Examination of Witness (Questions 140-144)
RT HON.
BARONESS ASHTON
OF UPHOLLAND
11 MARCH 2009
Q140 Sir John Stanley: As
you know, for nearly 10 years, since 2000, Israel has had an association
agreement with the EU under which goods produced within the state
of Israel—defined as being within its 1967 boundaries—are
given duty-free access into EU countries. The EU's policy towards
the Palestinian state is that there should be a two-state solution
and that there should be a viable—I stress the word "viable"—Palestinian
state. Given the enormous economic difficulties that the Palestinians
now face, I think you would agree that "viable" means
the most beneficial possible trade arrangements and that, I hope,
would include duty-free access for Palestinian goods. Against
that background, why does the EU not make it quite clear that
its trade policy is that goods produced inside the West Bank,
within East Jerusalem and within Gaza should have duty-free access
into the EU?
Baroness Ashton: We were about
to hold an important discussion with the Palestinian authorities
on trade which has had to be delayed. As you know, Sir John, we
consider it important to have the European Union, Israel and Palestine
discussing together in a tripartite way what we do on trade for
the future. As soon as we are in a position to do that, I am very
keen to do so. What the elements of that will be is partly for
them to say to us—what they think would be of greatest value.
This again fits with the work of Benita Ferrero-Waldner, who is
spending a lot of time in the region, looking at what the European
Union can do to support the future on a tripartite basis. Of course,
it will also depend on what the new Israeli Government decides
their position will be and we wait to some extent to see that.
For my part, I am ready to start working as soon as possible on
trade issues in the way that I have described.
Q141 Sir John Stanley: Why should
the EU make this a triangular negotiation? It was a bilateral
negotiation between the state of Israel and the EU when the 2000
agreement was entered into. The EU is committed to a viable Palestinian
state. Surely it is intolerable that the state of Israel should
be doing what it is now doing, which is effectively blocking progress
towards a trade agreement between the Palestinians and the EU
member states, when this is desperately needed by the Palestinians.
Baroness Ashton: The conference
that I was describing was specifically about Palestine. I was
making two points—I apologise if I did not make them clearly
enough. The conference was held to discuss what we might do to
support trade specifically for Palestine. The point I was making
was that, separately, there are real issues about the best solution
being the two-state solution with the EU joining in with that
discussion. Sir John, at present, it is not clear to me quite
how to take this forward, and looking at what we might do next
is on my agenda for the next couple of weeks.
Q142 Sir John Stanley: So are you
saying to the Committee, Commissioner, that the EU position is
that it is capable of, and willing to enter into bilateral trade
discussions with the Palestinian Authority to try to reach a sensible
trade agreement between those two entities alone?
Baroness Ashton: I am saying that
without the capacity for me to talk to the authorities about what
they are looking for, or indeed to enter into the proposed conference
with other countries to look at trade, I do not yet know what
a satisfactory outcome would be—I rule nothing in and nothing
out. I am simply hesitant about saying what it should be before
I have had the opportunity for direct talks. A separate point
is that because we are describing a two-state solution I would,
for my part, hope that the EU has a part to play by providing
support through my portfolio—trade—to help that come
about. That means being in dialogue, ultimately, with both parties.
Q143 Sir John Stanley: Can you clarify
this point: none of us knows whether the two-state solution will
ever be achieved or, if it is achieved, how long it will take,
so, as of today, is the EU willing to enter into bilateral trade
negotiations with the Palestinian Authority, as it is now constituted,
to reach an agreement on the same duty-free access to the EU for
Palestinian goods as enjoyed by Israeli goods?
Baroness Ashton: I understood
the question, Sir John, and I am deliberately trying not to give
you a yes or no answer. That is only because, as a new Commissioner,
I want to talk to the authorities about what that might look like
and what it might mean. We—this is on my part, not yours,
I hasten to add—can blithely talk about entering into bilateral
negotiations to achieve "the following" without understanding
the implications for the state with which we are dealing. I am
not saying no—I am simply saying that because I do not yet
know how best the support from the European Union can be applied,
I hesitate, even with your clear question, to commit myself completely.
I am keen to develop the right kind of relationship on trade.
Whether it looks exactly as you have said remains to be seen.
As soon as I have had those discussions, I will be more than happy
to tell you exactly what I have done.
Q144 Sir John Stanley: The Committee
would be most grateful if you could follow up the evidence that
you have given, on that point and on others, with further correspondence
to let us know what the updating position is on those bilateral
discussions with the Palestinians.
Baroness Ashton: I would be delighted
to do so, Sir John. I have just learned that questions that appear
straightforward—I am referring to questions not in this
Committee but elsewhere—in which people ask us to open up
bilateral discussions on certain things, turn out to be quite
difficult, not for the EU, but for the countries concerned. It
is much better for a discussion to take place about what is an
effective way forward before I say, "In that case, we will
do the following." In a sense, it is a courtesy I wish to
afford to those authorities with which I have not yet had the
privilege of discussing this.[3]
Chairman: Commissioner, we have kept
you here for a long time, partly due to the Divisions. We are
grateful for the wide range of answers that you have given us.
We have covered a great deal of ground, and this has been a valuable
session for the Committee, both in terms of what is happening
in the European Union and regarding other inquiries in which we
have been involved. Thank you very much for coming.
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