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EU cooperation with the ACP countries

EU cooperation with the ACP countries. Contents. Main Actors: EU and ACP countries History of EU-ACP Cooperation EU-ACP Joint Institutions Budget for Cooperation Benefits from Cooperation Obstacles in the Negotiations Specific Instruments The Courier: the latest information.

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EU cooperation with the ACP countries

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  1. EU cooperation with the ACP countries

  2. Contents • Main Actors: EU and ACP countries • History of EU-ACP Cooperation • EU-ACP Joint Institutions • Budget for Cooperation • Benefits from Cooperation • Obstacles in the Negotiations • Specific Instruments • The Courier: the latest information

  3. Ⅰ. Two Main Actors • European Union • ACP(African, Caribbean and Pacific Group of States) countries

  4. Ⅰ-1. European Union • France, Germany, Italy, The Netherlands, Belgium, and Luxembourg (6 nations) created the European Economic Community (EEC) in 1957 • Enlargement of the EEC→the European Union (1993)

  5. Ⅰ-2. ACP countries • ACP: African, Caribbean and Pacific Group of States • Created by the Georgetown Agreement in 1975 • Main objectives – sustainable development and poverty reduction, and greater integration into the world’s economy.

  6. Ⅰ-2. List of ACP countries

  7. Ⅱ. History of EU-ACP Cooperation • The Yaoundé Agreements(1963) • The Lomé Conventions(1975) • The Cotonou Agreement(2000)

  8. Ⅱ-1. The Yaoundé Agreements(1963) • The first agreements on EU-ACP cooperation • Preferential trade arrangements (duty-free access) • Support ACP countries via the European Development Fund(EDF) and the European Investment Bank(EIB) • The structure established in Yaoundé remains the framework of EU-ACP cooperation until today.

  9. Ⅱ-2. The Lomé Conventions(1975) • An attempt to rectify the inefficiencies of Yaoundé • It provided for most ACP agricultural and mineral exports to enter the EC free of duty. • Preferential access based on a quota system (for products) • The EC committed ECU 3 billion for aid and investment in the ACP countries.

  10. Ⅱ-3. The Cotonou Agreement(2000) (1) • The latest and the most important agreements on EU-ACP cooperation. • Aims -Eradication of poverty -Sustainable development of ACP countries -Gradual integration of ACP countries into the world economy

  11. Ⅱ-3. The CotonouAgreement(2000) (2) • Introduction of a political dimension→Political dialogue is one of the key aspects of the arrangements • Respect for human rights, democracy and governance→”Essential Elements” • The establishment of Economic Partnership Agreements (EPA's)

  12. Ⅱ-3. The Cotonou Agreement(2000) (3) • Main principles -Equality of partners and ownership of development strategies -Participation :Partnership among central government, civil society, the private sector, and local governments -Dialogue and mutual obligations -Differentiation and regionalisation :Special treatment will be given to countries that are considered least developed or vulnerable

  13. Ⅱ-3. The Cotonou Agreement(2000) (4) • Criticism on Cotonou Agreement: It has been argued that while the main pillar of the Cotonou Agreement is Poverty Reduction, aid allocated to Africa under the 9th European Development Fund has had limited impact on the majority of the poor.

  14. CF) EPA: Economic Partnership Agreements • A key element of the Cotonou Agreement • A scheme to create a free trade area (FTA) between the European Union and the African, Caribbean and Pacific Group of States (ACP) • Supposed to take effect of 2008, but negotiations are not yet completed as of March 2012

  15. Ⅲ. EU-ACP Joint Institutions • The Cotonou Agreement establishes three main EU-ACP Joint Institutions: •  ACP-EU Council of Ministers •  ACP-EU Committee of Ambassadors •  ACP-EU Joint Parliamentary Assembly

  16. Ⅲ-1. ACP-EU Council of Ministers • It meets annually at Ministerial level to discuss matters of common interest in EU-ACP relations. • It gathers representatives from all ACP and EU countries. • Effect of post-Lisbon: the co-chair on the EU side is High Representative of the Union for Foreign Affairs and Security Policy - Catherine Ashton, as she presides over the Foreign Affairs Council (Treaty of the European Union, article 18).

