Development impact of Economic Partnership Agreements (EPAs) European Parliament resolution of 5 February 2009 on the development impact of Economic Partnership Agreements (EPAs) (2008/2170(INI))
Date: 2009-02-05
Institutions: Committee on Development, European Parliament
Subjects: ACP countries, cooperation agreement (EU), development aid, economic consequence, trade agreement (EU)








CE2010067EN.01012001.xml










18.3.2010   


EN


Official Journal of the European Union


CE 67/120





Development impact of Economic Partnership Agreements (EPAs)

P6_TA(2009)0051

European Parliament resolution of 5 February 2009 on the development impact of Economic Partnership Agreements (EPAs) (2008/2170(INI))
(2010/C 67 E/14)

The European Parliament,






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having regard to the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States of the one part, and the European Community and its Member States, of the other part, signed in Cotonou on 23 June 2000 (the Cotonou Agreement) (1),










—


having regard to Council Regulation (EC) No 980/2005 of 27 June 2005 applying a scheme of generalised tariff preferences (2),










—


having regard to Council Regulation (EC) No 1528/2007 of 20 December 2007 applying the arrangements for products originating in certain states which are part of the African, Caribbean and Pacific (ACP) Group of States provided for in agreements establishing, or leading to the establishment of, Economic Partnership Agreements (3),










—


having regard to the Conclusions of the General Affairs and External Relations Council on the Economic Partnership Agreements of 10-11 April 2006 and on the Aid for Trade of 16 October 2006 and the Conclusions of the European Council of 15-16 June 2006,










—


having regard to the Conclusions of the General Affairs and External Relations Council of 15 May 2007 on Economic Partnership Agreements,










—


having regard to the Conclusions of the EU 2870th External Relations Council Meeting of 26 and 27 May 2008 on Economic Partnership Agreements,










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having regard to the Resolution of the ACP-EU Council of Ministers adopted in Addis-Ababa on 13 June 2008,










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having regard to the Commission Communication of 28 November 2006 entitled ‘Communication to modify the directives for the negotiations of Economic Partnership Agreements with ACP countries and regions’ (COM(2006)0673),










—


having regard to the Commission Communication of 27 June 2007 entitled ‘From Cairo to Lisbon – The EU-Africa Strategic Partnership work’ (COM(2007)0357),










—


having regard to the Commission Communication of 23 October 2007 on Economic Partnership Agreements (COM(2007)0635),










—


having regard to the General Agreement on Tariffs and Trade (GATT), in particular Article XXIV thereof,










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having regard to the United Nations Millennium Declaration of 8 September 2000, which sets out the Millennium Development Goals as criteria collectively established by the international community for the elimination of poverty,










—


having regard to the Declaration of the second Conference of African Ministers in Charge of Integration, adopted in Kigali, Rwanda, on 26-27 July 2007,










—


having regard to the report presented by Ms Christiane Taubira, Member of the French National Assembly, on 16 June 2008: ‘Les Accords de Partenariat Economique entre l'Union européenne et les pays ACP. Et si la Politique se mêlait enfin des affaires du monde ?’,










—


having regard to the Resolution of the ACP-EU Joint Parliamentary Assembly of 19 February 2004 on Economic Partnership Agreements: problems and prospects (4),










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having regard to the Resolution of the ACP-EU Joint Parliamentary Assembly of 23 November 2006 on the review of negotiations on Economic Partnership Agreements (EPAs) (5),










—


having regard to the Kigali Declaration for development-friendly Economic Partnership Agreements (EPAs) approved by the ACP-EU Joint Parliamentary Assembly on 20 November 2007 (6),










—


having regard to the Declaration on EPAs by the ACP Heads of State adopted in Accra on 3 October 2008,










—


having regard to its resolution of 26 September 2002 containing its recommendation to the Commission concerning the negotiation of Economic Partnership Agreements with the ACP countries and regions (7),










—


having regard to its resolution of 17 November 2005 on a development strategy for Africa (8),










—


having regard to its resolution of 23 March 2006 on the development impact of Economic Partnership Agreements (EPAs) (9),










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having regard to its resolution of 28 September 2006 on more and better cooperation: the 2006 EU aid effectiveness package (10),










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having regard to its resolution of 23 May 2007 on Economic Partnership Agreements (11),










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having regard to its resolution of 23 May 2007 on the EU's Aid for Trade (12),










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having regard to its resolution of 20 June 2007 on the Millennium Development Goals – the midway point (13),










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having regard to its resolution of 29 November 2007 on Advancing African Agriculture - Proposal for agricultural development and food security in Africa (14),










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having regard to its resolution of 12 December 2007 on Economic Partnership Agreements (15),










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having regard to its resolution of 22 May 2008 on the follow-up to the Paris Declaration of 2005 on Aid Effectiveness (16),










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having regard to Rule 45 of its Rules of Procedure,










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having regard to the report of the Committee on Development (A6-0513/2008),










A.


whereas Article 36(1) of the Cotonou Agreement contains the agreement of the European Union and the ACP States to conclude ‘WTO compatible trading arrangements, removing progressively barriers to trade between them and enhancing cooperation in all areas relevant to trade’,










