european union and developping countries (vf)

8/23/2019 European Union and Developping Countries (VF)

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European Union and Developing Countries

Notes de cours : 2012-2013

Cours du 5/11

Introduction

Impact of the European Trade Policy on Developing Countries, Economic partnership agreements,...

But not only economic issues, political issues (Human rights, environmental cooperation,

sustainable development, promoting of a 'rule of law' system, democratic, Arab spring,...).

Write an essay (French or English), 5 pages. It has to be in the field of the Development

Cooperation and concerning 'developing countries'. At least: the date of the exam. Written exam in

January on the issues related to the lectures and readings.

1. History of the relation between EU and Developing countries

At first, the Treaty of Rome was aimed to establish an Economic Community between the 6 first

countries (France, Germany, Netherlands, Italy, Belgium, and Luxemburg). It was first a common

market and then a unique market . Therefore, it started as an economic community only (built on

the earlier work of the ECSC)

It took a couple of years for negotiations; at the beginning no participant raced the relation to the

overseas countries and territories. Historically, EU has a long relationship with Africa, Asia and

South America because ofcolonization.

We had to wait the 1950's, 1960's to change the kind of relation when they became newly

independent states. It was only at the very last moment, few months before.

France insisted to extend the trade cooperation with overseas countries and territories. Germany,

Italy and Netherlands took the position that is too late, invoked an internal cooperation. But

Belgium and Luxemburg joined the position of the French Government. At the end, in the treaty of

Rome we can find 3 places with references to developing countries:

a) In the preamble : interests and needs of the people in overseas countries, and solidarity between

people of Europe and people of these countries in general terms.

b) Art. 3 : the promotion of economic and social development of the peoples in overseas countries is

one of the duties of the EEC. Also, there should be an association between, on one hand, the future

EC and, on the other, the colonies of the EC member states.

c) Part IV: still in the treaty of Lisbon (art. 198-205) this is about the cooperation with developing

countries. But deeply rooted in colonial relations. the European countries drafted therefore some

rules of cooperation with those countries, for them but without them. It was an effort to continue the

economic relation with DC, in a colonial way. Ambition to lead them to a social, economical and

cultural development.

Creation of the European Development Fund: initially, money was mostly spent for economic

development.


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But in this article, It is mainly economically oriented and about trade and the own interests of

Europe (nothing concerning aid). It also provides the right of establishment of enterprises,

abolishment of customs duties, freedom of movements for workers,... (One of the aims of the EEC

was to facilitate freedoms of movements of workers, especially from Africa to Europe).

But treaty of Rome was soon outdated, for the following reasons :

De-colonisation

Emergence of the third world and non-alignment (promoted by the president of Indonesia,

Tito,...)

They tended to organize themselves in economic regroupment. 1963 : a group of upcoming

countries came together to discuss about economic topics in Geneva. (Group of 77).

The interests are very different, some of them are already little income countries (Brazil,

Indonesia,...) others are much yet developed yet. But we can see some very interesting examples of

independence of old colonies. Anyway, this special relations has been criticized (by India for

instance) why don't we treat everybody in the same way?

New Development ideology

New development ideology emerged. The all decolonisation process is based on the principle

that every people has the right to define its own status and to be free to decide of their future. The

new ideology for development is based on the freedom to chose the economic model which is the

most adapted to the social and economical features of the State. The colonies became independent

and it changes de picture completely. Indeed, freedom of choosing your own economic model whish

best serves your economic development and interests and you should not be too dependent of the

old colonial powers.

2. Evolution of Europe's relations with developing countries

As a result, agreements were made between EEC and the newly independent Countries.

Yaound I and II treaties, 1963 to 1969 : in 1963, for the first time, we have agreement between

independent countries (African countries, all of them old colonies of France) and in 1969 it includes

also Belgian colonies.

Arusha Treaty, 1968 : First development treaty between EC and 3 former British colonies :

Tanzania, Kenya and Uganda (today it's the east African economic community). There wereselected to conclude for the first time with the Anglophone world a similar treaty to the Yaound

treaty.

Development co-operation in the early years. It provided the same: enhanced economic cooperation,

freedom of establishment of enterprises of Europe, more detailsand provided for institutional

cooperation, (joint ministerial meeting, meeting of the ministers of participants of this agreements)

In 1960's, some concerns are raised about the CAP (Common agricultural Policy), what will be the

impact of the DC on the economy if we close our borders for incomes of the DC? The EEC had to

take into account the interests of the associated states. It requires some consultations and

negotiations if one or more parties want to have it.

In 1970's, there is an extent to a number of 12 Member States. Cooperation raises in other fields


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including transportation policy, social affairs,... In 1992, the EEC becomes even EU. Many former

UK colonies (Pakistan, India, and Bangladesh) were not included initially in the European

Cooperation Policy but the Yaound agreements finally extended to them. In fact, the development

strategy could not be extended to very big countries in the same way as African states.

The group of 27 (Yaound) grew to a number of 46 countries (Lom). In 1975, the Lome

Convention successes to Yaound and Arusha. In terms of substance it was different of the others.At this time, the world was unsteady (Inflation, international trade was in decline as a result of the

war between Israel and Arab neighbors, Oil embargoes, raised prices,...).

New international economic order: we still have power, fair prizes for our commodities,...

Countries claimed the permanent sovereignty of their natural resources, fair and equitable prices,

equal participation to economic decisions-making process, governance of institutions of the old

economic order, especially IMF. At the same time, development with the United Nations.

1975: somewhat nervous and shaky because of the oil crises, Europe extended relations to former

colonial countries, which was accepted of the DC, because they knew, that they could not expect a

lot of help of the Arab oil countries.

It took a long time until the Treaty of Rome was substantially amended. In the meantime, the

development relation took its own road (conventions, policy papers)It extended cooperation with

former colonies. The Lome Convention was the result of this context.

3. The Highlights of EU development policies

Development Cooperation took its own course, the first full report of the European Cooperation

development policy. Minister for Development Cooperation, under the French President. In 1972,

first commission memorandum. It was the result of a joint declaration of ministers of all the

countries. In 1973, accession of the UK, Denmark and Ireland.

In 1974, NIEO debate, putting together countries with industrialized economics system and

developing countries (G77), it impacted the content of the Lom Convention and the EU

development.

In 1979, the European Parliament adopted resolutions, food prices were very high in Africa but it

was also about structural issues (one-sided orientation, rural development, food resources,..). The

Italian Commissioner, Pisani, established a position paper in 1982. In 1991, adoption of the

European Council of Ministers' Resolution on Democracy, HR and Development (at the same time,

end of the apartheid regime in Angola, end of the War in Cambodia,...)

After the end of the Cold war, promotion of freedom of trade in international relations :

establishment of the WTO in 1994. A lot of criticism. Pressure on European to revise its agreements

concerning trade with developing countries and notably with ACP (green paper, 1996).

2000: Nielson operational action plan (from a Danish minister)

2005: European Consensus on development and Michels policy plans (commission, parliament,

council had a consensus on the development policy)

In the meantime, some efforts were made to reform the Rome Treaty: but all these new policy

papers and trade preferential agreements, development firms, were instituted without a proper legalbase. To fill the gap, a major occasion was the conclusion in 1986 of theSingle European Act. Few

institutional improvements in this field but it werent very much. The major change arrived with


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Maastricht and Amsterdam.

