§ Dr. TongeTo ask the Secretary of State for Foreign and Commonwealth Affairs what assessment he has made of the effect of the EU's "Everything but Arms" policy on those countries not classified as least developed. [10533]
§ Peter Hain[holding answer 26 October 2001]: The EC regulation which extends duty free access to products originating in the Least Developed Countries (the so-called "Everything but Arms" proposal) was adopted at the General Affairs Council in February 2001. The regulation came into force on 5 March 2001, and provides duty free access to EU markets for the world's 48 poorest countries for all goods except arms. Access for bananas, sugar and rice will be phased in, with full liberalisation for bananas from 2006, sugar from 1 July 2009 and rice from 1 September 2009.
The Government believe the regulation represents the best available deal for Least Developed Countries (LDCs) and non-LDCs, given the complex balance of interests involved. The impact of the measure is difficult to assess, particularly at this early stage. Much will depend on the response of producers, both in LDC and non-LDC countries, and on wider developments in trade and agriculture policy. The Government are committed to working with multilateral and other bilateral donors to ensure that non-LDCs receive help and advice during the necessary process of adjustment. We will monitor clearly the impact of the changes, on LDC and non-LDC countries' economies.