RESOLUTION(1)

on regional cooperation in the ACP countries

The ACP-EU Joint Assembly,

- meeting in Strasbourg (France) from 29 March to 1 April 1999,

- having regard to the report of the Working Group on regional cooperation in the ACP countries,

A. whereas the regional dimension underpins ACP-EU relations and is, without a doubt, the defining feature of the Lomé Conventions,

B. whereas regional cooperation and integration have been considered a priority since the early days of ACP-EU cooperation,

C. whereas in recent times a growing number of regional agreements taking very different forms and signed for a wide variety of reasons have been concluded around the world; whereas this general trend towards regional integration cannot be explained in economic and commercial terms alone,

D. having considered the state and future prospects of regional cooperation and integration in the ACP countries,

1. Affirms the relevance of regional cooperation and integration for the ACP countries, given that they are a means of tackling the challenges thrown up by globalisation (particularly for the least developed countries) and are one of the keys to growth, the eradication of poverty, and sustainable development, and a means of putting an end to the marginalisation of the ACP countries;

2. Points out that the underlying reasons for and the objectives and means of achieving regional cooperation and integration differ greatly from region to region and sub-region to sub-region within the ACP group and that each has its own reasons for pursuing this goal;

3. Maintains, in the light of the results achieved by the various regions, that the political and security dimension is vital to the success of regional integration processes and that peace is a precondition for regional development;

4. Notes that there is no standard model for regional cooperation and integration and that due account must be taken of local needs and possibilities;

5. Acknowledges that the ACP group must continue in its present form, but that account must nevertheless be taken of the needs and specific nature of its various regions and sub-regions;

6. Is fully aware of the difficulties encountered and the fact that the results achieved have fallen short of the goals set, but welcomes the progress made over the recent period;

7. Maintains that the European Union's role has to be confined to providing support for implementing measures being taken in the various regions and that regional cooperation and integration depend first and foremost on the will of the peoples involved;

8. Considers that regional integration does not in any way conflict with the liberalisation process taking place around the world and that, on the contrary, it provides countries with a means of preparing for and facilitating such integration;

9. Stresses that economic integration will only last if the basic economic and political conditions are favourable and if there is a long-term commitment to the integration process; considers that common interests and political will are two key elements which are essential for success; and adds that other factors are also decisive, including a climate of peace and stability, the rule of law, good governance and macroeconomic stability;

10. Believes that ACP-EU regional cooperation can only be effective if it reflects the existence of those factors;

11. Considers that economic integration should become the starting-point for and the main focus of regional cooperation;

12. Recalls that, while regional cooperation and integration are a priority for the ACP countries, they can only be achieved in a context conducive to peace, democracy and respect for human rights, and not on an ethnic basis which stirs up hatred and gives rise to armed conflicts;

As regards Africa

13. Points out that the origins of regional integration can be traced back to the pre-colonial period;

14. Notes that a development model geared mainly to national concerns in the framework of former colonial boundaries has, since the 60s, influenced Africa's desire to affirm its identity and pursue development;

15. Emphasises the importance of the strategic decision taken by Africa to establish the African Economic Customs Community under the Abuja Treaty;

16. Considers that, as part of its relations with Africa, the European Union has a duty to contribute to the fulfilment of the objectives set out in the Abuja Treaty;

17. Reaffirms the relevance of regional cooperation and integration in Africa, inter alia for the following reasons:

- the fact that Africa is divided into 54 countries has made it impossible for the economic conditions required for a viable national market and industrial base to develop in most of those countries;

- the fact that many of the present-day states have artificial borders as a result of the boundaries drawn up by the colonial powers serves as a barrier to the free movement of goods, services, capital and persons;

- the potential benefits to be gained from regional integration can be gauged from the scale of the informal economy and of informal trade flows;

- the high proportional cost of transactions owing to the fact that, in general, population density remains low despite overall population growth;

- economic and trade structures favour traditional markets to the detriment of intra-regional relations;

18. Maintains therefore that, given the conditions obtaining in Africa, the pursuit of regional integration is an essential step towards the continent's harmonious integration into the world economy;

19. Considers that the difficulties hitherto encountered actually enhance the relevance of regional cooperation and integration;

20. Welcomes the fact that such obstacles have now been clearly identified; whereas they include:

- major differences in the size, level of development, peripheral or island location and political weight of the different countries, which make cohesion particularly difficult;

- the institutional weakness of the various states;

- the dependence of public finances on customs revenues;

- the compartmentalisation of African markets, which is aggravated by the non-convertibility of some of the currencies;