  17. Ⅲ-2. ACP-EU Committee of Ambassadors • It meets generally to prepare for the Joint Ministerial Council. • It is composed at ambassadorial level by representatives from all EU and ACP member states, in addition to the European Commission. The EEAS also attends.

  18. Ⅲ-3. ACP-EU Joint Parliamentary Assembly • Elected representatives of the EU and ACP countries gather to discuss and promote the interdependence of the north and south • 78 representatives respectively from the EU and the ACP member states • It promotes human rights and democracy and the common values of humanity • Co-presidents: Louis Michel, Fitz Jackson

  19. Ⅲ-3. Initiatives Taken by ACP-EU Joint Parliament Assembly (1) • The integration of environment policy in development projects • Promotion of Trade as a tool for development, particularly by way of the Economic Partnership Agreements foreseen in the Cotonou Agreement • The drawing-up of rural development programs and micro-projects tailored to the needs of specific communities

  20. Ⅲ-3. Initiatives Taken by ACP-EU Joint Parliament Assembly (2) • The improvement of measures aimed at combating epidemics and the reinforcement of health and hygiene services • The creation of decentralized development policies • The convening of annual meetings between economic and social partners • The upgrading of the role of women in the development process

  21. Ⅲ-3. Initiatives Taken by ACP-EU Joint Parliament Assembly (3) • The promotion of regional, political and commercial cooperation • Closer cooperation with non-governmental organizations engaged in development • Aid for indebted countries pursuing structural adjustment policies to allow them to maintain indispensable services • Measures to enhance the cultural dimension in North-South cooperation

  22. Ⅳ. Budget • European Development Fund(EDF) • EU budget • Controversy on EDF and EU budget

  23. Ⅳ-1. European Development Fund • The main instrument for providing community aid for development cooperation in the ACP states and OCTs • Created by the Treaty of Rome in 1957, first launched in 1959 • Supports actions in the ACP countries and OCTs in the following key areas for cooperation: economic development, social and human development, and regional cooperation and integration

  24. Ⅳ-1. European Development Fund • Implemented within the framework of an international agreement between the European Community and the partner countries • Concluded for every 5 or 6 years • Each EDF is directly financed by the EU countries, has its own financial regulation, and is managed outside the framework of the EU's general budget

  25. Ⅳ-1. European Development Fund • The amount for the ACP countries is divided as follows: - €17 766 million to the national and regional indicative programs (81% of the total), - €2 700 million to intra-ACP and intra-regional cooperation (12% of the total), - €1 500 million to Investment Facilities (7% of the total).

  26. Ⅳ-2. Controversy: EDF and the EU Budget • The European Commission recommends the incorporation of the EDF into the EU budget

  27. Ⅳ-3. Incorporating EDF into the EU Budget : Expected Advantages(1) • Greater independence – the EDF would gain independence from voluntary contributions from member states, and therefore have better prospects for continuity, as the financial cooperation with the ACP will be genuinely placed at the EU level. • Stronger legitimacy – the incorporation will strengthen the public legitimacy of the EU’s external assistance, and enable the European Union of more important political decision-making processes about the ACP countries

  28. Ⅳ-3. Incorporating EDF into the EU Budget : Expected Advantages(2) • Greater transparency – incorporating all the expenditures of the EC enables to provide a global picture of the EU’s external assistance and of EU development policies, in terms of both size and geographical distribution • Greater efficiency and effectiveness – the unification of administrative and legal rules, decision-making structures, and commitment and payment procedures will reduce costs and simplify duplicated procedures.

