The European Parliament,

–   having regard to the Cape Town Declaration on the forthcoming ACP-EU negotiations with a view to new trading arrangements which was adopted by the ACP-EU Joint Parliamentary Assembly on 21 March 2002,

–   having regard to the 2002 report on trade and development by the UN Conference on Trade and Development,

–   having regard to the proposal submitted by the Commission for the purpose of negotiating Economic Partnership Agreements (EPAs) with the ACP countries and regions (SEC(2002) 351) and the recommendation adopted by the Council on 17 June 2002 authorising the Commission to negotiate EPAs with the ACP countries and regions,

–   having regard to the ACP guidelines for negotiations on Economic Partnership Agreements which were adopted by the ACP Council of Ministers on 27 June 2002 in Punta Cana and to the decision relating to negotiations on Economic Partnership Agreements and to participation in the international trade system which was adopted at the Third Summit of ACP Heads of State and Government, held on 19 July 2002 in Nadi,

–   having regard to Rule 97(5) of its Rules of Procedure,

–   having regard to the report of the Committee on Development and Cooperation and the opinion of the Committee on Industry, External Trade, Research and Energy (A5&nbhy;0278/2002),

A.   whereas the costs and the benefits of the multilateral trade liberalisation decided upon during the Uruguay Round have been unequally distributed between advanced countries and developing countries, and whereas this worldwide inequality must be remedied in favour of the developing countries by means of a thorough reform of the international trading system,

B.   whereas the Member States and the ACP countries make up a significant proportion of the World Trade Organisation's (WTO) members and whereas they can and must influence the course of the negotiating round which will continue until 2005 by securing recognition of developing countries" rights,

C.   whereas, at the Fourth WTO Ministerial Conference in Doha, the EU obtained a waiver for the trade preferences it grants to the ACP countries under the Cotonou Agreement,

D.   whereas the ACP countries have watched their share of the EU market shrink from 7% in 1976 to 4% in 2000, and whereas a range of only 10 products accounts for approximately 70% of their exports to the EU,

E.   welcoming the steps recently taken by the ACP countries towards integration on a regional basis; having regard in particular to the importance of the process of African integration which has been launched within the African Union, and whereas in negotiations on EPAs, priority must be given to supporting this type of integration effort,

F.   whereas, whilst noting the need to ensure product safety for European consumers, the difficulties experienced by the ACP countries in exporting to the EU are many and whereas they are due in particular:

G.   whereas the forthcoming ACP-EU trade negotiations should consider issues such as the effects of non-tariff barriers and the reform of the common agricultural policy which have an impact on the ability of the ACP to benefit from increased access to EU markets,

H.   concerned at the fact that many other sets of negotiations are due to take place at the same time and will influence the Economic Partnership Agreement (EPA) negotiations, in particular: the WTO Round negotiations (to be concluded in January 2005), the negotiations on the General Agreement on Trade in Services (GATS) in Geneva, EU enlargement (2004), African integration (NEPAD, AU, etc.), the Free-Trade Area of the Americas (FTAA) in the case of certain ACP countries and other regional integration initiatives, the reform of the common agricultural policy (CAP), the revision of the Generalised System of Preferences (GSP) in 2004, and the review of the Cotonou Agreement, which will start in 2004 as provided for under Article 95 of that agreement,

I.   whereas taking part simultaneously in various sets of negotiations causes the ACP countries major problems and whereas the inequality of the parties involved in terms of financial, human and institutional resources is blatant,

J.   whereas the EPAs will significantly change the existing trade regime between the EU and ACP countries,

K.   whereas the negotiations on new trading arrangements ought to be an opportunity to establish a comprehensive framework for the structural transformation of ACP economies so that they can benefit from globalisation, and whereas the impact of the new trading arrangements on the development of the ACP countries must be a central issue in the negotiations,

L.   having regard to the potentially high adjustment costs and the loss of government revenue and employment in ACP countries arising from trade liberalisation in general and from any reciprocal trade arrangement with the EU in particular,

