Decisions & Resolutions of the 79th Session
 

DECISIONS AND RESOLUTIONS
OF THE 79th SESSION OF THE ACP COUNCIL OF MINISTERS
[ACP/25/005/04]

4 - 5 May 2004
Gaborone, BOTSWANA

 

DECISIONS

No.1 REVIEW OF THE COTONOU AGREEMENT

No.2 ADAPTATION OF THE RULES OF PROCEDURE OF THE JOINT INSTITUTIONS OF THE ACP-EC PARTNERSHIP AGREEMENT

No.3 ACP-EC JOINT DECLARATION ON COMBATING DROUGHT AND DESERTIFICATION

No.4 OCHRATOXIN AND AFLATOXIN

No.5 NEGOTIATIONS OF ECONOMIC PARTNERSHIP AGREEMENTS (EPAs)

No.6 NEGOTIATIONS OF ECONOMIC PARTNERSHIP AGREEMENTS (EPAs) –POSTPONEMENT OF THE REVIEW PROVIDED BY ARTICLE 37(6) OF THE COTONOU AGREEMENT

No.7 REQUEST PRESENTED BY THE COMMONWEALTH OF DOMINICA AND THE REPUBLIC OF LIBERIA REGARDING THEIR CONTRIBUTIONS TO THE BUDGET OF THE ACP SECRETARIAT

No.8 ESTABLISHMENT OF CONSULTATIONS AT MINISTERIAL LEVEL ON ACP EVERETHING BUT ARMS (EBA) LDC SUGAR

No.9 NEGOTIATIONS UNDER THE WTO WORK PROGRAMME
 


 

RESOLUTIONS

No.1 ACCESS TO AFFORDABLE MEDICINES

No.2 CONTENT OF CADMIUM AND OTHER HEAVY METALS IN SWORDFISH AND OTHER FISHES

No.3 COTTON

No.4 RICE

No.5 SUGAR

No.6 BANANAS

No.7 BUDGETIZATION OF THE EUROPEAN DEVELOPMENT FUND

No.8 LDC SUGAR EBA
 

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DECISION N°1
REVIEW OF THE COTONOU AGREEMENT


The ACP Council of Ministers,

RECALLING the provisions of the Cotonou Agreement signed on 23 June 2000 for a period of 20 years;

RECALLING specifically Article 95 of the Cotonou Agreement on the review of its provisions before the expiry of each five year period during its existence;

BEARING IN MIND that the ACP States and the European Community and its Member States exchanged notifications in February 2004 on the review of the provisions in the Cotonou Agreement that they desire to make;

TAKING INTO consideration that the Committy of Ambassadors has adopted the proposals in the Secretariat’s Note on the Review of the Cotonou Agreement;


HEREBY DECIDES :

1. to approve the negotiating structure and the time-table for the negotiations for the review of the Cotonou Agreement as set out in the Secretariat’s Note [ACP/27/002/04] adopted by the Committee of Ambassadors ;
 

2. to formally launch the negotiations for the review of the Cotonou Agreement during the 29th session of the ACP-EC Council of Ministers, on the basis of the subject areas that were notified in the exchange of letters between the Presidents of the ACP and EC Council of Ministers.


 

DECISION N°2
ADAPTATION OF THE RULES OF PROCEDURE OF THE
JOINT INSTITUTIONS OF THE ACP-EC PARTNERSHIP AGREEMENT
 


 

The ACP Council of Ministers,

COGNIZANT that the enlargement of membership of the European Union from 15 to 25 members became effective on 1st May 2004;

AWARE that enlargement of the European Union will have consequences for the organization of joint institutions under the ACP-EC Partnership Agreement;

TAKING INTO ACCOUNT the position of the ACP Group on this subject during the 54th meeting of the ACP-EC Committee of Ambassadors of 2 April 2004;

HEREBY DECIDES:

To adopt the recommendations of the 54th meeting of the ACP-EC Committee of Ambassadors as contained in Doc. ACP-CE 2106/04 entitled “Proposed amendments to the rules of procedures of the joint institutions set up under the Cotonou Agreement to take account of the enlargement of the European Union” and related to the membership and the languages to be used during the joint meetings.
 

DECISION N°3
ACP-EC JOINT DECLARATION ON COMBATING DROUGHT AND DESERTIFICATION

The ACP Council of Ministers,

RECALLING Article 32 of the Cotonou Agreement, which inter alia recognizes that ACP-EC cooperation on environmental protection and the sustainable utilization and management of natural resources shall aim at mainstreaming environmental sustainability into all aspects of development cooperation;

RECALLING also that the above-mentioned Article 32 provides that ACP-EC cooperation on environmental protection shall aim at supporting specific measures and schemes addressing critical sustainable management issues, such as desertification, drought deforestation and water resources;

ACKNOWLEDGING the role and importance of the United Nations Convention to Combat Desertification (UNCCD) in poverty alleviation, and its importance for attaining the Union Nations Millennium Development Goals;

REAFFIRMING our determination to enhance dialogue to mainstream desertification policies and drylands issues into relevant national and regional strategies, including ACP national and regional indicative programmes (NIPs & RIPs);

REITERATING our commitment to enhance cooperation at country and regional levels to attain the objectives of the UNCCD;

HEREBY DECIDES:

1. To endorse the Draft ACP-EC Joint Declaration on Combating Drought and Desertification and to submit it to the ACP-EC Council of Ministers for approval ;

2. To mandate the ACP Committee of Ambassadors to follow-up the implementation of this Declaration in conjunction with the Committee of Permanent Representatives of the European Community (COREPER).

