C/04/116 Luxembourg, 26 and 27 April 2004

8567/04 (Presse 116)

2577th Council meeting - External Relations - Luxembourg, 26 and 27 April 2004

President : Mr , TD Minister for Foreign Affairs Mr Tom KITT, TD Minister of State with Special Responsibility for Overseas Development Assistance and Human Rights of Ireland

* The 2576th meeting on General Affairs is the subject of a separate press release (8566/04 Presse 115)

Internet: http://ue.eu.int/ E-mail: [email protected]

For further information call 32 2 285 6083 – 32 2 285 6319

8567/04 (Presse 116) 1 EN CONTENTS 1

PARTICIPANTS...... 4

ITEMS DEBATED

EXTERNAL TRADE ...... 6 – Doha Development Agenda ...... 6 – Accession of Russia to the WTO...... 6 – EU/Mercosur Association Agreement...... 6 EUROPEAN SECURITY AND DEFENCE POLICY...... 6 WESTERN BALKANS - Council conclusions...... 6 CHINA...... 8 MIDDLE EAST PEACE PROCESS - Council conclusions ...... 8 AFRICA...... 10 – EU-Africa relations - Council conclusions...... 10 – Sudan - Council conclusions ...... 13 RELATIONS WITH RUSSIA...... 13 DEVELOPMENT ISSUES...... 13 – Financing development cooperation - Council conclusions - Public debate...... 13 – UN Millennium Development Goals - Council conclusions...... 18 – Commodities and cotton- Council conclusions...... 19 – EU external aid...... 22 – International conferences...... 22 – ACP-CE Partnership Agreement...... 23 OTHER BUSINESS ...... 23 – Seal hunting in Canada...... 23 – Development and terrorism ...... 23 – Burundi ...... 23

8567/04 (Presse 116) 2 EN EVENTS IN THE MARGINS OF THE COUNCIL ...... 24 – EU-Morocco Association Council...... 24 – EU-Russia Permanent Partnership Council...... 24 – EEA Council...... 24

1 ▪ Where declarations, conclusions or resolutions have been formally adopted by the Council, this is indicated in the heading for the item concerned and the text is placed between quotation marks. ▪ The documents whose references are given in the text are available on the Council's Internet site http://ue.eu.int. ▪ Acts adopted with statements for the Council minutes which may be released to the public are indicated by an asterisk; these statements are available on the above mentioned Council Internet site or may be obtained from the Press Office. ▪ Some external relations items were adopted without debate in the framework of the “General Affairs” meeting of the Council. See press release for that meeting, doc 8566/04.

8567/04 (Presse 116) 3 EN PARTICIPANTS The Governments of the Member States and the European Commission were represented as follows:

Belgium : Mr Louis MICHEL Deputy Prime Minister and Minister for Foreign Affairs

Denmark : Mr Carsten SØDERGAARD Secretary of State

Germany : Mr Joschka FISCHER Federal Minister for Foreign Affairs and Deputy Federal Chancellor Ms Heidemarie WIECZOREK-ZEUL Federal Minister for Economic Cooperation and Development

Greece : Mr Petros MOLYVIATIS Minister for Foreign Affairs Mr E. STYLIANIDIS Secretary of State

Spain : Mr Miguel Angel MORATINOS CUYAUBÉ Minister for Foreign Affairs

France : Mr Michel BARNIER Minister for Foreign Affairs

Ireland : Mr Dick ROCHE Minister of State at the Department of the and at the Department of Foreign Affairs with responsibility for European Affairs

Italy : Mr Roberto ANTONIONE State Secretary for Foreign Affairs

Luxembourg : Ms Lydie POLFER Deputy Prime Minister, Minister for Foreign Affairs and Foreign Trade, Minister for the Civil Service and Administrative Reform Mr Charles GOERENS Minister for Cooperation, Humanitarian Action and Defence, Minister for the Environment

Netherlands : Mr Bernard BOT Minister for Foreign Affairs Ms Anna Maria Agnes van ARDENNE-van der HOEVEN Minister for Development Cooperation