Maastricht: for the first time, the term policy in Development Cooperation was including in the

treaty in 1992. Also, some references to sustainable development and environment based on the

BrundtlandReport Our common future which was an action programmed to preserving

environment and eradicate poverty. Indeed, in 1992, a major conference of UN on environment and

development took place and the report was published (fight against poverty, endeavourdevelopment, while preserving environment put the sustainable development high on the

international agenda).

The Maastricht treaty also formulates that the principal objective is the campaign against poverty. It

kept the Part IV of the Treaty of Rome but more complete. Also, the terms Human Rights is not

a taboo anymore.

After the end of the Cold war, more emphasize of the rule of Law and Democracy.

The idea that it would be part of the EU Constitution (but there was any Constitution after the

refusal of the referendum). In 2008, in an interesting way, it spilled out the principle ofcomplementarily. (...)

In the Lisbon Treaty, stipulating that the EU shall take accountthe objectives of the other policies

(the term is not so strong that must be integrate ). There are therefore general objectives, not

specifically in the part of development cooperation, but more in the general objectives (arts 3 and

21) we can mention:

peace and security

solidarity

mutual respect

free and fair trade

eradication of poverty

protection of HR

global governance

promotion of international system

Anew list of what is at the core :

- specific articles (arts. 208 and xx)

o 208:

principle of complementarily (independent role for European development

policy, but still relevance of member states policy in this fill the one can

strengthen/reinforce the other)

no exclusive competence of EU, but SHARED competence (if fishery, Agricultural, foreign

investment,... policy it is an exclusive policy) development aid policy i.e. is a shared policy, in

Scandinavian countries, the later is for example more developed)

The specific topic of eradication of poverty is ones more mentioned,

repeated, insisted on.


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as a result of lot of pressure by NGO, academics etc. there is a lot of talk

about COHERENCE in the sense that development objectives should not

stand alone, but be coherent with other policies (ACP, fishery policy,

environmental policy etc. the development policies must be integrated in

these policies who are likely to affect the situation of developing countries)

COORDINATION with the member states, the world banks, the member

states etc

Complementarily, coherence and coordination are the 3 policies (Triple C discussion). You can also

add:

Compatibility with WTO provisions

Conformity to HR standards. In other words, with civil and political rights but also

economic, social and cultural rights and (food, access to health care, employment, faire

labour conditions, environment, strike,...).

These are basically the main contours of what are the Lisbon provisions of European Development

Cooperation. After new reforms, another strong treaty basis, it created a very positive development.

After Rome, the major reform treaties in this field are Maastricht and Lisbon.

Europe operates in the World

Global Setting, Bretton Woods order, post-war economical cooperation.

This BW had to adapt to response to the emergence of the Developing countries on the

international Stage and to include Third-world countries. The mains pillars are a trinity ofsubstantive principles:

1) Freedom from war, fear, religion,... In the economic field, freedom of trade, of investment,

of navigation. It is a very substantive leading principle. Of course, some exceptions (former

colonies, pressure from states, protectionism) but the starting point remains freedom.

2) Legal equality and non-discrimination : An equal starting point (MFN Standard)

3) Reciprocity: If I do something for you, I have a legitimate expectation that you will do it for

me too.

There are also institutions :

1) TheInternational Monetary Fund: ensure the comfortability of the national currencies. It

is the supervisor in this field (gold standards, dollars standards, Chinese yen balance of

payment policies,...). You can get some funds, credits from the IMF if countries faces some

high problems

2) International Bank for Reconstruction and Development(World Bank). At first it was for

the reconstruction after the war (every cities were ruined, countries devastated,...), at the

same time at the Marshall Aid programme. The second objective is also the Development

agency (in 1944, it was already one objective of the international community). In 1960's, it

became the main one.

3) General Agreement on tariffs and trade (GATT/WTO). Further negotiations took place in

1945, to establish an international World Trade organization. Latin American countriesplayed an active role. The GATT is an agreement on tariffs and trade, limited mandate for

more or less 50 years, platform of multilateral trade negotiations (in a legal way, it is not a


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real institution). Actually, first negotiations held in Havanna. Latin American countries tried

to really take part of it, take decisions. But this organization never came into power because

of the oppose from big countries (France, USA,...). Anyway the GATT: agreement on one

chapter came into power. The DC started to knock on the door even if the first initiative was

made mostly for industrialized countries. Reciprocity (give and take principle) only works

when you are more or less equal.

a) International Finance Corporation, 1956(free foreign investment in DC)

b) International Development Association, 1960

Development of a special small development bank for loans to the low income countries (hardly

interest rates, ) emerged in the context of emergent need of development money

c) World Food programme, 1961

(context of a Food Crisis in India, in the UN)

d) UNCTAD, 1964

United Nations Conference on aid and development. It created a direct competition with the GATT

and the organization was very nervous at this time.

e) New part IV Gatt, 1965

Emphasizes the competition with UNCTAD

f) UNDP, 1965

United Nations Development Programme.

g) GSP, 1971 Generalized system of trade preferences

No positive discrimination of DC

h) Lome Conventions 1975 (integrated this system)

i) Common fund for Commodities 1980

j)Law of the Sea Convention (1994)

Very modern development oriented treaty in an area which was always dominated by industrialized

countries

k) UN Millenium Development Goals

l) DOHA development agenda, WTO 2001

The WFP was a reaction to slowly and the bureaucratic aspect of the former agreement, used their

majority to establish in the United Nations to establish this programme.

UNCTAD (Trade and Development UN agency) was aimed to promote the participation of DC ininternational trade, 9 month after its creation, they added a part 4 to the GATT (Trade and

Development).


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Other principles raised: Sovereign equality (economic self-determination, Sovereignty over national

resources, participatory equality of developing countries in international economic relations)

Cours du 07/11

Previously : after speaking of the early European Development Cooperation, we discussed abouttreaties with African Countries (1960), the Lome Convention (debate about a new economic order,

effort to strike a compromise to look for a common interest, new freedoms for DC). In 1970's,

Commodity agreement relating to tea, coffee, sugar, coco, minerals,...

Evolution Lome coopration

- Lom 1, 1975

- Lom II, 1980

- Lom III, 1985

- Lom IV, 1990

- Lom IV BIS, 1995

- Cotonou, 2000 and 2005

First of all, the EU discussed also about a Convention, with the arrival of UK and its former

colonies in 1973. Lom I - where 12 members and the Commission negotiated about a

Development Cooperation with 46 other DC, based on the principle of equality (but in fact, there is

never substantive equality when there is a donor in one hand and another part who receives).

Contractual provision that European Countries would provide DC with a certain amount of money.

It also raised a Development Assistance , fund from industrialized countries provided an export

income guarantee for 18 products (80% of the income) - (mostly Agriculture). Many African

Countries were very dependant to this exportation STABEX - (Uganda, Central Africa,...).

