Proposal for a Council Decision concluding the consultation procedure opened with Haiti under Article 96 of the ACP-EC Partnership Agreement
Date: 2000-12-21
Institutions: European Commission
Subjects: Haiti, electoral fraud, parliamentary election, sanction (EU), suspension of aid

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 21.12.2000
COM(2000) 856 final

Proposal for a

COUNCIL DECISION

concluding the consultation procedure opened with Haiti under Article 96 of the
ACP-EC Partnership Agreement

(presented by the Commission)

EXPLANATORY MEMORANDUM

Following several postponements, the general elections in Haiti were eventually held on
21 May (first round ) and 9 July (second round)for the purpose of choosing 19 senators,
83 members of parliament, 133 mayors and 7124 local assembly members. The Organisation
of American States (OAS) was called on by the international community to observe the
elections and, although first round was calm and the turnout was high, it noted a number of
irregularities and instances of fraud, plus use of an illegal method of calculating the votes for
Senate candidates.

It was the issue of the Senate vote that triggered the current crisis; the Provisional Electoral
Council refused to apply the method for calculating the Senate vote that was laid down in the
electoral law and the constitution, despite the representations of the OAS and the international
community as a whole. According to the OAS, ten of the senators elected at the first round
should have been subject to a second round. The beneficiary of this operation is the Lafamni
Lavallasi party of ex-President Aristide, which obtained an overwhelming majority in the
senate (18 of the 19 seats).

This refusal by the Haitian authorities to review the method of calculation, combined with
accounts of fraud and intimidation in the OAS report, the flight of the President of the PEC
and the resignation of two of the PEC's six members, undermined the credibility and
legitimacy of the electoral process.

The EU declaration of 12 July 2000 noted this situation and drew the Haitian authorities'
attention to the risk it ran of the EU's reviewing its policy on Haiti, particularly aid, if nothing
was done to remedy the situation.

Failing a response, the EU Council decided on 2 August to invite the government of Haiti to
enter into consultations under Article 96 of the Cotonou Agreement in order to review the
situation in detail and find out how Haiti intended to comply with the essential elements of
Article 9 of the Agreement, in particular the provisions on democratic principles and the rule
of law. Consultations were held in Brussels on 26 September 2000.

In its provisional conclusions the EU noted the point of view of the Haitian authorities but
regretted that they had not taken account of its remarks and concerns as to the legitimacy of
the process.

The EU found that the essential elements laid down in Article 9 of the Partnership Agreement
had not been observed and that consequently it would study appropriate measures to take
under the Partnership Agreement, especially as regards development cooperation, while
keeping in mind the serious social and political situation in the country and the importance of
not penalising the Haitian people.

The provisional conclusions also stated that the EU would follow closely the development of
the democratic process in Haiti in order to assess the situation on the basis, among other
things, of the organisation of the forthcoming presidential elections

Following these consultations, and in view of the failure of the OAS's recent efforts to bring
about a reconciliation, the Commission proposes that, in accordance with the provision on
appropriate measures in Article 96(2)(c), cooperation policy be reviewed as follows:

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i. Cancellation of the second 8th EDF tranche of EUR 44.4 million.

Under the 8th EDF Haiti could claim a total allocation of EU 148 million. An initial
tranche of EUR 103.6 million was notified in April 1997. In view of the progress made in
committing the first tranche, the EDF Committee approved the allocation of the second
tranche of EUR 44.4 million in January 2000. The Committee's favourable opinion was,
however, conditional on implementation of a credible and honest electoral process.
Given the unsatisfactory developments in the electoral process and the political situation
overall, the Member of the Commission responsible for Development decided in March
to temporarily delay notification of this tranche.

ii. Suspension of the direct budget aid provided for under the 8th EDF and under the budget

heading for food security.

iii. Redirection of the remaining funds of the first 8th EDF tranche to projects that are of
direct benefit to the Haitian people, to strengthen civil society and the private sector, and
are liable to support democratisation and underpin the rule of law.

iv. Preparations for 9th EDF programming by the Commission delegation in Haiti, which
will consult the Haitian government
if necessary. Unless otherwise decided by the
Council acting on a Commission proposal, no allocation of resources will be notified
while this decision is valid.

Apart from the cancellation of the second EDF tranche, these measures will expire on
31 December 2001.

The situation will be jointly reviewed by the Commission and the Council in six months' time,
on the basis of which the measures referred to above may be adjusted, and, if appropriate,the
Commission will make fresh proposals to the Council.