B.


whereas the Council adopted the negotiating directives for the EPAs with the ACP countries on 12 June 2002, and negotiations started the same year with the ACP Group of States on issues of general interest followed by separate negotiations with six EPA regions (Caribbean, West Africa, Central Africa, Eastern and Southern Africa, SADC minus, Pacific),










C.


whereas the 15 Member States of the Caribbean Forum of African, Caribbean and Pacific States (CARIFORUM) initialled an EPA with the EU and its Member States on 16 December 2007,










D.


having regard to Article 231 of the EPA concluded with CARIFORUM, which establishes a CARIFORUM-EC parliamentary committee,










E.


whereas 18 African countries, of which 8 are Least Developed Countries (LDCs), initialled ‘stepping stone’ EPAs in November and December 2007, while 29 other African ACP countries, of which three are non-LDCs, did not initial any EPA, and whereas South Africa had already signed up to the Trade, Development and Cooperation Agreement (TDCA), a WTO-compatible trade regime with the EU,










F.


whereas Papua New Guinea and Fiji, two non-LDC ACP countries, initialled an interim EPA on 23 November 2007, while the remaining Pacific ACP countries (six LDCs and seven non-LDCs) did not initial an EPA,










G.


whereas the agreements initialled in 2007 had not been signed, but all were due to be signed before the end of 2008,










H.


whereas the EU has applied, as from 1 January 2008, the import arrangement to products originating in the ACP States which initialled EPAs or stepping stone EPAs, as provided for in these agreements (17),










I.


whereas the African and the Pacific regions are continuing negotiations with the Commission with a view to the conclusion of full EPAs,










J.


whereas it has been repeatedly confirmed by all parties, notably through European Parliament resolutions, but also through documents of the Council and Commission, that the EPAs must be instruments of development in order to promote sustainable development, regional integration, and a reduction of poverty in the ACP States,










K.


whereas the adjustment costs resulting from the EPAs will have a significant impact on the development of ACP countries, which, whilst difficult to predict, will consist of direct impact through the loss of customs duties and the costs of regulatory reform and enforcement to comply with the wide range of regulations stipulated in the EPA, and indirect impact through the costs necessary for adaptation or social support in the areas of employment, skills enhancement, production, export diversification and reform of public financial management,










L.


whereas 21 ACP countries have set out specific amounts for the accompanying measures to the EPAs in their National Indicative Programmes (NIPs) for the 10th European Development Fund (EDF), some of which have not yet signed an EPA,










M.


whereas the amounts specifically laid down for EPA-related measures in all NIPs constitute only 0,9 % of the total amount of the NIPs (A-envelopes); whereas in addition to this there are substantial indirect EPA supporting measures available such as regional integration and infrastructure as well as Aid for Trade,










N.


whereas the development impact of EPAs will result from their effects on






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the reduction of net customs revenues and its effect on the budgets of the ACP States,










—


the improvement of the supply of ACP countries' economies and provision of customers with imported EU products,










—


growing exports to the EU from ACP countries through improved Rules of Origin, which would lead to economic growth, more employment, and increased state revenue which could be used to fund social measures,










—


regional integration in the ACP regions, which has the capacity to improve the framework for economic development and would therefore contribute to economic growth,










—


the successful use of financing for Aid for Trade in connection with the EPAs,










—


the implementation of reform measures in the ACP countries, in particular as regards public finance management, collection of customs duties and establishment of a new tax revenue system,














O.


whereas it is absolutely crucial to promote and support the trade inside and between ACP regions and between ACP countries and other developing countries (South-South), which will have important positive effects on the development of ACP countries and decrease their dependence,










P.


whereas the above-mentioned 26 - 27 May 2008 GAERC Conclusions underlined the need for a flexible approach while ensuring adequate progress and called on the Commission to use all WTO-compatible flexibility and asymmetry in order to take account of different needs and levels of development of the ACP countries and regions,










Q.


whereas the inhabitants of the ACP countries are the most affected by the global financial and food crisis, which is threatening to totally destroy the minimal progress achieved towards the Millennium Development Goals,










1.


Urges the Council, the Commission and the governments of the EU Member States and ACP countries to do their utmost to re-establish an atmosphere of confidence and constructive dialogue in so far as it has been damaged in the course of negotiations and to recognise the ACP states as equal partners in the negotiation and implementation process;










2.


Urges the Member States to respect their commitments to increase Official Development Assistance (ODA), even in this time of global financial crisis, which will enable an increase in Aid for Trade, and to establish accompanying measures in the form of regional Aid for Trade packages for the implementation of the EPAs contributing to the positive impact of the EPAs on development; stresses the fact that signing an EPA is not imposed as a precondition to receive Aid for Trade Funds;










3.


Insists that EPAs are an instrument to development which should reflect both the national and regional interest and the needs of the ACP countries in order to reduce poverty, achieve the MDGs and respect fundamental human rights such as the right to food or the right to access basic public services;










4.