  29. Ⅳ-4. Incorporating EDF into the EU Budget : Concerns • The quality of the partnership with ACP countries be maintained? - budgetizationwould undermine the joint ownership and mutual accountability model that exists between the EU and ACP states • Incorporating the EDF within the budget at a time of fiscal austerity could potentially reduce the EU’s development finance by 30% as tradeoffs in the negotiations between the member states on funding priorities and the overall level of finances are determined

  30. Ⅴ. Benefits from EU-ACP cooperation • Properly managed trade can help development by: -creating employment -giving access to a wider range of good-quality products -reducing average prices -generating income

  31. Ⅴ-1. Benefits for ACP countries • EU-ACP cooperation helps create the right conditions for trade and investment. Together with development aid, that can deliver a number of benefits for ACP countries: -more markets, more sales: by opening the EU market fully to imports from ACP countries, strengthening and boosting trade between ACP countries themselves -better infrastructure, administration and public services: to increase and improve productive capacity, training opportunities and knowledge transfer. -more transparency / political and economic stability: political dialogue has become an integral part of the ACP-EU relationship, aiming to uphold democratic standards, good governance and human rights.

  32. Ⅴ-2. Benefits for farmers and manufacturers in ACP countries • No quotas, no duties on exports to the EU: free access to the EU market • No undue competition: the most sensitive 20% of goods will enjoy permanent protection from competition • Coverage of services and foreign investment: it deals with not only trade in goods but with issues relating to development

  33. Ⅴ-3. Benefits for European Consumers • Lower prices: removing trade barriers produces healthy competition on the EU market and lower prices for consumers • More choice: exotic new produce from ACP countries, and new varieties of familiar goods like coffee, cocoa, mangos, pineapple etc. • Jobs: in the long run, trade will help ACP countries become more prosperous. In turn, that will generate more demand for European products and expertise, which will be good for employment.

  34. Ⅵ. Obstacles in the Negotiations(1) • The EPA idea: mutual benefit for ACP countries and the EU • The Cotonou Agreement states that EPAs should: - assist ACP countries’ intra-regional trade - be WTO compatible - and shall not worsen any ACP country’s trade and economic situation.

  35. Ⅵ. Obstacles in the Negotiations(2) • In order to be WTO compatible, EPAs have to be reciprocal, which means that in return for maintaining their access to the EU market, ACP countries have to open their own markets to the EU. Here, although EPAs will less than full reciprocity on ACP countries’ part and, in some cases, will have up to 25 years’ transition periods, EPAs will be associated with a worsening of the trade and economic situations of some ACP countries. This implied conflict with the Cotonou agreement is hard to solve.

  36. Ⅵ. Obstacles in the Negotiations(3) • Many ACP countries argue that the promised Aid for Trade schemes are far from adequate, do not cover even short-term adjustment costs, and – in the manner they are formulated by the EU - are not binding. Moreover, having experienced EU’s slow administration of its existing aid schemes, many ACP countries argue that the planned Aid for Trade schemes are not sufficiently institutionalized.

  37. Ⅵ. Obstacles in the Negotiations(4) • Many ACP countries argue that the EU has tried to use its economic might and ACP countries’ dependence on the EU market to force ACP countries to agree to some other provisions that are not in their interests, and which the EU has been unable to gather support for in the WTO. These provisions include investment rules, competition rules, more stringent rules on intellectual property rights, and unbalanced trade defense provisions, such as Anti-Dumping rules.

  38. Ⅶ. Specific Instruments • European Water Facility for the ACP countries • ACP-EU Energy Facility • Peace Facility for Africa • Exceptional aid for highly-indebted ACP States

  39. Ⅶ-1. European Water Facility for the ACP countries(1) • Water Facility with a budget of EUR 500 million • Helps improve access to drinking water and sanitation for the disadvantaged population in those countries by actively addressing the issue of the financing gap.

