Joint Assembly of the Convention concluded between the African, Caribbean and Pacific States and the European Union (ACP-EU) - Resolutions adopted on rum (ACP- EU/2126/97/fin.)

The ACP-EU Joint Assembly,

- meeting in Brussels from 17 to 20 March 1997,

- reaffirming its resolution on rum adopted by the ACP-EU Joint Assembly at its 20th session in Dakar (Senegal) from 26 January to 3 February 1995,

- recalling the resolutions on this subject adopted by the ACP-EU Joint Assembly on 6 October 1994 during its 19th session in Libreville (Gabon),

A. having regard to the importance of trade as an instrument of development for the ACP States and of rum exports to the EU on the economies of the ACP rum producing states,

B. considering that the rum industry is a major exchange earner and employer of labour and hence contributes to the socio-economic development and political stability in ACP States,

C. noting that Protocol 6 on rum of the Fourth Lomé Convention provides for duty-free entry of ACP rums into the EU under conditions which allow for the development of traditional trade flows between the ACP States and the EU,

D. recalling that the Protocol imposed quantitative restrictions on the imports, but made allowance for annual increases in the quota, in response to market demand and the eventual abolition of the quota system,

E. considering that the quota system was only partially abolished in January 1996 despite repeated requests from the ACP for its total abolition to facilitate the development of their industries,

F. considering also that ACP rum producers made substantial investments in the development and marketing of their product within the constraints of the quota system, which to a large extent restricted their trade to low margin bulk rum,

G. noting that the ACP are intensifying their promotion campaign to develop a market for the higher quality branded rums and estimate that they would require at least ten years before they would be able to compete in a tariff free market with rums from other regions, most of which are subsidised,

H. noting with concern that the EU and the USA intended to enter into a zero for zero agreement on white spirits, including rum, which will adversely affect the ACP trade with the EU,

I. concerned that contrary to the provisions of Article 12 of the Lomé IV Convention, the ACP Group was neither informed nor consulted prior to the agreement with the USA despite the implication of the agreement for the ACP trade with the EU,

1. Calls on the Community and its Member States to:

i) honour the commitments entered into under Protocol 6 on rum in the Fourth Lomé Convention and allow a grace period of at least ten years to enable the ACP to fully develop their traditional trade flows with the EU;

ii) ensure that the interests of the ACP rum producing states are not adversely affected by any agreement with third countries and their competitive position is maintained in the market as per annexes XXIX and XXX of the Convention;

iii) provide adequate resources to assist the ACP in the promotion and expansion of sales on the Community market in accordance with the provisions of Article 4 of Protocol 6 on rum;

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