§ The Earl of Sandwichasked Her Majesty's Government:
Whether they will make representations to the European Union on its demand for reciprocal trade arrangements under the new economic partnership agreements with the poorest developing countries. [HL370]
139WA
§ Baroness AmosBoth the Africa, Caribbean and Pacific (ACP) countries and the EU signed the Cotonou agreement, which lays the foundations for the negotiation of economic partnership agreements (EPAs). These foundations include the progressive removal of barriers to trade between the parties; making EPAs reciprocal trade agreements. Reciprocity is also required under the World Trade Organisation (WTO) rules for regional trading agreements.
However, EPAs will not be traditional regional trade agreements. Although they are reciprocal, the WTO rules governing regional trading agreements allow flexibility for developing countries. Compared to the EU, the ACP countries will have less stringent market opening commitments, and a longer period of time in which to implement them. This will allow the ACP economies time fully to prepare for the impact of trade liberalisation on their economies. Additional instruments in EPAs, such as safeguard mechanisms, will help protect ACP countries from any potential adverse effects of trade liberalisation.
The European Commission has also stated that it has no offensive interests in the EPA negotiations. The 2004 government White Paper on trade and investment makes a commitment to hold our EU partners to this: to ensure that the developmental needs of the ACP are at the forefront of the EPA negotiations.