WORLD TRADE
ORGANIZATIONWT/L/391
26 February 2001
(01-0930)
Original:  English
ACP TRADE MINISTERS MEETING
Brussels, 11-12 December 2000
Communication from Tanzania and Jamaica
The following communication, dated 29 January 2001, has been received from the Permanent
Representatives of Tanzania and Jamaica.
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On the request of the Secretary General of the ACP Group of States,
Mr. Jean Robert Goulongana, we have the honour to transmit, for circulation to and the attention of
WTO Members, the attached Declaration1 adopted by the Third Meeting of ACP Ministers of Trade,
which was held in Brussels, 11-12 December 2000.
                                                     
1 Reproduced in the Annex.WT/L/391
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ANNEX
Declaration on the Third Meeting of ACP Ministers of Trade
The ACP Ministers responsible for Trade,
Meeting in Brussels, Belgium on 11-12 December 2000
Having addressed the following issues:
(i) Implementation of ACP-EU Trade and Economic Cooperation under the
Cotonou Agreement including the preparation for negotiations of newWorld Trade Organization (WTO) compatible trading arrangements and the
establishment of the ACP-EU Joint Ministerial Trade Committee;
(ii) Developments and effective participation of ACP countries in the Multilateral
Trading System;
(iii) Enlargement of the European Union;  and
(iv) Enhancing Intra-ACP cooperation;
and
whereas  the ACP-EU Partnership Agreement (The Cotonou Agreement) has been concluded
"to promote and expedite the economic, cultural  and social development of the ACP States";
whereas  the Partnership in centred on the reduction and eventual eradication of poverty
consistent with the objectives of sustainable development, greater participation and the gradual
integration of ACP States into the world economy;
whereas  the Trade provisions under the Cotonou Agreement provide for the maintenance of
the current non-reciprocal trade preferences until the end of 2007 and for the undertaking as from
September 2002 of negotiations for new WTO compatible trade arrangements/economic partnership
agreements to enter into force in January 2008;
whereas  negotiations of the economic partnership agreements will be undertaken with ACP
countries which consider themselves in a position to do so, at the level they consider appropriate andin accordance with the procedures to be agreed by the ACP Group, taking into account regional
integration process within the ACP;
whereas  the EU and the ACP (the Parties) agreed to use the preparatory period for capacity
building in the public and private sectors of ACP States, including support for regional integrationinitiatives and the strengthening of regional organizations, the enhancement of competitiveness as
well as the upgrading of infrastructure and the promotion of investments;
aware that negotiations for new WTO compatible trading arrangements may coincide with
WTO negotiations and that multilateral trade negotiations could modify the context in which the ACPand EU negotiate, and thus affect their respective objectives;WT/L/391
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A. WITH REGARD TO PREPARATION FOR NEGOTIATION OF NEW ACP-EU TRADING
ARRANGEMENTS
1. Note  that most ACP States generally have not yet taken any decision regarding the level and
procedures to be adopted by the ACP Group for undertaking negotiations of economic partnership
agreements;
2. Urge  the ACP General Secretariat, in consultation with ACP States and interested ACP
Regional Organizations, as appropriate, to undertake as a matter of urgency the necessary impact
assessment studies on all the possible options in order to facilitate the preparatory process;
3. Note  that to prepare effectively for the negotiation of flexible, new WTO compatible Trading
Arrangements, there is need to implement a comprehensive package of programmes aimed at
supporting preparations for negotiations;
4. Recognize that timely decisions on the procedures and configuration of the ACP States for the
purpose of undertaking the negotiations are necessary;
5. Reaffirm  that the designation of programming regions should not be linked with the
configuration of the ACP for the negotiation of the new trading arrangements;
6. Agree to undertake broad-based consultations with the relevant stakeholders both in the ACP
and the EU on the content and impact of the envisaged New Trading Arrangements (NTAs);
7. Stress  that negotiations of NTAs to be undertaken, at whatever level determined by
ACP countries, should maintain the spirit of ACP solidarity;
8. Recognize that in 2004 the Community will assess the situation of the non-LDCs which, after
consultations with the Community decide that th ey are not in a position to enter into economic
partnership agreements and will examine all alternative possibilities, in order to provide thesecountries with a new framework for trade which is at least equivalent to their existing situation and in
conformity with WTO rules;
9. Recognize also  that the Community will start by the year 2000, a process which by the end of
multilateral trade negotiations and at the latest 2005 will allow duty free access for essentially all
products from all LDCs building on the level of the existing trade provisions of the Fourth ACP-ECConvention and which will simplify and review the rules of origin, including cumulation provisions,
that apply to their exports;
10. Consider  the following provisions under GATT/WTO with a view to seeking the flexibility
necessary for protecting the vital interests of the ACP States in regard to the negotiations of the new
WTO compatible trading arrangements and making the relevant modifications:
- Article XXIV of the GATT (permitting establishment of customs unions and
free-trade areas among WTO members) and the Understanding thereon;
- Article V of the GATS (permitting the establishment by any WTO Members of
agreements among them liberalizing trade in services providing, inter alia , that the
agreements have substantial sectoral coverage);
- 1979 "Enabling Clause" (paragraph 2, GATT Decision on Differential and More
Favourable Treatment, Reciprocity and Fuller Participation);WT/L/391
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11. Note  that the ACP-EU negotiations for New Trading Arrangements may coincide with major
changes in the structure of the EU, including its enlargement, and will take place in an international
environment which could modify the context of those negotiations and exert significant impact
thereon;
12. Call for the early operationalisation of the Joint ACP-EC Ministerial Trade Committee;
13. Mandate  the ACP Secretariat to monitor developments in the WTO and formulate appropriate
inputs into the preparatory process for the NTAs;
14. Mandate  ACP Representatives in Geneva to identify and examine those WTO provisions
which should be modified to facilitate flexibility to  be injected into the ne gotiations between the ACP
and the EU;
B. WITH REGARD TO EFFECTIVE PARTICIPATION OF ACP COUNTRIES IN THE
MULTILATERAL TRADING SYSTEM
15. Note  that the Fourth WTO Ministerial Conference is scheduled to take place no later
than December 2001;
16. Agree  to meet at an appropriate time to consider common positions for the 4th WTO
Ministerial Conference and mandate the ACP Secretariat to undertake the necessary preparations;
17. Express concern that many issues that contributed to the failure of the Third WTO Ministerial
Conference in Seattle, including those rela ted to the implementation of the Uruguay Round
Agreements, Decisions and the inherent imbalances therein, remain unresolved;
18. Also express concern  that the confidence-building measures and the Implementation Review
Mechanism to address and resolve the concerns of developing countries on questions and issues ofimplementation have made little progress;
19. Call for the urgent fulfilment of the commitmen ts in the various agreements in favour of
developing countries such as Special and Differential Treatment and technical assistance, and in that
regard, reiterate the need to continue addressing ACP States' concerns regarding their difficulties in
implementing the Uruguay Round Agreements and Decisions;
20. Call for immediate decisions in favour of developing countries to be taken on implementation
issues;
21. Underline  that the ongoing multilateral negotiations on Agriculture should take fully into
account the special and specific concerns and needs of developing countries;
22. Express concern at the delayed implementation of the Integrated Framework for LDCs' Trade
Development and call for the urgent commencement of related-field programmes;
23. Reiterate the call for enhancement of greater democracy in the decision-making process in the
WTO so as to accommodate the legitimate concerns and priorities of developing countries which are
crucial for their successful, smooth and gradual integration into the multilateral trading system;
24. Caution against supporting the launching of a future round of multilateral trade negotiations
before the problems of the implementation of the Uruguay Round Agreements and Decisions raised
by developing countries are satisfactorily addressed and resolved;WT/L/391
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25. Reiterate  that issues such as labour and environmental standards should not be incorporated
into multilateral trade negotiations as these can be used for protectionist purposes;
26. Reaffirm  their commitment to implementing labour and environmental standards as defined
by the relevant international conventions;
27. Express deep concern  that the application to the WTO for a waiver for the ACP-EU Cotonou
Agreement trade provisions, to permit ACP States to continue trading with the EU under the Lomé
preferences had not yet been granted;
28. Appeal  to all Parties concerned in particular the EU to intensify their efforts to obtain a
waiver and urge the Membership of the WTO to support the application;
29. Reiterate  the need to facilitate the accession of ACP States into the WTO without requiring
them to assume obligations or commitments beyond those normally applicable to such States;
30. Welcome  the imminent opening of the ACP's office in  Geneva in conformity with the decision
of the ACP Council of Ministers and Recommend  that measures be taken to strengthen the activities
of that office;
31. Welcome the convening in Brussels from 14 to 20 May 2001, of the 3rd United Nations
Conference on Least-Developed Countries with a view to preparing and adopting national, regional
and international policies and measures for the development of these countries and ensuring theirgradual integration into the global economy;
32. Urge  the international community to take the necessary decisive and concrete measures
regarding the efforts made by the Least-Developed Countries with the aim of eradicating poverty by
speeding up growth and sustainable development, especially by facilitating market access to LDC
exports, removing supply-side constraints, alleviating debt, and increasing financial and investmentflows;
33. Call for  the adoption of clearly defined, transparent provisions and interdependent
mechanisms involving all the parties concerne d, with a view to the implementation, follow-up,
supervision and effective examination of the new programme of action at the national, regional and
international levels.