DECISION N°4
OCHRATOXINE AND AFLATOXINE

 

The ACP Council of Ministers,

ACKNOWLEDGING the importance of the export of commodities for ACP countries;

AWARE of the fact that health standards have become a sensitive issue in international trade and that there is need to take appropriate steps to ensure that products exported by the ACP States meet the health standards established by the importer countries;

NOTING the on-going discussions within the EU with a view to adopting maximum levels of ochratoxin in certain foodstuffs including coffee and cocoa and aflatoxin in groundnuts;

NOTING further that the production of ochratoxin and aflatoxin could be reduced to the minimum by adopting appropriate measures to help ACP producers to improve the quality of their products;

CONSIDERING that the measures in question require considerable financing and that the resources of the ACP States are limited;

HEREBY DECIDES TO:

1. approve the Committee of Ambassadors’ recommendation to establish a programme to help coffee, cocoa and groundnut producers improve the quality of their products;

2. to request financial and technical assistance from the European Union for the said programme;

3. give a mandate to the Committee of Ambassadors and the Secretary-General to ensure the implementation of this decision.
 

DECISION N°5
NEGOTIATIONS OF ECONOMIC PARTNERSHIP AGREEMENTS (EPAs)


The ACP Council of Ministers,

RECALLING Decision No.1 of the Special Session of the ACP Council of Ministers, on 1st October 2003, on the continuation of Phase 1 of the negotiations of the ACP-EC Economic Partnership Agreements (EPAs);

RECALLING also Decision No.2 of the Special Session of the Council of Ministers, on 1st October 2003, on the ACP Follow-up Mechanism for Phase II of the negotiations of the EPAs;

WHEREAS phase II of the negotiations of the EPAs have been launched in Central Africa ; West Africa ; Eastern and Southern Africa and the Caribbean regions and are expected to be launched soon in the SADC configuration and the Pacific region;

HAVING CONSIDERED the recommendations of the Committee of Ambassadors’ report on the negotiations of the EPAs, especially in relation to the continuation of the all ACP-EC negotiations;

CONCERNED by the position taken by the EC during the EPA negotiations at all ACP-EC level on dispute settlement and the non-execution clause;

DESIROUS of safeguarding the unity and solidarity within the ACP Group while ensuring transparency and coherence throughout the process of negotiations of the EPAs;

HEREBY DECIDES THAT :

1. Discussions at the All-ACP level will continue to be conducted on issues of common interest including:

(i) Adjustment costs of fiscal, balance of payments, economic and social implications of EPAs;
(ii) Flanking measures for regional integration;
(iii) Financial support ;
(iv) Trade-related issues (Singapore issues only) ;
(v) Trade-related issues (excluding Singapore issues);
(vi) Commodity Protocols;
(vii) Data protection;
(viii) Current payments and capital movements ;
(ix) Rules of origin;
(x) Dispute settlement ; and
(xi) Non-execution clause,

2. Negotiations at the All ACP-EC level will continue to be conducted on issues of common interest including:

(i) Trade-related issues (excluding Singapore issues);

(ii) Rules of origin ;

(iii) Dispute settlement ; and

(iv) Non-execution clause.

3. The non-execution clause should not be included in the EPAs. Dispute settlement cannot be construed as establishing or inducing a system of collective responsibility of the Member –States of a region party to an EPA;

4. Discussions on issues of common interest at the All ACP-Level will be conducted by the ACP negotiating structures as specified in Decision No.1/02 of 26 September 2002 of the Special Session of the ACP Council of Ministers;

5. The discussions and negotiations referred to in points 1 to 3 above shall be conducted in parallel with Phase II of the EPA negotiations, as appropriate;
 

6. No link should be established between the EPA and Articles 96 and 97 of Cotonou;

7. The Committee of Ambassadors is mandated to prepare a draft Model Dispute Settlement Agreement that may be used by the various ACP regions and configurations negotiating EPAs. In this regard the Committee may seek technical assistance, as appropriate;

8. Any region or configuration which intends to negotiate any of the issues listed under paragraphs 1 and 2 above with the EC , is at liberty to do so but is urged to inform the ACP Group;

9. In conformity with the provisions of Article 37.4 of the Cotonou Agreement, a formal and comprehensive review of the envisaged agreements will be conducted at the All-ACP level in 2006 prior to the conclusion of the EPAs.
 


 

DECISION N°6
NEGOTIATIONS OF ECONOMIC PARTNERSHIP AGREEMENTS (EPAs) –
POSTPONEMENT OF THE ASSESSMENT PROVIDED FOR IN ARTICLE 37(6) OF THE COTONOU AGREEMENT
 


The ACP Council of Ministers,

RECALLING the provisions of the Cotonou Agreement on new trading arrangements, in particular Article 37 (6) which states that “In 2004, the Community will assess the situation of the non-LDC which, after consultations with the Community decide that they are not in a position to enter into economic partnership agreements and will examine all alternative possibilities, in order to provide these countries with a new framework for trade which is equivalent to their existing situation and in conformity with WTO rules”;

WHEREAS phase II of the negotiations of the EPAs have been launched in Central Africa ; West Africa ; Eastern and Southern Africa and the Caribbean regions and are expected to be launched soon in the SADC configuration and the Pacific region;

HAVING REGARD TO the resolution of the 7th Session of the ACP-EU Joint Parliamentary Assembly of 16 to 19 February 2004 on Economic Partnership Agreements, in particular with regard to its call to the ACP-EC Council of Ministers session of May 2004 to consider adopting a decision that will postpone until 2006 the review of the situation of non-LDC ACP States under Article 37(6) of the Cotonou Agreement;

HAVING CONSIDERED the recommendations of the Committee of Ambassadors’ report on the negotiations of the economic partnership agreements, especially the part relating to the assessment provided for in Article 37(6) of the Cotonou Agreement;
 

HEREBY DECIDES :

to propose to the 29th Session of the ACP-EC Council of Ministers that the assessment in 2004 provided for in Article 37(6) of the Cotonou Agreement, of the situation of the non-LDC ACP States that are not in a position to enter into economic partnership agreements, should be postponed until 2006 to coincide with and be conducted in conjunction with the formal and comprehensive review provided for under Article 37 (4) of Cotonou.
 

