Bid to narrow gap in Lomé talks

Date: 04/02/1999

By Gareth Harding

AFTER almost four months of talks between the EU and its African, Caribbean and Pacific (ACP) partners, little progress has been made towards overhauling the trade and aid agreement which governs relations between the two blocs.

Ministers will attempt to narrow their differences at a meeting in Dakar, Senegal, next week, but the gulf between the two sides' starting positions is so wide that diplomats believe a breakthrough is unlikely.

The most recent version of the Lomé Convention, which has bound Europe to its former colonies for almost a quarter of a century, is due to expire early next year.

The Union wants to use the negotiations on a successor accord to replace the generous trade concessions ACP countries currently enjoy with regional free-trade deals with groupings of states by 2005. Under the EU plan, this would mean splitting up the 71-member bloc into six subgroups: the Caribbean, the Pacific, southern, western, central and eastern Africa.

Speaking at a major conference in Brussels last week, European Commission official Ingo Fussell said that it was "legally and politically difficult to justify discrimination between developing countries which have the same level of economic development". The World Trade Organisation has also challenged the preferential trade agreements between the Union and its ACP partners.

After a five-year transition period, the Union believes ACP countries should open up their markets fully to European firms. However, the 71 ACP states argue that the present arrangements should be maintained for a further ten years to give them time to prepare for full entry into the world economy.

Whilst supporting the principle of greater regional cooperation, the ACP countries are doubtful as to whether the type of regional trade blocs envisaged by the EU could be up and running in time for the new trade regime. In addition, they question whether some of the globe's poorest countries will be ready for the brave new world of free trade within five years.

The countries' fears appear to be borne out by a series of recent reports carried out for the Commission. The five studies looked at the impact of trade liberalisation on the countries concerned and concluded that the free-trade arrangements foreseen by the Union could have serious consequences for many ACP countries.

In particular, they pointed to the devastating effects the loss of import tariffs and the likely increase in imports from the EU could have on the poorest developing countries.

In spite of these differences, some progress has been made towards defining the overarching objectives of the future partnership. According to a paper prepared for ministers by ambassadors from the two blocs, the deal should be "centred on the aim of eradicating poverty, consistent with the objectives of sustainable development and the gradual integration of the ACP countries into the global economy".

There is also a broad degree of support for the fundamental principles of the partnership, namely equality between the parties, respect for sovereignty and linking growth strategies to differing levels of development.

The political dimension of the relationship is likely to be strengthened in any future agreement. However, there are differences over what form this increased political dialogue should take.

ACP states favour setting up two new institutions: a council of foreign ministers and a summit of heads of state. But the EU believes that institutionalising the raised level of dialogue "would not guarantee its success".

Despite the spat over what institutional form political dialogue should take, there is a broad consensus about the principles it should be based on. Both sides agree that the 'essential elements' of any future partnership should embrace respect for human rights, democratic principles and the rule of law. The EU also wants to include good governance on this list, but ACP countries say the change is unnecessary.

Carl Greenidge, the deputy secretary-general of the ACP's Brussels-based secretariat, says a "lively debate" is expected at next week's ministerial meeting.

Having clarified their differences, the two sides then hope to work towards a common position by the end of the year.

Features includes previews and reports of ACP-EU Ministerial Meeting,Dakar, Senegal, 8-10.2.99.