Austria : Ms Benita FERRERO-WALDNER Federal Minister for Foreign Affairs

Portugal : Mr Carlos COSTA NEVES State Secretary for European Affairs Ms Manuela FRANCO State Secretary for Foreign Affairs and Cooperation

Finland : Mr Erkki TUOMIOJA Minister for Foreign Affairs Ms Paula LEHTOMÄKI Minister for Foreign Trade and Development

Sweden : Ms Laila FREIVALDS Minister for Foreign Affairs Ms Carin JÄMTIN Minister at the Ministry of Foreign Affairs with responsibility for International Development Cooperation

United Kingdom : Mr Jack STRAW Secretary of State for Foreign and Commonwealth Affairs Mr Hilary BENN Secretary of State for International Development

8567/04 (Presse 116) 4 EN

* * *

Commission : Mr António VITORINO Member Mr Günter VERHEUGEN Member Mr Pascal LAMY Member Mr Chris PATTEN Member Mr Poul NIELSEN Member

* * *

General Secretariat of the Council : Mr Javier SOLANA Secretary -General/High Representative for the CFSP

* * *

The Governments of the Acceding States were represented as follows:

Czech Republic : Mr Jan KOHOUT Deputy Minister for Foreign Affairs

Estonia : Ms Kristiina OJULAND Minister for Foreign Affairs

Cyprus : Mr George IACOVOU Minister for Foreign Affairs

Latvia : Mr Rihards PIKS Minister for Foreign Affairs

Lithuania : Mr Antanas VALIONIS Minister for Foreign Affairs Mr Sarunas ADOMAVICIUS Under-secretary

Hungary : Mr András BÁRSONY Secretary of State Mr Gábor SZENTIVÁNYI Deputy State Secretary Malta: Mr John DALLI Minister of Foreign Affairs and Investment Promotion of Malta Mr Michael FRENDO Parliamentary Secretary

Poland : Mr Włodzimierz CIMOSZEWICZ Minister for Foreign Affairs Mr Jan TRUSZCZYŃSKI Under-Secretary of State

Slovenia : Mr Dimitrij RUPEL Minister for Foreign Affairs Mr Marjan SETINC Secretary of State

Slovakia : Mr Eduart KUKAN Minister for Foreign Affairs Mr József BERÉNYI State Secretary

8567/04 (Presse 116) 5 EN ITEMS DEBATED

NOTE: The acceding countries (Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, the Slovak Republic and Slovenia) align themselves on the conclusions reached on the Western Balkans, the Middle East Process, EU-Africa relations and partnership, and Sudan.

EXTERNAL TRADE

– Doha Development Agenda – Accession of Russia to the WTO – EU/Mercosur Association Agreement

The Council was informed by Commissioner Pascal Lamy on recent developments regarding the Doha Development Agenda, the negotiation agenda launched by the World Trade Organisation in November 2001 at Doha, and of his assessment of the prospects for progress during the coming weeks and months. It also noted the views and concerns expressed by a number of delegations on the issues at stake. The Council expressed full support to the Commission in its efforts to pursue the negotiations with a view to obtaining progress by the end of July.

The Council was also briefed by Commissioner Lamy on negotiations with Russia with a view to its accession to the WTO and on negotiations with Mercosur aimed at concluding an Association Agreement. It took note of concerns expressed by delegations regarding the need for reciprocity in the negotiations with Mercosur.

EUROPEAN SECURITY AND DEFENCE POLICY

Discussions on this item are reflected in the final section (possible ESDP mission in Bosnia and Herzegovina, including a military component) of the Council conclusions on the Western Balkans - see next item.

WESTERN BALKANS - Council conclusions

Following its discussion, the Council adopted the following conclusions:

"SERBIA AND MONTENEGRO / KOSOVO

The Council emphasised its full support for the policy of Standards before Status and urged the Provisional Institutions of Self-Government to demonstrate their responsibility for and commitment to achieving concrete progress on the implementation of the Standards. It stressed the importance of dialogue between the communities in Kosovo and between Pristina and Belgrade in order to address critical issues of common interest. The EU stands ready to support this dialogue.

