1 The Cotonou Agreement
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| Second Revision of the Cotonou Agreement — Agreed Consolidated Text
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| Legal base | —
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| Document originated | 19 March 2010
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| Deposited in Parliament | 30 March 2010
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| Department | International Development
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| Basis of consideration | EM of 31 March 2010
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| Previous Committee Report | None
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| To be discussed in Council | To be determined
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| Committee's assessment | Politically important
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| Committee's decision | For debate in the European Committee
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Background
1.1 The "Partnership Agreement between the members of the
African, Caribbean and Pacific Group of States of the one part
and the European Community and its Member States of the other
part" was signed on 23 June 2000 in Cotonou, Benin. The ACP-EC
Partnership Agreement" or "Cotonou Agreement",
was concluded for a twenty-year period from March 2000 to February
2020, and entered into force in April 2003. It was for the first
time revised in June 2005, with the revision entering into force
on 1 July 2008.[1]
1.2 According to the Commission, compared to preceding
development cooperation agreements and conventions, the Cotonou
Agreement is designed to establish a comprehensive partnership,
based on three complementary pillars:
— development
cooperation;
— economic
and trade cooperation; and
— the
political dimension.
1.3 The partnership is centred on the objective
of reducing and eventually eradicating poverty consistent with
the objectives of sustainable development and the gradual integration
of the ACP countries into the world economy. Its fundamental principles
are:
— equality
of the partners and ownership of the development strategies;
— participation
(central governments as the main partners, partnership open to
different kinds of other actors);
— pivotal
role of dialogue and the fulfilment of mutual obligations; and
— differentiation
and regionalisation.
1.4 The European Development Fund (EDF) is the main
instrument for providing Community assistance for development
cooperation under the Cotonou Agreement. The EDF is funded by
the EU Member States on the basis of specific contribution keys.
Each EDF is concluded for a multi-annual period. The 10th EDF
covers the period from 2008 to 2013 and has been allocated €22.7
billion (by comparison, the 9th EDF was initially allocated €13.8
billion for 2000-2007).
1.5 The Cotonou Agreement provides for a revision
clause every five years till 2020. The Commission says that the
main reasons for the Second Revision are:
— to
preserve the relevance and the outstanding character of the Partnership
between ACP and EU countries;
— to
adapt the Agreement to recent major changes in international and
ACP-EC relations;
— to
further develop several themes that are essential for both parties;
— the
political dimension, institutional issues and sector specific
policy issues;
— economic
cooperation, regional integration and trade; and
— development
finance cooperation, including humanitarian and emergency assistance
and new development advances in aid programming and management.
1.6 The Commission says that the Second Revision
adapts the partnership to changes which have taken place over
the last decade, in particular:
- "The growing importance
of regional integration in ACP countries and in ACP-EU cooperation
is reflected. Its role in fostering cooperation and peace and
security, in promoting growth and in tackling cross-border challenges
is emphasized. In Africa, the continental dimension is also recognized,
and the African Union becomes a partner of the EU-ACP relationship;
- "Security and fragility: no development
can take place without a secure environment. The new agreement
highlights the interdependence between security and development
and tackles security threats jointly. Attention is paid to peace
building and conflict prevention. A comprehensive approach combining
diplomacy, security and development cooperation is developed for
situations of State fragility;
- "Our ACP partners face major challenges
if they are to meet the Millennium Development Goals — food
security, HIV-AIDS and sustainability of fisheries. The importance
of each of these areas for sustainable development, growth and
poverty reduction is underlined, and joint approaches for our
cooperation are now agreed;
- "For the first time, the EU and the ACP
recognize the global challenge of climate change as a major subject
for their partnership. The parties commit to raising the profile
of climate change in their development cooperation, and to support
ACP efforts in mitigating and adapting to the effects of climate
change;
- "The trade chapter of the Agreement reflects
the new trade relationship and the expiry of preferences at the
end of 2007. It reaffirms the role of the Economic Partnership
Agreements to boost economic development and integration into
the world economy. The revised Agreement highlights the challenges
ACP countries are facing to integrate better into the world economy,
in particular the effects of preference erosion. It therefore
underlines the importance of trade adaptation strategies and aid
for trade;
- "More actors in the partnership: the EU
has been promoting a broad and inclusive partnership with ACP
partners. The new agreement clearly recognizes the role of national
parliaments, local authorities, civil society and private sector;
and
- "More impact, more value for money: This
second revision is instrumental in putting in practice the internationally
agreed aid effectiveness principles, in particular donor coordination.
It will also untie EU aid to the ACP countries to reduce transaction
costs. For the first time, the role of other EU policies for the
development of ACP countries is recognized and the EU commits
to enhance the coherence of those policies to this end."[2]
1.7 In his Explanatory Memorandum of 31 March 2010,
the then Minister of State at the Department for International
Development (Mr Gareth Thomas) says that negotiations on the Second
Revision, started on 29 May 2009 and were concluded at an extraordinary
Joint Ministerial meeting in Brussels on 19 March, at which the
EU negotiator, Commissioner Piebalgs, and the Gabonese Minister
Bunduku-Latha as the ACP representative, initialled the revised
Agreement, with amendments as detailed in the document attached
to it. He explains that negotiations over the year have taken
place in three thematic groups:
i) Political Dimension, institutional issues
and sector specific policies;
ii) Economic Co-operation, regional integration
and trade; and
iii) Development finance cooperation and related
issues.
