EU to negotiate Economic Partnership Agreements with ACP countries, June 2002

EU foreign ministers agreed on 17 June 2002 to endorse a far-reaching mandate for the European Commission to negotiate Economic Partnership Agreements (EPAs) with 76 of the African, Caribbean and Pacific countries (ACP). Meeting at the General Affairs Council in Luxembourg, ministers agreed that EPAs would help to achieve the objectives of the 'smooth and gradual integration of ACP States into the world economy and the eradication of poverty'.

The idea of Economic Partnership Agreements was set out in the Cotonou Agreement, signed in June 2000, when both the EU and ACP countries realised that the framework for economic and trade co-operation between the two parties needed to be thoroughly overhauled. The objective in the Lomé Convention of promoting trade between the EU and the ACP states had been superseded by a need to help the ACP countries integrate into the world economy, at a time when they were becoming increasingly marginalised. During the period of application of the successive Lomé Conventions, ACP share in world exports fell from 3.4% to 1.1%.

EPAs offer a means of achieving the new objectives of enhancing the production, supply and trading capacity of the ACP countries, as well as their capacity to attract investment by gradually removing all the barriers to trade between the ACP states and the EU.

Following on from Cotonou, the European Commission approved a mandate on 9 April 2002, which sets out a framework for EPA negotiations. In addition, the European Commission announced that it plans to launch a comprehensive Sustainability Impact Assessment analysing the potential economic, social and environmental effects of EPAs before negotiations start. The General Affairs Council considered the European Commission's negotiating mandate and agreed to the following key elements:

• Enhanced market access to the EU through the abolition of any remaining tariffs and co-operation with the ACP countries to remove non-tariff barriers and assess any technical hurdles
• Gradual and managed liberalisation of ACP economies by the gradual phasing in of tariff reductions on the ACP side accompanied by support measures. Both will conform to the objectives of the Cotonou agreement and the WTO rules.
• Develop regional integration by consolidating those regional initiatives already in place as well as the creation of largely integrated economic areas between the ACP and the EU where goods and services can circulate freely, creating a more attractive environment for foreign investors.
• Encourage more beneficial investment by deeper co-operation in areas related to competition and investment.
• Encourage free trade in services which offer a significant source of growth for ACP countries, especially because they have comparative advantage in many sectors

The benefits of EPAs have been outlined by Pascal Lamy, European Commissioner for Trade, who said:

'In the war against poverty, Economic Partnership Agreements will be an instrument for development. They will help to boost trade and economic co-operation, helping ACP countries to integrate into the world economy and to realise their wealth-creating potential for the benefit of their populations'.

Lamy's counterpart in the DG for Development and Humanitarian Aid, Poul Nielson, also welcomed the decision by the Council, saying:

'The EPA approach and the Cotonou Agreement are a global response to the needs of the ACP group'.

With negotiations due to get under way on 27 September 2002 in Brussels, the first agreement is scheduled to enter into force on 1 January 2008. However, the negotiating strategy recognises that not all the elements of the EPAs must be in place at the same since it may depend on the specificity of the sector or the particular situation of the ACP countries concerned.

Links:

European Commission:

• 17.06.02: Press Release: IP/02/871
• 09.04.02: Press Release: New strategy for partnerships with African, Caribbean and Pacific countries
• DG Trade: Bilateral Trade Relations with the ACP countries
• DG Trade: What is an Economic Partnership Agreement?

Council of the European Union:

• 17.06.02: Press Release: General Affairs Council [PRES/02/178]

European Sources Online:

• Topic Guide: EU-ACP relations
• In Focus: EU-ACP countries sign new Partnership Agreement ('Cotonou Agreement')

Helen Bower
Compiled: Tuesday, 18 June 2002

EU foreign ministers agreed on 17 June 2002 to endorse a far-reaching mandate for the European Commission to negotiate Economic Partnership Agreements (EPAs) with 76 of the African, Caribbean and Pacific countries (ACP).