DEVELOPMENT-TRADE: Lome Review Closer To Settlement
BRUSSELS, Dic 01 (IPS) - Delegates moved closer to closing a crucial mid-term review of the EU's Lome IV aid and trade pact for 70 African, Caribbean and Pacific (ACP) states, in time for a February 1995 deadline.
Progress was recorded on improved access to the EU market, but ACP states are still at odds over how aid will be managed under Lome's second five-year financial protocol (1995-2000).
"From our point of view, trade is as important as development aid," Cameroon finance minister, Justin Ndioro, told journalists after a two-day ACP/EU ministerial meeting on the revision here.
EU officials say over 90 percent of ACP goods and produce enter the EU duty free and without quantatitive restrictions. But ACP states want the EU to be more "flexible" on access for some farm products like grapes and vegetables which compete with EU produce.
They claim this as compensation for the erosion of Lome's trade preferences that will follow the agreement on the Uruguay Round of world trade liberalisation talks under of the General Agreement on Tariffs and Trade (GATT).
But one EU official challenged the value of opening the EU market. Over ninety percent of goods and produce from ACP states already enter the EU duty free and without quotas, he said.
"The lowering of the ACP's market share is not due to tariffs, but emerging substitutes, for example commodities and beacuse of the lack of competitivity of ACP goods," said an aide to EU development commissioner Manuel Marin. "Who will buy textiles from Ethiopia?" asked one EU official.
The EU places no restrictions on imports on textiles from ACP states, yet despite tariffs and quantative restrictions, textiles from Asia and other emerging markets win on competitiveness.
The Commission agreed Thursday to put together an offer for some ACP farm produce currently hit by restrictions over the next few weeks. But there will be resistance from Italy, Spain and Greece.
But the EU will not unveil its pledge until the ACP-EU meeting next February. Marin said the meeting would see "a classic scenario between those wanting more trade concessions, (Britain) ranged against those wanting more aid (Spain and Greece)."
ACP states have put in for about 23 billion dollars over the next five years, including contributions from the EU's three new members, Austria, Finland and Sweden. But an aide said Marin expected a mere five percent increase in real terms on the current 14.5 billion dollars.
© Inter Press Service (2014) — All Rights Reserved. Original source: Inter Press Service