Opinion of the European Economic and Social Committee on  How to integrate social aspects into the Economic Partnership Agreement negotiations
Date: 2005-12-14
Institutions: European Economic and Social Committee
Subjects: ACP countries, Cotonou Agreement, ESC opinion, EU relations, European social policy, fundamental rights, gender equality, negotiation of an agreement (EU), social development, social rights

17.3.2006

EN

Official Journal of the European Union

C 65/73

Opinion of the European Economic and Social Committee on ‘How to integrate social aspects into
the Economic Partnership Agreement negotiations’

(2006/C 65/15)

In a letter of 2 July 2004 from Commissioner Loyola de Palacio, the Commission, in accordance with
Article 262 of the Treaty establishing the European Community, asked the European Economic and Social
Committee to draw up an opinion on How to integrate social aspects into the Economic Partnership Agreement
negotiations

The Section for External Relations, which was responsible for preparing the Committee's work on the
subject, adopted its opinion on 10 November 2005. The rapporteur was Antonello Pezzini and the co-
rapporteur Gérard Dantin.

its 422nd plenary session (meeting of 14 December 2005) the European Economic and Social

At
Committee adopted the following opinion by 125 votes to 2 with 7 abstentions:

1. Introduction

1.1 The framework of the opinion

1.1.1
This opinion is the response to a request made by
Commissioner Loyola Palacio. In her letter of referral of 2 July
2004, after stating that ‘the Commission appreciates the active role
played by the Economic and Social Committee in promoting an open
dialogue between the non-state actors of the ACP and the European
Union’ she asks the Committee to draw up an ‘exploratory
opinion on how to include social aspects in the negotiations on the
Economic Partnership Agreements,
concentrating on employment,
labour standards, social security and gender questions’.

The Economic Partnership Agreements

(EPA) are
1.1.2
governed by Article 37 of the Cotonou Agreement. They are to
be concluded by 31 December 2007 and aim at fostering ‘the
smooth and gradual integration of the ACP States into the world
economy, with due regard for their political choices and development
priorities, thereby promoting their sustainable development and contri-
buting to poverty eradication in the ACP countries’ (Art. 34(1)).
More generally, they form part of the implementation of the
‘development strategy’ set out in Articles 19 to 27 (Title 1) of the
Cotonou Agreement.

The Commission's letter of referral

1.1.3
is in line with
Article 37 and Title 1 of the Cotonou Agreement. This deter-
mines the framework of the present exploratory opinion.

1.2
This referral shows the importance which the Commis-
sion attaches to taking the social dimension into account in the
negotiations on the Economic Partnership Agreements.

1.2.1
and approach.

The Committee welcomes the Commission's concern

there

Indeed,

1.2.2
cannot be optimum development
without a parallel social development. These concepts must go
hand in hand if economic progress is to be fully effective and
thus improve the way of life and the welfare of the people
concerned.

1.2.3 Moreover, the implementation of the EPA will
lead
inevitably to necessary structural reforms, transforming many
aspects of the way the people of the ACP countries live at
present. These structural reforms, which will in many cases be
difficult to cope with, must be accompanied by parallel social
progress if the economic partnership agreements are not to be
rejected by the peoples concerned.

1.2.4
From this viewpoint the participation of civil society
in the various stages of the process based on the Economic
Partnership Agreements is central.

1.3
In general terms the Cotonou Agreement provides for
a gradual removal of barriers to trade between the two parties
and regards the negotiation period as useful and suitable for
developing the capacities of the public and private sectors.

1.3.1
The underlying aims of the EPA negotiations — part
of the implementation of the Cotonou Agreement — essentially
cover the following aspects: eradication of poverty; sustainable
development; effective participation by women; involvement of
non-state actors; special care to maintain public expenditure in
the social sectors at a sufficient level (1).

1.3.2
The Cotonou Agreement provides for the EPA to
cover a wide range of sectors: competition policy (2); intellec-
tual property rights (3); health and plant health measures (4);
trade and environment questions (5); trade and labour stan-
dards (6);
invest-
ments (9).

consumer protection (7);

food safety (8);

the Joint Parliamentary Assembly,

(1) Article 25, Cotonou Agreement.
(2) Addis Ababa resolution of
preamble Q(3643/04/DEF.).
(3) Article 46, Cotonou Agreement.
(4) Article 48, relating to the WTO Agreements.
(5) Article 49.
(6) Article 50.
(7) Article 51.
(8) Article 54.
(9) Article 75.

C 65/74

EN

Official Journal of the European Union

17.3.2006

1.4
The EPA — the framework of which has several dimen-
sions (cf. Appendix 2) — are regarded as reciprocal free trade
agreements which are to be negotiated on a bilateral basis
between the EU and the ACP countries or regions. An impor-
tant principle is that the EPA will have to be consistent with
the rules of the WTO.

will be longer and will extend well beyond 2008. The main
difficulties are found in southern and eastern Africa. Indeed,
the African states show much more interest in infrastructure
problems (roads, hospitals, training centres, agricultural devel-
opment etc.) than in the problems concerning aspects of civil
society (11).

1.4.1
Both the ACP countries and the EU are convinced that
the objective should be a more balanced and fairer multilateral
trade system under the aegis of the WTO, based on a clear rela-
tionship between trade and development and on really differen-
tiated treatment
for developing countries — especially the
LDCs and the small island countries — and ultimately charac-
terised by transparency and effective involvement in the deci-
sion-making process.

1.5
The negotiations so far (see Appendix 3) have brought
out certain serious divergences between the ACP countries and
the ACP-EU Joint Parliamentary
the European Union, as
Assembly has rightly pointed out.

1.5.1
It must not be forgotten that foreign debt constitutes
for many ACP countries an insurmountable obstacle to
economic and social development (10). Moreover, this is one of
the reasons why the first stage of the EPA negotiations did not
lead to a binding framework agreement as the ACP countries
had wished.

2.1.2
In each region there are task forces which continu-
ously monitor the trade negotiations (12). The organisations
representing civil society must, of necessity, be consulted by
the task force so that it is aware of their analyses and their
proposals on social matters and on all development-related
issues in general. To this end, civil-society representatives must
form regional organisations which will enable them to draw up
positions collectively. The European Union must provide finan-
cial and technical assistance to contribute to the practical
implementation of an initiative of this kind.

