Response to Traidcraft’s ‘EPAs – Sieze the Opportunity’ Campaign

April 2008

Thank you for your letter to Douglas Alexander about Economic Partnership Agreements. I am replying as the Minister responsible for the issues raised.

Better trade rules have the potential to help developing countries trade their way out of poverty. It is because of this that the UK believes that Economic Partnership Agreements (EPAs) can be good for development. Throughout these negotiations we have been pressing for EPAs which will make it easier to export goods, increase trading opportunities for African, Caribbean and Pacific (ACP) businesses, and promote their integration into the global economy.

The 35 ACP countries that have so far chosen to sign EPAs with the EU now have 100% duty and quota free access to EU markets. Improved access to EU markets will help countries to trade more, grow faster and accelerate poverty reduction through their own initiative. In return, the ACP countries do need to open up their markets but this is planned over a long period of time and a certain number of sensitive products remain fully protected. There are also clauses in the agreements that mean developing countries can challenge market opening if they feel that EU products are being dumped on their fragile economies.

I have already heard from a number of ACP governments about the benefits they believe these agreements will bring to their economies and prospects for further growth.

In addition, we continue to support countries which have chosen not to agree to an EPA at this stage and we are encouraging the European Commission to not restrict their access to EU markets.

You ask the Government to push for renegotiation of the agreements. We are currently assessing the texts of the agreements thoroughly and will discuss any concerns raised with the European Commission and ACP Governments. We will continue to follow this process closely and provide assistance to support ACP partners in their analysis. We will continue to work with the Commission and ACP countries to ensure that EPAs deliver real development benefits for poor countries.

You also ask us to call on the Commission to drop further negotiations on issues such as services, investment and competition. We have pushed strongly throughout the EPA negotiations for these issues to be included in the EPAs only if requested by the ACP countries concerned. A number of ACP countries have indeed been clear about their intentions to continue negotiations and/or reach agreement on a range of issues. The Caribbean region for example were keen to complete negotiations on these issues last year and some ACP countries in Southern and Eastern Africa have also indicated a interest in discussing a wider range of issues over the next year.

If reforms are planned carefully and supported by appropriate domestic policies, there is evidence that opening markets in areas such as services, investment, competition and transparency in public procurement can help to generate economic growth and employment. It is very important to adapt reforms to individual country needs and this is something we are encouraging the Commission to ensure during the negotiations. For these reasons, we will continue to seek the views and respond to the interests of ACP countries, and provide effective assistance to help them to further assess the potential benefits of reform in these areas.

Looking ahead we will continue to discuss how to improve the ACP’s trading relationships with the EU, whether they have signed an agreement or not. We continue to stand by the commitments we made in our position paper in 2005. These agreements will only work if they are development focused in the interests of the ACP countries negotiating them. We have always been clear that the ACP countries themselves need to decide upon the content, scope and timing of their EPA.

I hope this is helpful.

Gareth Thomas
Parliamentary Under Secretary of State for International Development

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