Reminds the Council and the Commission that neither the conclusion nor the renunciation of an EPA should lead to a situation where an ACP country may find itself in a less favourable position than it was under the trade provisions of the Cotonou Agreement;










5.


Urges the Commission and the ACP countries to make best use of the funding available for Aid for Trade in order to support the reform process in areas essential for economic development; to improve infrastructure where it is necessary, as the opportunities offered by the EPAs can only be fully taken advantage of if strong accompanying measures are introduced for the ACP countries; to compensate the net loss of customs revenue and encourage tax reform so that public investments in social sectors are not reduced; to invest in the production chain in order to diversify export production; to produce more higher added-value export goods; and to invest in training and support for small producers and exporters to meet EU sanitary and phytosanitary criteria;










6.


Stresses that EPAs concluded with individual ACP countries, or with a group of countries not including all countries within one region, run the risk of undermining regional integration; calls upon the Commission to recalibrate its approach taking account of this risk, and ensure that concluding EPAs does not endanger regional integration;










7.


Stresses that the increases in ODA promised by the Member States should, as a priority, be used to redouble efforts to attain the Millennium Development Goals in those ACP countries which are hardest hit by the consequences of the global financial and food crisis, which has threatened, and continues to threaten, the success achieved in attaining these goals;










8.


Also underlines that all agreements must respect the asymmetry in favour of the ACP countries regarding both the range of products targeted and the transition periods, and that the EPAs must provide firm guarantees of protection for those sectors which the ACP countries identify as sensitive;










9.


Stresses that support measures linked to the EPAs have to take into account the importance of regional integration and economic relations with other developing countries to the development of the ACP countries;










10.


Urges the Commission to give ACP negotiators sufficient time to evaluate the agreement and to make suggestions before adopting the relevant agreement, taking into consideration the WTO time schedules;










11.


Stresses that EPAs agreements should incorporate a revision clause for a revision 5 years after their signature, to which national parliaments, the European Parliament and civil society must be formally associated; stresses also that this period will enable a detailed evaluation of the impact of EPAs on the economies and regional integration of the ACP countries and appropriate reorientations to be carried out;










12.


Considers that any trade agreement between ACP and EU, affecting the livelihood of the population, should be the result of an open and public debate with full participation of ACP national parliaments;










13.


Urges the ACP governments to implement necessary reforms in order to realise good governance, in particular in the field of public administration, such as in public financial management, collection of customs duties, the tax revenue system, the fight against corruption and mismanagement;










14.


Underscores the need for stronger monitoring and evaluation provisions in the EPAs which will determine the impact of the EPA on country and regional development and poverty reduction objectives, not merely EPA compliance levels;










15.


Stresses that there is a need to increase transparency in the negotiations and their outcomes in order to allow for public scrutiny by policy makers, parliamentarians and civil society representatives;










16.


Considers that the EDF Regional Strategy Papers and Regional Indicative Programmes should contain important, systematic and well-considered support for EPA implementation, taking into account the necessary reform process that would make the EPA a success;










17.


Urges the Commission in partnership with the ACP countries to include development benchmarks in the EPA and interim EPAs to measure the socio-economic impact of the EPAs on key sectors, to be determined according to the priorities and for intervals decided by each region;










18.


Stresses that it is crucial that forests, biodiversity and indigenous people or forest-dependent people are not put at risk; in this regard, stresses that ACP countries should be allowed to implement rules that limit the export of timber and other unprocessed raw materials and be allowed to use these laws in order to protect forests, wildlife and domestic industries;










19.


Instructs its President to forward this resolution to the Council, the Commission, the governments of the Member States and of the ACP countries, the ACP-EU Council and the ACP-EU Joint Parliamentary Assembly.






(1)  OJ L 317, 15.12.2000, p. 3.

(2)  OJ L 169, 30.6.2005, p. 1.

(3)  OJ L 348, 31.12.2007, p. 1.

(4)  OJ C 120, 30.4.2004, p. 16.

(5)  OJ C 330, 30.12.2006, p. 36.

(6)  OJ C 58, 1.3.2008, p. 44.

(7)  OJ C 273 E, 14.11.2003, p. 305.

(8)  OJ C 280 E, 18.11.2006, p. 475.

(9)  OJ C 292 E, 1.12.2006, p. 121.

(10)  OJ C 306 E, 15.12.2006, p. 373.

(11)  OJ C 102 E, 24.4.2008, p. 301.

(12)  OJ C 102 E, 24.4.2008, p. 291.

(13)  OJ C 146 E, 12.6.2008, p. 232.

(14)  OJ C 297 E, 20.11.2008, p. 201.

(15)  OJ C 323 E, 18.12.2008, p. 361.

(16)  Texts adopted, P6_TA(2008)0237.

(17)  Council Regulation (EC) No 1528/2007 of 20 December 2007 applying the arrangements for products originating in certain states which are part of the African, Caribbean and Pacific (ACP) Group of States provided for in agreements establishing, or leading to the establishment of, Economic Partnership Agreements (OJ L 348, 31.12.2007, p. 1).