Therefore, there was a legal commitment by European Community to guarantee a more or less

stable income of export (Stabilization of export income). The EU also assisted countries to

industrial raise (PMD process, marketing, development). It was a comprehensive development

treaty.

To sum up: Many countries depend on agricultural products (prizes are very unstable). If prices fell,EU guarantee a certain income.

Several Committees under the Lom Convention; Institutions set up between developed and

developing countries (Joint assembly, ministerial Council,...). In a more critical way, some people

claimed it was more to secure the flow of materials from Africa to Europe, to assure a political

control on those former colonies, to strengthen a colonialism system... There is maybe some truth

but not the whole story.

The Lome Convention has been renegotiated more or less every 5 years. In the light of new

interests, it was several times amended. It insisted on industrialization and urban development. In

1970's, Africa was confronted to a big hunger crisis.

That kind of new funding was also illustrated in the Lome II (1980) more emphasizes the rural


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development, structural development in the countryside. Also, other issues like women and gender

debate and women emancipation (including in rural sector, Conference in the UN), fishery policy,...

In 1980's, it emphasized the issue of Human rights. In response to cruel dictatorships in Africa (for

instance, in Uganda. neighboring countries wanted to interfere in the country to stop it). Europe

gave assistance by funding. Unilateral guidelines In the 'Uganda Guidelines', the Commission

declared to suspend the provisional assistance when there was a serious violation of Human Rights.Also, with the case in Equatorial, Guinea and Central Africa (Bokassa). The promotion of respect of

HR became an objective and a condition for development assistance, a requirement. It was referred

in a Declaration annexed in the treaty, it's actually the beginning of the HR policy (Lome III, 1985).

Finally, the observance of HR became a major objective for the EU- ACP cooperation in the Lome

IV. It became possible to have a fully fledge HR proficiency in the treaty.

Let's place it in its context : in Europe, the instrument was the Convention of Human rights

fundamental freedoms. Meanwhile, the Organization of American States have concluded its Human

Rights protection (Inter-American Convention) as well. In Africa, the organization of AU adopted

its own HR instrument, a special one with a typical interpretation of African rights : emphasizes individuals and collective rights contrary to Europe, more based on civil and political rights. In

Africa, we can find self-determination for instance and specific rights recognized to people.

Finally, at the UN level : Universal declaration of HR.

the Convention provided that if there was a serious violation of HR, first there is a consultation

(European Side, the Consultation would be led by the Troika, and in the African Side). A unique

consultation process is set up. After 60 days, if there is no agreement on how to improve HR

situation, the European Community can on its own initiative to suspend or terminate the

Development Cooperation.

DC could also raise the subject, which they did for example concerning the issue of immigrant

workers and international students. They could have done much more. EU criticized a lot ACP

countries (mostly after Coup d'tats in Sudan, Sierra Leone,...)

Finally, the Convention Lom IV in 1990 held a discussion on Sustainable Development and

Environment. With the Brundtland Commissioner, a report was published in 1987 (our common

future) and advocated the debate of SD on the highest point of the Agenda : Principles for achieving

Sustainable development, preservation of the Environment, Climate Change, much more control

from European Union on the control of money was spent by Developing country (transparent,

accountable and effective way). Bearing in mind also the 1992 Rio Conference.

The idea of a revision every 5 years became difficult: Countries decided to conclude the Lome IV

for 10 years. But In 1995, the financial protocol was renegotiated as it was planned.

The Lome IV bis became a renewal of Lome IV. It was a treaty very long (400 provisions) with

annexes. At this time, too many developing countries members to the Convention, around 79 states

(with Cuba which wasn't a full party, or Haiti,...) and 27 European Countries in the EU. They

decided to start something new, in early 2000's.

A military Coup d'tat took place in Fiji so finally the Conference took place in Cotonou

(Benin). It was decided to conclude a treaty for 20 years. So far, we had two revisions (in 2005 and

2010).

Comparing Cotonou with Lome


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It was built on the Lomeacquis (special trading arrangement, Institutions,...). New is the duration

which is now 20 years, a more framework agreement (100 articles). The idea of European

Commission is to replace the General trade regime, in order to allow countries to export more easily

to non ACP countries, create a new economic partnerships agreement. The convention was focus on

poverty reduction and gradual integration of ACP in the World economy.

EPA's to be concluded in 2008. But resulted resistance because trade has always been a corner

stone, a ground of the Convention. Now, the felt like we take it out and we treat you as different

group . The compromise was to keep the acquis and to continue the trading regime of Lome, but in

2004, to negotiate a new agreement with 6 regions. In 2012, it should be the end to the general trade

regime of Cotonou. WTO said this is the last time, this is no longer defendable in the light of the

new WTO liberalization agreement. It was the basis of its agreement to give permission to continue

with special agreement while including others.

In reality, the compromise was more difficult. Only one out of the six was finally in place. So far, in

2008 an agreement was made with Caribbean Countries (CARIFOR). In 21 st century, Europe is

more oriented to watch China, Latin America, Korea,... There is a pressure from those countries toopen special agreements... and there is also a loss of confidence with African Countries. It was not

always founded but in fact, some of African countries faced some serious problems. The ACP

countries are no longer by definition the preferential status and the preferential partners in

development of EU. We can also mention :

- Regionalization and differentiation

- Financial package each 5 years

o Based on need and performance (what is the poverty reduction strategy, which are

the strong sectors, to what extent the aid can be effective?)

o More mixed approach (loans to State as to private sectors)

o Support for capacity-building in civil society and NGO sector (also private and

business sector)

o No more stabex (=raw materials, agriculture) and sysmin (=minerals)

- More emphasis on essential elements (human rights, democratization, rule of law)

- Participation of civil society and private actors (NGOs, enterprises) before, the

emphasis was more on countriesIn the Maastricht treaty, there is a focus on poverty reduction (main objective of Cotonou). It

focuses also of Economic integration of ACP and influence of WTO. In a less diplomatic way, it

aims to put an end to their preferential status. There is therefore dismantlement of some Lom

acquis points.

We can also notice that major institutions remained in place (joint committee of Ambassadors, Joint

assembly,...) but there was more regionalization (focus on 6 regions) and taking into account

different levels of development. For the poorest developing countries, there is a special action

programme EBA (Everything but arms) in reality, it was a transitional period and not every products

were covered.

Emphasis on essential elements (rule of Law, good governance, Democratization,...) as well as civil

society and private sector (non state entities, NGO's, Churches,...)


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Financial support

Still the five year envelope related to the questions What do you really need? What is your

(poverty reduction) strategy? How have you performed during last year? . We call that Aid

effectiveness. No more stabex and sysmin (minerals) in 2000.

Political dialogue

In 2005, shortly after the war, the issue raised about Mass arms destruction. But it concerned only

few countries (Iran, Iraq, Pakistan, maybe Egypt,...). Another one, is to make Developing countries

parties members to the International Court of Justice. For instance, Sudden didn't sign the

Convention and is not party to the International Court.

Several Parliament are still in the process to adopt amendments to the Cotonou Agreement. New

issues came up, like migration which is very sensitive. Or equal treatment for people who have

different sexual orientation (it is even still a crime for some African countries) and also the

Economic partnership, and the splitting of ACP countries in 6 groups.

