RNM UPDATE 0803

April 30, 2008

Prepared by the Information Unit of the Caribbean Regional Negotiating Machinery (CRNM), this electronic newsletter focuses on the RNM, trade negotiation issues within its mandate and related activities.

-   THE FUTURE OF ACP COOPERATION

-   UNCTAD XII

-   Bernal Resigns as Director-General of the CRNM

-   NEWS BRIEF

-   UPCOMING EVENTS

THE FUTURE OF ACP COOPERATION

Many have queried the future of African, Caribbean and Pacific Group of States (ACP) solidarity and have challenged that the EPA negotiations have undermined the region’s cohesion of ACP. The concern has mostly been linked to the EPA negotiation process vis-à-vis the creation of six separate negotiating sub-regions.

However, the subdivision of the ACP for the purposes of the EPA negotiations originated not with the advent of the EPA but during the negotiation of the Cotonou Agreement. Under the Lomé, there was no differentiation in the treatment of group of States that comprised the ACP. The concept of differentiated treatment was introduced for the first time during the Cotonou negotiations by Europe on the grounds that such treatment would facilitate Europe’s ability to respond to the development needs peculiar to each region within the ACP.

While differentiated treatment, on the face of it, appeared to make sense it sparked suspicion amongst the ACP negotiators, leading to speculation of a more latent objective of the European Commission. Accounts indicate that ACP suspicions were valid and that the proposal was broached by the Europeans for ulterior reasons. Europe’s design was to expand Lomé benefits to include LDCs outside of the ACP-EU arrangements as was later described in the Everything-But-Arms (EBA) Initiative.

This notwithstanding the matter of ACP differentiation was never quite resolved in the Cotonou process and after protracted discussions, it was agreed that the geographical configuration would be a matter for the ACP countries alone to decide.

The approach to negotiations employed during the EPA process with regard to the differentiated treatment of ACP states as well as the related criticism of that process, have been influenced by the unresolved disquiet which stemmed from the Cotonou negotiation process.  Differentiation in the treatment of the ACP States is a feature of the evolution of ACP-EU relations from Lomé to Cotonou. This evolution has influenced the creation of the collage of regional sub-groupings that defined the EPA negotiation process namely, West Africa, Central Africa, Eastern and Southern Africa, the Southern African Development Community, Caribbean, and the Pacific.

Overall, the coalition of ACP states is a peculiarity which features an alliance amongst developing countries which are united under a common quest for development but with vastly divergent economic realities in several cases. Admittedly, the configuration of the ACP sub-groupings in some cases is artificial and reflects deepening complexities in historical and cultural linkages, political alignments, rivalries, and divergences in economic interests within each sub-grouping. These complexities reflected at the sub-regional level are but a microcosm of the complexity of an ACP wide negotiating process. For this reason a negotiations process that depended solely upon ACP wide consensus would have been impractical.

The creation of these sub-groupings in the EPA process did not inhibit ACP solidarity on wide EPA modalities. Therefore, CARIFORUM would have supported ACP consensus that the EPAs, inter alia, must be instruments for ACP development and poverty eradication and focus on addressing capacity and infrastructural constraints confronting ACP countries. However, on specific trade issues such as the treatment of services in the EPA negotiations, CARIFORUM and the rest of the ACP were not in accord. On matters such as this, CARIFORUM pressed ahead with what was determined by CARIFORUM Heads as negotiating positions consistent with the external trade and economic policy of CARIFORUM.

It is worthy to consider that the EPA negotiation process will eventually be completed. However, ACP solidarity and intra ACP cooperation will continue be critical to the process of EPA implementation which is yet to begin. The ACP should encourage Members to capitalize on the burgeoning opportunities to be engendered through the effective implementation of the EPA and lend collective support to the mitigation of the challenges that would inevitably arise in order to chart a new course in their economic development and their trade relationship with Europe.

It is important to note further that cooperation between the ACP and the EU goes well beyond the ambit of the EPA. It encompasses wider development issues such as climate change and food security which have systemic effects and would benefit significantly from a wider all-ACP cooperation process.

Beyond the bilateral relationship between Europe and the ACP, ACP solidarity continues to render a positive influence in trade diplomacy adopted by ACP states within the multilateral trade arena. As major bloc of developing countries, the influence of the ACP’s numbers is inextricably linked to leveraging the Doha Round to ensure that the Round fulfils its development mandate.

CRNM has also been involved in fostering ACP solidarity by contributing to the process of providing technical assistance to other ACP sub-regions with the aim of enhancing the ability of those regions to formulate cohesive negotiating strategies.  To this end, CRNM participated in a number of meetings and workshops designed to undertake a comprehensive assessment of the content, character and implications of the EPAs with the aim of sharing experiences and recommendations that will help guide the ACP to elaborate a negotiating mandate, strategy and structure.

These meetings have included the SADC High Level Workshop on Trade in Services and Investment in the EPA Negotiations held in Swaziland in March; the High Level Technical Meeting entitled ‘Economic Partnership Agreements: The Way Forward’ which was convened in Cape Town, South Africa in April 2008; and the Regional Dialogue on the EPA, Intellectual Property, Innovation and Sustainable Development for CEMAC Countries in held in April 2008.                                        Top Menu

UNCTAD XII

Several Heads of Government, ministers, delegates, representatives of the private sector and non-governmental organizations, experts, artists and journalists participated in the Uunited Nation Conference on Trade and Development (UNCTAD) XII Conference held in Accra Ghana on 20-25 April 2008 which addressed the theme “Addressing the opportunities and challenges of globalization for development”.

UNCTAD is responsible for helping developing countries integrate into the world economy so that they benefit as much as possible from trade, investment and development. It aims to guide debate and reflection on global development questions so that the combination of national policies and international action generates sustainable development.

