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EU Offer to Ex-colonies

DW staff / AFP (sp)April 5, 2007

The EU has offered to scrap most tariffs and quotas it still imposes on exports from African, Caribbean and Pacific nations to boost talks on new trade pacts. But the proposal has been met with scorn.

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The ACP nations are mostly former European coloniesImage: AP

The European Commission and the 78-nation so-called ACP group -- mostly former European colonies -- are struggling to make progress to conclude new trade agreements by the end of the year when a current preferential market access accord is due to expire.

Under the European Union's new offer, all quotas and tariffs on

ACP goods would be lifted immediately once a deal was signed, with the exception of rice and sugar. 97 percent of EU imports from ACP nations are already tariff-free or are taxed only at very low levels while 40 of the poorest countries already enjoy free access to EU markets.

ACP nations include Nigeria, Kenya, Cuba and East Timor.

WTO Peter Mandelson
European Union Trade Commissioner Peter MandelsonImage: AP

"Trade and development for ACP countries is about much more than just access to the European market," EU Trade Commissioner Peter Mandelson said. "But by removing all remaining tariffs and quotas for all African, Caribbean and Pacific countries we will create the best possible opportunities for these economies," he added.

Offer slammed as "derisory"

In reaction, the negotiator for the Caribbean ACP countries

slammed the offer owing to the exceptions on rice and sugar,

describing it as "derisory" and warning it could cause more harm than good.

"The European Commission offer threatens to poison the

negotiating climate, especially at a time when both sides are making strides (on) flexibilities," said Junior Lodge. "We therefore hope that good sense will prevail and the European Commission will offer all ACP regions a more constructive and attractive market access offer," he added.

Feld mit Zuckerrüben
Sugar exports from ACP nations aren't included in the EU offerImage: südzucker

Levies on sugar would be phased out by 2015 while a reform in

subsidies for EU sugar farmers is carried out and a firm date has not yet been set for rice, the Commission said.

The offer did not cover South Africa, which has a bilateral trade agreement with the EU and which the Commission said produces "a number of globally competitive products."

The ACP group, made up mostly of former European colonies, has benefited from preferential access to EU markets since the signing of the Lome accord in 1975.

But other equally poor countries, mostly in Latin America, have

contested the ACP's preferential treatment and have won backing from the World Trade Organisation.

In 2001, the world trade referee gave the EU until the end of

this year to come up with a new framework that would be more

compatible with international rules of commerce.

Deadline for talks nears

After their WTO defeat, the Europeans and the ACP opened talks in 2002 to reach new so-called economic partnership agreements which are being conducted by regions -- eastern, central and southern Africa, the Caribbean and the Pacific.

But little progress has been made, and pressure is building as

the year-end deadline approaches. A number of development pressure groups, including Oxfam and Action Aid, consider the deadline to be unrealistic and have called for it to be pushed back.

The European Commission had promised that it would offer greater market access as part of the negotiations, which some development pressure groups have accused the EU of using to gain greater access to ACP markets.

Brussels said the new offer was not conditional on ACP countries matching the EU in tearing down tariff and quota barriers and that any greater market access they would have to provide to meet WTO rules could be phased in.

Afghanische Farmer auf Zwiebel Feld in Kunar, Afghanistan
Critics say the EU is trying to gain greater access to markets in the developing worldImage: picture-alliance/ dpa

British pro-development pressure group Oxfam said the offer was the minimum the Commission could do and that it should not be used to strong-arm ACP countries into an agreement by the end of the year.

"Developing countries look set to be asked to open their markets dramatically, which could have seriously negative implications for poor peoples' livelihoods and future economic development," said Oxfam's Brussels head Luis Morago.