8567/04 (Presse 116) 6 EN The Council reaffirmed its strong commitment to a secure, democratic, multi-ethnic and prosperous Kosovo. It emphasised that the recent violence had been a setback for Kosovo and endangered the progress made in recent years. It confirmed that in the aftermath of the violence, the immediate priorities must be to ensure security, to facilitate the return of displaced persons, to reconstruct destroyed property and to bring those responsible to justice. The Council urged all political leaders in Kosovo, in particular the Kosovo Albanian leadership, to work closely with UNMIK and KFOR to ensure the physical security and the full protection of the rights of members of all communities in Kosovo.

FORMER YUGOSLAV REPUBLIC OF MACEDONIA

The Council welcomed the generally smooth conduct of the first round of the Presidential elections in the former Yugoslav Republic of Macedonia following the tragic death of President Boris Trajkovski. It noted that a strong turnout in the second round of elections on 28 April would further strengthen the democratic process.

The Council expressed confidence that the future Head of State would provide leadership as the people of the country continue to make progress towards Europe through the implementation of the Ohrid Framework Agreement and the Stabilisation and Association Agreement.

TOKYO MINISTERIAL CONFERENCE ON PEACE CONSOLIDATION AND ECONOMIC DEVELOPMENT OF THE WESTERN BALKANS

The Council welcomed the initiative of the Government of Japan in organising the successful Ministerial Conference on Peace Consolidation and Economic Development of the Western Balkans in Tokyo on 5 April 2004. The Council endorsed the Joint Conclusions adopted at the Conference. It warmly welcomed the sustained engagement of Japan with the Western Balkans and the close co-operative relationship between the EU and Japan in support of the region and of its European perspective.

REGIONAL COOPERATION - SEECP

The Council welcomed the positive results of the recent Southeast European Cooperation Process (SEECP) Summit Meeting held in Sarajevo (21 April) under the Chairmanship of Bosnia and Herzegovina. The Council encourages the SEECP, which is gradually becoming the genuine voice of the region, to work on concrete and tangible projects, further enhancing regional cooperation, which constitutes one of the main elements of the SAP.

POSSIBLE ESDP MISSION IN BOSNIA AND HERZEGOVINA, INCLUDING A MILITARY COMPONENT

The Council welcomed the planning and preparation that has taken place so far for a seamless transition from SFOR to an ESDP mission in Bosnia and Herzegovina, including a military component based on the agreed Berlin Plus arrangements. The Council requested the Presidency and the SG/HR to take forward and complete the remaining strategic planning steps prior to the Istanbul Summit, which would allow operational planning to take place immediately thereafter, on the basis of EU decisions."

8567/04 (Presse 116) 7 EN CHINA

The Council had an exchange of views on the arms embargo against China. The Council noted that the embargo had been imposed as a response to specific events in 1989 and that a solution for the matter had to be found which was in line with the current situation in China, the increasingly close bilateral relations and the EU's intention to develop a strategic partnership with China. The Council was however of the opinion that the issue required further discussion, in particular taking into account the human rights situation in China and questions relating to the application of the EU Code of Conduct on Arms Exports. The Council requested the Permanent Representatives Committee (Coreper) and the Political and Security Committee to take the discussion forward.

MIDDLE EAST PEACE PROCESS - Council conclusions

The Council discussed the Gaza disengagement proposals ahead of the upcoming Ministerial Quartet meeting. After its discussion, the Council adopted the statement made by the Presidency which was approved by the Foreign Ministers at their recent informal meeting:

"The European Union reaffirms its commitment to a negotiated two-State solution agreed between the parties which would result in a viable, contiguous, sovereign and independent Palestinian State existing side by side in peace with an Israel living within recognised and secure borders. The Union reaffirms its belief that the Roadmap represents the only route to achieving such an outcome. The Union is determined to pursue vigorously the course set out in the Roadmap and calls on both sides to fulfil their obligations under the Roadmap.

The European Union recalls its established position, restated by the European Council of 25-26 March, that the Union will not recognise any change to the pre-1967 borders other than those arrived at by agreement between the parties. The Union emphasises that no declared views on the possible shape of a final settlement can pre-empt the negotiation of that settlement.