2.1.3
The Committee has already come out in favour of
strong involvement of civil society (13), also bearing in mind
that, in the Cotonou Agreement, the provisions on participa-
tion of non-state actors are found in more than 30 articles, in a
final declaration, and in Annex IV on implementation and
management procedures. The statements which best express
this approach are found in the ‘Fundamental Principles’ (Article
2) and in Chapter 2, which is entirely devoted to ‘the actors of
the partnership’.

2. General comments

2.1.4
The EESC thinks it would be important to extend
Europe's experience of using the Structural Funds, especially in
the Objective 1 regions, to the ACP regions (14).

this stage to provide for a greater

2.1 Many ACP countries, particularly those of southern
Africa, take the view that the prospects of regional integration
lead initially to a reduction in income, particularly as a
will
result of the reduction in customs duties. It therefore seems
necessary at
financial
commitment on the basis of the various contribution rates.
Subsequently, since in many ACP countries customs duties
make up a large part of public income, tax systems must be
developed as rapidly as possible to compensate for any such
reduction. These countries must be supported in their efforts to
develop efficient
the ACP countries
tax systems. Moreover,
have shown only slight progress towards practical forms of
trade cooperation. Existing or forthcoming agree-
regional
ments, apart from being limited to certain regions, have not
generally achieved the objective of
increasing inter-regional
trade. Indeed, few of the existing areas of integration show
significant trade at infra-regional level.

2.1.1
At present in all six regional areas the negotiations
have turned out to be long and complex. The planned deadline
of 2007 will certainly not be respected. The transition period

(10) Article 45, Cotonou Agreement.

2.2
The participation of civil society in the implementation
of the Economic Partnership Agreements is one of the essential
conditions for the effectiveness of their results.

2.2.1
Article 6 of the Cotonou Agreement defines non-state
actors as: the private sector; the economic and social partners,
including the trade union organisations; civil society in all its
forms, according to national characteristics (15).

(11) Views expressed in meetings with Commission officials.
(12) They are made up of representatives of each state and representa-

tives of the Commission drawn from the delegations.
(13) Cf. CESE 521/2002, (rapporteur Mr Baeza Sanjuan).
(14) The vertical partnership goes hand in hand with the horizontal
partnership, which includes the mandatory participation of civil
society in drawing up and managing regional operation plans.
(15) The Commission documents (DG Development) specify the cate-
gories other than workers and employers: human rights organisa-
tions; grassroots organisations; women's organisations; young
people's associations; child protection organisations; representatives
of native populations; environmental protection organisations; agri-
cultural organisations; consumers' associations; representatives of
religious bodies; NGOs; cultural and media associations.

17.3.2006

EN

Official Journal of the European Union

C 65/75

2.2.2
There are very frequent references to civil society
throughout the Agreement (16): in particular, Article 4 defines
the way in which it must be involved (17).

2.3.1
In order to achieve satisfactory results both in the
negotiations and in the implementation of their content, this
framework will encourage the development of an effective
participatory methodology, associating economic and social
actors right from the stage of preparing contributions.

2.2.3
In most of the ACP countries civil society is not very
organised. The Economic Partnership Agreement (EPA) negotia-
tions therefore represent an opportunity to improve the organi-
sation of civil society and thereby its capacity to make propo-
sals. Only thus will it subsequently be able to play a greater
role on the ground in implementing guidelines adopted and to
help boost growth by bringing about an increase in competi-
tiveness and enhancing the social dimension.

2.2.4
In this respect it is important for the negotiations
involving all the ACP countries to lay down certain obligatory
criteria: as well as rational integration into the world economy,
they should aim at trade development accompanied by the
relevant social rights, reduction of poverty and respect for
workers' rights (18). These are the criteria that should guide
regional negotiations.

2.2.5
It should be pointed out that many elements relating
to employment, social security and gender questions, and the
close connection between trade development and labour stan-
dards, are only mentioned in overall terms in the Commission's
EPA ‘negotiating mandate’ and then only in the preamble.

2.2.6
The documents provided by the Commission on the
results of the first phase of negotiations between the EU and
the various ACP regions do not address social or gender ques-
tions in sufficient depth.

2.2.7
That runs counter to the principle that the EPA repre-
sent the economic dimension of the Cotonou Agreement and
that the values relating to all aspects of human life, which are
strongly highlighted in the Cotonou Agreement, should be
included and endorsed in the EPA negotiations.

2.3
To ensure the efficiency of the results of the Economic
Partnership Agreements in social terms, it is necessary to set up
for the socio-occupational social actors a framework which
generates unity of place and unity of time.

(16) Cf. in particular the following articles: Articles 2, 4-7, 8, 9, 10, 15,
17, 19-24,25, 33, 37, 56, 57, 58, 65, 70, 71, 72, 74-78, 81. Civil
society is also mentioned in the Joint Declaration on the actors in
the partnership (Declaration 1 annexed to the Final Act), in Annex
IV, Article 4, in the Compendium on cooperation strategies, and in
the programming guidelines.

(17) Civil society actors must be constantly informed, and they receive
funds; they must be involved in the implementation of the projects;
they enjoy cultural and financial support for continuing improve-
ments in their organisation.

(18) Article 50 of the Cotonou Agreement and ILO fundamental stan-

dards.

However,

2.3.2
the negotiations in
for the time being,
progress have to contend with serious and growing inequalities
between the two parties, whether in terms of their level of
development, quality of life and social rights or with regard to
terms of trade, but even more to the autonomous capacity for
proposal, management and control. These inequalities and
imbalances make the negotiations on the EPA very complex
and sensitive. This complexity must not stand in the way of the
necessary inclusion of social aspects in the negotiations, either
directly or as a clearly identified, certain result of economic
and/or commercial options chosen. The main emphasis should
be on employment and entrepreneurship,
labour standards,
social security and gender questions (19).

At regional

2.3.3
level, some roadmaps provide for civil
society to be involved in the negotiating phases and in the
national and regional committees. However, the levels of invol-
vement and satisfaction of civil-society representatives in the
partnership process are not yet known.

