EU, developing states discuss removal of trade barriers

The EU opened talks with poor and developing nations yesterday aimed at giving them a bigger slice of world trade and tearing…

The EU opened talks with poor and developing nations yesterday aimed at giving them a bigger slice of world trade and tearing down barriers to Western markets.

The EU reassured the 76 African, Caribbean and Pacific (ACP) states that its goal was not just to push open markets.

The countries said they needed debt forgiveness, preferential trade terms and time to adjust to be able to compete properly.

"The welfare of present and future generations of African, Caribbean and Pacific citizens will be dependent on the outcome of the process that we are starting here today," the Mauritian Trade Minister, Mr Jayen Cuttaree, said.

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Talks are aimed at leading to new trade and development deals, called economic partnership agreements, by 2008.

ACP countries include some of the world's poorest, such as Ethiopia and Eritrea, but also the likes of the Federal States of Micronesia and commodity exporters such as Nigeria and Ivory Coast.

Poverty, lack of infrastructure and dependence on raw materials have meant their share of trade has been tiny.

In 2000, ACP states had just 1.9 per cent of global exports.

They export mainly raw materials such as oil, diamonds, cocoa, sugar and coffee.

The EU-ACP trade deals are aimed at negotiating more access for these states to European markets, but also to encourage them to have more trade with each other.

The European Commission says the ACP countries need to form regional blocs, possibly via customs unions, and to have uniform rules that will make it easier for investors to do business in their countries.

3Mr Cuttaree, president of the ACP council of ministers, said the countries also needed concrete steps on debt.

"Most ACP states already have a heavy debt burden, both external and domestic, the crippling effects of which are seriously hindering development effects.

"We expect the EU to announce on this occasion the outright cancellation of all ACP debts," he said at the start of the trade talks.

The European Development Commissioner, Mr Poul Nielson, said the new trade talks were not about debt, but that the question was being worked on in other discussions between the EU and ACP states.

The ACP states also want to delay opening themselves up totally to free trade.

In addition, they want more aid from the EU to help them deal with the cost of adjusting to new trade practices likely to lead to lower revenues from import duties as they drop trade barriers.

The European Trade Commissioner, Mr Pascal Lamy, rejected allegations from some lobby groups that the EU's sole goal was to help its own exporters rather than the ACP states.

"The goal is not to open markets but to construct markets," he said, meaning that the deals would promote regional integration and boost local producers.