The European Union also notes that the refugee question and the manner in which the right of return may be realised is also a Final Status issue and that the Roadmap states that a final and comprehensive permanent status agreement that ends the Israeli-Palestinian conflict must include an agreed, just, fair and realistic solution to this question.

In this context, the Union notes President Bush's reaffirmation of the United States' commitment to the Roadmap and to a negotiated settlement.

The European Union emphasises the principle, shared by President Bush, that Final Status issues are a matter for negotiation and agreement between the parties themselves and must not be prejudged.

The European Union notes President Bush's agreement that secure and recognised borders should emerge from negotiations between the parties in accordance with UN Security Resolutions 242 and 338. These and other relevant Security Council Resolutions must form the basis for a just and lasting settlement of the conflict.

8567/04 (Presse 116) 8 EN The European Union welcomes the prospect of Israel's withdrawal from the Gaza Strip. The European Council has stated that such a withdrawal could represent a significant step towards the implementation of the Roadmap provided that it is carried out in accordance with certain conditions. This is an opportunity which the international community led by the Quartet should seize.

The proposed withdrawal should be properly orchestrated with the international community so as to ensure that an orderly situation in Gaza results which will permit the maintenance of security as well as rehabilitation and reconstruction. The Union urges all parties to undertake urgently preparations towards this end.

On that basis, the European Union reiterates its readiness to support the Palestinian Authority in taking responsibility for law and order as well as to continue the Union's existing aid to the Palestinian Authority and to examine possible future needs which may arise in the context of a new situation in Gaza.

The Union stresses the need to avoid a political vacuum, and the dangers which that would involve, in the interim period between now and the beginning of any withdrawal. It recalls that there are a number of measures which need to be adopted in the period immediately ahead in the political, security and humanitarian spheres in order to prevent further deterioration and to resume progress.

The European Union urges an end to violence and terrorism as well as the resumption of a ceasefire embracing all parties and groups. It calls on both sides to resume negotiations on the peace process without further delay.

The European Union recalls that a just, lasting and comprehensive peace must meet the legitimate aspirations of both the Israeli and Palestinian people and must include Lebanon and Syria.

The European Union also calls on all States in the region to exert every effort to promote peace and to combat terrorism.

The European Union looks forward to an early meeting of the Quartet at Principals' level. The Quartet should play an active role in pursuing the goal of a comprehensive regional peace and encourage the parties to move ahead vigorously on the basis of the principles outlined above."

The Council asked the Secretary General/High Representative, the Commission and the EU Special Representative for the Middle East Peace Process to work on concrete measures to make a success of disengagement from Gaza as a step towards the full implementation of the Roadmap, working with the Palestinians, the Israeli Government and the other members of the Quartet.

8567/04 (Presse 116) 9 EN AFRICA

– EU-Africa relations - Council conclusions

The Council adopted the following conclusions:

"1. The Council discussed EU-Africa relations, following the meeting of the EU-Africa troika in on 1 April 2004.

2. The Council reaffirms the importance of the EU-Africa dialogue and of the strategic partnership with Africa to which the European Union committed itself at the initial EU-Africa Summit in Cairo in 2000. The Council welcomes the enhanced dialogue which has taken place between the European Union and Africa and believes that the streamlined working procedures agreed at the Rome Ministerial troika last November provide a productive basis for continuing the dialogue, pending the holding of the second EU-Africa Summit in Lisbon as soon as circumstances permit. In addition to regular ministerial troika meetings, continuity of the dialogue will be ensured through enhanced dialogue between the AU and European Commission and at the level of Heads of Missions in Addis Ababa.

3. The Council recalls the strong historic and cultural ties and shared commitment to democracy, promotion of human rights, good governance and respect for the rule of law in international relations which form the basis of the EU-Africa relationship. This relationship is also based on mutual respect and accountability and on those principles set out in the European Union’s founding treaties and the Constitutive Charter of the African Union and conducted in a spirit of equal partnership.