M.   having regard to the narrow tax base of many ACP countries and the potential problems they could face in terms of mobilising alternative sources of revenue, including the introduction of VAT or an increase in the level of VAT where it already exists,

N.   whereas the existence of public services and infrastructure and the encouragement of inward private investment are essential to development and trade and whereas the ACP countries are lagging a considerable way behind in these areas, mainly on account of external debt and the often unsuitable structural adjustment plans imposed by the international financial institutions, and whereas such issues should be addressed as a priority,

O.   whereas the Doha Declaration on the trade-related aspects of intellectual property rights (TRIPS) and public health confirmed that priority should be given to public health over commercial interests and also, 'the right for countries to protect public health and, in particular, promote access to medicines for all',

P.   whereas agriculture plays an important multi-functional role in many ACP states, including rural development, environmental protection and food security,

Q.   whereas the EPA negotiations and common agricultural policy reform will have a major impact on food supply security and on the agricultural sector in the ACP countries, which, until these economies have diversified, will be a significant sector for most of these countries and which is essential during this economic transition, since poverty is mainly a feature of rural areas and food security for urban areas is also of growing concern,

R.   whereas many ACP states are small, vulnerable, landlocked and/or island developing countries which are dependent on one or a limited number of commodities for their export earnings, and whereas many face inherent constraints on their development as a result of their small size, remoteness, ecology, climate and vulnerability to natural disaster and external shock,

S.   whereas any ACP-EU trade agreement must be structured so as to reduce inequalities between men and women as regards access to productive resources, funding and training,

T.  Pointing out that upholding human rights, maintaining law and order and ensuring good governance are essential to the promotion of development;

1.  Points out that the purpose of the EU-ACP partnership is to promote and accelerate the economic, cultural and social development of the ACP countries, that economic and trade cooperation must be regarded as one of the means of achieving that purpose, and that EPAs must not represent the sum total of EU-ACP relations;

2.  Considers, therefore, that, during the EPA negotiations, the EU should put forward as priorities the sustainable development of the ACP countries, the eradication of poverty, the protection of those countries" economies against the effects of globalisation in cases where identical rules are applied to unequal situations, and the adoption of measures which will enable the ACP countries as well to enjoy the benefits of economic globalisation; this will make it possible to foster their proper participation in the world economy by satisfying the basic needs of the peoples concerned;

3.  Calls on the Commission and the Member States to make a formal commitment at the start of the negotiations on 27 September 2002 that no ACP state will be worse off, for the purpose of access to EU markets, under any EPA or alternative arrangement;

4.  Stresses that the principle of genuine partnership requires that account should be taken, in the negotiations, of levels of development and of the huge socio-economic impact which introducing a form of reciprocity in trade relations with the EU will have on the ACP countries" embryonic industries, employment and government revenue in particular;

5.  Asks the Commission to conduct an impact analysis reviewing the current benefits provided to signatory countries by the Cotonou Agreement, and assessing in particular the benefits provided by the Sugar Protocol to ACP sugar producers; the impact study should also provide various scenarios describing the likely impact of the anticipated changes to the current agreements and of the "Everything but arms" initiative on ACP sugar producers;

6.  Deplores the fact that, two years after the Cotonou Agreement was signed, the Commission has still not submitted an initial assessment of the likely impact of free-trade areas on the social, economic and environmental situation of the ACP countries;

7.  Considers that publication of such an assessment right at the start of the negotiations is essential if all the parties involved are to have access to the basic information which is a prerequisite for transparency, and that the ACP countries must be involved at the earliest possible stage in devising and carrying out such impact assessments;

8.  Asks the Commission to present as soon as possible the results of its sustainability impact assessment studies (SIAs) of the EPAs so that they can be taken into account during the negotiations; expresses its wish to be closely associated with the process of the evolution of the SIA from its earliest conception;