Cours du 10/12

In the 21st century, the definition of Human rights was not everywhere the same. For instance, in the

Soviet Block: it was more focused on economic and social rights (class struggle) and in the West :

civil and political rights, individuals.

The Universal Declaration of Human rights puts together all human rights (civil, political,

economic, social, cultural, rights,...). At the international level, we have a quite number of Human

rights treaties (also more specific as Children or Women protection)

But it means also a fragmented regime ; no unique supervising body. The regime is currently a bit

complicated.

In the EU, we can mention the 5 successive Lome Conventions finally replaced by the Cotonou

Convention in 2000. This documents runs to integrity and was several times modified. Discussions :

what about the post-Cotonou era ? Is there a future for the cooperation EU ACP?

Actually, this relationship between EU in ACP has known an evolution : the cooperation is no more

limited to the privilege actor, Africa. There is also an emergence of cooperation with Asia, Latin

America and, to a certain extent, with the Mediterranean area.

What are the basis elements of cooperation?

Latin-America:

In fact, Latin America is not so that far from EU; geographically, Distance between Spain and Latin

America is not so far than EU-Asia. There are also strong historical links : colonization (Portugal,

UK, Spain, France) ; major parts speak Spanish and Portuguese ; Latin-America is much more

homogenous and small, compared to Africa.

Why the cooperation with LA started so late?

1958 : Spain and Portugal were not members of the EU


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At this time, the focus was on the internal economic cooperation and the external cooperation

focused only mostly on Africa. At the beginning, the cooperation was stronger between EU and

Africa or francophones colonies. Also there was Protectionism on both sides (Latin America

claimed early a right to development and in EU, especially with the Common Agricultural Policy,

some part of economic borders were closed. If there were countries with lower tariffs, it was ACP

countries but not Latin-America.

Latin America had governments which were not democratic (political reason)

There were many dictatorships and coup d'tats in those regions (Brazil, Argentina, Chile). It was a

bit a backward of US and the EU wanted to stay out of those political issues. The relationship

consisted more as bilateral relations with individual countries of the EU. (As Spain, Netherlands,...)

So at the beginning, LA was a bit neglected from the development cooperation of the EU.

1970's : This situation changed, Some bilateral relations started to rise and started to talk of trade

issues, Committees of Ambassadors,... We moved from purely bilateral relationship to a real

partnership between EU and the group of countries of this continent. A dialogue took place :Interregional Agreement. Dialogue became institutionalized.

Trading block

Indian Pact

Cooperation between EU and Mercosur (Uruguay, Brazil, Argentine, Paraguay.) is the most

important block in Latin-America. EU tried to strengthen its relations with this block because US

wanted also try to be closer (so it was a real stake). Actually, those countries gained their

independence earlier than African Countries. US wanted to protect them from European Powers.

Monroe Doctrine:Americas for the Americans.

1905 : European powers blocked all the harbors in Venezuela in effort to collect money from this

country (which had a huge debt). 1907 : Peace Conference, joined initiative of the US and

Argentina (Porter Drago, American SG of State) prohibited to go to war in order to collect money.

Example of American Doctrine (South, North) grouped together.

1990's (old bush) NAFTA : North America Free trade Association, small economic cooperation

between Canada, US and Mexico with a huge market still (large trade block in the world). It

became after AFTA and included Latin America as a whole in the free trade agreements. The

ambition of Bush was to include every LA countries with some exceptions : Cuba, Venezuela sinceChavez,...

There is also the (Indian/andian?) Pact : (Venezuela, Colombia, Ecuador, Chile) but the relationship

is very complicated among them. Not very important as regards as EU cooperation.

In 1986, Spain and Portugal adhered to EU. They asked to extend EU cooperation to Latin America

(not only Caribbean countries but LA as a whole). Trade relations increased rapidly : minerals,

commodities, agricultural goods, beefs, wine, ... Some of these countries also started to

industrialized (Mexico1, Brazil2,...).

EU continued, on one hand, its bilateral relations individually with LA countries and, on the other,

1 Member of OECD : major part of Mexico is still very poor and looks like a Developping country2 More equality and rural areas more developped since the President Lula took power


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concluded Interregional agreements and trade blocks like Mercosur in 1995. The aim is now to have

an entire economic cooperation (development assistance from EU, promotes trade and

investment,...). Not only an evolution concerning the nature of the relation but also regarding the

content : comprehensive agreements (economic relations agreements which promotes trade and

ensure investments but also environmental cooperation, protection of rainforest, alternative

energy,...) : From selective to global agreements.

But :

Still, EU has a much more oriented cooperation policy to Africa. Moreover, trade is far from free to

LA countries (beef, Rhum, sugar, TV goods, industrial goods, fridges,...)

In Latin America, there was always a close link between EU cooperation and NGO's and Civil

Society organization, Church,... (maybe because of the high numbers of dictatorships in those

countries).

In the EU cooperation, it is an important group of partners (more than in Africa). The EU Mercosur

Agreement became much more than a trade cooperation : it became a comprehensive packageaddressing issues of trade but also environmental cooperation, institutionalized cooperation, Human

Rights promotion and protection. But of course, it was limited to 4 or 5 countries. Also, some EU

Latin-America summits are organized.

There is tendency that the EU Cotonou cooperation falls apart to a specific agreement, especially to

an economic cooperation. The idea is that the trade chapter EU-ACP will be replaced by 6 separated

agreements (EPAS) : in the Carribean Countries, In Africa area and in the Pacific. The programme

failed and the only agreement among the six which succeeded was with Carribbean

(CARIFORUM)

Asia

Very broad and special continent: If we consider that Russia and Mongolia belong to it and in the

South, Indonesia. We can see that it is very diverse continent and it is also the most populated

continent ; In China 1.3 billions of inhabitants (which is a kind of small continent inside the Asian

one).

EU- ASIA cooperation :

Despite the fact that UK joined the EU very late (1973) there have always been a strong relationship

between Asia and UK and it started also early with the EEE. Relationship was based onbilateralism. In 1961, EU started the relationship in India with the first mass aid programme to

provide food (food assistance programme). Automatically, the EU cooperation was extended to

Pakistan and Bangladesh (newly independent state).

It is interesting to note that the relationship between EU and Asia focused for a long time with

South (East ) Asia. We had theSAARC, South Asian Association for regional cooperation. The two

major partners were India, Pakistan (and later with Maldives, Sri Lanka,..). It was a real regional

cooperation but more a political platform. The dream was to have a counterpart of regional

cooperation, but it never was the case.

In 1985, Cooperation among the South East Asian Countries and they grouped together (ASEAN3

)to form a block distinct of, on one hand, India and Pakistan and, on the other, China and Japan. As

3 For instance : Thailande, Philippines, Indonesia,...


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Asian Tigers they were the major actors of the Continent. After, the less big and poorest

countries joined the cooperation. It has become a very important trading block ; very intense

relationship between EU and Asian group. Every five years = a new Asian cooperation treaty. There

were also some critics from EU that Vietnam of Myanmar joined the group (dictatorial countries).