DECISION N°7
REQUEST PRESENTED BY THE COMMONWEALTH OF DOMINICA AND THE REPUBLIC OF LIBERIA REGARDING THEIR CONTRIBUTIONS TO THE BUDGET OF THE ACP SECRETARIAT


The ACP Council of Ministers,

HAVING HEARD the statements made by the representatives of the Commonwealth of Dominica and the Republic of Liberia regarding the situation in their countries;

HAVING NOTED their requests to be exempted from sanctions and to write off their unpaid contributions;

TAKING NOTE of their intention to fulfil their future obligations towards the ACP Secretariat;

HEREBY DECIDES:

To instruct the Committee of Ambassadors:

1. to examine and take a decision on the requests of the Commonwealth of Dominica and the Republic of Liberia regarding their arrears of contributions to the Secretariat’s budget; and
 

2. to report to the Council of Ministers on the implementation of this decision at its next budgetary session.


 

DECISION N°8
ESTABLISHMENT OF CONSULTATIONS AT MINISTERIAL LEVEL ON ACP
LDC SUGAR UNDER THE EVERYTHING BUT ARMS INITIATIVE (EBA)


The ACP Council of Ministers,

RECALLING the provisions of the ACP-EC Partnership Agreement signed in Cotonou on 23 June 2000, in particular part 5 relating to LDLICs;

HAVING EXAMINED the report from the Committee of Ambassadors to the 79th Session of ACP Council of Ministers, in particular paragraph 146 of Document [ACP/26/018/04 Rev.3];

CONSIDERING that the General Affairs Council of the European Union had adopted on 26 February 2001 amendment to the EU GSP to launch the Everything But Arms (EBA) initiative that grants all products from LDCs, except arms and ammunition, duty free access without quantitative restrictions;

TAKING INTO ACCOUNT the Framework Agreement that governs the implementation of EBA quota which was signed by the LDC sugar exporting countries on 23 October 2001;

NOTING that the quota allocated to the LDCs under the EBA arrangement has contributed to the development of LDC sugar industries and the creation of investments;

HAVING REGARD to the conclusions of the first meeting of the Ministerial LDC Sugar Group held in Brussels, on 2 – 3 March 2004;

AWARE of the challenges facing the LDC sugar industries in particular with regard to the sugar reform and the WTO challenge to the EC export subsidies on sugar;

HEREBY DECIDES :

1. to establish consultations at Ministerial level on ACP EBA LDC sugar;

2 . to mandate the Committee of Ambassadors to prepare and approve the necessary rules and procedures for the conduct of these consultations ;

3. to authorize the Secretary-General to provide the Secretariat assistance.
 

DECISION N°9
NEGOTIATIONS UNDER THE WTO DOHA WORK PROGRAMME


The ACP Council of Ministers,

BEARING IN MIND the current impasse in the WTO negotiations following the outcome of the 5th WTO Ministerial Conference held in Cancun, Mexico;

RECALLING the ACP Declaration on the aforesaid Conference issued by the ACP Ministers of Trade in July 2003 and the conclusions reached at their follow-up meeting held in November 2003;

COGNISANT of the need to reorient the position of the ACP Group to take account of the evoluing situation in the efforts to conclude the negotiations under the Doha Work Programme;

AWARE of the convening of a Ministerial meeting of G90 countries in Georgetown, Guyana from 3rd to 4th June 2004 to draw up a common G90 platform;

HAVING REGARD to the proposed special session of the WTO General Council scheduled to take place in Geneva from 27 - 29July 2004;

HEREBY DECIDES :

1. to mandate the ACP Committee of Ambassadors, in collaboration with the ACP Representatives in Geneva, to:

(a) examine the draft G90 common platform made available to ACP Member States by CARICOM, in conjunction with the ACP Declaration issued ahead of the 5th WTO Ministerial, in order to update the ACP position in relation to the on-going negotiations under the Doha Work Programme;

(b) define the parameters within which the ACP Group can operate, with the requisite flexibility, in order to maximise its benefits; and

2. to call on the Committee of Ambassadors to report to the meeting of the ACP Ministers of Trade which will be held in the margins of the meeting of the G90 scheduled for July in Mauritius before the above-mentioned special session of the WTO General Council.

 


 

RESOLUTIONS
OF THE 79TH SESSION OF THE ACP COUNCIL OF MINISTERS

GABORONE, 4 -5 MAY 2004

 

ACCESS TO AFFORDABLE MEDICINES

 


The ACP Council of Ministers,

meeting in Gaborone (Botswana) on 4th to 5th May 2004;

HAVING REGARD to the Fourth WTO Ministerial Declaration made in Doha Qatar, in which WTO Members undertook to place the needs and interests of developing countries at the heart of the Work Programme adopted in the Declaration;

HAVING REGARD to the ACP Declaration on the Fifth World Trade Organization Ministerial Conference;

STRESSING the fact that grave challenges to public health continue to afflict many ACP States especially those resulting from HIV/Aids, tuberclosis, malaria and other epidemics and pandemics;

UNDERSCORING the commitment in the Doha Declaration on the TRIPS Agreement and Public Health that “the [TRIPS] Agreement can and should be interpreted and implemented in a manner supportive of WTO’s Members’ right to protect public health and, in particular, to promote access to existing medicines and the creation of new medicines for all”;

