l'accélération des procédures d'adoption de ce texte, apprend-on d'un communiqué de la Communauté économique des Etats de l'Afrique de l'Ouest (Cedeao). [click here to read more]

* Roundup: EU pledges aid to fund trade development in Africa
People's daily online, 4 October 2006
The EU has committed itself to giving up to 5 billion euros (6. 35 billion U.S. dollars) into the ESA region to help in bolstering trade and production of goods and services to promote equal trading with Europe . [click here to read more]

* Africa : Deadlock Broken in Trade Talks With EU
Abdulsamad Ali, The Nation, Nairobi , 30 September 2006
The deadlock in talks between the European Union and 16 African countries was broken yesterday after both sides reached agreement on development.
The eastern and southern African (ESA) countries fought hard to convince the European Commission (EC) to include the development agenda in talks for a new trade agreement.

* Les pays de la CEEAC seront-ils prêts avec l'APE en janvier 2008 ?
Faustin Kuediasala, Le Potentiel, RDC, 29 septembre 2006
En avril 2006, l'Union africaine a exprimé des réserves sur l'état d'avancement des négociations engagées entre l'Union européenne et les pays d'Afrique, Caraïbes et Pacifique (ACP), en prévision de la mise en œuvre le 1er janvier 2008, des Accords de partenariat économique (APE). En Afrique centrale, comme dans les autres sous-régions de l'Afrique, les négociations des APE piétinent et certains pensent déjà à un probable report de leur mise en œuvre, estimant que l'Afrique – dans son ensemble – n'est pas prête à supporter les lourdes contraintes qui naîtront de cet accord. [click here to read more]

*US and EU markets: Could trade preferences offered to Africa be the backdoor?
The Barbados Advocate, 13 September 2006
CARIBBEAN countries may wish to consider how trade preferences offered to Africa may be the backdoor to American and European markets. […]"Caribbean countries might wish to consider how these trade preferences offered to Africa could be indirect avenues for their products to the US and EU markets while assisting in the development of Africa through Foreign Direct Investment (FDI) [click here to read more]



See also acp-eu-trade.org's News section, updated every week!


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Selection from www.acp-eu-trade.org's Library
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* Unequal partners: How EU-ACP Economic Partnership Agreements (EPAs) could harm the development prospects of many of the world's poorest countries
Oxfam Briefing Note - Oxfam New Zealand - Make Trade Fair Campaign
In September 2006, the EU and ACP will start their mid-term review of the EPA negotiations, a formal exercise scheduled when the EPA process was launched in 2002. The review provides a real opportunity for ACP governments - and the EU - to fully consider the development implications of the current EPA proposals and trade, and to re-focus efforts on putting together a pro-development trade agreement in conformity with the Cotonou Agreement. As this note will show, the proposed EPAs are a serious threat to the future development prospects of ACP countries, and the forthcoming review must be used to force a radical rethink.

* Adjusting to the effects of the ACP-EU Economic Partnership Agreements - The Application of Special and Differential Treatment
Vincent Roza – Master thesis Maastricht University ; Supervisor Dr. Thomas Ziesemer
The economic partnership agreements (EPAs), in order to meet their development objectives, will need to bring about higher benefits than costs. This paper's aim is twofold. Firstly, it tries to identify the effects EPAs will have on the African, Caribbean and Pacific (ACP) group of states. Secondly, this paper attempts to systematically discuss the various ways in which special and differential treatment (SDT) may be applied to minimize the adjustment costs of EPAs…

* Opposition anglophone grandissante aux APE
Francois Misser - Défis Sud No 73 - Dossier: Les Citoyens du Sud face au commerce mondial
A mesure que s'approche la date fatidique de l'entrée en vigueur des Accords de Partenariat Economique et de libre-échange entre l'Union européenne (UE) et les pays d'Afrique, des Caraïbes et du Pacifique (ACP), on assiste à une mobilisation croissante contre ces APE dans les Caraïbes et dans certains pays d'Afrique anglophone.

* Compensating lost revenue in Regional Trade Agreements
Peter Walkenhorst - Trade Note 28, World Bank Group, International Trade Department
Economic integration at the regional level allows the members to reap benefits from specialization while accommodating the particular needs and adjustment capacities of the countries involved. Structural and fiscal adjustments cannot be avoided entirely, however, and in some cases special provisions to contain adverse impacts on countries and foster coherence among members have been devised. One type of provision compensates for losses of government revenue from intraregional tariff reductions.

* Accord de Partenariat ou de Paupérisation Economique? Propositions pour que les Accords de Partenariat Economique soient de véritables outils au service du développement
Coordination SUD - Position de la Commission Agriculture et alimentation
L'UE met en avant l'impact positif des APE sur le développement durable des ACP. Les ONG de solidarité internationale, membres de Coordination Sud se réjouissent de cette volonté affichée et souhaitent apporter leur contribution, issue de leur travail avec leurs partenaires des ACP, afin que les APE atteignent réellement leurs objectifs. Elles veulent en particulier réaffirmer qu'elles sont favorables au développement des échanges commerciaux, mais pas au libre-échange. Pour participer à un développement économique viable, socialement équitable et environnementalement sain, les échanges commerciaux doivent être régulés.

