Select Committee on International Development Written Evidence


Letter from Gareth Thomas MP, Parliamentary Under-Secretary of State, DFID/DBERR to Minister Karel De Gucht, Minister for Foreign Affairs, Government of Belgium

  21 September 2007

Dear Minister De Gucht

ECONOMIC PARTNERSHIP AGREEMENTS

The UK has long held the view that EPAs have the potential to contribute to regional development, economic growth and poverty reduction. By providing real commercial opportunities and support to achieve sustainable economic growth, EPAs should bring new benefits to the African, Caribbean and Pacific (ACP) countries and deliver for development.

At the Development Ministers' Informal meeting in Madeira this weekend, I will be making clear that the UK supports the Commission's efforts in taking these negotiations forward to a development friendly outcome. Considerable and valuable progress has been made to date. In particular we welcome the EU's good market access offer, significantly improving the trading opportunities for the ACP countries. We will also want to see further improvements in rules of origin.

We are now approaching the end game of the negotiations. I urge all parties to make every effort to reach agreement this year in order to deliver the significant potential benefits. We encourage the ACP to take account of the flexibilities in the WTO rules to allow for longer transitional periods for their own market opening. We believe that this is critical to ensuring properly sequenced trade reform.

I also want to make clear that the UK does not agree with those who have called for an extension to the deadline. Nor do we believe that ACP countries should find themselves in a worse position once the Cotonou Agreement lapses at the end of 2007. This would be the case if either GSP or GSP plus is put in place.

Although time is short, it is possible by the end of the year to agree outline EPA frameworks, focussing on trade in goods which deliver duty and quota free access for the ACP on 1st January 2008. We recognise that this means leaving other issues, such as investment, aside until later: however, the UK has always been clear that these issues should only be included in the negotiations if the ACP wished them to be. We welcome that some regions will wish to cover investment as they believe this will bring development benefits and urge them to continue to engage on these negotiations once a goods agreement has been reached.

Yours sincerely,

GARETH THOMAS





 
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