- the impact of conflicts, which prevent any progress being made towards regional integration, together with the unsatisfactory situation as regards the rule of law, democracy, good governance and macro-economic stability, all of which are preconditions for both national development and regional integration;

21. Welcomes the fact that the improved economic situation is conducive to economic integration, which is particularly difficult to achieve during a recession, and that the adoption of more balanced macro-economic policies has improved the prospects for the convergence of such policies at regional level;

22. Warmly welcomes the fact that, following a long period during which the above difficulties proved insurmountable, considerable, though inconsistent, progress has clearly been made towards regional cooperation and integration over the recent period; notes that, in some cases, the advances made in just a few short years equal or even exceed those made over the two preceding decades;

23. Notes that the progress made towards regional cooperation and integration in Africa is in line with the progress made in the economic and political spheres, which confirms - should such confirmation be necessary - the validity of the goal of establishing an African economic community;

24. Draws attention to the fact that peace and security are among the main objectives of regional organisations;

25. Points out that progress has been made as regards the implementation at national level of decisions taken at regional level;

26. Points out that greater account is being taken of the need to ensure that economic operators and civil society are more fully involved in the integration process;

27. Notes the diversity of the various regional integration processes;

28. Emphasises that there has been a growing political will over the recent period to make progress on regional integration, with a view to ensuring that Africa becomes a visible and audible player on the world stage and is able gradually to affirm its identity and achieve sustainable development;

29. Agrees with African leaders that the development of Africa will be regional or not at all;

As regards West Africa

30. Notes that West Africa is a relatively homogenous sub-region which has a long experience of regional integration, dating back to the period between the 10th and 15th Centuries;

31. Notes that ECOWAS, which is the general regional organisation for this 17-country sub-region, has achieved positive results as regards the free movement of persons but very little in terms of economic cooperation and the liberalisation of trade;

32. Draws attention to the major advances made by the WAEMU, which is making swift progress towards the completion of a customs union and the coordination of macro-economic policies; welcomes the establishment, in March 1998, of the WAEMU interparliamentary committee and calls for a WAEMU parliament to be created in the very near future;

33. Points to the extremely positive results achieved by the CILSS, which, operating on a basis of regional solidarity, has wholeheartedly committed itself to combating drought and desertification;

34. Notes in particular the following conclusions drawn by the CILSS:

- in order to be a success, regional cooperation requires the active involvement of local people in the setting of goals and the implementation of measures;

- capacity building and the development of human resources are of essential importance;

- progress made in the fields of food safety and combating desertification is only sustainable in a sub-regional context;

35. Notes that the main difficulties have arisen in connection with regional integration in West Africa, particularly:

- the crisis in the 1980s obliged governments to make domestic policy a priority;

- the lack of grassroots support (the integration process was formulated without the involvement of the general public, which has detracted from its sustainability and undermined programme implementation);

- the large number (40 or so) of regional organisations in West Africa;

36. Welcomes the fact that there are several good reasons to believe that now is a particularly favourable moment for regional integration in West Africa and that the time has therefore come to infuse new life into the process;

37. Notes in particular that, thanks to the efforts of the European Union, the regional dimension is now taken into account by donors - in particular the Bretton Woods institutions;

38. Notes that ECOWAS and the WAEMU share the same goals, which makes it possible for them to work together, and welcomes the fact that the people in charge of those two organisations have decided to do so;

39. Points out that the ECOWAS member states have signed a non-aggression treaty and set up a mediation committee and a group of observers, and that ECOWAS's intervention in Liberia - the first of its kind - yielded positive results;

As regards Central Africa

40. Notes that Central Africa is the African region in which regional integration has proved most difficult, essentially for political reasons;

41. Notes that the Economic Community of Central African States (ECCAS) is probably the most significant example of the failure of a regional organisation set up pursuant to the Lagos action plan and the Abuja Treaty being caused by the absence of the requisite political conditions:

- the region was in the grip of conflicts and humanitarian disasters;

- the long-term approach needed for regional integration was at odds with a situation in which national policies were totally absent or inadequate;

- owing essentially to the irregular payment of contributions, the organisation lacked the resources it required in order to function;

42. Notes that the failure of the GLEC was due to humanitarian disasters and to overlapping with other regional organisations;

43. Notes that the region has substantial resources and a lot of potential and that, if it is to be able to develop and integrate, conflicts will need to be settled and greater political and economic stability achieved;