4. The Council reaffirms the commitment of the European Union to work with its African partners in supporting the building of a peaceful, prosperous and democratic Africa, capable of realising its full potential and playing a full and proper role in the world. This objective must assume a greater importance within the framework of the Union’s common foreign and security policies, if this potential is to be realised and the many challenges facing the African continent confronted.

5. The European Union recalls the substantial support, amounting to 2.5 billion Euro annually at present, which it already accords to Africa within the framework of the Cotonou Agreement and its partnership agreements with South Africa and the countries of North Africa. The European Union will continue to work for Africa’s sustainable development by implementing the commitments taken in Monterrey and Johannesburg Summits. It will put the necessary focus on contributing to the achievement of the Millenium development goals in Africa, notably in the poorest countries, and reinforce the partnerships in water's supply, education, sustainable energy, environment, fight against HIV/AIDS, tuberculosis, malaria, and fight against hunger. The EU is also determined to help the commodities-dependent developing countries, and especially cotton producing countries, to address the major challenges they face and to set up adequate measures and tools to this end.

8567/04 (Presse 116) 10 EN 6. The European Union will work for Africa's integration into the world economy, in particular through seeking a successful outcome to the current Doha Development Round which must adequately take account of the needs of developing nations. A serious focus should be placed on finding solutions to the problems experienced by the most vulnerable countries and to such issues as commodities’ prices and the preferential access to the markets of developed countries. The EU encourages all developed countries and major developing countries to give duty and quota free access to all products from LDCs, as it has done under the Everything But Arms (EBA). The European Union is also committed to ensuring sustainable trade with Africa by the implementation of economic partnership agreements.

7. The European Union applauds the new spirit of initiative and self-help evident within the continent of Africa. It particularly welcomes NEPAD as an unprecedented African-led initiative to identify appropriate strategies for confronting the inter-related problems of peace and development. The African Peer Review Mechanism represents a particularly valuable innovation with regard to the promotion of better governance throughout the continent and the European Union would encourage those countries which have not yet joined the review process to do so.

8. The European Union is greatly encouraged by institutional developments within Africa and, in particular, the development of a peace and security architecture and an institutional capacity within Africa for preventing and tackling conflict and promoting better governance. The European Union warmly welcomes the establishment of the African Union Peace and Security Council (PSC) and steps taken by sub-regional organisations in establishing structures supporting the African Peace and Security architecture. Similarly, the European Union also warmly welcomes the establishment of the Pan-African Parliament and its inaugural session in Addis Ababa in March 2004 as a demonstration of African resolve to promote improved governance.

9. The European Union is determined to work with Africa in supporting these important institutional developments and helping to build up African capabilities for addressing and resolving conflicts, including through deployment of African peace-keeping missions. The Council recalls that the African Peace Facility (amounting to €250 million) has been established for precisely this purpose and welcomes the recent approval of financing arrangements for the Facility. The Council calls on the Commission to finalise the outstanding administrative procedures with the African Union and, as may be appropriate, with sub- regional organisations as defined in the financing proposal with a view to early operationalisation of the Facility.

10. The European Union is also committed to identifying other means of strengthening conflict prevention efforts in Africa within the framework of the European Security and Defence Policy. The EU’s efforts will build on the successful example provided by Operation Artemis in the Democratic Republic of the Congo and the work under way to improve rapid reaction capabilities in crisis situations. The EU is ready to consider further EU peacekeeping operations in Africa if request by the UN. Efforts will also take account of the enhanced cooperation now existing between the EU and the United Nations in this area, following on from the joint declaration on EU-UN cooperation in crisis management signed in September 2003. The EU particularly underlines the importance of cooperation with Africa in combating all forms of terrorism.

8567/04 (Presse 116) 11 EN 11. The European Union also commits itself to maintain its current close engagement in the search for peace in Africa. It will continue to provide political and financial support, including through the efforts of its Special Representatives in Africa, to advance the search for peace in such conflicts or areas emerging from conflict as Sudan, Somalia, Ethiopia-Eritrea, the Great Lakes region including DRC and Burundi, Northern Uganda, Central African Republic, Liberia, Sierra Leone and Côte d’Ivoire.