2.3.4
The EESC's regular meetings with social and economic
representatives from the ACP countries place it in a position to
assess their level of involvement during the various phases of
the processes.

3. The participation of civil society

3.1
In most of the ACP countries civil society is not very
organised. The economic partnership agreement negotiations
can represent an opportunity to improve the organisation of
civil society and thereby its capacity to make proposals. This is
one of the conditions which will enable it to play a major role
later on the ground in implementing guidelines adopted, thus
helping to boost growth by bringing about an increase in
competitiveness
dimension.
Improving the organisation of civil society and hence its capa-
city to act will depend on the determination of the Commission
and that of the countries concerned.

enhancing

social

and

the

3.1.1
A regular, comprehensive assessment of the participa-
tion of the economic and social actors in all the phases of
implementation of the EPA could create a positive dynamic
leading to constant improvement. This assessment should be
carried out by the institutional negotiators.

(19) OJ C 74, 23.3.2005.

C 65/76

EN

Official Journal of the European Union

17.3.2006

3.1.2
The consultation and involvement of different sectors
of civil society during the negotiations and monitoring of the
work carried out would also help to give direction and
substance to the common endeavours to improve quality of life
for society as a whole, through the EPA and in line with the
Cotonou principles.

3.2.4
The ILO could cooperate, in terms of organisational
and operational methodology, in setting up the Regional Social
Dialogue Committees. Indeed, in the context of its PRODIAF
programme (regional programme for the promotion of social
dialogue in French-speaking Africa)
the ILO has acquired
considerable experience. This experience could be used to help
make the committees more effective.

Examples of good practice should be translated into local
languages and disseminated more widely.

3.2
To implement and make the most of an effective partici-
patory methodology — an essential condition for the effective-
ness and quality of civil society's contribution — it is necessary
to provide all the conditions which enable non-state actors to
meet, debate, draw up objectives collectively and propose them
in the EPA negotiations, follow their progress and above all
ensure and follow their implementation on the ground and
assess their impact.

3.2.1
The combination of these conditions reflects the need
to create a space for the socio-occupational actors which would
ensure both unity of time and unity of place.

3.2.2
To that end, as indicated in the final declaration of the
24th meeting of ACP-EU economic and social interest groups
held in Brussels at the end of June, the European Economic and
Social Committee proposes the setting up of regional social
dialogue
socio-occupational
comprising
actors to help to draw up, propose and ensure the implementa-
tion and follow-up of social development programmes.

committees

the

3.2.3
terms,
Dialogue Committees should essentially cover:

the tasks of

In general

the Regional Social

— application and monitoring of the ILO Conventions, parti-

cularly those concerning fundamental social rights;

— promotion of decent jobs and social development;

— the economic and social impact of the EPA at regional level

and that of regional integration.

3.2.3.1 More precisely,
the Regional Committees could
concentrate, with the possible help of specialised groups, on
drawing up proposals concerning:

— promotion of jobs: objectives and methods; decent work

(remuneration, working conditions, etc.);

— education;

— initial and continuous vocational training;

— social protection arrangements;

— negotiated developments in the ‘informal’ sectors;

— equality between the sexes;

3.2.5
On the composition of the Regional Committee, the
eligibility criteria could be based on the agreement between the
ACP states and the Council of the European Union as regards
access to EDF (European Development Fund) resources.

Insofar as there exist

3.2.6
in the homogenous regions
already set up (Caribbean etc.) platforms, forums or other struc-
tured groupings of non-state actors — set up to meet the needs
resulting from the drawing up of National and Regional Indica-
tive Programmes — changes to them should be envisaged in
order to meet the objectives of the Regional Social Dialogue
Committees.

For

3.2.7
the sake of effectiveness the Regional Social
Dialogue Committees could be associated as required with the
work of the Regional Preparatory Task Forces (RPTF). Indeed,
the RPTF play a key role in that they ensure that the needs
expressed during the negotiating phases are met when aid is
programmed.

3.2.7.1
The involvement of these committees would enable
organised civil society to acquire a greater role and be able to
monitor sustainable development within the negotiations and
in the phases of practical action at regional level.

As has been stressed a number of

3.2.7.2
issues
related to agriculture and the various environmental aspects are
particularly significant in the ACP countries, and it is important
that they be constantly addressed in the negotiating phases, not
least by means of the direct participation of local representa-
tives from the sector.

times,

3.2.7.3
The Regional Social Dialogue Committees will be
able to play an increasingly practical, proactive role, particu-
larly since, once funding and organisational questions have
been resolved, they will be able to dialogue with the ACP-EU
Follow-up Committee and to benefit from exchanges of exper-
tise with the European Economic and Social Committee.

4. Development of employment

Decent jobs are the essential tool in combating poverty,

4.1
since they can:

— sustainable development, with particular focus on the envir-

— generate income and hence purchasing power and markets;

onment;

— infrastructure and investment.

assistance;

— get people and groups out of a situation of dependence on

17.3.2006

EN

Official Journal of the European Union

C 65/77

— produce goods and services which are accessible to the

4.2.2

It is also the task of cooperation to support:

general public and meet their needs;

— help to finance social benefits: education and training,
pensions, unemployment benefit, health care — in short
what is known as ‘social security’.

— promotion of the dialogue between the public and private

sectors;

— development of entrepreneurial skills and an enterprise

culture;

4.1.1
Employment policies must stimulate and combine the
contributions of the public and private sectors as well as the
achievements of the social and solidarity-based economy.

— the elimination of undeclared casual work, while respecting

the rule of law.

4.1.2
Employment development programmes should envi-
sage: a gradual, negotiated insertion of the informal economy
into the private or public sectors, inter alia, by promoting inter-
national labour standards (particularly basic rights); a commit-
ment by enterprises which benefit from public funds resulting
from calls for tender (investment, various works) to respect
international labour standards and the rules designed to protect
the environment (climate, biodiversity, Kyoto Protocol, protec-
tion of forests etc.). This is partly a question of the social
responsibility of enterprises.

4.2.3 Measures taken under the preceding agreements (20)
have produced some results, but clearly not all that could be
desired, above all in the field of promotion of the private sector
and of its role in stimulating economic growth and diversifica-
tion.