Bit by bit, the relationship became quite close. A dialogue about HR, participation of women,

environment... ASEAN Countries always said that it wasn't Europe's Business. But finally they start

to be more open-minded considering the generous help from Europe in case of disasters...

Also, ASEAN itself is extending cooperation to Japan, China, and South Korea. ASEAN + 3

formula. The 3 were not so far part of the agreement but they are playing more at the political

level : more and more they try to established an Asian Identity vis--vis the US and EU

(external relations).

From a strategic point, EU has to keep an eye in the region and have a specific relationship in Asia

especially if the 3 countries decides to join the ASEAN block. European position:

- if the three are really embedded, you can only hope that they use ASEAN to discuss hot

issues (ex. Island dispute) and it will become very difficult for Japan and also China to takeunilateral measures if they are part of a group from that point of view positive.

They may be concerned when it comes to economic issues. If the 3 become more preferred as a

trade partner in the other countries, they are more concerned.

When the US took the initiative to APEC (Asia Pacific Economic Cooperation), it was not a real

economic cooperation it's only Summits but it made EU very jealous and established the same

model : an Asia Europe Meeting, once in the two years, leaders of EU and Asian countries in

general (Japan, China, India,...) meet in several countries and allows to develop an institutionalized

dialogue.

Trade agreement between EEE and individual countries in Asia is another important issue. For a

long time, there was a trade war with Japan and also with the GATT (plaint from Japan against EU

and its protectionism measures). Besides of ASEAN, there are specific trading agreements with

individual Asian Countries. With most of Asian countries, there are direct bilateral agreement

seeking to promote EU investment in Asia, protect EU economy,... Purely Commercial agreement.

But on the other side, there were also cooperation development agreement (food aid, technical

assistance,...) but not at the same level. For example, India still accepts specific projects but as a

limited value (doesn't want to hear about HR or democracy claimed by EU). Same for China or

Indonesia. Water management, Sustainable development programme, Education, Solar energy,...

Dynamic relationship which also make difficult a comprehensive cooperation policy ; the political

system is very different and imagine a EU-Asia common strategy would be an illusion.

EU - Mediterranean area relation

For a long time, it was not the object of DC because EU was focused more on Asia, Africa, Latin

America,... The Mediterranean area seemed to be easiness. Although, our EU roots remains in this

area. On the other, it is a very complicated region : Portugal, Spain, Greek (dictatorships at the

beginning) or in Yugoslavia,... Therefore, Europe failed to formulate a joined effective policy to

watch the Balkans (reason why US and Russia tried to settle it).

But the Northern States are not the only preoccupation. Concerning the South, there are also some

problems : Maghreb countries (Algeria, Tunisia,...) which had a difficult relations with Member

States, like France. Morocco, under Spanish colonization. Libya, Malta (as an independent neutral


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State), Cyprus and the Turkish occupation,... Jordan, Israel, Palestinian Problem,... Yet, it is very

important for EU to establish the cooperation with those countries.

Before, EU was very attentive not to let Soviet Union take over Cyprus, Albania or Malta. Europe is

also strategically concerned, for instance by the Palestinian/ Israeli conflict. The topic was raised in

the UN : some countries voted in favor of a recognition as an observers but Europe is deeply

divided.

It is actually the same as for Latin America and Asia; it started with bilateral cooperation (Jordan,

Egypt, Tunisia, Morocco,...) and it became after group cooperation. It was very complicated to put

every country around the same table (Palestinian wall, Lockerbie,...). Specific trading agreements

(Oil, wine,...) Spain, Portugal, Greece joined the EU in 1986 (after, Cyprus, Malta,...) so many

countries became Member State.

In 1991, Spain took the initiative to have a global approach : an Euro Mediterranean strategy. The

Barcelona Process in 1995 and was meant to have this global strategy but excluded some part of

the area (Palestinian, Libya,...). It was modeled upon the so-called Helsinki process with 3 baskets,

pillars were also copied by Spain :

Peace and security in the Mediterranean area (became more important after the 9/11 and

terrorist attack in US)

Economical cooperation (move beyond special agreements and bilateralism and try to

formulate a more comprehensive trade policy especially for the North African Countries)

Cooperation for the promotion of HR, good governance, environmental issues, interreligious

dialogue, cooperation with NGO's and civil society, Gender issues,...

Union for Mediterranean

The last one is more a soft law and is not always easy to reach. President Sarkozy had an original

plan which was refused by Merkel ; strengthening of the 3 pillars of the Barcelona Process.

With the Arab Spring, It became a hotter topic in the relationship between EU and Mediterranean

area and shows that countries are so different an EU doesn't have a very strong policy for each of

those revolution (as in Syria).

What are the reasons for EU to establish a development cooperation?

Stability peace order in the developing world and contribute to security

Investment in European Union

Eradicate poverty (Human dignity related issue)

To develop exportation in developing countries

To diminish immigration (Yemen, Somalia,...) and reintegrate people in their own countries

To promote culture and way of thinking

It is also a way to strengthen the influence on former colonies

Humanity reasons

Ex : Mauritania provides slavery practices, ethnics groups (civil code) Sharia,... Countries will often

invoke the religion to counter International Standards of HR protection. In reality, Mauritania goes

in another direction and is very authoritarian, no strikes can be organized, inequality betweengender and ethnics


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Officially, this Development Cooperation should be based on international solidarity. But in reality,

there are some strategic and political goals related to national interests.

The first technical assistance project, in 1920 1930, took place in the League of Nations. For

instance, with China (the Republic of China, 1924). At the end of the 1940 's and the Marshall Aid

Programme to reconstruct countries devasted by the WWII, President Truman established 4 points

and the last one concerned How to assist developing countries?

It was therefore an important Commitment for what we call now International Development

assistance . But how to do it?

In 1950's : Economical theory (growth) : injection from private firms to capital, private investment

should go to developing countries. Other economists thought that It was necessary to have public

fund and financial flows from richer countries to poorest countries would help to build nations and

develop education. For others, it is not a question of money, all we need is fair chances in the World

economy (trade for aid). Indeed :

Led us industrialize

Protect us behind tariff roles

No importation of goods to developing countries once they have it.

In early 1960's. UNCTAD : First trade agreements. Trade and Aid, reflected in the Institutional

architecture, for instance with the World bank which provided loans for Developing countries. Also

a special bank for low interests loans for the poorest developing countries (ADA).

Therefore, more and more bilateral policies are developed at this time (UK, Canada, US,

Netherlands, Sweden,...). UN programme, Overseas development programme,... Association startedin the framework of the OECD (Economical cooperation and promoting development). The DAC

(Development Assistance Comity) was established.

UN : UNICEF, UNCTAD, UN FOOD programme,... and agencies were established in the UN

system.

Within the OECD : the development assistance Committee was established. More and more norms

settings : necessary to promote welfare for everybody as foreseen in the HR declaration of 1948 for

instance.