WHEREAS on 30 August 2003 the WTO Council for TRIPS reached an agreement, which allows any member country producing genetic copies of patented pharmaceutical products under compulsory licenses to export the products to eligible importing countries within the terms set under that decision;

WHEREAS many ACP States lack the capacity to develop and implement legislation that makes use of the flexibility allowed under the TRIPS Agreement, and are likely to be able to do so without increased technical support;

WHEREAS the current Agreement of 30 August 2003 is only a temporary waiver, and a permanent solution can only be found though a modification to the TRIPS Agreement scheduled for 2004:

- Calls upon the WTO member countries to draft an amendment to the TRIPS Agreement that simplifies and clarifies the procedures and removes unnecessary obstacles to the export of medicines in order to address public health problems;

- Underlines that such an amendment should be permanent and workable and should make it easier for countries with inadequate local production to acquire genetic versions of patented medicines;

- Calls upon developed countries to make a firm commitment to provide support for the development and implementation of legislation in ACP States in order to make use of the flexibility allowed under the TRIPS Agreement;

- Welcomes Council Regulation (EC) No.953/2003 of 26 May 2003 to avoid trade diversion of certain key medicines into the European Union, and which is also intended to enable producers to significantly increase affordable supplies of medicines to countries of destination as specified in the Regulation;

- Calls upon the European Commission to expedite the preparation of its internal regulation to facilitate the granting of licenses for the export of medicines to the developing countries designated in the said EC Regulation;

Requests the President of Council to forward this resolution to the Council of the European Union, EU Member States, the Co-Presidents of the ACP-EU Joint Parliamentary Assembly, the President of the European Parliament, the European Commission and the Director General of the World Trade Organization
 

CONTENT OF CADMIUM AND OTHER HEAVY METALS
IN SWORDFISH AND OTHER FISH
 


The ACP Council of Ministers,

meeting in Gaborone (Botswana) on 4th to 5th may 2004;

A. RECALLING that one of the principal objectives of the Cotonou Agreement is to promote and accelerate the economic and social development of the ACP States;

B. WHEREAS the parties to the Cotonou Agreement have committed themselves, in conformity with the provisions of Article 3 thereof, to refrain from any measure liable to jeopardise its objectives;

C. HAVING REGARD to the Cotonou Agreement, especially Article 23 paragraph (d) and Article 53 thereof;

D. AWARE of the importance of sanitary and phyto-sanitary measures for the protection of human health, animals and plants;

E. CONSIDERING the vital importance of the fisheries sector for the ACP countries in general and the most vulnerable among them, in particular;

F. HAVING REGARD to Regulation EC 466/2001 fixing the maximum content of cadmium in swordfish at 0.05 ppm;

G. CONSIDERING that the European Community has fixed the cadmium content in certain food products such as crustaceans at 0.5 ppm, and lamb, pork and poultry at 1.0 ppm, whereas these products are much more consumed than swordfish;

H. CONSIDERING that there is not enough proof to demonstrate that a cadmium content of over 0.05ppm and even a content of 0.5 is likely to expose consumers to health risks;
 

I. CONSIDERING the serious repercussions that the maintenance of the current content of cadmium and other heavy metals in swordfish and other fish may have on the economies of the ACP exporting countries and on the European swordfish and other fish industry;

Calls upon the European Union to:

a) acknowledge that the cadmium and heavy metals content in swordfish and other fish currently in force is too low;

b) take the appropriate measures to ensure an upward review of the content to put it at the same level as that of crustaceans at 0.5 ppm for swordfish and also extend this measure to other heavy metals in fish as appropriate ;

c) ensure that access to the market of the European Union is preserved for ACP products in general, and fish products in particular.

INSTRUCTS the President of the ACP Council of Ministers to forward this resolution to the Council of the European Union, the President of the European Parliament and the European Commission.
 

 

COTTON

The ACP Council of Ministers,

meeting in Gaborone (Botswana) on 4th and 5th May 2004;

A. RECALLING the Resolution on cotton adopted at its 77th session held in Brussels from 13 to 15 May 2003;

B. RECALLING Decision No. 8/LXXVIII/03 adopted at its 78th session of 28 November 2003 calling for the cotton sector to be strengthened in the ACP countries;

C. HAVING REGARD to the resolution on Cotton and the other commodities: problems encountered by the ACP States, adopted by the seventh session of the ACP-EU Joint Parliamentary Assembly held in Addis Ababa (Ethiopia) from 16 to 19 February 2004;

D. SUPPORTING the observations made by the consultation meeting of the 4 co-author countries of the sectorial initiative for Cotton held in Ouagadougou, Burkina Faso, on 23 and 24 February 2004;

E. WELCOMING the EU-Africa partnership proposal in support of cotton sector development made by the European Commission on 12 February 2004 and the European Council Decision of 22 April 2004 on the reform of the Community’s cotton market;

F. NOTING the European Commission’s Plan of Action on the chains of agricultural commodities dated 12 February 2004;

G. HAVING EXAMINED the partnership proposal, Plan of Action, and the elements of the above-mentioned Decision of the EU Council;

H. APPRECIATING the measures already taken by the EC to render the partnership proposal operational, especially the proposal to organize an EU-Africa Forum on Cotton in Paris on 5 and 6 July 2004;

I. HAVING REGARD to the needs expressed and recommendations made during the 1st meeting of ACP actors in the cotton sector held in Cotonou, Benin on 21 and 22 March 2004;
J. NOTING the conclusions of the WTO African Regional Workshop on cotton held in Cotonou, on 23 and 24 March 2004;

K. RECALLING the major role of cash crops, such as cotton, in the economic stability of the States as well as in rural development and food security;