C. WITH REGARD TO THE NEW TRADE-RELATED AREAS IN THE CONTEXT OF THE
COTONOU AGREEMENT
34. Note  the increasing importance attached to trade-related issues in the ACP-EC trade and
economic cooperation;
35. Note  that the ACP and the EC have agreed to cooperate to strengthen the capacity of
ACP States to deal with trade-related issues;
36. Express concern that trade-related areas such as competition policy, intellectual property
rights, standardization and certification, sanitary and phytosanitary measures, trade and environment,
trade and labour standards and consumer policy, are issues, some of which could easily translate into
non-tariff barriers to trade;
37. Resolve to mainstream in the National Indicative Programmes (NIPs) and the Regional
Indicative Programmes (RIPs) support for policy development in these new trade-related areas agreedWT/L/391
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on in the Cotonou Agreement, for effective participation by both Parties in the setting of standards
and certification in various global fora and for building capacity to develop technical standards;  and
38. Mandate  the ACP Secretariat to carry out in-depth studies on cooperation in these new areas.
D. WITH REGARD TO MARKET ACCESS ISSUES AND LDCS
39. Welcome and Support  the initiative of the Commission of the European Community to grant
from 2001 duty and quota free access to all products, except arms, from all LDCs (EBA Initiative),
respecting existing Agreements;
40. Call upon  the EU to address supply-side constraints so that the LDCs can fully benefit from
the market access initiative;
41. Urge  that this initiative be considered in accordance with the relevant agreed provisions of the
Cotonou Agreement and its Joint Declaration No. XXIII with a view to early implementation;
42. Call upon  the EC to implement fully this Declaration as well as to take certain other steps
including the relaxation of the calendar requirements, the rules of origin and the sanitary and
phytosanitary measures imposed on all ACP States;
43. Urge  that the EBA Initiative takes into account th e vulnerability os Small, Landlocked and
Island ACP States;  and
E. WITH REGARD TO TRADE IN SERVICES
44. Note  that the development and liberalization of trade in services have the potential to
contribute significantly to economic growth and th at the progressive and gradual opening of the ACP
States' services market takes into account their financial and trade needs as well as their level ofdevelopment;
45. Resolve to:
(i) identify sectors in which ACP States have supply capacity and the specific
restrictions existing on these sectors in the EU in order to request
liberalization in these sectors in the context of WTO negotiations and NTAs;
(ii) seek to make operational Article IV of GATS that establishes an obligation to
facilitate increased participation of developing countries in services trade,
through negotiation of specific commitments that promote the strengthening
of ACP domestic service capacity, improving access to information networks,
and distribution channels, and the liberalization of service sectors and modes
of supply of export interest of ACP;
(iii) ensure that Article XIX of GATS (which is complementary to Article IV of
GATS) is respected to allow ACP countries flexibility to liberalize fewer
sectors and fewer transactions and providing market access in line with ACP
level of development.
46. Mandate  the ACP Secretariat to carry out studies on the impact of liberalization of trade in
services in ACP States.WT/L/391
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F. WITH REGARD TO SUPPLY-SIDE CONSTRAINTS AND EXPORT DIVERSIFICATION
47. Note  that the protracted marginalization of ACP countries in world trade results, inter alia ,
from their weak productive capacity, the lack of competitiveness of a large part of their export sector
due to structural, technological and managerial factors, as well as from exogenous factors and limitedinvestment;
48. Note  also that the ACP States' weak export base is related, inter alia , to their over-dependence
on a few primary products, adverse developments in external markets for primary commodities,
difficulties with regard to trade financing and trade distortions in third markets caused by measures
such as subsidies;
49. Resolve  to promote export production and diversification through:
- the pursuit of conductive macro-economic policies which facilitate the expansion of
export supply capacities by adopting investment-friendly policies to attract
investments into the export sector;
- the development of measures to diversify and expand the export capacity including
the production of services, and the diversification and expansion of export markets;
- the adoption, where desirable, of a regional approach to product development and
through the adoption of appropriate technology;
- the promotion of South-South cooperation in trade and export diversification
programmes.
