Select Committee on European Scrutiny First Report


37 Cotonou Agreement

(a)

(26555)

8704/05

COM(05) 185







(b)

(26587)

9267/05

COM(05) 213


Draft Council Decision concerning the signing, on behalf of the European Community, of the Agreement amending the Partnership Agreement signed in Cotonou on 23 June 2000 between the African, Caribbean and Pacific States, of the one part, and the European Community and its Member States, of the other part (8704/05) and Draft Council Decision concerning the conclusion of the Agreement amending the Partnership Agreement signed in Cotonou on 23 June 2000 between the African, Caribbean and Pacific States, of the one part, and the European Community and its Member States, of the other part (8704/05)

Draft Council Decision on the position to be adopted by the Community within the ACP-EC Council of Ministers with regard to the adoption of transitional measures to cover the period from the signing to the entry into force of the revised ACP-EC Partnership agreement (9267/05)

Legal base(a) Article 300 (2) and 310 EC; unanimity

(b) Article 300 (3); unanimity; assent of European Parliament

Documents originated(a) 3 May 2005

(b) 23 May 2005

Deposited in Parliament(a) 17 May 2005

(b) 27 May 2005

DepartmentInternational Development
Basis of considerationEM of 9 June 2005
Previous Committee ReportNone
To be discussed in Council24-25 June Environment Council
Committee's assessmentPolitically important
Committee's decisionCleared, but relevant to the debate on the EU contribution towards the UN Millennium Development Goals

Background

37.1 The European Community (EC) and African, Caribbean and Pacific (ACP) Partnership Agreement replaced the Lomé Agreement. It began on 1st March 2000 for a period of 20 years, with five-yearly reviews. The first review was conducted between May 2004 and February 2005 by the Commission, which negotiated on behalf of EU Member States on the basis of directives agreed by the Council, with ACP and EU Ministers reaching agreement in principle on the proposed changes on 23 February 2005.

37.2 Document (a)contains two draft Decisions. The first authorises the EU Presidency to designate a person to sign the revised Agreement on behalf of the Community, together with a Commission representative; each EU and ACP Member State will also sign the Agreement. The second sets out the various revisions to the Agreement and Annexes, and provides for the deposit of the required documentation to confirm each State's ratification of the revised Agreement.

37.3 Document (b) contains a draft Decision to allow for the adoption of transitional measures for the period following signature until the revised Agreement comes into force. It applies all the revised provisions except the new multi-annual financial framework, which is still being discussed by EU Member States, and some other changes relating to contracts.

37.4 In his Explanatory Memorandum of 9 June 2005, the Parliamentary Under-Secretary of State at the Department for International Development (Mr Gareth Thomas) says that "the proposed revisions to the Agreement fall into three categories:

"Addressing new political and security concerns: new Articles concerning the fight against terrorism; combating the proliferation of weapons of mass destruction (WMD); and cooperation with the International Criminal Court (ICC) have been included. In response to ACP requests, Articles relating to the conduct of political dialogue and addressing human rights, democracy and rule of law concerns have been elaborated … Early application of the provisions related to the fight against terrorism and combating the proliferation of weapons of mass destruction will be conditional upon the availability of financial resources" [i.e. will not be at the expense of existing development resources, but will depend on the outcome of the negotiations on the 2007-13 Financial Perspectives].

"Co-operation Strategies: a reference to the Millennium Development Goals has been introduced which makes their achievement the clear vision for and under-pinning ACP-EU cooperation. New provisions regarding support for ACP States facing post-conflict and post-natural disaster situations; and non-state actors, have been included. The Articles on economic and social development and trade cooperation have been strengthened. New references have been added regarding: the fight against HIV/AIDS and other poverty diseases; the promotion of young citizens' participation in public life and the development and use of traditional knowledge and information and communication technology.

"Implementation procedures: the Articles concerning the management of country and regional resources have been updated. The respective roles and responsibilities of ACP States and EC Delegations have been clarified, including the management of resources in crisis situations. The provisions relating to the operation of the Investment Facility,[149] ... managed by the European Investment Bank (EIB), have been revised in regard to the provision of project-related technical assistance, EIB remuneration and procurement rules."