In 1961,Kennedy declared that every developed countries have the responsibility to develop and toassist the development of poorest countries. He was the initiator of 1960 : Decade of

development . Norms for the transfer of public money from DONORS countries to Receivers. 1%

of the GDP should be allocated to Development assistance for those countries. (no precision

whether it is public or private funds)

In 1970 : The Second UN development decade :

On the 24 October 1970 = Adoption of the International Development Strategy for the 1970's. A this

time, Member states (DONNORS) were required to provide 0,7 % of their growth national income

to Developing countries. (this target is still actual) The question was : which kind of help?

OECD: Development criteria for Official development Assistance (ODA) : it has to come from the

public sector (excluded the sending of priests, i.e.). Also, it should be a ground element and not only


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loans. Also, military assistance is excluded. These are some elementary criteria of the ODA. Non-

ODA can also be interesting (internships, fellowships, export promotion,...) but is not properly

ODA. In fact, The DOC is the book keeper for the flows and the protector of the quality of criteria.

It also reviewed the assistance; 22 participants (member of EU + Japan + US + Canada,...) which

are donor states.

The DOC also refused the assistance policy of the EU in 2002 and in 2007 (and also in the last fiveyears) assessed, in 2002, that the performance of the EU in a negative way (fragmentation, too

many paper, inconsistency,...) In 2005, the review was much more positive but improvement can be

done.

Concretely, The EU Commission and Member States provide more or less 60% of the world-wide

assistance. EU as a whole provides more or less 150 billion Euros on an annual basis of

development assistance. 20% is done on a collective basis threw the EU.There is a threshold 0.7 %

imposed to states but only few countries reach this target (Netherlands, Luxemburg, Sweden,

Denmark, Finland,...) US is at 0.2 % or Germany 0.4%.

In most EU countries, as the result of economic recession and perception among citizens that thismatter is a luxury, this help declines. It seems more as a political cooperation and not an

international obligation imposed to States. European Union (27 + Commission) provided around

150 billion of Euros (More or less 60% of the aid flows...)

In 2002, Conference on Financing for Development took place in Mexico and reached a Consensus.

In 2011, even the US was increasing the aid flows as part of the war of terror). George Bush gave

more assistance in this context. Facing the pressure, the EU took a declaration in 2010 imposed

some threshold to Members depending their size. In 2005, Louis Michel elaborated the European

Consensus for Development which is a unique document from the 3 principle EU institutions.

REM : We can see that EU has to reach the target as fast as possible and not later than 2015, they promised in 2002(different targets for new and old member states).

Bush gave more development assistance than Clinton because of the 9/11 (give money to fight against terrorism)

these development put pressure on the European countries. In 2005, an important document was issued: the European

consensus on development (more structural approach in development cooperation). One paragraph relates to the ODAtarget and once again, EP, COMM and council of ministers, they all subscribed to the goal of the goal of the 0.7%-role

to be reached to 2015.

Now we are in 2012 and we see that they dont meet their own targets. It was increasing a bit until 2009, ever since it is

mostly on decline. We are now back to the same level as in 2005, only in volume it is much more, as a result in increaseof GDP, but not in percentage.

Reporting on Development(Brussels based ECDAM, Role of EU,...) it is a consultancy report.

The 0,7% norm : it is not only a financial assistance. It can also be a technical assistance

(engineers, education experts, health care personnel,...) or infrastructure support. There is also food

aid (for example, in emergency situation or civil war or hunger, drought,...). There was also a

proposition of the Commission to create a EU core, brigade of humanitarian workers (September

2012) seeking to increase the visibility of EU in those situations. How to ensure the effective help?

From EU to a member States? Through NGO's campaign?...

More and more we learned that Communitarian assistance was very useful even though many

countries want to have an individual visibility. Actually, it depends on circumstances but there are

always some objectives criteria. Conference in Africa (Akra?) and in South-Korea (Busan)

organized discussions to improve aid policy. In EU, there are also traditional donor States.


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Some criteria has to be adopted : accountability, transparency, no dictatorial support if possible,...

New possibilities to measures aid effectiveness : not amount but on how to best perform at the

donor and on the recipient side (capacity to use it?), conferences on effectiveness,... There are many

discussions on how to improve aid policy and especially in EU. This is very difficult because the

most important actors remain Member States (some of them have a colonialism history, some

others want to be more player at the bilateral level,...) Actually : sustainability and tolerance arevery important values in this context.

Development assistance

Many other actors are active in development assistance, not only governments :

o companies

o also NGOs

o important role of migrant families

o people giving money

Migrant Workers transfer money to their families or companies. The total flows through these

channels are also very important. Corporate social responsibility : companies, be bound by certain

standards. Associations related to fair trade and EU Commission tries to share the goals of those

Associations, for instance, by certification of Sustainable development label of production) or

concerning Diamonds and the certainty of their origins.

financial flows also come from other flows than from development assistance as for example

remittances ( twice the flow of the official public financial assistance. Not only remittances from

western country to developing countries, but for example also from Kuwait, Saudi Arabia), foreigndirect and indirect investment flows (even more! Maybe 12 times more than development

assistance, but biggest part of about 85% go to 10 countries only Brazil, China, India, Vietnam

- who are already quite wealthy, it hardly goes to poorer countries)

good corporate practices could be a motor for modernization and MNEs could be very

important promoters for values as HR, but also education, health etc.

- very new issue for EU

- in fair trade, many organizations already try to promote that issues near the EU

o certification (i.e. diamonds Kimberly process, wood of IKEA)

European Union is quite good in that

o consumer demands taken over by trading companies

Any of these alternative resources is mentioned in the official agreements on international

development cooperation (Cotonou etc.) seems to be a matter of time because it becomes

increasingly important. 2005: united approach by all EU institutions.

Trade sector

Aid for trade is necessary to create infrastructures, capacity, education of people of work in

important position in trading companies,... Trade alone doesn't seem to be sufficient. (Ex : Namibia)

UNCTAD: defines how to use the Development assistance money in order to create, use trade


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opportunities for Developing countries.

Ethiopia: 60% of its income is coming from aid. It shows that the country doesn't use its full

capacity (not use the trade opportunity).

Aid : Pilar of the Cooperation of Development

After WWII in 1945, the GATT (by WTO) established the basic rules :

Equality (formal). The principle is reflected in the WTO (each state has onr vote). But in the

Chamber, there are 24 countries not only the western part but not for the least developed

ones.

Freedom of trade and international investment. The principle of reciprocity is the root of the

GATT (means that you give to gain something). For instance, the BRIC in the Chamber

(Brazil, Russia, India, China) forms a block. Egypt, south Africa, Algeria (don't play a real

role). The smallest Asian countries neither.

Reciprocity (Give and take)

But for most DC, this is an impossible game. They could perhaps gain something if they were

united but one can see that they are not always. (BRICS, Oil producers,...) For instance, African

countries don't have ONE voice, different interests are at stake.

