WRITTEN QUESTION E-1955/98

by Glenys Kinnock (PSE) to the Commission

(30 June 1998)

Subject: "Flexibility" and future ACP-EU relations

The Ministerial meeting in Barbados dealt with issues of "social and political conduct" as they apply to Lomé.

Would the Commission define the nature of the "flexibility" which, it was reported, is now to be put in place in European Union dealings with ACP countries?

Answer given by Mr Pinheiro on behalf of the Commission

(11 September 1998)

The Commission understands that the Honourable Member's question refers in particular to the proposed approach concerning economic and trade partnership. However, it would first like to clarify what it means, in general, by flexibility.

In the framework of a broad-based partnership, with a view to making a more effective contribution and to meeting the specific needs of each country, the Union proposes differentiating and gearing its approach to the various priorities and forms of the partnership on the basis of the level of development and vulnerability of certain countries and according to development strategies drawn up by the countries concerned, at national or regional level, incorporating their commitments in terms of social development and anti-poverty measures.

This flexibility will apply also to the political dialogue which, to be effective should be broadened on the basis of areas of common interest and conducted at the most appropriate - notably, regional - level.

Regarding especially the proposed negotiation of economic partnership agreements with ACP regional sub-groups, these agreements will support the objectives of the framework agreement, adhere to the criteria established by the European Council in June 1997 and be set up in accordance with WTO rules. They will aim to liberalise gradually trade between the partners, consolidate and improve the ACP countries' current access to the Community market and introduce, over a transition period to be defined in accordance with WTO, reciprocity for Community exports. They will cover substantially all trade between the parties, excluding no sector (but taking into account the sensitivity of certain products of both parties). These agreements will also contain provisions on cooperation in other trade-related areas, the level of which could be modulated according to the same criteria.

Negotiations will take account of the level of development of the countries concerned and the social impact of trade measures, their capacity to adapt to the liberalisation process, and to adjust their economies. Negotiations will therefore be as flexible as possible, in establishing the duration of the transitional period and the degree of asymmetry in terms of the timetable for tariff dismantlement and final product coverage, while remaining in complete conformity with WTO rules. The parties could also introduce a clause providing for a review to assess the ACP countries' progress towards liberalising imports from the Community, and, if necessary, to modulate the rate of progress towards the ultimate establishment of the Free Trade Area, in conformity with WTO rules.

Recognising that reciprocity will impose particular adjustment efforts on ACP LDCs belonging to regional groups entering into regionalised agreements with it, the Community will explain that such efforts will be considered when assessing their needs and could lead to additional adjustment assistance (transition aid, macroeconomic and sectoral aid etc.). The Community will also explain that reciprocity will not be sought from LDCs not members of a regional subgroup entering into a regionalised agreement with the Community. The Community will also support LDC's efforts to open markets towards countries in the region and globally.