44. Notes the setting up at subregional level of the Economic and Monetary Community of Central Africa (EMCCA) to take the place of the Customs and Economic Union of Central Africa (CEUCA) with a view to harmonising policies and establishing a legal and economic framework favourable to the relaunch of investment and the establishment of a common market;

As regards East Africa and the Horn of Africa

45. Notes that, as a region, East Africa does not have a very clear economic and geographical identity, which explains why a variety of regional organisations have grown up there;

46. Draws attention to the major advances made by the PTA (which has since become the COMESA) as regards the liberalisation of intra-regional trade; points out, however, that the organisation's success has been undermined by political and security problems in several of its member countries;

47. Points out that the East African Cooperation, which was revived in 1996, is a collection of countries which share the same language, culture and infrastructures - a factor which is conducive to partnership and regional integration;

48. Emphasises that, if progress towards regional integration is to be sustainable, a clearer geographical demarcation between the various regional communities will be required in the medium to long term;

49. Stresses that IGAD, the initial aim of which was to combat drought and desertification, has become a regional economic Community whose priorities are food security, environmental protection, economic cooperation and conflict prevention;

As regards Southern Africa and the Indian Ocean

50. Notes that the main goal of regional integration in this region is not to achieve a state of interdependence, since this has existed for many years and is reflected inter alia by the scale of capital flows, considerable intra-regional migration and the construction of regional infrastructures necessary for easy access to landlocked countries and coastal states;

51. Notes that the region's industrial vigour and the formation of a regional market were made possible by protectionist measures which paved the way to genuine industrialisation, and that the abolition of such measures would, at least in the short term, have an appreciable impact on employment;

52. Notes the imbalances between the countries of the region and the unequal relations resulting therefrom and draws attention to the difficulties experienced in settling the issue of the costs and benefits of integration as a result of this situation;

53. Notes that the prospect of the development of major projects for the exploitation and transport of natural resources is a powerful spur to integration;

54. Notes that the SACU, Africa's oldest regional organisation, has removed tariff and non-tariff barriers, established a common external tariff, secured the convertibility of currencies linked to the South African Rand and is experiencing problems with compensation arrangements and that it is consequently necessary to create within the area a more united and competitive economy able to achieve a high and sustainable rate of growth by giving precedence to long-term regional economic interests;

55. Recognises the success of the SADCC in the area of functional cooperation, especially improvement of the transport corridors, based on cooperation between South Africa's neighbouring countries during the apartheid era; notes the satisfactory results achieved by the SADCC with sectoral policies (transport, communications and energy) and that it had less success in the trade and investment spheres owing to the difficulties involved in striking a harmonious regional balance between the interests of its member countries;

56. Points out that the SADC, which replaced the SADCC, has the goal of establishing a development community which is intended to be more than a mere economic community and which thus, while comprising elements such as a common market and the harmonisation of economic and monetary policies, also makes reference to shared economic, political and social values, including the need for sound government, public participation and measures to combat poverty;

57. Points out furthermore that strengthening regional solidarity, peace and security is also an important element of the agreement and that the SADC Parliamentary Forum, made up of delegates from the member countries, will consider matters relating to human rights and democratic principles;

58. Points out that several countries of the region are members of both the SADC and the COMESA, that the composition of these two organisations is rapidly changing and that a certain degree of rivalry exists between them; considers that this situation results in a loss of resources and that it should be clarified in the interests of all the countries concerned;

59. Points out that the ACP States which belong to the Indian Ocean Commission are all members of the COMESA (some of them also being members of the SADC), that others are members of the Indian Ocean Association for Regional Cooperation, that the IOC's objectives are political cooperation, social and economic cooperation and operational cooperation and that economic cooperation between those states has not been particularly successful, whereas operational cooperation on issues of importance to the small developing island states (namely the environment and tourism) has proved highly satisfactory;

60. Emphasises the efforts made by the Indian Ocean Commission to develop regional cooperation between the island countries of the region; notes that the development of the institutional structure should enable objectives to be better attained and the obstacles encountered hitherto to be overcome;

As regards the Cross-Border Initiative (CBI)

61. Draws attention to the value and originality of the Cross-Border Initiative involving some East African, Southern African and Indian Ocean countries, which differs from the approach to regional integration hitherto prevalent in Africa in several respects, including:

- an outward-looking approach and a less protectionist attitude;

- direct involvement of the private sector by means of technical working parties set up at national level;

- complementarity between regional and national policies;

- a flexible, variable-speed approach;

62. Considers that the regional economic communities can benefit from the CBI's success, particularly as regards support from donors, the role of the private sector, covering the transitional costs of integration, technical assistance and capacity building;

