Proposal for a COUNCIL DECISION concerning the signing, on behalf of the European Community, of the Partnership Agreement between the African Caribbean and Pacific States on the one part, and the European Community and its Member States, on the other part

(presented by the Commission)

EXPLANATORY MEMORANDUM

General

(1) By means of a decision of 29 June 1998, the Council authorised the Commission to open negotiations with the ACP States with a view to concluding a Partnership Agreement to succeed to the Lomé Convention, and approved negotiating directives to that end.

(2) The negotiations took place between 30 September 1998 and 3 February 2000.

(3) The Commission considers that the Agreement conforms to the negotiating directives adopted by the Council on 29 June 1998.

(4) The new Agreement marks a fundamental reform of the relationship between the ACP States and the Community and its Member States, building on the acquis of the previous successive Lomé Conventions.

(5) The Agreement is to be concluded for a twenty year-period, with a possibility for a revision every five years, and a financial protocol for each five-year period. Some components of the Agreement such as implementation procedures for financial support or sectoral policy guidelines will be reviewed and adapted, if necessary, by the ACP-EC Council of Ministers, which as a rule will meet once a year. This new approach should allow for more flexibility and give the opportunity to adapt the co-operation system to changing realities.

(6) As regards trade arrangements, a specific timetable has been agreed as indicated below (point 13).

(7) The new Agreement combines politics, trade and development. It is based on five interdependent pillars:

- a comprehensive political dimension,

- the promotion of participatory approaches,

- a strengthened focus on the objective of poverty reduction,

- the setting up of a new framework for economic and trade co-operation,

- and a reform of financial co-operation.

(8) The Agreement contains provisions for an enhanced political dialogue between the parties. The respect for human rights, democratic principles and the rule of law are essential elements of the partnership. A consultation procedure has been drawn up for cases of violation of these essential elements. In cases of special urgency appropriate measures may be taken without prior consultation.

(9) The Agreement also contains a commitment to good governance as a fundamental element of the partnership, and a consultation procedure in serious cases of corruption.

(10) The Agreement contains innovative provisions to promote participatory approaches with a view to ensuring the involvement of civil society and economic and social players by

- providing them with adequate information on the ACP-EU Partnership Agreement, in particular within the ACP countries,

- ensuring the consultation of civil society on the economic, social and institutional reforms and policies to be supported by EU,

- facilitating non-State actors' involvement in the implementation of programmes and projects,

- providing non-State actors with adequate support for capacity building, and

- encouraging networking and links between ACP and EU actors.

(11) Poverty reduction is the central objective of the new partnership as formulated in the general provisions of the Agreement and in the provisions which will guide Development strategies. Co-operation strategies will reflect international commitments including conclusions of UN conferences, international development targets, in particular the OECD DAC strategy.

(12) The EU and the ACP States have agreed on a process to establish new trading arrangements that will pursue trade liberalisation between the parties and formulate provisions in trade-related matters. The objectives of economic and trade co-operation are:

- To promote smooth and gradual integration of ACP economies into the world economy

- To enhance production , supply and trading capacities

- To create new trade dynamics and foster investment

- To ensure full conformity with WTO provisions

(13) The negotiations on economic partnership agreements will start by September 2002 at the latest. The present regime will be maintained during the preparatory period (2000 - 2008 at the latest).

(14) The Agreement contains provisions for co-operation in the trade-related areas.

(15) Development Finance co-operation will be implemented on the basis of and be consistent with the development objectives, strategies and priorities established by the ACP States, at both national and regional levels. It will be based on the following principles:

(a) promote local ownership at all levels of the development process;

(b) reflect a partnership based on mutual rights and obligations;

(c) emphasise the importance of predictability and security in resource flows, granted on highly concessional terms and on a continuous basis;

(d) be flexible and appropriate to the situation in each ACP State as well as adapted to the specific nature of the project or programme concerned;

(e) ensure efficiency, co-ordination and consistency.

(16) The instruments have been regrouped and rationalised. The totality of EDF resources available will be channelled through two instruments - one envelope for providing grants and one for providing risk capital and loans to the private sector.

The proposal

(17) For the reasons above the Commission considers that this Agreement should be concluded on behalf of the Community. Therefore the Commission proposes that the Council approves the text of the Agreement and adopts the proposals in the Annex. Since the Agreement is a mixed Agreement it will also have to be ratified by the Member States according to their constitutional provisions.

(18) The Commission considers that a favourable answer must be given to the request from six countries in the Pacific to become members of the ACP-EC Partnership Agreement. These countries (Federated States of Micronesia, Republic of Marshall Islands, Palau, Nauru, Cook Islands and Niue) should thus be added to the list of signatory States in the Final Act.

(19) The proposal concerning the signing authorises the President of the Council to designate the person empowered to sign the Agreement on behalf of the Community.

(20) The proposal concerning the conclusion authorises the President of the Council to designate the person empowered to deposit the instrument of approval on behalf of the European Community. Article 3 of this proposal refers to the procedure to be applied in case of violation of one of the essential elements or in serious cases of corruption. It maintains the provisions of the Council decision 1999/214/EC (OJ L 75, 20.3.1999). The European Parliament will be asked to give its assent to the conclusion of the Agreement.

Proposal for a

COUNCIL DECISION

concerning the signing, on behalf of the European Community, of the Partnership Agreement between the African Caribbean and Pacific States on the one part, and the European Community and its Member States, on the other part

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community and in particular its Article 310 in conjunction with the first sentence of the first subparagraph of Article 300(2) thereof,

Having regard to the proposal from the Commission (1),

Whereas the Agreement negotiated by the Commission and the Council between the African Caribbean and Pacific States on the one part, and the European Community and its Member States, on the other part, should be signed on behalf of the European Community,

HAS DECIDED AS FOLLOWS:

Sole Article

The President of the Council is hereby authorised to designate the person empowered to sign, on behalf of the European Community, the Partnership Agreement between the African Caribbean and Pacific States on the one part, and the European Community and its Member States, on the other part,

Done at Brussels,

The Council

The President