Everything but arms (eba)
18. The European Commission's 'Everything But Arms'
(EBA) proposal is an example of just such a confidence-building
measure. Under the proposals, all exports (except for 25 tariff
lines associated with the arms trade) from least developed countries
would be allowed into the EU duty free. The Globalisation White
Paper states the EBA proposals are "an important initiative
and should help build confidence in a New Trade Round and also
to increase economic activities in LDCs".[40]
Oxfam, in its memorandum, raised concern that the proposals were
being watered down in response to "an extremely hostile reaction
from the international sugar lobby, from Caribbean producers and
particularly from sugar beet farmers in the EU".[41]
In oral evidence, Clare Short rebuffed claims that the proposal
had been watered down, "it is all to play for ... we are
still trying very hard to hold everyone together ... it is not
settled and there are pernicious forces out there who want to
scupper the proposal or weaken it or lengthen the phase-in periods
and make it less beneficial to developing countries. All of the
forces of decency need to combine and make sure that it is carried
through ... the least-developed countries are 0.4 per cent of
world trade. They are the poorest countries in the world where
some of the poorest people in the world live. If we can give them
a bit better trade access then they will be able to grow their
economies a bit more and improve the life of their people. Surely
the European Union can open its markets to these very frail economies".[42]
19. Apparently not. On 7 February, the European Commission
formally authorised the EU Trade Commissioner Pascal Lamy to propose
modifications to the EBA proposals to the Council of Ministers.[43]
The revised proposals were subsequently agreed at the General
Affairs Council on 26 February 2001. Under the revised proposals,
immediate duty and quota-free access to the EU is to be provided
for all products except arms. However, three sensitive products
have been exempted: sugar, rice and bananas. Market access for
these products will only be fully liberalised between 2002-2006
in the case of bananas, and between 2006-2009 in the case of sugar
and rice. To compensate for the longer delay on these products,
a duty-free quota will be created to ensure increased market access
for least developed countries into the EU until tariffs and duties
are removed. The Commission has also pledged that it will monitor
imports of rice, bananas and sugar carefully and apply safeguard
measures if necessary, to prevent damaging surges. The amended
proposals have disappointed those who have been pushing for greater
access for least developed countries to the EU's markets and have
led some to dub the proposals "Everything But Farms".
20. The Committee has previously supported the EBA
proposals, noting that "pro-poor trade liberalisation requires
rich trading blocs to liberalise first, to make sacrifices, to
demonstrate a desire to see the developing world enter the trading
system".[44]
We consider that the proposal to extend market free access
to least developed countries into the EU without equivocation
or dilution was a modest proposal that would have carried relatively
small costs to EU countries whilst having the potential to bring
significant benefits to some of the poorest countries in the world.
It was always possible to couple the proposal with assistance
to other low income countries affected by the proposals. Whilst
the final agreement is undoubtedly a step in the right direction,
delays in the elimination of duties and quotas for least developed
country imports of bananas, rice and sugar show that the EU still
has a long way to go to ensure that rhetoric matches reality in
making globalisation work for the poor.
The ethical trade initiative
21. The ICFTU welcomed the Government's continuing
support for the Ethical Trade Initiative[45]
noting that it had "become one of the most significant initiatives
of its type in the world". But they warned that "the
present and growing plethora of initiatives threatens to develop
into a competitive free-for-all in which private institutions
promote competing and conflicting 'standards' for monitoring supply
chains".[46]
It goes on to call for the development of authoritative and international
benchmarks, ideally within the ILO. Any dilution of standards
in the Ethical Trade Initiative would obviously damage its developmental
impact. We would welcome the Government's comments on how this
can be prevented, for example through the use of international
benchmarks for social auditing competence.
1 White Paper on International Development, "Eliminating
World Poverty: Making Globalisation Work for the Poor", Cm.
5006, p.6 [henceforth referred to as "the Globalisation White
Paper". Back
2
Cm 3789 Back
3
Second Report from the International Development Committee, Session
1997-98, The Development White Paper, HC 330, para. 56 Back
4
Ibid., para. 25 Back
5
Globalisation White Paper, p.13; Q.1 Back
6
Tenth Report from the International Development Committee, Session
1999-2000, After Seattle - The World Trade Organisation and Developing
Countries, HC 227 Back
7
Globalisation White Paper, p.6 Back
8
Ibid., p.7 Back
9
Evidence, p.44 Back
10
Evidence, p.108 Back
11
Evidence, p.51 Back
12
Evidence, p.37 Back
13
Q.1 Back
14
Http://www.dfid.gov.uk (since removed) Back
15
Evidence, p.73 Back
16
Evidence, p.73 Back
17
Evidence, p.51 Back
18
HC Deb., 11 December 2000, Col. 17W Back
19
Qq.38-39 Back
20
Eliminating World Poverty: A Challenge for the 21st Century, CM
3789 Back
21
Globalisation White Paper, para.364 Back
22
Ibid., p.6 Back
23
From the 1998-99 Session, the Government has replaced the three
separate debates on the Royal Navy, Army and Royal Air Force with
debates on defence equipment, armed forces personnel and 'defence
in the world' Back
24
Q.1 Back
25
Globalisation White Paper, para.16 Back
26
Ibid., para.17 Back
27
Ibid., para.19 Back
28
Evidence, p.68 Back
29
Q.1 Back
30
Evidence, p.53 Back
31
Evidence, p.68 Back
32
Evidence, p.29 Back
33
Evidence, p.63 Back
34
Evidence, p.88 Back
35
Tenth Report from the International Development Committee, Session
1999-2000, After Seattle - the World Trade Organisation and Developing
Countries, HC 227 Back
36
Ibid., para.116 Back
37
Globalisation White Paper, para.31 Back
38
Ibid., para.227 Back
39
Ibid., para.230 Back
40
WP, para.244 Back
41
Evidence, p.72 Back
42
Q.14 Back
43
Press release, Brussels, 7 February 2001 http://europa.eu.int/comm/trade/miti/devel/eba2.htm Back
44
Ibid., para.46 Back
45
The ETI is an alliance of companies, non-governmental organisations
(NGOs), and trade union organisations committed to working together
to identify and promote good practice in the implementation of
codes of labour practice, including the monitoring and independent
verification of the observance of code provisions. Back
46
Evidence, p.66 Back