As regards the Caribbean region

63. Emphasises the fragility and vulnerability of Caribbean economies and their dependence on the export of commodities, in particular bananas, sugar and rum;

64. Welcomes the progress made in the region as regards cooperation and regional integration;

65. Notes with the greatest interest the proposal by the Dominican Republic for a strategic alliance between the Caribbean and Central America which could influence overall development strategy by helping to enhance competitiveness and economic growth, strengthen the productive and technological capacity of the region, attract foreign investment and help in coordinating trade policies in the various international arrangements in which they participate;

66. Draws attention, further, to the decision taken by the leaders of the Caricom countries meeting in St Lucia from 30 June to 4 July 1998 reaffirming their commitment to the creation of a single market by the end of 1999;

67. Takes the view, therefore, that the European Union must increase its support for cooperation and regional integration in the Caribbean;

68. Is in favour of the establishment of a special scheme designed to help the vulnerable and fragile island states and in this regard draws attention to the need to recognise the value of the emerging vulnerability index in assessing the development status and needs of vulnerable small island states;

As regards the Pacific region

69. Notes that the ACP countries of the region, although spread over an enormous area, constitute a unity, the coherence of which is based on traditional values,

- the commitment to peace, democracy and the rule of law,

- the will to secure their development together after the diversity of the colonial period;

70. Welcomes the fact that the eight ACP States of the South Pacific wish to maintain and strengthen their links with both the ACP Group and the EU;

71. Notes that the ACP countries of the Pacific have affirmed their intention to work together within the framework of the ACP group and ACP-EU cooperation with a view, in particular, to overcoming the obstacles associated with their small, isolated economies and, in this context, to promote long-term economic and social development;

72. Believes that, by acting on a regional basis, the countries of the Pacific can benefit from economies of scale, negotiate international agreements more effectively, encourage market access and find support for their national policies;

73. Calls, accordingly, for the fragility, smallness, isolation and, therefore, vulnerability of the Pacific ACP countries to be given particular consideration;

74. Stresses the importance of the South Pacific Forum, not only in terms of economic cooperation, but also as a means of ensuring peace and security in the region and emphasises the significance of the Melanesian Spearhead Group (MSG);

As regards regional cooperation within the ACP-EU framework

75. Finds that, despite the substantial sums which have been devoted to it, regional cooperation within the ACP-EU framework cannot be deemed a success hitherto; notes, for instance, that the Court of Auditors, which had assessed the general impact of the regional cooperation programme, came to the conclusion that it had hardly contributed to fulfilling the essential objectives of regional cooperation;

76. Welcomes the fact that the lessons of the past have now been learned and that the obstacles encountered have now been properly identified, which creates the right conditions for them to be overcome;

77. Stresses the importance of forms of cooperation other than regional integration which may contribute to greater understanding and regional solidarity;

78. Affirms that it is now both possible and necessary to provide a fresh impetus and fresh goals for support for regional cooperation and integration within the ACP-EU framework; considers, in particular, that positive experiences should be drawn upon;

79. Stresses that economic cooperation must never be divorced from its human aspects, which means that an economy must serve its people, and, in particular, that economic and financial operations should not divorce economic factors from the effects which they actually have on the people concerned in terms of food, education, housing, healthcare, culture and progress towards peace;

80. Is itself in favour, under this report, of adopting specific measures which take into consideration the needs, the specific characteristics, the weaknesses and the varying development levels of the regions, subregions and developing island states in the context of the overall ACP-EU agreement;

81. Believes that each region has its own specific constraints, dynamics and potential, and that cooperation within the ACP-EU framework must strengthen and consolidate those existing regional initiatives which are realistic and sustainable, and adds that in any event the initiatives must come from the regions themselves;

82. Believes, however, that a number of common problems need to be tackled, which calls for a pragmatic, flexible tool to provide support for economic integration policies;

83. Believes that, from now on, the starting-point for all regional projects must be to ask whether a given project is an appropriate regional approach (and, if so, why), and that, in this context, the specific problems and the obstacles inherent to small developing island states must be taken into consideration;

84. Expresses itself in favour of an incentive mechanism making it possible to provide special support for regions and other sub-regions which in practice show a genuine desire for economic integration; considers that such a mechanism might take the form of budgetary aid for the balance of payments, or specific compensation arrangements;

85. Believes that it is essential for the preconditions for regional integration to be clearly identified at the outset;

86. Believes that a tighter focus might usefully be combined with the principle of "variable geometry" in such a way that no country feels excluded and others are not held back;

