§ The Earl of Sandwichasked Her Majesty's Government:
What forms of assistance they will recommend for the least developed countries during the transitional period between the generalised system of preferences and the new economic partnership agreements; and whether this assistance will come out of the European Union aid budget. [HL371]
§ Baroness AmosEconomic partnership agreements (EPAs) are intended to support African, Caribbean and Pacific (ACP) countries' integration into the global economy in a more sustainable way than by continuing dependence on eroding trade preferences. The need to change the existing EU-ACP trading relationship arose because the existing non-reciprocal Lomé preferences failed to boost standards of living in the ACP countries. These preferences also do not conform to global trading rules, as established by the World Trade Organisation (WTO), which threatened their future viability.
Under the the EU's generalised system of preferences (GSP), the least developed countries (LDC) in the ACP group have access to the Everything But Arms (EBA) initiative, which grants them duty-and quota-free access to the EU market. This option will remain open to LDCs. However, most ACP-LDCs continue to use Cotonou preferences rather than EBA.
140WAEPAs are intended to go beyond traditional regional trade agreements to be genuine tools for trade and development. This means that assistance in areas such as building supply-side capacity and facilitating trade will be a core element of EPAs, and vital to their success. During the transition period between Cotonou preferences and an EPA, all ACP countries will receive assistance to help their economies adjust to and take advantage of a more liberal trade agreement with the EU. This assistance will come in the form of development aid and technical assistance, from the EU budget and from individual member states. Efforts will be made to ensure this assistance is co-ordinated and consistent with the national development priorities of the recipient countries.