L. RECALLING the strong pressure exerted on the ACP economies by the instability of cotton prices due to the continued grant of internal support and export subsidies by certain developed countries to their cotton producers;

M. RECALLING ALSO that these subsidies and assistance had led to budgetary readjustments in the ACP States and the reallocation of resources at the expense of long-term development actions and policies to support the most vulnerable sectors of the population;

N. CONCERNED at the lack of significant progress in the handling of the sectorial initiative for cotton examined in the framework of the WTO;

O. EMPHASIZING that an expeditious resolution of the cotton issue at the WTO would be a positive signal for the pursuit of negotiations in the framework of the Doha Development Programme;

P. APPRECIATING the readiness expressed by the bilateral and multilateral partners’ at the Cotonou Workshop to support the cotton sector in the ACP states concerned, without however accompanying it with any concrete commitment on their part;

1. Hereby Reaffirms the urgent need for an expeditious and sustainable solution to the problems of the cotton sector through a stabilization of the global market;

2. Urges the European Union:
(i) In the framework of the reform of the cotton market:
- to go beyond the 65% decided by the Council of the EU and effect a complete de-coupling (100%) of the internal support to cotton production in Europe, by gradually phasing it out on the basis of a clearly-defined timetable;
- to set a ceiling for the assistance accorded by the green box;
- not to reclassify the assistance accorded by the orange and blue boxes in the green box;
(ii) In the framework of the proposed partnership to support the development of the cotton sector, to:
- assist the ACP Cotton producer and exporter states in identifying support programmes to be established at national and regional level; and
- identify and disburse the necessary funds for the adequate implementation of the activities set out in the framework of the partnership;

3. Requests the European Union to:

- take the relevant measures to safeguard and ensure appropriate funding for the losses due to the short-term fluctuations in the cotton price, pending the abolition of the internal support accorded to European cotton producers;

- assist in developing conditions of viability of local cotton processing activities and formally undertake to take the relevant measures regarding access to the European market to guarantee the success of the eventual processing initiatives;

- be sufficiently flexible in the appraisal of the elements during the mid-term review of national strategies to enable appropriate assistance to be accorded the cotton sector in the ACP States;


4. Calls upon the European Union to:

- undertake a reduction in the cotton export subsidies solely as a step towards the total abolition of all forms of subsidy which distort the cotton market;

- support and facilitate the initiatives the ACP states have been taking with the other development partners to obtain assistance for the strengthening of the cotton sector in the ACP countries;

5. Appeals to the other countries to adopt the relevant measures to dismantle all subsidies that distort the rules of fair competition on the cotton market;

6. Calls upon all ACP countries to continue supporting the activities of the ACP cotton producer-countries, especially the continued defence of the sectorial initiative for cotton, with a view to obtaining a special treatment for cotton separate and apart from the agricultural negotiations underway at the WTO;

INSTRUCTS the President of the ACP Council of Ministers to forward this resolution to the Council of the European Union, the President of the European Parliament and the European Commission.
 

RICE


The ACP Council of Ministers,

meeting in Gaborone (Botswana)on 4th and 5th May 2004;

A. HAVING REGARD to the trade and sustainable development, and poverty alleviation objectives of the ACP-EC Partnership Agreement signed in Cotonou on 23 June 2000;

B. RECALLING the Partnership Agreement’s recognition of the importance of commodities to the ACP countries and its acknowledgement that the process of liberalization could lead to a deterioration of the relative competitive position of ACP states which could threaten their development efforts;

C. NOTING the EU´s commitment in the Partnership Agreement to support the integration of ACP economies into the world economy and to promote regional integration and development;

D. EMPHASISING that Declaration XXIV –Joint Declaration on Rice– of the Partnership Agreement recognises the importance of the rice sector in the economic and social development of the ACP rice exporting countries in terms of employment, foreign exchange earnings contribution to GDP, and social and political stability;

E. RECOGNIZING with appreciation the approval by the EDF Committee in September 2003 of the financing proposal to support an integrated sector –specific programme for the development of ACP exporters of rice through unallocated EDF resources;

F. DEEPLY concerned that the European Council’s approval of the proposal regarding the Common Market Organisation for rice to reduce the intervention price for rice by 50% and to increase direct aid to European rice farmers will drastically affect ACP rice exports and will result in economic, political and social instability in our countries;
BEARING IN MIND the commitment made by the European Union to preserve the benefits to ACP countries of the ACP-EC trading arrangements during the preparatory period.

Calls on the European Commission to:
1. honour the commitment made during the meeting of the ACP-EC Working Party on Rice of 24th October 2003, to enter into negotiations with ACP rice producing and exporting countries with a view to granting duty-free, quota free access for rice into the EU market within the context of the impending EPA negotiations;

2. Call on the European Commission to implement fully the requested adjustments to the currently applied management of the quota system as articulated during the ACP-EC Joint Working Party on Rice on 24 October 2003;

3. provide immediate compensation to ACP rice producing and exporting countries on an equitable and comparable basis similar to that accorded to European rice farmers as a result of the fifty percent reduction in the intervention price for rice paid to European farmers;

4. commit to negotiations during the upcoming mid-term review of the European Development Fund (EDF) with a view to reallocating resources to the ACP rice producing and exporting countries within the overall envelope of the EDF;

5. work with the ACP to develop a proposal aimed at financing a “Complementary Rice Enhancement Agreement” within the context of a rescue programme for ACP rice producing and exporting countries;

6. commit to further discussions as regards a common definition of a New Rice Import Regime at the next meeting of the ACP-EC Joint Working Party on Rice scheduled for May-June 2004;

7. take into consideration submissions from the ACP on a New Rice Import Regime before the entry into force of the new regime in September 2004

INSTRUCTS the President of Council to forward this resolution to the ACP-EC Council of Ministers and the European Commission.
 

