Lomé Convention: Future (Hansard, 20 May 1997)

§ Lord Whitty
My Lords, alongside my noble friend Lady Symons I shall be replying on European Union issues in this House. The new Government regard the Lomé Convention as a major part of the EU's policy towards development. Over half of the Lomé countries are Commonwealth countries. The ACP includes some of the poorest countries in the world. We have a responsibility in both regards. The current (fourth) Lomé Convention expires in March 2000. The EU is committed to opening negotiations on a successor by September next year. This means that the bulk of the work on the draft must be done under the UK presidency. The Government therefore have a special responsibility in this regard. Last November the European Commission issued a substantial Green Paper on the whole future and shape of the Lomé Convention. The new Government will wish to consider all elements of the future relationship. Trade preferences are one very important aspect of the EU's existing relationship with its Lomé partners. There are a number of other aspects. Our approach to the negotiations for a successor convention will be guided both by our existing commitments under Lomé and the generalised system of preferences, which extends to other developing countries, and our strong desire to improve market access for all least developed countries as well as our commitment to multilateral trade.

§ Viscount Waverley
My Lords, the noble Lord's response does not contain the positive message for which I hoped, but I certainly understand the Government's position. Nevertheless, will the noble Lord undertake to campaign for the undoubted benefits of transferability of quotas and be sensitive to the question of substitute crops in one-crop economies?

§ Lord Whitty
My Lords, the transferability of quotas is not currently part of the Lomé regime. It may well be a means of helping the producers of bananas and other crops. There is already a Commission proposal, supported by the previous Government and the present Government, to introduce an element of transferability but that has not been agreed by the Council of Ministers. It is not yet clear whether it will be so agreed. There is in any case the added complication that such arrangements must be compatible with WTO requirements. To respond to the general point raised by the noble Viscount, I hope that my earlier reply indicates that the Government regard this subject as of very great importance in relation both to our priorities in Europe and our relationships with developing countries.

§ Lord Redesdale
My Lords, the noble Lord's reply was very positive. Can he say whether the Government view the renegotiation of Lomé as a form of agreement with trade as a specific aim or whether they will widen the context to ensure that it is an agreement that targets the poorest nations?

§ Lord Whitty
My Lords, I believe I have already said that although Lomé deals essentially with preferences in trade it is also concerned with developmental and political relationships with the least developed countries in the world. We shall be looking at the whole context of our relationships in Europe and our own development policy.

§ The Earl of Lauderdale
My Lords, when the noble Lord is talking about the whole context, does he have also in mind the possibility of a common line within the Commonwealth of nations?

§ Lord Whitty
My Lords, the Commonwealth nations' involvement in Lomé is substantial. It is an area that we shall discuss with our Commonwealth partners.

Viscount Cranborne
My Lords, perhaps I may welcome the noble Lord to his new responsibilities. We much look forward to hearing what he has to say on the subject as we have enjoyed what he has had to say during his previous sallies in the House. Does he believe that when it comes to a competition between trade and aid the Lomé arrangements could be used to ensure that, as far as possible, self-reliance will be used as a more effective way of encouraging prosperity in the Lomé countries than purely the transfer of charitable aid?

§ Lord Whitty
My Lords, the Government do not regard it as an either/or situation. It is true that under Lomé development in some countries has not been sufficient to ensure self-reliance. In some countries there is too great a dependence upon particular crops. Nevertheless, aid and trade have a major role to play, and we shall continue to regard our relationships in the round both at European level and in bilateral terms.