87. Considers that regional integration programmes should become the corner-stone around which the priority sectors for cooperation should be articulated;

88. Believes that the identification of effective, duly mandated regional partners within the ACP states is vitally important for the effective implementation of the regional programmes and should thus be a priority for ACP-EU cooperation;

89. Considers that particular attention should be paid to the multiplicity and overlapping of institutions;

90. Believes that political commitment to implementing regional policies at national level is crucial;

91. Expresses itself in favour of European Union support being provided for regional organisations according to their commitment;

92. Considers that the scrutiny and monitoring of programmes and projects should be substantially improved;

93. Is in favour of EU technical support for regional security agreements and recommends that regionalised mediation structures should be set up so that ethnic, linguistic, social, economic or religious tensions can be monitored;

94. Believes that regional integration processes have hitherto been markedly bureaucratic, and that it is now necessary to ensure effective participation, in various forms, by all players (organisations in civil society, decentralised public authorities, NGOs, private sector, etc.);

95. Believes that the renegotiation of a new agreement between the European Union and the ACP countries, subsequent to Lomé IV, comes at a time when the conditions for a major renewal of support for regional cooperation and integration are in place;

96. Believes, therefore, that the whole of the new agreement, as well as its individual components, including the trade provisions, should encourage such support and in no circumstances run counter to it;

97. Expresses itself in favour, in this connection, of an overall ACP-EU framework agreement defining, inter alia, the objectives, principles and practical arrangements governing, where appropriate, specific agreements with the regions and subregions to supplement the new ACP-EU Convention;

98. Believes that monetary cooperation amongst the ACP countries would enable trade and regional cooperation to be considerably facilitated; considers, in this context, that the EU must support such cooperation and that the introduction of the euro, which will signify the establishment of a major area of monetary stability, offers an opportunity to conclude agreements initially intended to contribute to the stability of the ACP countries' currencies;

99. Considers that cooperation in the field of statistics should be one of the aspects of ACP-EU cooperation in order to:

- facilitate the implementation of national and development cooperation policies,

- encourage investment and economic development,

- help to prevent economic crises;

100. Expresses itself in favour, under the conditions set out above, of such agreements taking into account all the dimensions involved, i.e. the economic dimension, including trade, but also the political and security dimensions;

101. Calls on the Commission, at the appropriate moment, to establish progress indicators for the various regions and for cross-border initiatives, taking into account not just economic development but also cultural and social dimensions and the need to improve the quality of life, and calls on the Commission to submit regular reports on the trends observed in the progress indicators by commenting on those trends;

102. Considers, in this context, that the ACP-ECU institutions should be supplemented at regional and sub-regional levels and proposes therefore that meetings of the Council of Ministers and the Joint Assembly be held at those levels; considers in particular that such meetings would enable the various participants in cooperation (the private sector, civil society, NGOs, etc.) to be more fully involved;

103. Stresses the possibilities created by the presence in the Caribbean, the Indian Ocean, the Atlantic and the Pacific of the Community's ultra-peripheral regions (UPRs), and the overseas countries and territories (OCTs) associated with the EU and the ACP States;

104. Affirms the relevance of strong partnerships and dynamic cooperation between the ultra-peripheral regions, the OCTs and the ACP States to the harmonious development of all the partners and their gradual integration in world trade, taking account of the specific nature and legitimate interests of each of them;

105. Hopes therefore that the combined effects of the coming reforms of the Union's relations with the ACP, the OCTs and the UPRs will serve as an opportunity for the Commission and Council to adopt a coordinated, coherent approach enabling these three entities to establish decentralised partnerships in the framework of future regionalised ACP-EU agreements;

106. Urges the Commission and Council to involve closely the overseas regions, countries and territories in defining the political, economic and commercial regional and subregional partnerships that the Union hopes to establish with its partners in Africa, the Caribbean and the Pacific by the year 2005;

107. Calls, inter alia, in the framework of the regionalised political partnerships, for the structures of political dialogue, particularly the Joint Assembly, to be fundamentally reorganised so as to associate in an appropriate manner the representatives of the surrounding UPRs and OCTs;

108. Calls for each of the future ACP-EU regional agreements to take full account of the presence of UPRs and OCTs in or near the geographical regions to which they apply;

109. Instructs its Co-Presidents to forward this resolution to the ACP-EU Council and the Commission.

(1) Adopted by the ACP-EU Joint Assembly on 1 April 1999 in Strasbourg (France).