PACP Trade Ministers Gravely Concerned And Disappointed About EU's Linking The 10th EDF To The EPA

A meeting of Pacific ACP Trade Ministers have expressed "grave concern and deep disappointment" about the European Union's recent position, linking the final programming of the 10th European Development Fund (EDF) with the Economic Partnership Agreement (EPA) and the level of allocation of the 10th EDF is contingent upon an EPA being successfully negotiated.

This followed a communication from the European Commission (EC) in Brussels during the weekend which was brought to the attention of the Pacific ACP Trade Ministers who concluded a two-day meeting in Port Vila today.

Following a discussion of the communication from the EC, the PACP Trade Ministers decided to send a letter to the Commission seeking further clarification on the matter.

In the letter signed by the Chair of the meeting and Vanuatu's Trade, Commerce, Industries and Tourism Minister, Hon. James Bule and addressed to Mr Louis Michel, the EC Commissioner for Development, the Ministers said the communication explicitly implied a conditionality for the development of the regional programming under the 10th EDF, which was not the position understood initially by the PACPS.

The EC communication made reference to the 10th EDF Regional Indicative Programme (RIP) being conditional to the outcome of the EPA negotiations and that the two are inseparable.

"Of particular concern is the proposed reprogramming of the resources of approximately 48% o the RIP in the event an EPA is not negotiated successfully and also a reprogramming of approximately 26% o the RIP resources should a 'Goods only EPA' be negotiated," the Ministers said in the letter.

"Since we are still in the delicate negotiating process to finalise the EPA, if indeed this communication is tantamount to establishing a precondition on the development of the EDF regional indicative programmes, the Minister register their grave concern and deep disappointment and will not accept the EC imposing this type of linkage on the RIP with respect to the EPA," the letter stated.

The letter further stated: "The Pacific ACP States remain fully committed to regional economic integration as a matter of high priority and as relayed to you in previous communications our position remains that the 10th EDF programming and EPA are separate processes."

"It is our understanding that regional economic integration is of high priority to the European Union as well, and the resources that the EC proposes to cut from the RIP will be required irrespective of the outcome of the EPA negotiations," the Ministers said.

The letter concluded: "It is the unanimous decision of the PACP Trade Ministers to bring this to your urgent attention and request your immediate confirmation to the official position of the European Commission with respect to the above."

PACP Trade Ministers said they are prepared to suspend EPA negotiations until the issue has been sorted out.

During the PACP Trade Ministers Meeting they stressed the importance of the Pacific Island Countries Trade Agreement (PICTA) for regional integration and urged all PACPS which had not signed or ratified the agreement to do so.

The Meeting agreed that to expedite the process of implementing PICTA and that Trade Officials must be actively involved in progressing PICTA implementation in their countries. Trade officials should also liaise directly with the respective national authorities responsible for the completion of the instrument of acceptance and deposit the instruments with PIFS as soon as practical to make effective the amendments to PICTA already agreed to by the Trade Ministers.

They further agreed that national consultations be held on the possible trade liberalisation of alcohol products in the context of PICTA, and that the outcome of these consultations be discussed further by PICTA parties.

However the Meeting deferred the decision on the inclusion of tobacco products into PICTA till 2009 to allow further time to assess all the implications of such possible inclusion.

The Ministers endorsed the Pacific Islands Forum Secretariat continuing to pursue with relevant authorities the participation of the French and US Pacific territories in the regional trade agreements.

Niue and the Republic of Vanuatu announced during the meeting their coming a step closer to trade under PICTA.

On PACER, the Pacific Agreement on Closer Economic Relations with Australia and New Zealand, the Ministers accepted the offer of the Melanesian Spearhead Group to secure an independent legal opinion on implications for FICs of Article 6(3) of the Agreement and deferred consideration of the Australian and New Zealand proposal for consultations on PACER until FICs receive the legal opinion being sought.

Further on PACER, the Ministers endorsed the recommendation from their officials for the appointment of a Chief Trade Negotiator to facilitate negotiations between FICs and Australia and New Zealand.

The Ministers agreed to set up a Technical Working Group to facilitate further work on the possibility of a Free Trade Agreement between FICs with the Peoples Republic of China and similar arrangement with Taiwan.

They further agreed in principle to the funding proposal for the extension of the Forum WTO Office in Geneva, and that funding would be sought from Pacific members of the WTO, observers and other aid donors.

Ministers also congratulated Tonga's recent accession to the WTO.

They further agreed to mandate the Forum Secretariat to seek EU funding for the feasibility study of a "Pacific House" in Brussels.

The meeting also endorsed the scoping study on the Long-Term Sustainable Approach to Trade Capacity Building and that the Forum Secretariat seeks the Commonwealth Secretariat's assistance to immediately implement the study. Trade Capacity Building should also be given higher priority at the national level.


ENDS.

For more information, contact Mr Peter Forau, the Forum's Deputy Secretary General on phone 678 22934 or email peterf@forumsec.org.fj