He says that the Commission has kept Member States
informed of the progress of negotiations in these thematic groups
through the ACP Council Working Group. He then outlines the main
outcomes in each of these themes as follow:
POLITICAL DIMENSION, INSTITUTIONAL ISSUES AND SECTOR
SPECIFIC POLICIES
- "The revised text provides
for greater synergies between the Cotonou Agreement and the EU/Africa
Strategy, as well as other regional strategies. The African Union
has now been included as a key interlocutor in peace and stability
matters (Article 8, political dialogue and Article 11, conflict
prevention). There is now a clearer explanation of the linkages
between the EU/Africa, Cotonou and Economic Partnership Agreements
(EPA) institutions (Articles 14 to 17). There is an explicit reference
to the role of ACP National Parliaments in the Partnership so
they can play a greater role (Article 4).
- "There are slight amendments
to Article 96 Annex VII to allow for an exchange of information
with the ACP Secretariat. Article 96 provides for intense dialogue
and appropriate measures against any state party that significantly
fails to uphold the essential elements of the Agreement (human
rights, democratic principles or the rule of law). Appropriate
measures could be a reallocation, reduction or — in extreme
cases — a suspension of development aid from the European
Development Fund (EDF), until the situation improves. The EC resisted
requests for further changes by the ACP that would have weakened
the effectiveness of Article 96 or prolonged the process. The
EC also defended the current language on the International Criminal
Court (ICC), consistently turning down requests by the ACP to
weaken the language or to introduce individual reservations to
the agreement.
- "The EC (with strong backing from the European
Parliament) pushed for language on non-discrimination (Article
8.4) to include a specific reference to sexual orientation. This
was strongly resisted by the ACP side, and a compromise was found
on the basis of language in the Universal Declaration on Human
Rights.
- "There are important new references to climate
change (Article 32), HIV/AIDS (Article 31a), a strengthening of
the commitment to accelerate efforts to meet the MDGs (preamble
and Article 1) and an acknowledgement of the security/development
nexus (Article 11). An ACP request to hold high-level consultations
on fisheries has been included (Article 23a), with a view to enhancing
coherence between fisheries policies and development cooperation.
The impact of the food crisis has been recognised through strengthened
language on food security and promoting agriculture.
- "Article 13 on migration includes an agreement
for EU and ACP countries to accept the return and readmission
of any citizen who is illegally present in the other region and
provide appropriate identity documentation to facilitate this.
The Commission's mandate was to restructure the Article in line
with the Global Approach to Migration (the EU's strategy for third
country engagement). In particular, the EC was mandated to strengthen
the language on readmissions and 'operationalise' it through specific
procedures, e.g. the issuing and accepting of travel documents.
ACP countries resisted this addition on readmissions. As a compromise
the attached Joint Declaration was negotiated, which commits the
EU and the ACP to further negotiations on enhancing cooperation
on migration, without affecting Article 13. A progress report
will be made to the ACP-EU Council in June."
ECONOMIC CO-OPERATION, REGIONAL INTEGRATION AND TRADE
- "The trade provisions
were significantly updated to include EPAs and the expiry of the
former WTO waiver. Articles 34-39 cover both technical and procedural
necessities and set out principles around EPA implementation,
consultation and regional cooperation. Aid for Trade is introduced
as a concept (Article 35). The challenge of the erosion of preferential
terms for the ACP has also been recognised (Article 37).
- "The Articles on regional cooperation and
integration have been strengthened in recognition of the increased
regional differentiation within the ACP grouping and to ensure
consistency with the 2008 Communication on Regional Integration
(particularly Articles 20, 23, 29 and 30).
- "Article 33 (taxation) has been revised
to include a strong focus on support for domestic revenue-raising
through enhanced tax administration. The Article also promotes
the participation in international tax cooperation processes and
compliance with international standards."
DEVELOPMENT FINANCE CO-OPERATION, INCLUDING HUMANITARIAN
AND EMERGENCY ASSISTANCE AND NEW DEVELOPMENT ADVANCES IN AID PROGRAMMING
AND MANAGEMENT
- "The negotiations in this
area have focused on improving the programming and implementation
of aid. In particular a role for ACP national parliaments in programming
has been included and further detail provided on 'Intra-ACP programming'
to harmonise this with programming at the national and regional
levels (Annex IV). Provisions have been introduced for greater
flexibility to respond to 'unforeseen needs' at the regional level
(in 'B envelopes' within the European Development Fund), as well
as flexibility to increase allocations in response to crisis situations
(in 'A and B envelopes').
- "There is also a greater emphasis on humanitarian,
emergency and post-emergency assistance financing under the multi
annual financial framework (Article 72)."