G. WITH REGARD TO INVESTMENT
50. Express concern  that the current flow of foreign direct investments to ACP States is
insignificant and skewed in regard to its sectoral distribution and does not enhance the capacities of
ACP States for processing most of their primary products or for developing their manufacturing
sectors;
51. Consider  the following actions, among others, as being necessary to address the negative
factors hampering the inflow of investments into ACP States:
- improvement of the enabling environment especially macro-economic stability,
appropriate legal framework, quantity and quality of skilled labour force, reliable
infrastructure and entrepreneurial development;
- build-up of investment support services;
- pursue growth-oriented and savings maximization policies;
- incentives for small and medium scale enterprises (SMEs);
52. Urge  the EU to encourage and support increa sed investment flows into ACP States;WT/L/391
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H. WITH REGARD TO REGIONAL INTEGRATION
53. Underline  the prominence given to regional cooperation and integration in the Cotonou
Agreement;
54. Note  that economic growth for ACP States can be rapidly improved through strengthening the
outward orientation of current regional cooperation arrangements, and that regional integration canbecome a powerful marketing tool, making respective ACP regions attractive destinations for foreign
investment;
55. Resolve  to mainstream in the National Indicative Programmes (NIPs) and the Regional
Indicative Programmes (RIPs) support for ACP regional organizations to enable them to adequately
undertake their various tasks.
I. WITH REGARD TO CAPACITY BUILDING
56. Reiterate  that institutional and human capacity building in the ACP States should include
strengthening productive capacities in key sectors and infrastructure services, implementing
technology development programmes, developing and implementing appropriate trade policies to gain
an improved market share in EC and international markets, establishing related regulatory framework,
creating an investment-friendly climate and pr omoting as sustainable industrialization process;
57. Consider  that capacity building should also be directed toward strengthening regional
integration efforts, capacity development in the private sector and civil society as a means of
facilitating the ACP economies to adjust to the liberalized global trading environment;
58. Emphasize  that future cooperation in capacity building should be demand-driven to enhance
ownership by and relevance to the ACP;
59. Resolve  to mainstream in the National Indicative Programmes (NIPs) and the Regional
Indicative Programmes (RIPs) activities to inform all stakeholders of the process of capacity building,
programmes to develop, inter alia , an export culture and capacity, consumer-protection, establishment
of trade-related legal framework, upgrade product quality, develop E-Commerce and upgrade human
skills.
J. WITH REGARD TO EU ENHANCEMENT
60. Note  that the ACP States, the possible impact of enlargement is, inter alia , in the areas of
access to the EU markets, evolution of the Common Agricultural Policy and technical assistance;
61. Mandate  the ACP Secretariat to undertake comprehensive studies on the impact of
EU enlargement on ACP-EU relations with specific focus on market access, trade policies and
technical assistance and monitor developments in this area;
62. Call upon  both the ACP Secretariat and the EC to organize joint seminars and other
information dissemination sessions in the EU candidate countries focusing on the ACP-EC relations;
63. Call upon  the ACP Secretariat and the EC to organize an exchange of visits between the
ACP Group and the EU candidate countries at high level to consider issues of mutual interest;WT/L/391
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K. WITH REGARD TO ENHANCING INTRA-ACP COOPERATION
64. Reaffirm  the importance and value of intra-ACP cooperation;
65. Recommend that greater focus should be placed on activities at a "micro" level;
66. Request  each ACP regional organization to submit an annual report to the ACP Secretariat on
their activities in the area of intra-ACP cooperation;
67. Recommend to institutionalize biennial meetings of the Heads of ACP Regional Integration
Organizations;
68. Mandate  the ACP Secretariat to facilitate intra-ACP activities of ACP Regional Organizations
and the strengthening of the role of the ACP Chambers of Commerce and the ACP Business Forum;
69. Request the ACP  Secretariat to undertake as a matter of priority the feasibility study on an
ACP free-trade area.
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