SUGAR

The ACP Council of Ministers,

meeting in Gaborone (Botswana) on 4th and 5th May 2004;

A. RECALLING the Resolution on Sugar adopted by the 78th Session of the ACP Council of Ministers held in Brussels from 27 to 28 November 2003;

B. HAVING REGARD to the Resolutions adopted by the ACP-EU Joint Parliamentary Assembly held in Brazzaville, Republic of Congo, from 31 March to 3 April 2003 in Addis Ababa (Ethiopia) from 16 to 19 February 2004;

C. HAVING REGARD the Council Regulation (EC) No. 1260/2001 of 19 June 2001 on the common organisation of the market in the sugar sector;

D. REAFFIRMING that the ACP-EC Partnership Agreement signed in Cotonou in June 2000 is centred on the eventual eradication of poverty, the achievement of sustainable development and the gradual integration of ACP countries into the world economy;

E. RECALLING the ongoing EPA negotiations and, in this context, underlining Article 36(4) of the Cotonou Partnership Agreement which reaffirms the importance of the commodity Protocols, the need to review them in the context of the new trading arrangements with a view to safeguarding the benefits derived therefrom, bearing in mind the legal status of the Sugar Protocol;

F. STRESSING that the parties to the Marrakech Agreement establishing the World Trade Organisation recognised that their relations in the field of trade and economic endeavour should be conducted with a view to, inter alia, ensuring full employment and sustainable development while seeking to protect and preserve the environment and recognising the need for positive efforts to ensure that developing countries secure a fair share in the growth of international trade;

G. RECALLING the Doha Development Agenda adopted at the Fourth WTO Ministerial Conference held in Qatar in November 2001;

H. NOTING that notwithstanding the disappointing outcome of the Ministerial Conference in Cancun, agriculture negotiations in the WTO will have to take into account, inter alia, non-trade concerns, special and differential treatment of developing countries, maintenance of preferential arrangements and the vulnerabilities of Small Developing economies which include SIDs, Land-locked and LDCs;

I. CONSIDERING that the ACP sugar–supplying States, which are either least-developed, developing, net-food importing, small vulnerable, landlocked or small island States and single-commodity producers/exporters with specific economic and social difficulties, depend on predictable and stable earnings from sugar exports, under preferential access arrangements, to the EU for their sustainable socio-economic development;

J. EMPHASISING that the ACP sugar-supplying States have been judiciously using the vital foreign exchange earnings from exports to the EU in their rationalisation programmes to improve efficiency, increase productivity and competitiveness, and to promote meaningful diversification in other sectors, wherever possible;

K. RECOGNISING the multifunctional role which the sugar industry plays in ACP supplying States through its contribution to environmental protection, rural development and food security as well as the preservation and protection of the traditional way of life;

L. WELCOMING the close collaboration between the ACP Sugar Supplying States and the European Commission in defense of the EU Sugar Regime against the dispute action taken by Australia, Brazil and Thailand at the WTO;

M. REAFFIRMING the fact that ACP Sugar Protocol is an integral part of the EU sugar regime and the Protocol quantities are bound in the EU’s WTO commitments;

N. RECALLING also the Joint Declaration (Annex XXIII) on market access of the Cotonou Partnership Agreement by which the parties agree to examine all measures in order to maintain the competitive positions of the ACP states on the Community market, and wherein the Council of the European Union underlines its obligation to take into account the effect of any agreement or other measures to be taken by the EC on ACP-EC Trade;

O. FURTHER RECALLING that the Community undertook to honour the political and contractual commitments which some EU Member States had with their traditional partners prior to their accession to the Community;

P. CONSIDERING the current discussion on the reform of the EC Sugar regime which has now been launched on the basis of the recent Commission communication on the sugar sector which unfortunately excludes the option “return to fixed quotas” which was most favoured by the ACP and a wide range of European stakeholders;

Q. NOTING that the option of return to fixed quota based on a managed system would best safeguard the interests of the sugar protocol signatories and would provide remunerative prices for the EBA beneficiaries;

R. NOTING that the Commission proposes to submit before the summer break new proposals for the review, and in this regard, it will take into account the impact assessment of its options on the ACP sugar supplying States; and welcoming the agreement of Commissioner Fishler to meet the ACP side before submitting his proposals to the Commission;

S. WELCOMING the proposals of the Commission on the need in the outermost region of the EU to maintain sugar production for both socio-economic and environmental considerations;

T. FURTHER NOTING that the outermost regions, as the ACP countries which are in a comparable situation, will never achieve the level of competitiveness of multicommodity exporters;

Calls on the European Union and the Commission to:

- defend, maintain and honour the legal obligation and political commitment enshrined in the Cotonou Agreement, particularly the Sugar Protocol and recognise that the “review” referred to in Article 36 (4) of the Cotonou Agreement does not in any way imply a “renegotiation” of the Sugar Protocol and that the provision in this Article is to ensure the WTO-compatibility of the Sugar Protocol and to safeguard the benefits derived therefrom, taking into account the special legal status of the Protocol;

- ensure that such a review does not entail any further shifting of the burden of internal EU CAP reforms and its wider trade liberalisation initiatives on the small and vulnerable economies of the ACP Sugar Protocol Supplying States;

- take into consideration the WTO negotiations in agriculture, and work closely with the ACP so that the preferential arrangements remain at least as beneficial as they are now and are provided the appropriate legal security;

- build on the proposals regarding preferences contained in Harbinson II Text and paragraph 2.11 of Annex A of the Cancun Revision 2 Text;