In working out

the development programme,

4.2.4
the
socio-occupational actors should make detailed analyses of the
difficulties encountered in the promotion, protection and
supportive measures
small and
medium-sized enterprises.

in favour of very small,

4.1.3
These programmes should also sketch out guidelines
on the necessary economic, fiscal and administrative reforms,
the fight against corruption, the setting-up, for example, of tax
credits and other services intended particularly for SMEs and
craft industries.

4.3
The fundamental options for development, especially in
Africa, are based on agriculture. This will remain for a long
time to come the main axis around which to build possible
measures:

The objectives of

4.1.4
the partnership are, as is well
known, to promote and speed up the economic, cultural and
social development of the ACP states. The main aim is the
reduction and, ultimately, the elimination of poverty. The EPA
should enhance the partnership, helping economies to open
up, particularly on the south-south axis, and to achieve greater
liberalisation with clear rules which are attractive to domestic
and foreign investors.

A great effort must be made to enable the ACP coun-
4.1.5
tries to open up culturally and economically, in particular by
taking the opportunity afforded by the EPA to create a customs
union, furthering mutual interests and increasingly encouraging
regional integration.

4.2
Unfortunately, at the start of the negotiations no impact
study was carried out on employment to provide a record of
the original situation. Such a study would have made it easier
to assess progress made.

4.2.1
A great effort must be made to enable the ACP coun-
tries to open up culturally and economically, in particular by
taking the opportunity afforded by the EPA to create a customs
union, furthering mutual interests and increasingly encouraging
regional integration. Alongside this, the public sector in par-
ticular must also be strengthened,
inter alia with regard to
investment
in education, healthcare and social services in
general, in order to provide support for the private sector.

— in the development of traditional agricultural practices to

make them more effective;

— in the establishment of

infrastructures and widespread

social services;

— in the development of small-scale craft industry and entre-
preneurial activities, often linked to the agri-food sector.

4.3.1
For the agricultural sector to develop and be consoli-
dated, trade between the ACP countries and the EU must be
governed, particularly in the coming years, by flexible rules
which make it possible to incorporate health and plant health
rules and enable new small businesses to be created, reinforced
and diversified, with the protection of appropriate safeguard
clauses.

4.3.2 Measures in the agricultural sector should,
succeed in:

in time,

— developing agri-food safety standards for export outlets;

— improving access

to the agricultural market

through

marketing;

— removing red tape and improving logistics;

— promoting training in services and research;

(20) Association Convention of the Treaty of Rome (Art. 131); Yaoundé

I and II; Lomé I, II, III, IV and IVa.

C 65/78

EN

Official Journal of the European Union

17.3.2006

— developing cooperative and agricultural credit institutions;

— adopting clear, widely-supported rules on real estate;

— encouraging a gradual

transition from employment

in

farming to employment in developing rural services.

4.3.2.1
These results can be achieved through cooperation,
introduced as part of both the EPA and aid projects, focusing
on:

— integrated rural development projects;

— creation and consolidation of farmers' and workers' associa-
tions and associations of women in the farming, agri-
industry and agricultural credit sectors;

— creation of farm property registers;

— legislation on food certification, supplemented by certifica-
tion institutes, the introduction of plant health standards
and soil analysis, contributing to environmental protection;

— measures in the field of irrigation and drinking water;

— capacity-building among public and private organisations

and institutions.

4.3.3
Vast agricultural areas are still subject to drought, even
where they are close to lakes or fresh water, simply because
there is a lack not only of irrigating infrastructure but also of
professionals capable of organising the supply of water by
pumping.

Hydraulic systems, acquired with cooperation funds,
4.3.4
often lie idle because of a lack of professionals able to operate
them or, in most cases, to repair them.

4.3.4.1
In other cases, the obstacles to the development of
small enterprises are represented by the slowness of the feasible
technological changes and constraints of a cultural (21) and
institutional nature.

4.3.5
In yet other cases, the combination of serious imbal-
ances in the distribution of resources and the weakness of orga-
nisational models has limited the results and could, for a long
time to come, keep many communities in a precarious condi-
tion where they are subject to growing migratory pressure.

(21) In many African cultures property does not belong to the indivi-
dual family but to the ‘mbumba’, the entire extended patriarchal
family of several dozen people. This is an obstacle to the accumula-
tion of wealth, which becomes the property of all, including those
who have not produced it.

4.4
The EPA negotiation phases should help to enhance the
private sector's capacity to analyse the situation. However, the
private sector's capacity for action also needs to be built up
away from the negotiating table, with cooperation at local
level,
in which civil society representatives must always be
directly involved.

4.4.1
The process of training new entrepreneurs, of setting
up enterprises, of making the most of the gender component,
and of increasing the skills and making the most of human
resources in general has been covered by EESC information
reports and opinions, some of them recent.

4.5
In the ACP countries industry, particularly the proces-
sing industry, is poorly developed or not developed at all. The
casual sector and craft SMEs account for 70 % of employment
in production. These two sectors are of key importance and
warrant special attention, requiring policies promoting develop-
ment and providing adequate solutions.

4.5.1 Many of the traditional problems confronting SMEs
(lack of
limited
funds, difficulties in exploiting technology,
low productivity, regulatory constraints)
managerial capacity,
are made worse in a globalised system and in an environment
dominated by technology, especially if set in a context like that
of the ACP countries, marked by serious structural and infra-
structural weaknesses.

The objective of

4.5.2
integration through the
regional
Economic Partnership Agreements should be to encourage the
establishment and consolidation of certain structures which are
essential for encouraging access by small and very small firms
to funding,
information, markets, training and technological
updating. However, representatives of socio-occupational orga-
nisations play a role in the management of these structures,
and these representatives must be given the opportunity to be
trained, to grow, to learn new skills and to exchange views.
The EPA has a contribution to make here too.

One of the basic elements is the category-based orga-
4.5.3
nisation. Just as labour productivity grows in proportion as the
trade union presence improves, so too the efficiency of small
and very small firms can only improve if its representative
bodies grow sufficiently as well.

