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EU can’t force EPAs on ACP countries – Ashton

EU can’t force EPAs on ACP countries – Ashton
Written by Chibaula Silwamba
Wednesday, April 22, 2009 6:09:40 PM

THE European Union (EU) cannot force Zambia and other ACP countries to sign full Economic Partnership Agreements (EPAs), trade commissioner Catherine Ashton has said.

And Ashton said the European Commission plans to enhance Zambia's productive capacity in agriculture and livestock, where large export potential exists, with future programmes amounting to €32 million (about K238 billion).

The European Union is currently negotiating the EPAS with 76 former colonies in Africa, the Caribbean and Pacific (ACP) countries.

So far, over 35 countries have signed the interim EPAs covering trade in goods, but others like Senegal and South Africa have refused to sign. Zambia is one of those countries that have signed the interim EPAs, which are likely to lead to full signing sometime this month if the EU and ACP countries manage to solve the contentious issues contained in these trade agreements.

Civil society organisations across Africa, and some from the EU, have raised concerns regarding the EPAs. They argue that the impact in ACP countries, once the EPAs are implemented, would be job losses, government revenue losses and cuts in public services as developing countries would be forced to open up their markets to the EU before they are ready. The civil society organisations, in their arguments, further indicate that rather than helping 76 poor countries trade out of poverty, EPAs threaten to cause more poverty and hunger.

But Ashton said African, Caribbean and Pacific (ACP) countries can tremendously benefit from the EPAs, although the EU could not force them into signing interim or full trade agreement currently under negotiation between the two parties.

“We have continued to work closely with all countries as we seek to sign the interim EPA and move forward with negotiations for a full, comprehensive EPA,” said Ashton in an interview in Lusaka. “I have been extremely impressed by the engagement of countries throughout the ACP, and by the good work done by regional coordinating bodies, especially in Eastern and Southern Africa. [Commerce, trade and industry] minister [Felix] Mutati of Zambia has been very dynamic in driving the process forward and making sure that the concerns of the region are heard.”

Ashton said the EU and ACP countries were having an open and constructive dialogue on key concerns in the ACP.

“I am committed to building confidence in agreements that, if done properly, should serve us well for decades to come. During this visit to Lusaka I had a fruitful discussion with some of the ministers from the [Eastern and Southern African] ESA grouping as well as the Secretary General of COMESA [Common Market for Eastern and Southern Africa], and we reached an understanding that our senior officials would meet in the near future in Brussels in order to look in detail at how to move forward,” she explained.

Asked about the wide opposition to the EPAs by civil society organizations in Africa and some from the European countries, Ashton said the EU was committed to an open and frank debate on EPAs with those opposed to the agreements.

“What I have continued to stress is that I have no interest in agreements that make any country worse off, and the EU will show flexibility in the framework of EPA negotiations. Indeed, EPAs are designed to ensure that ACP countries can continue on the path they have taken towards economic development and regional integration,” she said.

She said the EU and ACPs must find agreements that guaranteed the preferential access to the European market.

“That is so important for ACP countries, especially non-LDCs, and these agreements must hold up to scrutiny by other members of the World Trade Organisation,” Ashton said. “Failure to achieve this would leave us open to a legal challenge by a third country, with all the negative consequences for both sides such a challenge would bring. Signature of interim EPAs will give us the legal certainty that our economic operators need.”

On the concerns that the EPAs will benefit the EU nations more than ACP countries, Ashton said ACPs could also tremendously benefit from the EPAs.

“Firstly, they ensure legally binding duty-free, quota-free access for LDCs and non-LDCs alike to the EU market. This alone is potentially quite important for a country like Zambia, whose medium-term growth prospects mean it may no longer be an LDC within the next decade,” she said.

Ashton further said the EPAs contained ample provision for ACP countries to protect sensitive sectors.

“ACP countries have seen their market share in the EU decline under the existing system of preferences. EPAs are geared to change that, and this is where their real impact is to be found. Full EPAs will equip ACP countries to further integrate into the global economy, make their industries more competitive and allow their products and services to fulfil the quality and safety standards that are necessary to compete on international markets,” Ashton said.

She said each country had the primary responsibility for its own development and expected countries like Zambia to take up that challenge.

“However, we understand only too well that assistance both with funding and know-how is needed in order for many ACP countries to increase their presence on world markets, and the EU is committed to that,” she said. “We are and will continue to be the largest contributor to Aid for Trade worldwide, with a total of over € 7 billion (about K52 trillion) every year worldwide going into areas as diverse as infrastructure, building productive capacity and providing support for trade and investment promotion.”

Ashton said a good example of that commitment was the €115 million (about K 856.7 billion) the European Commission pledged for the North-South corridor project.

“This regional initiative will help those companies who can be competitive to eliminate trade obstacles and get their products to regional and international markets more efficiently. Of course we also need to give those who are not yet in a position to compete the right tools to do so,” Ashton said. “In regional terms, Zambia is in a very favourable position, being at the core of the North South Corridor. This means it will benefit from a substantial amount of that European Commission pledge, going towards rehabilitation works for the Zimba-Livingstone road, for the Great East Road, and for the Lusaka-Malawi border. The European Commission plans to enhance Zambia's productive capacity in agriculture and livestock, where large export potential exists, with future programmes amounting to €32 million (about K238 billion).”

She said the provisions on rules of origin that had been agreed upon in the interim EPAs were more favourable than those currently in place for LDCs under the ‘Everything but Arms agreement’.

“So Rules of Origin should encourage, not discourage signature of the EPA. I understand that ACP countries would like to achieve the best possible situation on rules of origin, both in light of the benefits this can bring both for economic development and regional integration. I share the belief that we should continue to work on this area in the framework of negotiations for the full EPA,” said Ashton.

Labels: CATHERINE ASHTON, EPAs, EU

posted by MrK @ 5:11 PM