2. Calls on the Commission of the European Communities and the EU Member States to take, in conjunction with ACP Group of States, all necessary measures to defend the Sugar Regime and the terms and conditions of the ACP Preferential access against unwarranted challenges posed by Australia, Brazil and Thailand;

3. Further calls on the European Commission and the EU Member States to honour their commitments under the Sugar Protocol irrespective of the outcome of the dispute settlement procedures;

4. Urges the Commission and the EU Member States to examine with the ACP the results of the assessment of the impact of their proposals on the Sugar Regime Review on the ACP States in order to ensure that the benefits currently derived are not eroded. In this regard, the submission by the ACP States Signatory to the Sugar Protocol and the ACP LDC sugar producing countries on the review of the Sugar Regime must be fully taken into account;

5. Further calls on the Commission and the EU Members that in the context of the reform, provisions are made for the establishment of the necessary mechanisms and instruments to guarantee at least the same level of earnings to the ACP producers as the EU beet growers, the outermost regions of some EU Members States and the Aegean islands;

6. Invites the Commission to consult with ACP sugar supplying States on a regular basis, on commitments which they have undertaken and will undertake with respect to sugar in the context of their bi-lateral and regional trading arrangements with third countries and groupings;

7. Requests the President of Council to forward this resolution to the EU Council, the European Parliament, the EU Member States and the Commission.

BANANAS


The ACP Council of Ministers,

Meeting in Gaborone (Botswana) on 4th and 5th May 2004;

A. HAVING REGARD to the Resolution of the ACP-EU Joint Parliamentary Assembly held in Addis-Ababa (Ethiopia) from 16 to 19 February 2004;

B. RECALLING the Resolution on Bananas of the 78th Session of the ACP Council of Ministers held in Brussels on 12-15 May 2003;

C. HAVING REGARD to the Resolution of the ACP-EU Joint Parliamentary Assembly on Bananas adopted at its fourth Session in Cape Town (South Africa) from 18 – 21 March 2002;

D. RECALLING the Resolution on Bananas adopted at the Special Session of the ACP Council of Ministers held in Brussels on 10th and 11th December 2002;

E. AWARE of the considerable importance of banana production and trade to the economic and social stability and development of ACP countries;

F. WHEREAS the Community is bound by Article 36.3 of the Cotonou Agreement under which the non-reciprocal trade preferences applied under the Fourth ACP-EC Convention shall be maintained under the conditions defined in annex 5;

G. WHEREAS under protocol 5 of the Article 1 of the Fourth ACP-EC Convention the Community is bound to guarantee that no ACP State shall be placed as regards access to its traditional markets and its advantages on those markets in a less favourable situation than in the past or present;

H. WHEREAS the Community is bound by the Cotonou Agreement especially Protocol 5 Article 1 thereto to take measures to ensure the viability of the ACP banana exporting enterprises as well as the maintenance of outlets for ACP bananas on the Community market;

I. WHEREAS EU banana imports from the ACP are governed by import licensing arrangements which disproportionately penalise ACP suppliers, particularly the most vulnerable, and the concerns expressed to the Commission by the JPA and the ACP were not given due consideration, with the result that ACP interests have not been satisfactorily accommodated in the reform of the EU banana regime;

J. RECOGNIZING that elements of the reform of the Common Organization of the Market for Bananas, such as an increase of the quota for third countries and a concentration of licences in the hands of fewer importers have resulted in prices plummeting to levels which threaten to displace ACP suppliers, most of whom have no alternative markets;

K. CONCERNED about the continuing deterioration of prices for ACP bananas on the European market due to the reform of the Common Market Organisation which threatens the existence of the ACP banana industry; and has resulted in temporary destabilization of banana industry in Suriname and the serious threat to continued production of bananas from the Windward Islands and Belize;

L. CONCERNED about the recent flooding and natural disasters in the Dominican Republic, and the resulting deterioration of the banana sector, which has had a direct impact on small and independent growers who depend on bananas as their sole source of income.

M. CONCERNED about the possible adverse effects on banana prices and about viability of the banana industry in the ACP States, in the event of any increase in the relevant quota as a result of EU enlargement;

N. CONCERNED by the response from the Commission dated the 10th of January 2003, in which it states that no price guarantee mechanism is envisaged under the CMO for bananas and that the volume of the tariff quota can only be modified to ensure supply of the EU market;

O. RECALLING that the SFA was established to assist ACP States’ banana industries in improving their competitiveness and diversification efforts and that delays in the disbursement of the funds under this arrangement due to, inter alia, changes in the EU financial regulations, have served to militate against the achievement of these objectives;

P. NOTING the four scenarios constructed by the EU Commission on the implications of a tariff-only system with various rates applied and determined to arrive at a common position on the flat-rate tariff which is to be introduced in 2006;

1. Calls on the European Union to undertake the following:

• Introduce immediate measures to halt and reverse the continued deterioration of prices and ensure that access to the European market for ACP bananas at a remunerative price is preserved;

• Consult with the ACP on process of EU enlargement and the potential impact of such enlargement on the regime for bananas;

• establish urgently an appropriate mechanism to allow for the speedy disbursement of the funds under the SFA;

• Establish a mechanism out of the unallocated 8th E.D.F. resources to provide technical and financial assistance to ACP countries that do not currently benefit from the Special Framework of Assistance (SFA) and; establishment of a disaster fund;

• Ensure that any increase in the quota for bananas resulting from EU enlargement does not cause any disturbance on the EU market for bananas that further threatens the viability of ACP banana producers;

• Establish an emergency aid mechanism to help rebuild the Dominican banana sector affected by recent floods in the Dominican Republic;

• Ensure that the tariff for bananas as from 2006 is at a level which would ensure the continued viability of the ACP bananas industry;

2. REQUESTS the ACP-ECCouncil of Ministers to resolve any differences between the ACP’s and the Community’s interpretation and application of its obligations under the Cotonou Convention to ACP banana producing States;

3. INSTRUCTS the President of Council to forward this resolution to the EU Council, European Parliament and the European Commission.
 