Through category-based organisations it

4.5.4
is possible
externally to defend the values of the firm and the enterprise
culture and internally to strengthen the capacities for manage-
ment, updating and respect for all who contribute to the devel-
opment of enterprise and of society.

in the appropriate timescale only if

4.5.5
Essentially, the values proper to the concept of the
social responsibility of enterprises can be shared with the ACP
countries as well
the
Economic Partnership Agreements incorporate the elements
which have enabled Europe to become an example of a social
market economy. This kind of economy requires the strength
and maturity of both workers' and employers' representative
organisations.

17.3.2006

EN

Official Journal of the European Union

C 65/79

4.6
Given the scale of the inequalities mentioned above,
some subjects in the EPA negotiations are particularly strategic.
It should be emphasised that
trade and economic integration as
motors of competitiveness and growth must make it possible to raise
living and working standards and improve social rights rather than
reducing them.

ging the European Social Fund (ESF). The measures should
focus on skilling and reskilling to foster a more open trade
culture and be agreed with organised civil society representa-
tives.

4.6.1
From this viewpoint there is a vital need to make
studies of economic and social impact (ex-ante and ex-post) with
the participation of the socio-economic actors in the region (22).

5. Individual and social rights

4.7
The primacy of human rights, and particularly
workers' rights. The EPA must guarantee the primacy of
human rights and particularly social rights, as defined by the
ILO, in all aspects of trade and finance. These rights must be
systematically integrated into all EPA negotiations at regional
level.

4.7.1
Visible links must be established between foreign debt
reduction and greater investment in social protection, using the
public resources that are freed up when debt payments are
reduced.

Indeed, the countries with a sizeable debt have little
4.7.2
to combat
scope for manoeuvre in launching measures
poverty (23). New efforts should be urged to relieve the indebt-
edness of most of the indebted countries. However, such a
measure should be accompanied by a commitment on the part
of governments to meet national objectives.

4.7.3
A practical social development plan. A negotiating
period must be used to implement a practical social develop-
ment programme pursuing the development objectives of the
Cotonou Agreement (24) and also involving the economic and
social forces. This programme should form an integral part of
the EPA as regards choices of approaches and objectives, its
implementing strategy and the impact studies. It must be based
on these and, of necessity, support the increasing competitive-
ness and growth that should be generated by trade liberalisa-
tion.

4.8
This programme must be comprehensive and multi-
dimensional: it could include rehabilitation of education and of
health services,
income guarantee measures for small rural
producers and small-scale fishermen, active policies for promo-
tion, protection and development of decent jobs (25) and, lastly,
a truly participatory approach involving organised civil society.

targeting human resources, could
4.8.1
follow the EU's example and make use of its expertise in mana-

The programme,

(22) Cf. footnote 17.
(23) The fight against poverty through promotion of sustainable devel-
opment: a partnership approach (CESE 104/2003, Rapporteur Mr
Ehnmark).

(24) Cf. Articles 19-27.
(25) Cf. also the ILO ‘Decent Work’ strategy.

In many ACP countries the situation remains difficult as
5.1
regards basic social
indicators and economic activity. The
current negotiations on the EPA therefore represent a great
opportunity for the ACP countries. The quality of these agree-
ments will be decisive for future development.

It is also important at this stage to bear in mind that
5.1.1
the main objectives of the EPA negotiations are, like those of
the humanitarian aid negotiations, the development of the ACP
countries and the reduction of poverty. The two parties must
work together in harmony and ensure that their respective
these priorities well. Hence the need for
positions reflect
sustained coordination.

It is clear from the history of civilisation that education
5.2
and vocational training are the bases for development. The
former enables man to read, to understand and to see his place
in history and the latter enables him to obtain food and to
work materials,
thus helping to perpetuate the work of
ongoing construction of the world (26).

5.2.1
reasons why initiatives fail often include:

Experience of cooperation has shown that the main

— failure to place training at the heart of development policy;

— it is difficult for beneficiary countries to implement reforms
that would enable them to use both domestic and interna-
tional resources rationally;

— low level of

involvement of

the stakeholders directly
concerned, particularly when it comes to passing on tech-
nology, innovative techniques and entrepreneurship.

5.2.2
Training during the EPA preparation and implementa-
tion phases is essential if cooperation initiatives are to succeed.
At the root of failed cooperation projects often lie failure to
pass on practical skills, management techniques or a number of
elements which potential
local operators need to be able to
make assessments, take operational decisions or exploit oppor-
tunities
integration into regional markets, which are
for
constantly changing.

(26) Aristotle said that man's brain and culture enable him to under-
stand the world while training and the work of his hands enable
him to make a contribution to it.

C 65/80

EN

Official Journal of the European Union

17.3.2006

5.2.3
Even more than economic concerns, a lack of human
and cultural resources has been the greatest problem when it
comes to modernisation measures, consolidating the market
and increasing competitiveness, enhancing formal economic
structures, modernising agriculture and integrating agriculture
and industry.

Planned long-term training measures are essential

5.3
to
build up insubstantial production structures. There are three
basic strands of measures to be integrated: sectoral policies —
agriculture, in particular, measures to improve the production
system, measures to improve distribution.

5.3.4
and improve:

In each region, the EPA should be able to guarantee

— non-discriminatory access to education;

— development and dissemination of vocational training in

technical subjects;

— close cooperation between non-state actors and NGOs, to
ensure more widespread and more effective distribution of
training opportunities;

5.3.1
by:

An initiative is needed to stimulate the private sector

— exchanges of expertise between European (29) and ACP

organisations (30).

— investment in human resources and research, to introduce
skills necessary for launching socially-acceptable develop-
ment processes which are sustainable in the long term;

— organisation- and institution-building, including institution-
building in central
administrations,
economic bodies and, in particular, employers' and workers'
associations;

and local public

— development
packages’ (27);

and

dissemination

of

‘technological

— practical courses on product storage, transport and proces-
sing, which help to improve market operation. The devel-
forms of association could be a particularly
opment of
significant contribution here; they could draw on expertise
from all over Europe and would be supported by a system
of incentives for the private sector allowing lower transport
and processing costs in addition to the introduction of new
processes.

Investment in human capital

5.3.2
is the most important
element in development processes and this must be a point of
reference in the EPA negotiations planned. Basic education
makes it possible for training to be assimilated and dissemi-
nated in the different sectors and facilitates the formation of
associations and technology upgrading.

