Summary: January 6, 2005: Speech by Peter Mandelson, European Commissioner for Trade. Putting development first: EU-ACP relations, EPAs and the Doha Round (Georgetown, Guyana)
Following his meeting with trade and economic development ministers of CARICOM and the Dominican Republic in Georgetown, Guyana, on 6 January, Peter Mandelson made a number of new commitments concerning EU-ACP trade relations.
- Concerning the region's participation in the Doha Development trade talks, Peter Mandelson emphasised his commitment to coalition building with the ACP group on the development components of these talks: "we must craft, in the DDA, a global strategy for the smaller and more vulnerable WTO members, but their interest will be better served by embracing the Round rather then seeking to slow it down and remaining over dependent on preferences".
- On the negotiation of an Economic Partnership Agreement between the EU and the Caribbean ACP states, the EU trade Commissioner put forward a new proposal to ensure that development comes first within these agreements with the ACP: "I have announced my decision to put the EPA process under continuing review so as to make sure that the process really does put development first. To do this, I have decided to establish a mechanism to monitor the roll out of our development and trade related
assistance, to check continuously whether or not it is delivering the right results to build up local economic capacity, and that the process really does constitute the true economic partnership I insist on for these agreements".
- Finally, Peter Mandelson pledged his support for a robust action plan from the EU in favour of ACP sugar producers affected by the future reform of the EU's sugar regime: "Development assistance measures will be advanced to increase the competitiveness of the industry in sugar producing countries or to support its diversification. An urgent dialogue is needed with the ACP to define these measures. There can be no delay. I want the fullest possible understanding and agreed measures in place
in 2005, prior to the Hong Kong ministerial meeting in December."
The text of the Commissioner's remarks follows.
Statement by Peter Mandelson, Press Conference,
Georgetown, Guyana, 6 January
I wanted to come at the beginning of my mandate to an ACP region, and I have chosen the Caribbean to do this. And I am happy to be the first Commissioner from the new team of President Barroso to come to the Caribbean.
My purpose is fact finding, political dialogue, and an expression of my commitment to the good relationship we have, on trade and development, with our partners from the ACP.
In addition to government officials, I have also had the opportunity to meet with a number of business representatives in the region, who will be the engine of what we achieve in our trade relations. I heard from all those I have talked to about their priorities, their concerns, their outlook, in particular on the Economic Partnership Agreement (EPA) that the EU is negotiating with this region. Finally, here in Guyana, I am seeing first hand the challenges that the sugar sector is facing, and
how our policies in the EU must take account of this.
With the trade ministers of the region, I have discussed the way forward in the WTO and the DDA, where we need to accelerate work and restore balance in the negotiations.
My strong message is that we need a high level of ambition for the DDA, and in particular for the Ministerial Meeting of the WTO in Hong Kong in December. The DDA is the number one trade priority for the EU. And the goal remains, more than ever, growth of trade opportunities for all as an engine of economic development and poverty reduction.
I have stressed with my colleagues here that Caribbean countries - within the ACP and G90 groups - have a key role to play, and they need to engage in the Round in the coming months. I am encouraged by the discussions today.
Let me stress: we must craft, in the DDA, a global strategy for the smaller and more vulnerable WTO members, but their interest will be better served by embracing the Round rather then seeking to slow it down and remaining over dependent on preferences.
I have expressed the view that this strategy means that the Doha mandate has to be implemented in a way that takes into account the distinctive development conditions of each individual developing country.
Evidently, particular attention will have to be paid to the specific situation of small and vulnerable island economies such as those of the Caribbean, and the ones that are economically dependent on climate or on certain commodities, like sugar or bananas.
I recognise that in this region, such an agenda also requires addressing legitimate concerns on the erosion of trade preferences. Addressing them demands a response from all WTO countries, including advanced developing countries, in the form of market access, development assistance and trade adjustment measures. We have had fresh discussions on this.
I have also discussed, both with ministers and private sector actors, the next steps for the negotiations of our Economic Partnership Agreement. I draw two conclusions from my visit on this.
First, I have now seen that this region is taking ownership of the EPA. Both government and business are defining their priorities for regional integration in this region. And we, on the EU side, are supporting these priorities within the EPA negotiation.
Second, I have announced my decision to put the EPA process under continuing review, so as to make sure that the process really does put development first. To do this, I have decided to establish a mechanism to monitor the roll out of our development and trade related assistance, to check continuously whether or not it is delivering the right results to build up local economic capacity, and that the process really does constitute the true economic partnership I insist on for these agreements. I
will push this agenda jointly with my colleague Louis Michel, in charge of development in the Commission, and of course with all ACP regions.
Finally, I am seeing for myself, in the field, the challenges that a sector like sugar faces here, and how these challenges, and the impact of our own policies in the EU, are affecting the very social fabric of the countries involved.
I am happy to have been able to come early to reaffirm the EU - and my personal - commitment to ACP sugar producers.
I have heard the concerns on the pace and the extent of sugar reform in the EU. I take this extremely seriously. Sugar reform in the EU is necessary and unavoidable.
But it requires from us two things vis-à-vis ACP producers: that we maintain a preferential access for their imports, and that we accompany this with a robust local adaptation process.
We will put forward development assistance measures, to increase the competitiveness of the industry in sugar producing countries or to support its diversification.
A dialogue with the ACP has to take place as soon as possible, to define these measures. There can be no delay. I want the fullest possible understanding and agreed measures in place in 2005, prior to the Hong Kong ministerial meeting in December.
The same is true, I should stress, for agreement across the board, on new arrangements for bananas. These are difficult issues, but the status quo is not sustainable. We cannot allow them to divert or jeopardise progress in the Doha trade talks.
The EU's support must come into play as early as possible, so as to anticipate rather than simply cushion change. I acknowledge this, as part of the respective deals to be reached.
This trip was a reminder for me of the long tradition of global trade in the Caribbean. I do not believe, incidentally, the doom-mongers who say that in sugar for example this will inevitably end. We will put political effort into this, to ensure the contrary.
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