Adaptation of the GATT in the 1950's : there is a standstillfor the underdeveloped countries. And

there are basic duties for each countries : if a developing country (underdeveloped contracting

party) experiences serious balance of payment problems and can demonstrate that with public

policy it tries to fight against it, it can be excused for reciprocity and can exceptionally rise the

tariffs for certain products including luxury products. When a country is in a program ofindustrialization (tries to convert their own raw materials in products, doing processing, marketing

and distribution by themselves), a so-called infant or young industry, not yet competitive in a global

market, they can protect themselves behind a higher tariffs (exception in art. 18)

very difficult for fragile countries with a weak public sector

In the course of the 1960s, under the influence of UNCTAD: very important policies were made

- new part of the GATT (part 4) in 1966, dealing with trade and development. It seeks to

establish more fair and equitable prizes for commodities

o price indexes

o commodities agreements

o

International commodity-policy was practiced in the 70 and 80s:

- decision in the GATS 1971 to harmonize the preferences: establishment of the General

system of preferences: idea of providing lower tariffs for developing countries

before, all the big countries had some programmes to lower a bit the tariffs for their friends

o generalized, but not yet general system!

o Still on the basis ofsell-off/self selection (ex. US excluded for a long time countries


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with a communist regime, EU excluded Libya after Lockerbie)

o EU introduced it first in the middle of the 1970s

- Preferences for least developed countries (49 at the moment, 44 of them are in the group of

ACP): they can import all industrial products free of tariffs into the EU (all but arms

program)

But trade between EU and these least developed countries is, of course, very marginal.

- For most developed countries we have 25% less tariff than on products of Australia but

exception (clothing etc.)

- GSP+ schemas: doing something extra for countries which are willing to do something extra

(signing key convention of ILC child labour etc, if in some sectors, they are willing to

introduce ecological criteria). Especial program for the Caribbean (transit countries for

cocaine): if they are willing to cooperate, they can also get additional tariff cuts

In the context of Cotonou and Lom, also important trade chapters.

Lom I: in a way a very modern treaty, adopted in the midst of the discussion of a new economic

order, in which trade preferences play a very important role

Introduction ofSTABEXin 1985: if you lose part of your export income as a result for example of

low commodity prices, which are often subject of fluctuation, in a three year period or if you have a

exceptional disaster (insects etc.), or a major accident in a mine, than you can kept money.

STABEX was in power for 25 years, but was not very effective, did not lead to structural progress

in developing countries and was therefore abolished

In Cotonou: program to dismantle this trade measures for all countries of the group and to replace

them with EPAs (1 Caribbean countries, 4 for African countries, 2 with pacific islands.

trade people took over from the development people in the commission, BUT it is not ONLY

about trade. There are also important issues.

Cours du 17/12

Conclusion on the trade sector

Last week, we discussed the main issue in the field of trade : the international trade regime. First,

as incorporated in the GATT but also in the trade organizations. It is also an exclusive competence

of the EU, member states transferred their trade policy to the EU Commission.

1970's : Introduction of a generalized system of trade preferences aimed to coordinate, harmonize

the various trade regimes that different states have with DC. Efforts were made to have a common

regime : It is not a general system only a generalized system with basic rules. Indeed, they have to

operate under the International trade Law (ie Reciprocity). But there is still some preferential

regimes.

At the beginning, very controversial and different systems. (Arusha, All the Lome Conventions

included a trade chapter, there were also agreements with others DC,...)

Ex : Euro-bananas coming from ACP countries Vs/ Dollar-bananas coming from non-ACP

countries. The second category has less preferences (same as ACP sugar and non-ACP-sugar)


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In the beginning of the GSP system, every country had to ask a permission to deviate from the rules

in relations to DC.

In 1979, as part of the Tokyo round (multilateral negotiations) the member states of the GATT

decided to give a general waver (enabling clauses to entitle developed countries to give preferences

to developing countries). - established a general waver for all this kind of situations = enabling

clauses.

In 1980's : special regime was created for least developed countries.

But in 1970's, Emergence of some economies in middle east, Latin America: more South-South

Cooperation.

The second part of the enabling clauses entitle the developing countries to have a preferential

regime also among them. In fact, There are two different system :

one between developed and developing countries

The second among developing countries themselves. South-South trade could be to their mutual

benefit. There is almost more equality among developing countries than in the trade betweendeveloped and developing countries.

South-South cooperation is still limited, but we can see some investments (China, Arab countries,...)

and also trade, especially from China and India to developing countries. (but it's often one-sided

relation)

Sophisticated detailed scheme: until the 31st December 2012, roll-over regulation. Just few weeks

ago, the EU announced that a new scheme will take place in January 2014. Only a month before,

the European Commission published a report, in order to prepare the developing countries and also

the MS for the implementation of a new system.

But from the days of Lome I, there is a drastic change as regard the trade with the ACP countries.

The idea is to bring them to conformity with the WTO (policy of liberalization and transparency) in

the Cotonou convention, there is a programme of action (compromise to keep the scheme

untouched for the first 8 years and replace it in 2009) but in the end, it didn't work and the

replacement goes very slow.

Indeed, EU had to dismantle the trade preferences regime with DC and replace it by EBA's until

2008. But from 2009, EBA's should replace Trade chapter of Cotonou. This effort did not

succeed.EU envisaged to conclude 6 economic partnerships agreements, but only the one with

CARIFOR is fully in place and one provisionally with Southern and Central Africa. So far, theWTO has been quite understandable because it is very slow but to the conditions that it goes

towards the right direction.

ACP become really disappointed; they were always the preferred countries with a long trade history.

Europe, especially the EU Commission, tried to show that this was a group having something in

common.

Development aid with ACP continues to exist in the HR policy, development assistance,

environmental issues,... but stops as concerning trade. ACP countries think that Commission took

away the heart of the relationship (initially aid and trade). The ACP countries became divided : for

instance, CARIFOR concluded agreements, with goof deals and conditions, because EU needed asuccess at that moment and made concessions therefore.


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Meanwhile, the system of preferences became more detailed. More countries came on board (also

dependent countries and in general, there are currently 176 countries which have benefits from the

EU GSP) . But there is all kind of different system.

The general arrangement (general prefential system GSP)

Tariff modulation (considerable trade preference; products not competing with the

production of the EU).

Applicable to all countries with the DC status

Semi-sensitive products (in EU or in overseas territories and countries) benefits are already

lower.

if it relates to non sensitive products, the preferences can be as high as 85 percents

of the ordinary tariff. This is considerable and applies mostly to tropical products

which do not compete with European goods.

semi sensitive products: products also produced in EU or overseas territories of EU

then, the benefit is already much slower. Specific tariffs can relate around 45 and

65% of discount

sensitive products: goods which can also be produced in EU (leather bags, semi-

industrial products, shoes etc.), developing countries can have approximately 25 %

of tariff modulation

GSP + : for special developing countries, no matter whether there are in ACP countries, they have

to do something extra in two fields :

Labour rights (observe the core minimum labour rights by ratifying conventions)

environmental treaties. In the 1990's, as the result of the UN conference on Environment,

new rules were enacted (marine pollution, climate change,...) and legal instruments were

identified.