5.3.3
Education is also extremely beneficial for women, who
play a key role in society and the economy. In most of the ACP
countries, women are the only source of sustained, reliable
income in villages. This means that the economy as a whole
could benefit from training being provided for women in par-
ticular (28).

(27) Seed varieties; production techniques; machinery; water transport,

conservation and management.

(28) OJ C 74, 23.3.2005.

5.3.5
There is a close relationship between level of educa-
tion and prospects for a stable job. However, an environment
also needs to be created which leads educated young people to
give their country and region of origin the benefit of their
skills (31).

5.3.6
The practice of providing work-experience placements
for young people in private companies or public institutions,
which has yielded excellent results in European countries,
should be extended to the ACP countries and be discussed as
part of the EPA negotiations.

5.3.7
training should become a key element
process.

Essentially, the wide-ranging subject of education and
in the negotiation

5.4
In a period characterised by the well-known phenomena
of globalisation, civil society has produced a culture based on
the values and concepts which distinguish a social market
economy, namely: individual responsibility, recognition of the
rule of law, respect for the person and for property, transpar-
ency, human dignity, equality and freedom, recognition of
basic trade-union and workers' rights, sound labour relations,
lastly, training for all regardless of
access to education and,
gender, and a high level of social protection. These values and
concepts constitute the basis of the EU's approach to globalisa-
tion.

(29) Employers', workers',

consumers',

equal-opportunities,

animal-

welfare etc. associations.

(30) European experiences of managing vocational training, in centres
run jointly by representatives of the social partners and administra-
tions, have yielded valuable results, for both young people and the
labour market.

(31) Recent OECD studies show that 50 % of young people who leave
developing countries have professional qualifications and could
therefore make a very valuable contribution to the development of
their country.

17.3.2006

EN

Official Journal of the European Union

C 65/81

5.4.1
As well as underpinning peace and progress, these
values have been confirmed and consolidated in recent decades
through the regionalisation process which has spread through
Europe since the Second World War; they are the platform and
good practice on which the EPA process must be built with the
ACP countries.

5.5
A World Bank study of February 2003 states that redu-
cing income disparities and wage discrimination and improving
economic performance depend on a high level of trade union
membership and on sound labour relations (34), and underlines
the need for action to achieve a better balance between
economic and social values (35).

5.4.2
Exchange between government and civil society in the
developing countries, as well as yielding a high return in terms
of political consensus, has a specific value in that it helps to
touch with the
bring decision-making centres into closer
various demands arising from real conditions in the different
areas concerned.

5.6
The social dimension of the Cotonou Agreement and its
impact on the EPA must be based on the fundamental ILO
conventions, particularly those relating to:

— freedom of association, of action and of negotiation;

The practice of

5.4.3
such a partnership significantly
increases the chances of the country's policy responding to the
need to spread the benefits of social and economic democracy
as widely as possible among the resident population, with a
noticeable effect on the reduction of poverty and consequently
on the effectiveness of social policies.

The development of civil society and the practice of
5.4.4
grass-roots democracy do not arise spontaneously, however.
They are the fruit of a participation culture formed by practices
and models which, although consolidated, tend towards contin-
uous improvement. The good quality and usefulness of these
models, and their application to everyday life, are the strong
message which should be included in the Partnership Agree-
ments.

— prohibition of forced labour;

— elimination of child labour;

— non-discrimination and equality between men and women.

5.6.1

To the above can be added:

— Convention No 183 (2000) on the protection of mother-

hood;

— Convention No 102 (1952) on social protection;

— Convention No 122 (1964) on promotion of employment;

5.4.5
If the ACP countries had the possibility, thorough far-
reaching cultural processes and continuous exchanges with
European civil society organisations, to make these models
their own and anchor them in their social reality, they would
probably succeed in overcoming the serious existing imbal-
ances much more quickly.

— Convention No 142 (1975): Recommendation on making

the most of human resources;

— Convention No 81 (industrial sectors) and Convention No

129 (agriculture) on labour inspection;

— Convention No 97 on migrant workers.

5.4.6
From this point of view, as the EU body that repre-
sents organised civil society, the EESC confirms ‘the funda-
mental role played by women as leading players in develop-
ment, and emphasise[s] the need to promote their organisa-
tions and ensure that they participate fairly in advisory and
decision-making bodies’ (32).

requirement

The optimum social

5.6.2
to
guarantee at least the eight ‘basic rights’ Conventions of the
ILO) should be an obligatory condition for any investment in
the ACP countries. The same applies to public calls for tender
for services funded by the EDF or other funds covered by the
Cotonou Agreement.

(commitment

The aim is not just better integration of women in
5.4.6.1
civil society, but rather to create the basic conditions that
would enable them to become truly involved, valued, and
supported, so that
in
making the specific contribution to their country's development
for which they have been equipped by their role in society.

they achieve equality with men (33)

(32) Cf. Opinion on the Green Paper on relations between the European
Union and the ACP countries on the eve of the 21st century - chal-
lenges and options for a new partnership (Rapporteur: Mr Malosse),
REX 152/1997.

(33) OJ C 74, 23.3.2005 — The role of women's organisations as non-
state actors in implementing the Cotonou Agreement (Rapporteur:
Ms Florio).

5.6.3
Some financial measures promoting entrepreneurship
and the setting-up and development of businesses should be
linked to specific actions
social
responsibility. For instance, incentives could be introduced for
both businesses which run staff skilling courses and small and
very small businesses whose owners can show they are familiar
with and apply the established principles of health and safety
in the workplace.

implementing businesses'

(34) Trade unions and collective bargaining: economic effects in a

globalised environment, World Bank, Washington, 2003.

(35) OJ C 221, 8.9.2005.

C 65/82

EN

Official Journal of the European Union

17.3.2006

6. Gender issues

Gender issues (36) must always be borne in mind, both

6.1
with regard to development aid and in EPA negotiations.

6.2.2
Given that the programmed participation of the EU
delegations and the Regional Preparatory Task Forces that are
following the EPA negotiations,
together with any planned
development cooperation initiatives, must be underpinned by
the Community acquis (41), the EESC calls for the impact studies
to include uniform gender statistics in order to provide a
clearer picture of the impact of the various trade measures on
men and women in the ACP countries and regions.