This conference explored ways to harness globalization to raise living standards, reduce poverty and ensure sustainable development. Topical issues in trade and development included multilateral rules and disciplines on financial activity and currency flows similar to those regulating international trade.

The primary focus of the Conferences was on Africa and the measures needed for African countries to benefit more from globalization and on what should be done to strengthen the international community's efforts to promote development-friendly trade and economic growth in Africa.

Other foci of interest included the World Investment Forum which examined corporate trends and future prospects in the investment-led globalization process. This forum featured three panel discussions co-organized by UNCTAD and the World Association of Investment Promotion Agencies (WAIPA), on:

1. Prospects for Global Foreign Direct Investment (FDI)  and New Business
2. Global Value Chains: Opportunities and Challenges
3. Africa: a New Emerging Market for FDI

There were also a number of Ministerial Roundtables which included provocative discussions on

1. Globalization, development and poverty reduction – their social and gender dimensions;
2. Creating an institutional environment conducive to increased foreign investment and sustainable development;
3. Debt management solutions supporting trade and development;
4. Harnessing knowledge and technology for development; and
5. The changing face of commodities in the 21st century

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Bernal Resigns as Director-General of the CRNM

Christ Church, Barbados – Ambassador Dr. Richard L. Bernal has tendered his resignation as Director-General of the Caribbean Regional Negotiating Machinery with effect from 30^th June, 2008. He will assume the post of Alternate Executive Director for the Caribbean at the Inter-American Development Bank (IDB) in Washington, DC.

An economist with over 35 years of experience, Ambassador Bernal holds the degrees of B.Sc., MA, Ph.D. (Economics), and MIPP (International Public Policy).

Ambassador Bernal joined the CRNM on 1^st September, 2001 succeeding Sir Shridath Ramphal. He was the principal negotiator for CARIFORUM during the negotiation of an Economic Partnership Agreement with the European Union which was concluded in December, 2007. For almost 7 years he provided overall direction to the CRNM and supervised a staff of technical experts and trade specialists operating from Kingston, Bridgetown, St. Lucia, Brussels and Geneva.

Ambassador Bernal’s contribution to the work of the region in trade fora includes his service as the first chair of the Working Group on Small Economies of the Free Trade Area of the Americas (FTAA) and CARICOM’s lead negotiator in the FTAA negotiations. Additionally, Ambassador Bernal’s stewardship has extended to the multilateral trade arena where he headed the CRNM technical teams advising the CARICOM delegations at the WTO ministerial meetings in Cancun and Hong Kong. Through his advocacy and publications he advanced policy on special and differential treatment and the needs of small developing economies in trade agreements.

Commenting on his experience during his tenure as Director-General, the Ambassador said, “It has been my honour and privilege to serve this region and I remain committed to continuing to do so in my future endeavours.”

Prior to joining the CRNM, Dr. Bernal was Jamaica’s Ambassador to the United States of America as well as the Organisation of American States (OAS) during the period 1991 -2001.                                                                       Top Menu

NEWS BRIEFS

REGIONAL News

OECS - The Way Forward

The countries of the Organisation of Eastern Caribbean States (OECS) have launched a year-long public consultation on a possible economic union. OECS Heads of Government have said they want "a comprehensive dialogue" on the way forward in the integration process.

The OECS, established in 1981, is a nine member grouping comprising Antigua and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia and St Vincent and the Grenadines. Already the Organisation's member states share a single currency -the East Caribbean dollar ($US1.00 = $EC2.65) - a central bank and Supreme Court. In addition, the spheres of cooperation have evolved to include a range of areas of functional cooperation in telecommunications and civil aviation, education, health, sports, agriculture, export development and the environment.

International News

EU Hails EAC over Trade Deals

The European Union has commended the East African Community for striking "a good deal,” following the initialling of an interim Economic Partnership Agreement (EPA) at the end of last year. The five countries of the EAC initialled an interim EPA in November last year, well ahead of the December 31 and paving way for a final deal by mid next year.

While speaking at an ACP journalists training in Brussels, Belgium on April 14, Mr Peter Thompson, the Director for Development and EPAs, said the EPA was "a great opportunity" for the region to build larger markets.

WTO Should Pressure Food Exporters - Mandelson

The World Trade Organization (WTO) should push food producing countries to maintain exports to prevent a worsening of the international food crisis, EU Trade Commissioner Peter Mandelson said on Wednesday.

Ballooning food prices have sparked riots in Bangladesh and brought down the government of Haiti, while some countries have banned exports of staple foodstuffs in an attempt to avert domestic shortages. "If we restrict trade, we're simply going to add food scarcity to the already large problems of food shortages that exist in different countries," Mandelson said in an interview during a visit to Tokyo with an EU delegation. "The WTO stands for free trade. It needs to exert its pressure and influence to reduce tariffs and thereby encourage trade," he added. "It's also got to stand up against export restrictions, export taxes, which too will stop the free flow of trade in foodstuffs and agricultural produce."                      Top Menu

UPCOMING EVENTS

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For More Information Contact:

Marsha Drakes 
Programme Officer-Trade Information
Caribbean Regional Negotiating Machinery (RNM)
3rd Floor The Mutual Building
Hastings Main Road
Hastings, Christ Church, Barbados
Tel: (246) 430-1678
Fax: (246) 228-9528
marsha.drakes@crnm.org

Previous issues of RNM UPDATE are archived on and can be downloaded from the RNM website: http://www.crnm.org/rnm_updates.htm

The ‘RNM DRAFT CALENDAR 2007 ', that provides an account of hemispheric and multilateral trade meetings, is available on the RNM website.