Drugs control (with cooperating with EU authorities to combat traffic by boats or

containers,...). EU established a policy of drugs trade control both for de producing countries

(Bolivia, Columbia, Ecuador) but also for the transit states (small carribbean islands) cooperation also with some additional preferences

Labour rights : if countries are willing to observe the core minimum labour rights, by ratifying the

most important ILO convention in this respect (number of working hours a week, minimum wage in

formal economy, prohibition of child labour up to 16, right to education, recognise the right to join a

trade union

freedom of association, right of collective bargaining, prohibition of forced labour)

firstival formally, but after a few years, they have to demonstrate advancement

ex.: Bangladesh quite big industry (textile clothing industry, assemblage car industry etc.)

incentive to ameliorate labour rights, access to education etc.


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Environmental treaties: (in the 90s, new rules for diversity of biology, combating climate change,

combatting marine pollution) a number of treaties have been identified and if countries were wiling

to cooperate with EU in xx these points, they could get special benefits

EBA 2002: Less developed countries (poorest developing countries). LLDC are identified by theUN considering several criteria:

A very low rate ofindustrialization (industrial goods in 10% or less from the production)

10% of growth domestic products

The litteracy rate is still very low (normally 85% of the people cannot read and write)

Income per head of population (500 dollars or lower)

There were Standards characteristics in the past but now we measure more in terms ofvulnerability

of the economy.

Currently, 49 countries are on the list of LLDC. And 44 out of them, belong to the ACP group

(despite all these preferences and additional preferential regimes). Reason why in the context of the

WTO there are a lot of negotiations to have a general regime for all LLDC.

In 2002 : the former trade commissioner (Lamy) introduced the EBA ( Everything but arms

policy). First exception are arms and related military materials (weapons, guns, sophisticated

military goods and services,...). This system enables developing countries which are part of the

LLDC to import duty-free everything (except arms) in the EU. Quickly, the question was also raised

concerning Beef, wine and other products which were also sensitive. So there is a transition period

but after it, the system will be fully in place too.

Idea is that it's fully in place in 2012. Attractive for countries to belong to this programme. (the

difference to the other preferential systems is that importation of industrial good, the rest is already

in the other system).Botswana, Nauru,... it is very interesting and it can provoke their willingness to

not develop to stay in this group. But basically they have to graduate from the group. In fact, it

means that they loose the benefit of the programme (duty-free for industrial products and services)

while they are just at the beginning of the processus. At least, you must have 3 successive years

before you can be compelled to graduate (political issue).

But some countries are well treated compared to others. Ex : Bangladesh, huge problem of

development and poverty. Myanmar (dictatorships, revolution, lack of labour rights,...) there is an

opening to democratize the country.

In November 2012, a drastically reform was announced. Reducing the countries which have the

benefit of the GSP. (now we passed from 176 to 89 countries). Reason : there are many countries on

the list which do not longer part of the DC. (emerging countries as China or India ; Arab oil

producers countries,...). Also, there is as goal to conclude with a certain number of countries free

trade agreements and also some preferential agreements. By 2040, the GSP system should be in

place with a trade of about 60 billions of Euros. If you compare it with the cut of GSP countries, it

seems much but actually it is not so much (regarding the trade flows with US, Japan or in the EU).

For EU, it relates to at best between five and ten percents of trade volume.

They keep the GSP+ (13 countries) and they also keep in place the EBA (development cooperation

dimension). The EU will be more strict with graduation : in terms of per capita income, if it has

a higher, the country is out of the list. and countries have to integrate.


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Concerning the middle income countries (divided in high and low middle income countries). If a

country reach the level of high middle income, it loses preferences. There is therefore a focus on

low and middle low income countries.

The aim is to have criteria which are less political and more grounded on economic income.

Ex : India. Some sectors could still benefit of preferences but not the economy as a whole.

This policy document seeks to rationalize the trade policy of the EU and defines which countries do

belong to certain categories of trade preferences (ex. They stopped GSP to Myanmar, but if they

really seek to introduce labour rights they can get some preferences back, Maledives had a quite

high income in the last years and are now out of LDC, also: China, Columbia, Vietnam are excluded

maybe in objective terms they could qualify GSP+, but they are probably too big.

Human rights

Reason why it took so long to include HR policy in Development cooperation policy of EU:

The cold war. Rivality between East and West. EU refused to let go some countries to the

communism block. They didn't disconnect from a country even if they violated HR.

Also, the issue of sovereignty and non-interference. In the 1950 - 1960's, many countries

achieved their independence and decolonization. Preventing EU to say something about

domestic human rights. They actually refused to apply some criterion imposed by theirformer colonial powers.

Bit by bit, the situation changed. Some developing countries wanted an HR policy and advocated to

establish a complain mechanism about the HR (often in the UN framework). HR became a more

policy issue and EU tried to integrate HR into the Lom Cooperation. Most efforts were made in the

mid 1980's to have a compromise, a declaration annexed to the Convention saying that HR are

essential for the cooperation process. 1989 : a new Lom Convention : Countries agreed to include

it in the Convention (respect for HR is since that fully incorporated in the Lom Convention).

Not only international protection, there are also regional instruments. American States, African

States and Europe. In Lome IV bis, in 1995, we see also a new kind of sanctions system: if oneState is deeply concerned about the HR Situation in another country, it can ask for a consultation

(direct complaining verbal note from the complaining country). On the TROIKA model (in the

sense of the former president) : there can be also a consultation, this should start within de 2-3

weeks and should no longer take than 60 days (President of the ACP, two voices president,...). After

that if it doesn't work, under Cotonou, the EU has the unilateral right to suspend (stop temporarily)

and, if necessary, to terminate the cooperation with the country. But It can only be related to the HR

which is seen as an essential element of the Convention.

It also worth for the basic, fundamental elements of the cooperation (ex: good governance): the EU

adopted a corruption policy. When a government in developing countries is established to corrupt,

then after the consultation machinery, the EU can suspend or terminate the cooperation with this

government.


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= these are negative measures (stick policy)

Concerning positive measures (carrot measures), the GSP+ can also help sometimes. One can also

see it in the financial policy. Then, if you are really serious in respecting HR, you can get some

supplement from EU (money, technical assistance,...) If you are willing to respect some ILO

standards you can get some additional preferences. It is interesting to note that the framework of

Human rights is an international one. The EU follows the one of United Nations. So, we can talkabout a universal HR protection.

Rem : a New document on HR policies from the EU: about the new place of HR in the external policies of the

EU. It was published of the 12 December of 2011. EU parliament dealt with it this year. human rights and

democracy at the heart of external action.

In 1966 : two conventions as regard the two categories of HR (political and civil/ economical, social

and cultural rights).

There are also some specific HR conventions (Racial, convention against torture, international HR

treaties for specific groups women, children, migrant workers, disabilities,...). So many levels ofimplementation of HR policy: in the UN: we have treaty bodies and Committees and it's a bit

confused.

In the UN declaration we can find:

- civil and political rights

- but also: social and economic rights that makes it very special, because very soon a

cleavage came between western world and communist world. The first supporting civil and

political rights and the latter more social and economic rights.

o In 1966: two treaties

Civil and political rights

Economic, social and cultural rights

- 1965: Convention about racial discrimination

o convention about torture

o conventions for specific groups

women (80s)

childrens rights (early 80s)

migrant workers (early 90)

recently: persons with disabilities

Environmental Policy

+ Dernire sance de cours UV

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european union and developping countries (vf)

Documents