  40. Ⅶ-1. European Water Facility for the ACP countries(2) • Improving water management and governance – institution building and support for reforming the sector, and integrated management of water resources at national level and at that of ACP river basins • Co-financing drinking water and sanitation infrastructure – uses flexible and innovative methods to finance water and sanitation projects and programs for low-income users and socially disadvantaged areas

  41. Ⅶ-1. European Water Facility for the ACP countries(3) • Basic principles -Governance: The Water Facility is to concentrate its activities on ACP countries which have a sound national water policy or which are strongly committed to developing one, and on countries that prioritize spending on social sectors -Ownership: The facility is entirely demand-driven. It will be an instrument for supporting and deepening the involvement of ACP actors in the design and implementation of water policies. -Innovation and flexibility: In order to achieve maximum impact a creative combination of grants and other sources are envisaged to fund basic infrastructure.

  42. Ⅶ-2. ACP-EU Energy Facility(1) • An Energy Facility worth EUR 220 million will increase access to modern energy services for people in ACP countries • Nearly two billion people in developing countries lack access to high quality, reliable and modern energy services. Recognizing the importance of improving this access for the poor, the Commission and Member States launched the EU Energy Initiative for poverty eradication and sustainable development (EUEI) at the World Summit on Sustainable Development (WSSD)

  43. Ⅶ-2. ACP-EU Energy Facility(2) • Key Principles(1) - Governance: The Energy Facility targets in particular ACP countries which pursue or are firmly resolved to create a sound national energy policy, based on good governance principles. The Facility helps countries to establish their institutional and regulatory framework and to attract additional financial resources for public-private partnerships. - Ownership: The Energy Facility is to be fully demand driven. It will be an instrument to support and deepen the involvement of actors in ACP countries in the design and implementation of energy policies.

  44. Ⅶ-2. ACP-EU Energy Facility(3) • Key Principles(2) - Flexibility: Maximum impact is sought by offering creative combinations of grants with other sources of financing. The Facility is open to joint financing with Member States, other international financing institutions such as the European Investment Bank and private sector investments via public-private partnerships. - Innovation: The Facility is intended to offer innovative responses to the challenge of providing sustainable energy services to the poorest areas. Projects can include electrifying rural areas, improving the efficiency of households' cooking and promoting sustainable energy generation through bio-mass, small hydro-electric plants and wind turbines.

  45. Ⅶ-3. Peace Facility for Africa • A financing scheme is set up by the European Union to strengthen the ability of the African Union to engage in peace support and peacekeeping operations in Africa • The Decision allocated an initial amount of EUR 250 million to the Peace Facility for Africa for a period of three years from its date of entry into force. • This amount can be used to finance costs incurred by African countries deploying their peace-keeping forces in one or more other African countries (cost of carrying troops, soldiers' living expenses, development of capabilities, etc.) but under no circumstances to cover military and arms expenditure.

  46. Ⅶ-4. Exceptional aid for highly-indebted ACP States • This Decision provides broader and faster debt relief for highly-indebted poor States from ACP countries • The aid is mobilized on the basis of arrangements laid down by the Commission in accordance with the provisions of the ACP Convention. There exist special arrangements within the framework of general coordination with other donors to use the new budgetary margin of maneuver for the development of social sectors and for poverty alleviation, in line with the new development strategy of the international community focusing on poverty alleviation.

  47. Ⅷ. The Courier(1) • Bi-monthly magazine • Published by the Development Directorate General of the European Commission • Financed by the European Development Fund • Explains, supports, and explains the objectives and principles of the Cotonou Agreement

  48. Ⅷ. The Courier(2) • Aims to raise awareness of ACP countries and stimulate exchange of good practices and innovative approaches among ACP and EU actors • Helps readers from ACP countries to learn about each other and provide information about the ACP-EU cooperation model

  49. Ⅷ. The Courier(3)

  50. Bibliography(1) • http://ec.europa.eu • http://eeas.europa.eu • http://homepages.uel.ac.uk • http://www.acp.int • http://www.acpeumicrofinance.org/ • http://en.wikipedia.org -ACP–EU development cooperation -Foreign relations of the European Union

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