SUNS4369 Monday 8 February 1999

Development: Progress needed on Lome 5, says German Minister

Bonn, Feb 4 (IPS/Ramesh Jaura) -- German Development Minister Heidemarie Wieczorek-Zeul expects "a decisive step forward" next week in negotiations on development between the European Union (EU) and the
African, Caribbean and Pacific (ACP) countries. Wieczorek-Zeul and Foreign Minister Joseph Fischer will co-chair the EU delegation at talks with 71 ACP countries in Dakar, senegal. She regards the last Lome agreements - named after the capital of Togo where the first treaty was signed in 1975 - as "the model of a
comprehensive partnership between European industrial nations and a large group of developing countries".

"In Dakar, we will discuss major issues of relations between the European Union and ACP states, so that we might take decisive steps forward, with a view to settling the Lome 5 treaty in the year 2000." Wieczorek-Zeul said in an interview with IPS.

Germany currently holds the EU presidency and Wieczorek-Zeul said the focus in Dakar would be on three important aspects of a new EU-ACP treaty which would replace the Lome 4, scheduled to expire on at
the end of February next year. These included the observance of human rights, democratic norms, the rule of law and good governance in the interest of sustainable development.

The importance of EU relations with the ACP countries was underlined by the fact that within the framework of Lome 4 alone (1995-2000), they had put some $16 billion at the disposal of the African, Caribbean and
Pacific states, noted Wieczorek-Zeul.

"We want the Dakar conference to lay the foundation stone for progress in negotiations," she added. "A positive and confidence-inspiring beginning of a negotiating process is often immensely important for
their success."

The 15-nation European Union is insisting on wide-ranging reforms, which it regards indispensable for continuing developmental cooperation with the countries of Africa, the Caribbean and the Pacific.

The Dakar meeting is expected to involve productive discussions on the essential elements of the Lome 5 convention - modalities for consultation, definition of a consistent framework for development strategies, trade, rationalisation of instruments, and reforming of the process of programming.

Negotiations on a successor to the current Lome agreement began in September 1998, with trade as a major bone of contention. For the ACP, the only certainty is that current preferential market access provisions will technically end in 2000, at least for non-LDCs, countries that do not qualify for being regarded as the poorest.

Instead, Europe wants to establish free-trade agreements with ACP regions, as the basis for a set of regional economic partnership agreements (REPAs) while the ACP negotiating mandate calls for improved non-reciprocal trade preferences from the EU. It also takes account of European wishes, accepting REPAs as an option, but with strong qualifications.

ACP States must "consider carefully the implications of such agreements which, in any case, should be voluntary," the mandate says.

The ACP mandate also leaves the door open to "alternative trade arrangements," suggesting that the ACP position on trade could still evolve as the negotiation process moves on.

The ACP position reflects internal compromises between ACP member states and regions. It is easier for 71 different states to agree on the proposal for an improved status quo, than on any alternatives involving major changes, says the Lome Negotiating Brief.

Lome Negotiating Briefs are produced by the European Centre of Development Policy Management (ECDPM), an independent foundation in Maastricht, the Netherlands, with links to both the ACP and the EU.
They are designed to provide information on key issues relating to the upcoming EU-ACP negotiations

The Brief adds: Agreement within the EU on such alterations was, on the other hand, less problematic because, unlike the ACP, Europe represents a single commercial entity, with a single negotiating body, the
European Commission.

Also, given the uncertain outcome of the negotiations, the stakes are much higher for the ACP as they have much more to lose than Europe. Finally, as in previous negotiations, the balance of power between the
two parties favours the European Union.

Several ACP countries' oppose REPAs on the grounds they are neither desirable, nor feasible. While trade liberalisation can carry economic benefits, bilateral free-trade agreements between regions are a third-best solution, compared to unilateral or multilateral opening.

ACP regions are not yet ready, and probably will not be for a long time thus the great diversity of situations, levels of development and interests within regions make agreement on a common move towards REPAs
very difficult.

The capacity of both sides to negotiate and implement such agreements, may be inadequate because the constitution of ACP regions cannot be driven from the outside and the Lome Negotiating Brief warns that, by
wanting to rush things, the EU might do more harm than good. Local ownership of the development agenda, including regional co-operation and trade policy, remains critical.

Against this backdrop, in a background paper made available to IPS, the German Federal Ministry of Economic Cooperation and Development, headed by Wieczorek-Zeul, predicts: "It will not be easy to reach compromises which are acceptable to all. But we must find a solution which on the one hand takes into account the changed world economic environment and on the other does justice to the diversity of economic conditions prevalent in the developing countries."

The paper adds: "In terms of development policy perspectives, rules and regulations should be agreed upon which pay grater heed to the capacity of ACP countries to sell (on European markets) rather than responding
to the protective requirements of the European products."

This view is welcomed by NGOs in Germany. The Association of German Development NGOs (VENRO) however stresses that very much at the heart of the negotiations for a new Lome convention is the fate of the Africa policy of the European Union.

The 48 African states in the ACP group comprise 95% of the population of the entire group and contribute to 80% percent of its economic performance, says VENRO chairman Peter Molt.

More than 40% of EU development aid goes to Africa south of the Sahara. "On the other hand, Africa is a crisis continent of today's world," argues Molt. While comprising 11% of the world population it shares
only one percent of the global domestic product and 1.5% of the world wide trade.

At the same time, adds Molt, 22 of the 48 African states are now caught in civil wars or armed conflicts. Out of the 70 armed conflicts between 1994 and 1998, 30 have taken place in Africa, with a death toll of about 2 million people.

All this, says Molt, is proof that "the development and general policy has on the whole failed in Africa south of the Sahara". That is why the ways to remedy this situation should be regarded as an integral part of a new Lome convention, he adds.