CONCLUSIONS

In view of the above and in accordance with Articles 9 and 96 of the Cotonou Agreement,
which has been implemented in advance by Decision No 1/2000 of the ACP-EC Council of
Ministers, the Commission proposes that the Council terminate the consultations with Haiti
and adopt the attached proposal for a Decision.

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Proposal for a

COUNCIL DECISION

concluding the consultation procedure opened with Haiti under Article 96 of the
ACP-EC Partnership Agreement

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to the ACP-EC Partnership Agreement, implemented in advance by Decision
No 1/2000 of the ACP-EC Council of Ministers,

Having regard to the Internal Agreement on measures to be taken and procedures to be
followed for the implementation of the ACP-EC Partnership Agreement, as provisionally
applied by decision of the representatives of the governments of the Member States on
18 September 2000, and in particular Article 3 thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

The essential elements referred to in Article 9 of the ACP-EC Partnership Agreement
have been breached by non-compliance with the Electoral Law.

In accordance with Article 96 of the ACP-EC Partnership Agreement, consultations
took place with the ACP States and Haiti on 26 September 2000, on which occasion
the Haitian authorities explained their position.

(3)

Democratic principles are still not upheld in Haiti.

HAS DECIDED AS FOLLOWS:

The consultations opened with Haiti under Article 96 of the ACP-EC Partnership Agreement
are hereby terminated.

Article1

Article 2

The measures described in the draft letter at annex shall be adopted as "appropriate measures"
within the meaning of Article 96(2)(c) of the Agreement.

Apart from the cancellation of the second EDF tranche, these measures shall expire on
31 December 2001.

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Article 3

This Decision shall enter into force on the day of its adoption.

It shall be published in the Official Journal.

Done at Brussels,

For the Council
The President

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ANNEX

Draft letter

Dear Sir,

The European Union attaches great importance to Article 9 of the Cotonou Agreement.
Democratic principles and the rule of law, on which the ACP-EC partnership is founded, are
essential elements of the Agreement and thus form the cornerstone of our relations.

The European Union has closely followed the electoral process in Haiti and is concerned
about the irregularities mentioned in the report of the OAS observer mission, in particular the
non-compliance with the Electoral Law in the election of senators after the first round.

the electoral process in its
This is why the European Union expressed disquiet about
declaration of 12 July and signalled that failure to take account of its concerns might have
repercussions on cooperation with Haiti.

The EU Council therefore decided on 2 August to invite the Haitian authorities and the ACP
States to enter into consultations with a view to a thorough examination of the situation and
finding ways of remedying it.

The consultations were held in Brussels on 26 September and a number of crucial issues were
discussed. The Haitian authorities, represented by His Excellency Mr Fritz Longchamps,
Foreign Minister, explained their position and gave their analysis of the situation.

This exchange of views did not, however, lead to progress in finding a satisfactory solution to
the issues raised by the Union, which then drafted provisional conclusions expressing regret
that its concerns had not been taken into account and envisaging the possibility of appropriate
measures under the Partnership Agreement. In its conclusions the Union also signalled its
awareness of the serious social and economic situation in the country and the importance of
not penalising the Haitian people.

Now, in the absence of any new developments and given the recent failure of the mission of
the Organisation of American States led by the Assistant Secretary General, His Excellency
Mr Luigi Einaudi, the EU Council has decided, in accordance with its provisional conclusions
of 26 September, to terminate the consultations opened under Article 96 of the Cotonou
Agreement and to take the following appropriate measures under Article 96(2)(c):

i. Cancellation of the second 8th EDF tranche of EUR 44.4 million.

ii. Suspension of direct budget aid. This mainly affects structural adjustment programmes

and food security.

iii. Redirection of the remaining funds of the first 8th EDF tranche to projects that are of
direct benefit to the Haitian people, to strengthen civil society and the private sector, and
are liable to support democratisation and underpin the rule of law.

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iv. Preparations for 9th EDF programming by the Commission delegation in Haiti, which
if necessary.Unless otherwise decided by the
will consult
Council, acting on a Commission proposal, no allocation of resources shall be notified
while this decision is valid.

the Haitian government

Apart from the cancellation of the second EDF tranche, these measures shall expire on
31 December 2001.

The European Union wants to avoiding penalising the Haitian people while signalling its
disapproval of the failure to comply with basic democratic principles.

It will monitor closely developments in the democratic process, above all the presidential
elections scheduled for the end of the year. It reiterates its readiness to engage in an enhanced
political dialogue and contribute to the process of democratisation. To this end, it is ready to
review its decision if there are encouraging developments but reserves the right to take further
measures if there is no improvement.

For the Commission,

For the Council

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