* Les enjeux et les marges de manoeuvre de la CEDEAO face aux défis des négociations agricoles
Jacques Gallezot - ROPPA - Réseau des Organisations Paysannes et de Producteurs Agricoles de l'Afrique de l'Ouest - Afrique nourricière
L'Afrique de l'Ouest est en fait un grand PMA qui connaît un déficit alimentaire croissant. Pour envisager un mode de développement qui contribue de manière durable à la satisfaction des besoins alimentaires de la population, il est nécessaire de réduire la dépendance alimentaire et d'inverser cette tendance. Cette étude a pour objet d'identifier les enjeux et les marges de manoeuvre qui s'offrent aux pays de la CEDEAO pour mieux adapter les instruments économiques aux objectifs de la Politique agricole à la mise en place prochaine d'un APE avec l'UE.



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Resources from Recent Events
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* Event: 8th Regional Negotiating Forum (RNF) of the Eastern and Southern African (ESA)
Date: August 19-24, 2006
Resources
 - Draft EU-ESA EPA text as of 24 August 2006
- Response from Civil Society Organisations on the first ESA EPA draft text to Ministers and African EPA negotiators


* Event: ACP-EU Relations – The Development challenges of EPAs
Date: October 12, 2006
The South Centre, in partnership with a consortium of ACP and European NGOs, organized a high-level conference in Brussels on negotiations related to Economic Partnership Agreements (EPAs). NGO co-hosts include: Africa Trade Network, CPDC, Christian Aid, ICCO, 11.11.11, Oxfam International and Traidcraft.
The purpose of this conference was to provide a platform for ACP governments to voice their views on these negotiations, in particular in the light of the EPAs review expected before the end of this year.
Ministers from various ACP regions participated in this event, whose audience also comprised: European Member State policy-makers and parliamentarians, as well as representatives from the European Parliament and European Commission, intergovernmental agencies, journalists and civil society.
Resources
Event's page http://www.southcentre.org/Events/2006Oct_EPA_conference.htm
Programme
Press Release ( 5 October 2006 )

See also
Trade: Small Nations' Doubts About EU Get bigger , IPS News Agency, Peter Dhondt, 12 October 2006
EU facing trade deal resistance - Financial Times, Andrew Bounds, 12 October 2006


* Event: tralac Annual Conference
Date: October 5-6, 2006
In order to facilitate the negotiation of the EPAs, the ACP countries have divided themselves into regional groups. There are currently six groups, two of which include countries from southern and east Africa . The “SADC-7” group is made up of Angola , Botswana , Lesotho , Namibia , Mozambique , Swaziland and Tanzania . South Africa is an observer of the SADC-7 group but recently applied to be included as a negotiating party. Members of the “ESA” group include Burundi , Democratic Republic of Congo, Comoros , Djibouti , Eritrea , Ethiopia , Kenya , Madagascar , Malawi , Mauritius , Rwanda , Seychelles , Sudan , Uganda , Zambia and Zimbabwe .
Each of the issues to be covered in the SADC-7 and ESA negotiations is complex and much debated amongst stakeholders.
Matters are complicated even further by a number of other issues that are unique to southern and east Africa . First, there is the Trade Development and Cooperation Agreement between South Africa and the EU which is now the subject of a midterm review. Second, the members of the SADC-7 and ESA groups are also members of the same and/or different trade arrangements within the region. Third, the Everything But Arms (EBA) initiative of the EU grants duty-free and quota-free access to most of the members of the SADC-7 and ESA groups.
In addition, issues relating to the status of the WTO negotiations, as well as proposed trade agreements between the Southern African Customs Union and countries such as China and India , are likely to add to the complexity of the EPA negotiations.

Against this background and in relation to these themes, tralac's annual conference had the following objectives:

Resources click here to read more and access related documents and presentations


* Event: Trade Sustainability Impact Assessment of the EU-ACP Economic Partnership Agreements – Phase III – Presentation of the final reports
Date: September 21, 2006
Resources
Horticulture in Eastern and Southern Africa
Financial services in Central Africa (CEMAC+STP)
Rules of origin in the SADC group of countries


* Event: UNECA Ad-hoc experts group meeting on EPAs
Date: September 18-19, 2006
The meeting was jointly organized by UNECA, UNDP, the NEPAD secretariat and the Egyptian government. Participants explored concrete strategies and policy measures aimed at alleviating costs. These included reviewing the experiences of North African countries and South Africa in negotiating and implementing their free trade agreement with the EU. Best practices that stand out from these experiences were also analyzed for the benefit of sub-Saharan countries. The experts warned that even though EPAs are meant to take effect by the end of 2007, Africa remains unprepared for dealing with the possible consequences. These include the potential loss of revenue from the abolition of import taxes on goods imported from the EU. The experts called for more work at both the political and technical levels to prepare the continent for EPAs.
Resources
EN: Ad-hoc Expert Group Meeting on Economic Partnership Agreements and How African Countries Can Adjust
FR: Groupe ad-hoc d'experts sur les Accords de Partenariat Economiques et les possibilités d'ajustement en Afrique



* Upcoming event : UNIVERSITE DES ALTERNATIVES 2006 - Module II -
« Europe – Afrique subsaharienne: un nouvel impérialisme en devenir ? »
Date : November 9-16-23-30, 2006
Organisé par le Groupe de Recherche pour une Stratégie économique alternative (GRESEA)
Dépliant et programme 
Bulletin d'inscription

* Upcoming event: First Edition of the European Development Days
Date: November 13-17, 2006
Homepage : http://www.eudevdays.eu/
The first EU-Africa Business Forum will take place in the context of the European Development Days, on 16&17 November 2006 in Brussels.


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

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