6.1.1
in ACP countries highlight:

Analyses carried out thus far and specific experience

— limited access for girls and women to education and

training (37);

— limited access to financial resources, especially to micro-

credit (38);

If we are to address the gender dimension in the
6.3
Economic Partnership Agreements, we must recognise that the
transition towards free trade with the European Union will
have a particular impact on women as producers and consu-
mers, and that they are consequently an important part in the
process (42). An impact analysis would enable us to establish
the economic sector in which the introduction of free trade
would benefit women as consumers without penalising them as
producers.

— obstacles to women owning real estate;

— the disparity in access to the regular labour market;

— income differences between men and women;

— the increase in HIV infection rates in girls and women;

— violence and arrogance towards women.

6.2
As part of the EPA negotiation process, targeted studies
need to be commissioned and followed up by Commission
delegations in ACP regions and countries in order to identify
women's organisations and assess their scope and activity.

6.2.1
Commission delegation officials must be constantly
involved in the cultural and gender debate. The delegations
should be specifically tasked with promoting gender main-
streaming (39) in order to establish a capacity-building strategy
targeting women (40).

(36) See attached – footnote 39.
(37) Cf. REX 154, rapporteur: Susanna Florio: in developing countries
61 % of men have at least a basic school education, compared to
41 % of women.

(38) According to FAO studies, women in Africa receive only 10 % of

loans earmarked for small land owners.

(39) Gender issues affect women in particular, but also people who
might be discriminated against for economic, religious, racial, age
and cultural reasons.

(40) Article 3 of the Treaty states that ‘in all

including
those relating to development cooperation, the EU shall aim to
eliminate inequalities, and to promote equality, between men and
women’.

its activities,

6.3.1
As is widely known, women occupy a central position
in agriculture in most ACP countries, particularly in Africa.
They would therefore be more vulnerable to any increase in
Community agricultural exports to local and regional markets.

6.3.2
WTO rules on liberalisation of agriculture (43),
looking at
women, in order to

Since women are, de facto, already penalised by the
is worth
for

the sectors that are particularly important

it

— provide any simple and effective safeguards that might be

needed;

— exclude them,

if necessary, from the products earmarked

for the transition towards free trade;

— provide for some special provisions to address the specific

interests of some regions.

The gender-focused analysis of

6.3.3
the development
problems associated with EPAs should aim to establish the
areas in which women are at a particular disadvantage in terms
of access to production resources, and show how access can be
facilitated so that women can better equip themselves to deal
with free trade with the EU.

(41) COM(2001) 295 final, Programme of Action for the mainstreaming
of gender equality in Community Development Cooperation
(2001/2006).

(42) Dakar, October 2003, Aprodev Conference, The gender dimension

of EPAs.

(43) GERA Programme, Phase II/Third World Network-Africa.

17.3.2006

EN

Official Journal of the European Union

C 65/83

6.3.4
Another crucial aspect of the analysis is to stress how
women already benefit from government and EU programmes
to improve their access to resources.

7. Conclusions and recommendations

6.3.5
Any prospective studies must enable the players to
target the type of aid women most need in order to address the
challenge of free trade.

7.1
At present all the developed countries are having diffi-
culty in managing the various aspects of globalisation. There is
no doubt that the gradual liberalisation of the markets, which
underpins the process, will have varying effects on different
countries.

6.4
In addition to women and those most in need, gender
issues also affect small-scale producers, who are the weakest
link in the EPA negotiations. In terms of economic and budget
problems, two areas are of vital
importance to women and
small-scale producers, and must consequently be taken into
consideration in the Agreements:

The countries with a well developed system of services
7.1.1
and an economy in which the Value Added (45) of the manufac-
turing sector (GVA 2) has declined are in an advantageous posi-
tion in a globalised system. In this historical phase — more so
than in the past — it is the capacity to provide advanced
services which helps determine the success of an economy.

— social services, e.g. education, health, water usage, mater-

nity care;

— economic services, especially in terms of agriculture, infra-
structure, farm roads, financial policies, access to micro-
credit, innovation.

7.1.2
The productive structures of the ACP countries are
known to be weak or non-existent, and their services system
are in an even worse state. It is therefore a matter of helping
them to gain access,
through more widespread use of
commerce and production, to instruments to reduce hunger
and poverty. This means, however, that the processes of liberal-
isation and reduction of customs tariffs will be lengthy, and
will take longer than previously envisaged.

Generally speaking, the EPA budgets for social and
6.4.1
economic services are fairly insubstantial
the aim is to
protect regional domestic markets or offer alternative help with
supply limitations. An in-depth impact analysis should indicate
a target level for aid, given that the transition to free trade with
the EU will lead to reduced income for the ACPs.

if

7.1.3
It also means that the current process can only be
successful if it involves and motivates society. But the responses
and consensus are expressed through organisations and associa-
tions; these are still very fragile or, in many states, still impeded
in their work.

In order to improve female integration and participation
6.5
in the social and economic life of ACP countries, specific
actions will need to be planned, e.g.:

— establishing restricted channels for women-only access to
(capacity-building,
for various projects
organisations,

European funds
entrepreneurship, microcredit, women's
training, etc.) (44);

— more support for women's training programmes;

— upgrading actions to boost female entrepreneurship.

important

The most

6.6
to insist on
women's right to equal access to education and training, as
provided for in the third point of the Millennium Development
Goals.

thing is, however,

(44) The EU has vast experience in this field. Cf. the ILO programme for
European women in the 1980s and the numerous projects funded
by the former DG V to promote equal opportunities for men and
women. The ongoing EQUAL Programme
should also be
mentioned.

7.1.4
The first, and fundamental, commitment to be met
through the Partnership Agreements is that of strengthening in
the various regions the associations of workers, entrepreneurs,
consumers, the equal opportunity organisations, and the many
others which help to produce culture and guide consensus
towards measures to speed up human, social and economic
progress.

The ACP countries are very different

in terms of
7.2
language, culture and religion, and hence their civil society
practices also vary considerably. Some studies have been made
of these characteristics (46), which could become important in
the course of the partnership negotiations.