The Government's view
1.8 The then Minister (Mr Gareth Thomas) begins by
welcoming the Commission's regular communication with the Council
and its request for further guidance on the more challenging areas
of the negotiations. He notes that the UK has been actively involved
in the process and believes that the revised Agreement represents
a good outcome and meets the overall EU aims as agreed at the
outset. He continues his comments as follows:
"We welcome the clear references throughout
the negotiations to the Accra Agenda for Action, the Monterrey
aid commitments, the Paris aid effectiveness principles and the
need for all parties to make a concerted effort to achieve the
MDGs. The inclusion of new text reflecting the serious global
challenge of climate change reinforces the importance which the
EU places on tackling climate change and addressing its impact
in developing countries. The approach is fully in line with that
of the UK: integrating climate change into development strategies,
focusing on mitigation for development purposes, and supporting
adaptation measures.
"We welcome the revised Article 33 on taxation.
The UK believes that taxation has a key role to play in mobilising
domestic resources for development and reducing reliance on external
aid. The Agreement promotes the participation in international
tax cooperation processes and compliance with international standards
which is very much in tune with the G20 tax transparency initiative
taken at the London Summit in March 2009. In this context, a number
of ACP countries, particularly Caribbean countries with significant
financial sectors, are concluding tax information exchange agreements
with G20 and OECD countries. The UK is keen to encourage this
process. The Article on taxation should also facilitate a wider
range of ACP countries participating in and benefiting from international
tax transparency.
"The UK welcomes the commitment in the Joint
Declaration on migration to continue dialogue to enhance cooperation
in this area. We supported the EC in not reopening Article 13
at the end of negotiations, particularly as it risked reopening
agreed provisions on legal migration and delaying a wider agreement
on Cotonou without a clear opportunity to make progress on readmissions.
The lack of immediate resolution on this issue will not adversely
affect the UK, as we maintain bilateral readmission agreements
with many ACP countries that are not directly dependent on Cotonou.
"As highlighted in the letter from Caroline
Flint[3] of May 2009, the
potential of the 2005 changes to Article 96 are yet to be realised.
We are therefore pleased that no significant changes have been
made to this Article and we will continue work to improve its
effectiveness. The UK is particularly pleased to see the reference
to the ICC remain clear and undiminished in Article 8.
"We welcome the updated language on trade and
the inclusion of new text to reflect EPAs. The UK successfully
intervened on preference erosion to ensure that the resulting
text reflected a balance between the real development challenges
involved and the EU's freedom to negotiate trade agreements with
third parties.
"The UK welcomes the modifications to the programming
sections of the revised Agreement, in particular the streamlining
of the Intra-ACP programming and the increased flexibility of
the 'B-envelope' allocation. The latter will ensure that the EC
is better placed to respond to global shocks such as the financial
crisis, for which it had to develop a specific response mechanism
(the Vulnerability-Flex) due to the limited flexibility of allocations
under the current Agreement."
1.9 On the question of consultation, the then
Minister notes both the UK contribution to the negotiations and
that, in the preparation of his Explanatory Memorandum, he has
been in consultation with a number of other Ministries, including
HM Treasury, the Home Office and the Foreign and Commonwealth
Office.
1.10 With regard to the financial implications,
the then Minister says that the revised agreement does not commit
the EU to any further funding after the current European Development
Fund 10 (EDF10) which expires in 2013. Discussions on ACP funding
post-EDF10 will take place alongside the broader discussions for
the Financial Perspectives (2014 — 2020). However, the Commission
will use the revised Agreement to influence its programming for
ACP countries up until 2015 when this Agreement will next be considered
for revision.
1.11 Finally, looking ahead, the then Minister explains
that, in order for the amended Agreement to be adopted, the Commission
must now propose, for Council adoption, the Decisions authorising
the signature and conclusion of the amended Agreement (which he
notes will be deposited for scrutiny); and says that it is hoped
that these Decisions will be approved in June — probably
at the 21 June Environment Council as an "A Point",
(i.e. without substantive discussion) — with the final Agreement
being signed on behalf of the EU at the ACP-EU Ministerial Council
on 23-25 June.
Conclusion
1.12 We are grateful to the then Minister for
his clear exposition of this important Revision of the keystone
in the EU's relationship with the ACP countries. Even though it
has by now been signed, we note that there has always been widespread
interest in the House in development cooperation issues, and consider
that a debate in the European Committee will provide a new Minister
and government with an opportunity to outline some of its own
thinking, and a new House the opportunity to debate some of these
issues.
1.13 We so recommend.
1 The Commission says that the notion of "ACP
States" goes back to the "ACP Group of States",
formally established in 1975 with the Georgetown Agreement , which
was initially signed by 46 African, Caribbean and Pacific states.
Today, the ACP Group of States counts 79 countries , 78 of them
signatories of the Cotonou-Agreement (with Cuba being the exception).
South Africa is a contracting party of the Cotonou Agreement,
but not all the provisions apply to the cooperation between South
Africa and the EC. Back
2
See http://ec.europa.eu/development/geographical/cotonouintro_en.cfm
for further information on the Cotonou Agreement. Back
3
The then Minister for Europe at the Foreign and Commonwealth Office. Back
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