9.  Calls on the Commission to ensure that the necessary financial resources are available in order that each ACP state during the first phase of negotiations can undertake an EPA impact assessment study - in addition to the regional impact assessment studies - so that it is able to make informed decisions about the potential impact of an EPA on the various sectors of its economy, and further calls for these national impact assessments to be based on a set of common terms of reference in order to ensure coherence, consistency and unity within the ACP Group before the second phase of negotiations begins;

10.  Points to the huge differences which exist between the EU and the ACP countries and therefore considers that, before liberalisation and a system of trade reciprocity are introduced, trade (non-tariff barriers, subsidies for EU products, etc.) and structural (product processing deficit, technological backwardness, weakness of local and regional markets, etc.) obstacles should be gradually lifted, since they have been major factors preventing the ACP countries from taking full advantage of the non-reciprocal facilities which currently exist;

11.  Reiterates the need for special and differential treatment for small, vulnerable, landlocked and/or island ACP states;

12.  Considers that, in order to reach a level of development which will enable them to manufacture and export a range of finished products to the EU, the ACP countries initially need to be able to increase levels of national and regional integration and develop South-South trade, and further believes specific, temporary selective protection measures to be essential if these efforts are to succeed;

13.  Stresses that overcoming constraints on the supply of finished products and making the necessary adjustments to enable the ACP countries to open up their economies to the EU will require specific aid programmes and a significant amount of funding, and urges the ACP countries and the EU to consider establishing coordinated and integrated country-specific programmes of assistance to address supply-side constraints in the ACP countries, in order to enable those countries to improve their production and trade infrastructure, diversify and increase the technological content of their exports, and develop the promotion of human resources and the creation of stable jobs, education and research;

14.  Calls on the Commission to produce, at the start of the negotiations, an analysis of the likely costs of liberalisation and of the way in which those costs are to be funded;

15.  Considers that the financial burden cannot be borne by the ACP countries themselves or by the European Development Fund (EDF) and that funds specially allocated by the EU are needed in order to finance the required adjustments; calls on the Commission to submit to Parliament - right at the start of the negotiations - an estimate of the adjustment costs and of the financial shortfalls attributable to the ACP countries' loss of fiscal revenues;

16.  Welcomes the publication of the Commission's Mid-Term Review of the Common Agricultural Policy and urges the Commission and the Member States to strengthen the efforts which are being made to ensure that the reforms reflect the particular needs and priorities of developing countries;

17.  Calls on the Commission to provide - right at the start of the negotiations - an analysis of the impact which the reform of the common agricultural policy is likely to have on the ACP countries' economies and on the EPA negotiations;

18.  Points out that, pursuant to the Cotonou Agreement, negotiations will be opened only with those countries which consider themselves to be ready; calls, therefore, on the Commission and the Council to announce - right at the start of the negotiations - what trade arrangements will be proposed by the EU to those ACP countries which may decide not to engage in the EPA liberalisation process;

19.  Considers that external debt constitutes an insurmountable obstacle for many ACP countries and makes it impossible for them to develop, even though development is essential to proper integration within the world economy; considers that, right at the start of the negotiations, the EU should make a specific commitment to reducing (and, if possible, to cancelling) the ACP countries' bilateral and multilateral debts;

20.  Calls for a broad public debate on the EPA negotiations and for regular parliamentary monitoring thereof, so as to ensure full democratic scrutiny of those negotiations, in particular by the ACP-EU Joint Parliamentary Assembly; considers that the negotiations must be conducted in an open and transparent fashion, that the various basic documents must always be available at least in English and in French, and that there must be proper, systematic consultation of civil society, of social movements and of the appropriate UN bodies; considers that, for this purpose, non-State bodies must be given access to financial resources, as provided for under the Cotonou Agreement;

21.  Asks the Commission to keep it fully informed about the negotiation process so that it can address recommendations to the Commission, which will be important criteria for its assent on the final outcome of the negotiations;

22.  Considers it essential for the negotiations between the EU and the ACP countries to result in practical proposals which will give genuine meaning to the developing countries' entitlement (which the WTO recognises in form though not in substance) to special and differential treatment and to levels of protection which will enable them to achieve sustainable socio-economic development;