7.2.1
Such differences between countries should lead to
differentiated regions giving rise to EPAs which differ in their
content.

(45) GVA6 (gross value added of the six most important economic
sectors which together determine the GDP) – GVA1: agriculture;
GVA2: manufacturing sector; GVA3: building; GVA4: commerce
and tourism; GVA5: credit and services to enterprises; GVA6:
administration.

(46) These include those commissioned by the African Development

Bank.

C 65/84

EN

Official Journal of the European Union

17.3.2006

7.2.2 While, on the one hand, the division of the ACP coun-
tries into six macro-areas makes it possible to develop South-
South relations and thus extend the positive experiment so far
it should however be
conducted by the European Union,
emphasised that very different levels of development have been
attained by the ACP countries called upon to share economic
and social relations. This necessitates a considerable effort on
the part of the Commission to pick out certain specific identi-
ties of individual regions on which to focus the attention and
interests of civil society.

7.2.3
The large-scale projects discussed in Johannesburg,
which also underpin the Action Plan for the new millennium
(health services, access to water supplies, reduction of famine,
sustainable development, capacity building etc.) are the main
points to which to draw the attention of civil society, so that
the latter perceives itself as a protagonist in the processes of
change.

implementation of

The approach, both during the negotiations and in the
7.2.4
the projects, must be
various stages of
above all one of listening and sensitivity. Managing to combine
the various social aspects with the economic, cultural and
environmental aspects is an objective that will require a par-
ticular effort.

7.3
As the Commissioner, Peter Mandelson, maintains, trade
must be used during the EPA negotiations as one of the factors
of development. While free trade is clearly not in itself the cure
for famine and poverty, nor the optimum instrument
for
achieving sustainable development, it must be regarded as one
of the factors capable of promoting competitiveness, as part of
a partnership project.

ACP regional integration and in the preparation of the EPAs.
For its part, the European Economic and Social Committee's
ACP-EU Follow-up Committee has agreed to give priority to
encouraging the development of such regional cooperation
networks of civil society in connection with the preparation of
the EPAs.

7.4
The Economic Partnership Agreements will be fully and
positively effective only to the extent that the participation of
the economic and social actors is guaranteed in the planning,
preparation and implementation of the agreements, and parti-
cularly in the impact studies, as well as in the negotiation and
definition of the inherent social aspects.

7.4.1
The positive aspects of the EPA (regional development,
creation of national and regional internal markets etc.) may be
offset by:

— the considerable differences

in levels of development

between the EU and the ACP countries;

— the very unequal distribution of the markets between the

partners in technical and financial terms.

The results of the impact studies will make it possible to
7.5
decide whether
to continue with the integration process,
amend it or postpone it, with safeguard clauses or moratoria
allowing for regular reviews.

7.6
The impact studies will be able to suggest any correc-
tions needed to WTO rules, so that EPAs can be adapted to the
needs of LDCs.

7.3.1
The EESC calls for appropriate funds to be allocated to
strengthening the representation of civil society in the six areas
of
the ACP countries and in the already existing relations
between organised civil society in the EU countries and in the
ACP countries.

7.6.1
It is clear that LDCs will have to meet significant
social and economic costs in the transition towards free trade.
Most of the benefits ensuing from the EPAs will be difficult to
quantify. The Commission ought, therefore, to assess with ACP
civil society representatives the real costs and benefits that will
ensue from concluding the EPAs with the EU.

Consequently, all trade rules complexities should be
7.3.2
discussed and resolved in consultation with civil society repre-
sentatives, since it is they who will have to deal with the conse-
quences of the decisions.

In any case, the success of the EPAs is closely linked to

7.7
the involvement of society throughout the negotiation phase.

In particular,

7.3.3
the European Commission should
support as a matter of urgency the funding of regional coop-
eration structures including civil society actors in the ACP
countries, and primarily the social partners, to promote the
association and direct integration of the latter in the process of

7.8
As always, the EESC is prepared to step up its coopera-
tion with the Commission and make its experience available in
order to enhance dialogue and exchange of best practice with
representatives from ACP regions. It would do this by planning
meetings and seminars and organising internships for people
with a clearly defined professional profile that are active in civil
society associations.

17.3.2006

EN

Official Journal of the European Union

C 65/85

7.9
The Regional Preparatory Task Forces active in every
region should include some ACP civil society representatives,
especially entrepreneurs and trade unions.

development of employment opportunities and social protec-
tion guarantees must be part and parcel of the negotiations and
subsequently translated into reality.

7.10
As recommended by the 24th meeting of ACP-EU
economic and social interest groups, the EESC, with the agree-
ment of Commissioner Mandelson, expressed at that meeting,
proposes the creation of regional social dialogue commit-
tees, including socio-occupational representatives to contribute
to drawing up and proposing social development programmes
and ensuring their follow up and implementation. The commit-
tees' sphere of action could cover the economic, social and
regional impact of EPAs, the implementation and monitoring
of ILO core social standards, the promotion of employment
and social development,
the development of vocational
training, social protection provisions, and negotiated develop-
ments in the informal economy.

7.11
The European Economic and Social Committee is also
convinced that, on the basis of the mandate ensuing from the
Cotonou Agreement, key social and gender aspects and the

Brussels, 14 December 2005

7.12
The issues referred to above are crucial to positive
economic and social development and must, in any case, be
seriously considered in the development policy framework that
must accompany and complement the EPA negotiations.

‘collective preferences and feelings’ call

The globalisation process has probably reached a point
7.13
where citizens'
for
greater attention. This would make it possible to reduce
domestic and international
tension and avoid the constant
increase in ‘ideological’ trade wars that existing machinery and
external rules, and even experts in the field, seem unable to
resolve alone.

7.14
In short, the EESC takes the view — as expressed in
previous Committee opinions — that the EPAs represent a very
difficult challenge for the EU and for the global economy. They
will be concluded later than expected (47) and will only be
successful if they manage to involve civil society and enhance
the role of women in the decision-making process and in
implementing specific initiatives.

The President

of the European Economic and Social Committee

Anne-Marie Sigmund

(47) It is instructive to consider the problems still facing the European

Union fifty years after its creation.