| This is the first in a series of 3 somewhat technical abc Burkina bulletins on the preparatory negotiations for the Economic Partnership Agreements that the EU wishes to sign with the ACP countries (Africa, Caribbean and the Pacific).
First of all readers should know that the last paragraph will give the reason for which a postponement may be upheld at the WTO and thus accepted by the international community!
1) The Doha Round is not yet finished
The European Commission is exerting strong pressure for the acceptance of an extremely tight deadline for these negotiations, which normally would be allowed to go on until the end of 2007, as the derogation on unilateral tariff preferences granted by the WTO will expire on January 1st 2008.
In 2002 the European Commission declared its intention of linking the EPA timetable with that of the WTO Doha Round scheduled to close by the 1st of January 2005. Pascal Lamy stated before the European Parliament on May 14th 2002: "Negotiations with the ACP countries should take account of the multilateral negotiations within the Doha Round." However, at the WTO, the Doha Round is far from being concluded.
Moreover the ACP countries have repeatedly informed the European Commission of the fact that they do not have sufficient negotiating capacity for participating at the WTO and discussing an EPA with the European Union at the same time.
Indeed, the ACP countries need a break before taking up talks with the EU for the preparation of the EPA.
2) The regional integration within ECOWAS is still too frail
The European Union decided on its own not to negotiate with all ACP countries jointly, but to proceed by geographical areas. In the case of West Africa it opted for discussions with the ECOWAS with the addition of Mauritania.
The ECOWAS (Economic Community of West African States) was set up in Lagos, Nigeria on May 28th, 1975 by a treaty signed by 15 states plus the island of Cape Verde in 1977. Bringing together the states of West Africa (the 8 West African countries of the common CFA currency zone as well as Cape Verde, Ghana, Guinea, Liberia, Nigeria, Sierra Leone), the ECOWAS is to promote co-operation and development in all economic areas. It should therefore endeavour to remove all obstacles to the free circulation of people, goods and services and to harmonise regional sector policies.
Its chief objective remains the achievement of a vast West African common market and the creation of a monetary union.
The ECOWAS can only adopt a common currency when Guinea, Gambia, Ghana, Nigeria and Sierra Leone have introduced their joint currency, the Eco in their monetary zone. The Eco is then to be merged with the CFA.
It must be recognised, however, that the outcome does not match the ambitions so far, for various and complex reasons.
(Source: http://www.izf.net/IZF/FicheIdentite/CDEAO.htm )
It is true that in January 2006 the ECOWAS appeared to have taken a decisive step towards regional integration. It adopted a common external tariff (CET), which is a joint protective customs duty. But the CET does not have unanimous endorsement by all concerned. Farmers' organisations and many Nigerians have strong reservations. It would be wise to wait and see how the debate will end.
As for the monetary integration, it has not yet started. The countries outside the African franc area do not yet have a common currency. Its introduction was initially planned for 2003, then for 2004, but it has not yet materialised. Nobody dares propose a new date for its occurrence.
3) The Ivory Coast is in turmoil!
By a unanimous opinion recognised as one of the driving forces of the ECOWAS economy, the Ivory Coast is at present a house on fire. Since September 2002 it has more urgent things on its doorstep than considering the signing of an EPA with the European Union. As the country is now split in two, the entire regional integration process has broken down. There is already a delay of four years. This would bring us to substitute a January 1st 2012 deadline for the present January 1st 2008 (assuming that the elections will take place as planned on October 30th this year). Part II Part III
Maurice Oudet
15 June 2006 |
View from the South