Policy recommendations

  • All elements that are not required to make the EPAs WTO compatible should be taken out of the EPAs. This requires a review of the current provisions on export taxes, and the MFN and rules of origin clauses.
  • EPAs must ensure that ACP regional groups have maximum flexibility over their own market opening. The EU should therefore offer all ACP regional groups a period of 20 years or more for market opening, on an unconditional basis. Each regional group should be offered this full period. Moreover, the liberalisation scheme should be linked to development benchmarks instead of a fixed timeframe.
  • The EU should cut subsidies on products competing with local products, especially in agriculture. As long as the EU subsidises its sectors, ACP countries should not be asked to liberalise tariffs on products that have to compete with EU products.
  • There should be an effective safeguard mechanism for ACP countries to use if faced with a surge of subsidised EU imports.
  • The EU should stimulate regional integration in all ACP regions by approaching regions as collective partners but at the same time acknowledging their differences in economic and social terms. Therefore enough policy space should be provided during the negotiations and no differentiation in terms of EPAs and iEPAs which influence the individual negotiation positions should be pushed for.
  • Investment, competition and government procurement should be removed from the negotiations, unless specifically requested by an ACP regional negotiating group. It is for ACP regional groups to judge the development benefits of any agreements on these issues and the EU should not push for them to be discussed. If included, any negotiations on government procurement should be subject to transparency.
  • A review mechanism for EPAs - with full ACP regional group ownership and participation - should be introduced to ensure the EPAs are delivering the intended developmental benefits.
  • The Commission should be ready to provide an alternative to an EPA at the request of any ACP country. Any alternative offered should provide no worse market access to the EU than is currently enjoyed under Cotonou preferences.

Case: Economic Partnership Agreements

31-05-2011 A new trade strategy, report by INTA committee with an opinion by DEVE.

On behalf of the INTA committee, MEP Daniel Caspary (EPP) wrote the report: a new trade strategy for Europe under the EUROPE2020 Strategy. In this report he states that this modern trade policy should take account of other policy areas among which the EUs development policy. In the  report it is stated that, the European Parliament supports the Commission in its goal to promote sustainable development, international labour standards and decent work, for example by negotiating EPAs, which are to combine European and ACP interests. According to MEP Caspary, the Commission should withdraw GSP benefits in the event of a GSP beneficiary country making use of unfair trade practices, as this would undermine other policies such as environment, development, research and foreign affairs.

On the draft version of this report 214 amendments were written of which most were small additions and changes to make the report stronger and clearer. Fair Politics welcomes some of these amendments in which the development aspect was pointed out.
In amendment 42, MEP David Martin (S&D) points out the EUs commitments to Policy Coherence for Development (PCD). MEP Bernd Lange (S&D) calls, in amendment 191, on the Commission to pursue a sustainable trade policy concerning raw materials which takes account of the EU development policy and the development objectives of the EPAs. In amendment 212, MEP Helmut Scholz (GUE/NL) states that developing countries should benefit from some flexibility in the field of IPR, and asks the Commission to build a balanced policy between the protection of IPR and the necessity to ensure a massive transfer of technologies for the sustainable development of industrialisation in developing countries.

Fair Politics is happy to see that MEP Caspary (EPP) mentions EUs development policy, but would like to see more concrete examples on how these development goals can be achieved through this new trade strategy. In the amendments by MEPs David Martin (S&D), Bernd Lange (S&D) and Helmut Scholz (GUE/NL) the urge to commitment with EUs development policy comes clearly forward. For writing the report MEP Caspary is awarded two points, and for the amendments the relevant MEPs are awarded each one point in our monitoring system towards the Fair Politician of the Year.

On this report an opinion was written by MEP Birgit Schnieber-Jastram (EPP) on behalf of the Development committee. In this opinion she recalls that the EUs external trade policy is a cross-cutting domain and essential to PCD and that the Trade Strategy for EUROPE2020 must be based on an assessment of its contribution towards the goals set. Next to this, MEP Schnieber-Jastram calls on the EU to reduce certain non-tarrif barriers, particularly on environmentally friendly products from developing countries, which contribute both to economic and environmental sustainability. Thirdly, she recalls that, in order to foster inclusive and pro-poor economic growth, the EU, should strive for the conclusion of a development-friendly Doha Round and give additional support for South-South trade and regional integration. Fourthly, MEP Schnieber-Jastram stresses the need to foster sustainable development by negotiating trade agreements and investment treaties that take into account the economic, environmental and social factors needed for effective development. In the same way this should lead to increased policy space for partner countries to ensure food security, to build local and regional markets and to formulate a coherent strategy on the extraction of raw materials.

On this opinion 32 amendments were written of which the following were selected for their contributing towards more fair politics. In amendment 3, Ricardo Cortés Lastra (S&D) underlines that EPAs should be designed as pro-development tools and should not be regarded as international trade instruments. Next to this, is amendment 30, MEP Cortés Lastra calls on the Commission to strengthen PCD when negotiating and implementing trade agreements like EPAs. This to promote decent work, wealth, job creation and to ensure adequate asymmetry and transitional periods in trade commitments. Also to make international trade a tool for job creation, poverty eradication and sustainable development worldwide, Patrice Tirolien (S&D) and Corina Cretu (S&D) urge, in amendment 6, the Commission to review its communication Trade, growth and world affairs trade policy as a core component of the EUs 2020 strategy.
The last selected amendment (amendment 29) is by Franziska Keller and Catherine Grèze (Greens/EFA). They point out that the EUs attempts to ban or curb the use of export taxes on raw materials goes against the objective of enabling countries to generate sufficient public revenue to meet MDGs, thus to secure endogenous development. They urge the EU to acknowledge that export restrictions can be part of some countries development strategies or justified for environmental protection.

Fair Politics welcomes the opinion by MEP Birgit Schnieber-Jastram (EPP) as it strongly underlines the development objectives, and how these can be met in the EUs trade policy. Also the amendments written by Ricardo Cortés Lastra (S&D), Patrice Tirolien (S&D) and Corina Cretu (S&D), Franziska Keller (Greens/EFA) and Catherine Grèze (Greens/EFA) underline the development aspects and make the opinion stronger. For pointing out the necessity of fair trade agreements, like EPAs, and the need to commit to PCD Fair Politics awards MEP Schnieber-Jastram (EPP) with two points and MEPs who wrote an amendment each with one point. These MEPs are in the race to becoming the most fair politician of the year 2011, which will be awarded in June. For more information on our monitoring system, click here.

Monitor fair: S&D(5), EPP(4), Greens/EFA, GUE/NGL