 

BUDGETIZATION OF THE EUROPEAN DEVELOPMENT FUND


The ACP Council of Ministers,

Meeting in Gaborone (Botswana) on 4th and 5th May 2004;

A. HAVING REGARD to the ACP-EC Partnership Agreement signed in Cotonou on 23 June 2000, which entered into force on 1 April 2003;

B. RECALLING that, since its creation in 1957, the European Development Fund (EDF) has remained the principal instrument for financing cooperation between the European Union and the African, Caribbean and Pacific States;

C. REAFFIRMING the important role of financial cooperation with the European Union in the development of the ACP countries at national and regional level, hence the need to strengthen development finance cooperation in the framework of the EDF;

D. NOTING with interest the unprecedented progress made in 2003 in the implementation of financial cooperation;

E. CONSIDERING the new role assigned to National and Regional Authorizing Officers under the Cotonou Agreement, and the capacities required for ensuring the execution of all the tasks and responsibilities identified, especially improved management of the aid financed by the EDF;

F. REAFFIRMING the importance of the role and responsibilities of National and Regional Authorizing Officers in the management and execution of projects and programmes as defined in Annex IV of the Cotonou Agreement;

G. CONCERNED about the proposed budgetization of the EDF and the effect it will have on the principles and key elements of development finance cooperation, especially co-management, ownership, predictability of resources, and flexibility in the use of the resources;

H. STRESSING the need to thoroughly examine the scope of budgetization of the EDF and to ensure that it adequately responds to the objectives and principles of development finance cooperation;

1. Urges the European Commission to step up its efforts to ensure the long-term viability of the results obtained in 2003 in the implementation of financial cooperation, by deriving benefit from the application of the new approach to programming and deconcentration of powers and decisions;

2. Urges the Member States of the EU, and the European Commission to refrain from taking any decision likely to produce effects contrary to the objectives of the Cotonou Agreement;

3. Calls on the European Commission and the ACP States to establish an appropriate framework for conducting thorough consultations in conformity with the letter and spirit of Article 12 of the Cotonou Agreement;

4. Recommends that, in parallel with the discussion on budgetization of the EDF, a 10th EDF be made available to the ACP countries to enable them to continue with the attainment of the objectives of the Cotonou Agreement, as well as the implementation of the economic partnership agreements;

5. Mandates the Committee of Ambassadors to propose, on the basis of objective criteria, the specific needs of the various categories of ACP States, international commitments and the implication of EPAs, the volume of resources of the Second Financial Protocol of the Cotonou Agreement;

6. Instructs the President of the ACP Council of Ministers to forward this resolution to the Council of the European Union, the European Commission, and to the Co-Presidents of the ACP-EU Joint Parliamentary Assembly.
 

LDCs EBA SUGAR


The ACP Council of Ministers,

Meeting in Gaborone on 4th and 5th May 2004;

A. HAVING REGARD to the provisions of the ACP-EU Partnership Agreement signed in Cotonou on 23 June 2000, in particular part 5 thereof;

B. RECALLING the Resolution on Sugar adopted by the 78th Session of the ACP Council of Ministers held in Brussels from 27 to 28 November 2003;

C. HAVING examined the report of the Committee of Ambassadors to the 79th Session of the ACP Council of Ministers, in particular paragraph 145 of document ACP/26/018/04 Rev.2;

D. CONSIDERING the decision of the General Affairs Council of the European Union dated 26 February 2001 to launch the EBA Initiative;

E. TAKING INTO ACCOUNT the objectives of the Cotonou Agreement which are centred on the eventual eradication of poverty, the achievement of sustainable development and the gradual integration of ACP countries into the world economy.

F. RECOGNISING the multilfunctional role which the sugar industry plays in ACP LDC supplying States through its contribution to environmental protection, rural development and food security;

G. TAKING INTO ACCOUNT the framework Agreement that governed the implementation of EBA quota which was signed by the LDC sugar exporting countries on 23 October 2001;

H. NOTING that the quota allocated to the LDC’s under EBA arrangement has contributed to the development of LDCs sugar industries and attracted investment;

I. DEEPLY CONCERNED about the challenges facing the sugar industries with regard to the reform of the sugar regime and WTO Panel;

J. HAVING REGARD to the conclusions of the first meeting of the Ministerial LDC Sugar Group held in Brussels on 2-3 March 2004;

1. Calls on the European Union to:

- continue to honour the commitments they have undertaken with the LDC sugar exporting States under the EBA Initiative;

- grant LDC sugar producers accelerated and increased market access for sugar at remunerative prices during a longer transitional period in order to build capacity on their future role as important sugar suppliers to the European Union;

- defer the gradual liberalization of import tariffs currently foreseen from 2006 – 2009 until 2016 – 2019;

- grant the LDCS immediate additional access under a progressive second tariff quota covering all sugar products and that the volume of this additional access be based on the export capacity of the LDCs, increasing 15% annually starting in 2004/05 with 466,033 MT;

- ensure that this additional access be capped at 1,425,606 MT from 2012/2013 and that this additional access should not impact on imports from the traditional ACP suppliers to the EU;

- propose robust anti-fraud measures and a formal registration system based on the principle of customs cooperation and procedures to ensure that the full benefits of the initiative reach the LDC sugar exporting economies agree to maintain the value of preferential access at a remunerative level;

2. Instructs the President of Council to forward this resolution to the EU Council, the European Parliament and President of the European Union.

 

 

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