37.5 The Minister adds that a number of changes to the Commission's procedures for the awarding and implementation of contracts that have yet to be agreed amongst the parties will be considered by the ACP-EC Council of Ministers at a later date, using the provisions of Article 100 of the Agreement.

The Government's view

37.6 The Minister says that the Government supports all the changes, the UK having "actively participated in the discussions in the Council and with the ACP States at the meeting on 23 February" and having "worked hard to secure agreement that financial support in the areas of counter terrorism and proliferation of WMD would not impinge on available ACP-EC development funds".

37.7 He says that the new political and security provisions are "an important and welcome development in the EU's relationship with the ACP States. Cooperating in the fight against terrorism, combating the proliferation of WMD and supporting the ICC are key political objectives for the Government and the EU. Enhancing political dialogue and tackling human rights, democracy and rule of law concerns are also key strategic aims for the Government".

37.8 The Government also welcomes the proposed changes aimed at improving cooperation strategies and implementation procedures, which "will lead to improvements, both in the formulation of policy and strategy and programme delivery.  We particularly support the new statement on the Millennium Development Goals[150] that will put them at the forefront of ACP-EC cooperation.  We also welcome the aim to extend more favourable treatment currently given to least developed countries, islands and landlocked states and to those countries dealing with consequences of conflict and natural disasters. The clarification of the roles and responsibilities of ACP States and EC Delegations is very helpful, as are the new provisions concerning the management of the Investment Facility and the strengthened sections on economic and social development and trade cooperation".

Financial implications

37.9 The Minister explains that the financial imlications have yet to be determined. The revised Agreement sets out a new multi-annual financial framework for EC cooperation with the ACP States, to meet commitments starting from 1 January 2008 for a period of five or six years. ACP States have been guaranteed a sum at least equivalent to that of the 9th European Development Fund (EDF),[151] in addition to balances carried forward from previous replenishments, with additional sums based on Commission estimates to take account of the effects of inflation, EU growth and enlargement. The Commission's initial calculations have produced a minimum figure of around €18.49 billion (£12.52 billion) over five years. The way in which the Commission has calculated these effects has been challenged by some Member States and will be subject to further debate. The Minister says "The Council will aim to confirm the exact amount and period of application at the earliest opportunity and by September 2005 if possible. At this stage, it is too early to say what implications the new financial framework may have for the Government. The Council Decision on the new framework will be subject to a separate scrutiny process".

37.10 He adds that "the Government remains opposed to bringing this support into the main Commission budget. Instead, we would like to see a bigger and more effective 10th EDF. Negotiations on this continue".

Timetable

37.11 The proposals and Decisions will be considered by the Environment Council on 24 June, before the revised Agreement is signed by all parties at the ACP-EC Joint Ministerial Council on 24-25 June 2005. Most of the revised provisions will be applied from the date of signature. Each party will then be required to ratify the revised Agreement to allow its full entry into force (once all EU Member States and at least two-thirds of ACP States have deposited the required documentation, which may take up to two years).

Conclusion

37.12 The review process appears to have been successful. But the financial framework and implementation will be crucial. We look forward to receiving details of the outcome of the continuing discussions. In the meantime we clear the documents, but they are relevant to the debate we are proposing elsewhere in this Report on the EU contribution to achieving the UN Millennium Development Goals.[152]


149   The European Investment Fund (EIF) is the EU specialized vehicle providing venture capital and guarantee instruments for small and medium-sized Enterprises, using either its own funds or those available within the framework of mandates entrusted to it by the European Investment Bank (EIB) or the European Union. Back

150   The eight UN Millennium Development Goals (MDGs) to be achieved by 2015 - the eradication of extreme poverty and hunger, achievement of universal primary education, promotion of gender equality and female empowerment, reduction of child mortality, improvement of maternal health, combat of HIV/Aids, malaria and other diseases, environmental sustainability and a global partnership for development - each with associated targets and benchmarks to measure progress. Back

151   The European Development Fund (EDF) is the main instrument for Community aid for development cooperation in the ACP countries and the Overseas Countries and Territories, under Articles 131 and 136 of the 1957 Treaty of Rome. The 9th EDF amounted to €13.8 billion of "new money", in addition to monies carried forward from the 7th, 8th and 9th EDFs. Back

152   Para 4 of this Report. Back


 
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Prepared 3 August 2005