23.  Considers that there needs to be greater and closer cooperation between the EU and the ACP countries within the WTO for the purpose of achieving the following objectives in particular:

24.  Calls on the EU and ACP countries to use the Doha Declaration on Public Health as a ceiling in their negotiations on TRIPS, and urges the EU to encourage and support the use of TRIPS safeguards by ACP countries in order to meet public health needs, and further urges the EU to support efforts to develop a regional capacity for the production of generic medicines in the ACP Group in order to meet public health needs;

25.  Stresses also the importance of carefully structuring the process of negotiations in ways which take account of the capacity constraints facing ACP countries;

26.  Stresses the importance of technical assistance for the ACP countries during the whole process of negotiations in order to guarantee balanced results between economic policy and development policy requirements;

27.  Calls on the Member States and the EU to make more funding available for trade-related technical assistance in order to improve the ACP countries' negotiating abilities by making it possible for them to organise themselves quite independently;

28.  Calls for the timetable for the EPA negotiations to be sufficiently flexible in order to allow time to address at an all-ACP level the concerns which have been expressed by the ACP Group;

29.  Considers that the structure and the organisation of the negotiations and, in particular, the opening thereof at regional level should be decided upon by both parties free from any pressure; takes the view, therefore, that the initial stage of the negotiations with all the ACP countries should extend over a sufficiently long period to enable a clear definition of the future EPAs' objectives to emerge;

30.  Asks the Commission to take fully into account the development needs of the ACP countries and not to exert undue pressure on the ACP countries to enter into EPA negotiations individually, in regional groupings or at all, and to safeguard and respect the stated right of the least-developed countries to non-reciprocal trade preferences;

31.  Emphasises that the political cohesion of the ACP Group needs to be preserved and that no obstacles should be placed in the way of the unity and integration processes currently under way in Africa and in other ACP regions; considers, therefore, that the geographical configuration and the pace of regionalisation are matters for the ACP countries and the EU to reach agreement on, and calls on the Commission and the Member States to ensure that EPAs support regional integration efforts in the ACP and do not compete with or undermine them;

32.  Highlights the need for flexibility in the Commission's approach to the negotiations in order to accommodate the different levels of development of ACP countries, and recognises that a uniform approach would be counterproductive;

33.  Is concerned at the effects which the proliferation of different trade schemes with the EU will have on the smooth regional integration of the ACP countries;

34.  Considers that steps should be taken in order to encourage technology transfer, for example by offering facilities for access to export credits for companies which develop programmes for the transfer of technologies to the ACP countries;

35.  Notes that there is a huge inequality between the EU and the ACP countries in terms of their ability to provide services; calls, therefore, for the issue to be tackled with the utmost caution, taking into consideration the ACP countries' need to establish and maintain public services;

36.  Notes that negotiations on the liberalisation of public procurement are not included in the Cotonou Agreement; considers that liberalisation in that sector could make it difficult for the ACP countries to develop their own companies in order to be able to bid for such contracts; calls, therefore, for the subject not to be an item for negotiation under the EPAs;

37.  Considers that a balanced and reliable legal framework is a precondition for the private investment which is necessary to contribute to the development of the ACP countries;

38.  Considers that one of the issues to be tackled during the negotiations should be the monitoring of the degree to which transnational companies (in particular European ones) operating in the ACP countries uphold human rights and the rights of minorities;

39.  Calls upon the remaining Member States which have not yet done so to ratify the Cotonou Agreement as soon as possible in order to highlight their commitment to assisting the world's poorest developing nations;

40.  Instructs its President to forward this resolution to the Council, the Commission, the governments and parliaments of the Member States, the governments and parliaments of the ACP States, the ACP-EU Joint Parliamentary Assembly, the ACP Council of Ministers, the United Nations Conference on Trade and Development, the World Trade Organisation, the World Bank and the IMF.