12. The European Union is greatly encouraged by the political dialogues that have been taking place under article 8 of the Cotonou Agreement. The EU reaffirms its commitment to enhancing its relationship with African countries based on mutual respect, accountability and conducted in a spirit of partnership.

13. The European Union will continue to work to deepen its dialogue with Africa, with the African Union which now has a major role in the maintenance of peace and security on the continent, and with those sub-regional organizations, such as ECOWAS, SADC and IGAD, which have been prominent in African peace-keeping and conflict resolution efforts. The European Union looks forward to a full discussion of EU-Africa relations at the next EU- Africa Summit, which will take place in Lisbon as soon as circumstances permit. The EU renews its commitment to work closely with African partners on all issues of mutual concern, including Zimbabwe.

14. The Council also welcomed the first ministerial meeting under the Irish Presidency between the EU Troika and South Africa in Dublin on 2 April 2004. Ministers applauded the progress made in the past ten years of democratic rule in South Africa. The European Union looks forward to the celebration of the 10th anniversary of freedom and democracy on 27 April 2004 and will join with South Africa in their celebrations in an act of friendship and solidarity.

15. The Council also welcomed the agreement reached at the troika to establish an annual political dialogue between the EU and South Africa.

16. The Council reviewed the outcome of the recent EU troika mission to Eritrea and Ethiopia. It welcomed the stated openness of President Isaias of Eritrea to meet with UN Special Envoy Lloyd Axworthy and expressed the hope that such a meeting would take place at the earliest opportunity. The Council also noted the indication by Prime Minister Meles that Ethiopia was open to dialogue on all issues affecting the Algiers Peace Agreement. The Council reconfirmed its determination that the final and binding decision of the Boundary Commission be implemented without further delay. It called on both parties to work constructively with the UN. The Council also reiterated its willingness to work with the UN and the other witnesses to the Algiers Agreement to support efforts by Eritrea and Ethiopia to bring about a resolution to the current impasse."

8567/04 (Presse 116) 12 EN

– Sudan - Council conclusions

The Council adopted the following conclusions:

"The Council expressed its grave concern at the situation in Darfur and called on the government of Sudan to allow full, unhindered access to the region for UN and other humanitarian agencies. The Council called on all parties to fully respect the terms of the humanitarian ceasefire agreement reached on 8 April in N'Djamena. The Council noted with concern the actions of the Janjaweed militias operating in Darfur and called on the Government of Sudan to take command of all armed groups under its control."

RELATIONS WITH RUSSIA

The Council discussed preparations for the EU-Russia summit scheduled for 21 May in Moscow, and approved a draft Joint Statement on EU enlargement and EU-Russia relations issued in the margins of the EU-Russia Permanent Partnership Council (see page 32).

DEVELOPMENT ISSUES

– Financing development cooperation - Council conclusions - Public debate

The Council held a policy debate on the follow-up to commitments made at the International Conference on Financing for Development (Monterrey 2002), on the basis of a Commission communication. It adopted the following conclusions:

"Underlining the need to fully implement the commitments deriving from major UN conferences, in particular the International Conference on Financing for Development (ICFD) held in 2002 in Monterrey, and reaffirming that this is part of a wider process aiming at achieving the Millennium Development Goals (MDGs);

Recalling : a) the commitments made by the EU and its Member States at Barcelona in March 2002 in view of the preparation of the ICFD; b) the Conclusions of the Council of November 2002, in relation to the request to the Commission to report on follow-up of Monterrey; c) the Conclusions of the Council of May 2003, on the first monitoring report by the Commission on the follow up to Monterrey; d) the Conclusions of the Council of January 2004, noting that commitments made by EU Member States at Barcelona reflect the Union’s leadership role in international efforts to achieve the MDGs.

8567/04 (Presse 116) 13 EN THE COUNCIL:

1. Welcomes the Commission’s Communication “Translating the Monterrey Consensus into practice: the contribution by the European Union” which is the second annual report monitoring and analysing the progress of EU implementation of the eight Barcelona Commitments, and which, for the first time, includes the contribution by the Acceding Countries;

2. Takes note of the progress made to date on implementing these commitments, together with the recommendations from the Commission for further steps to be taken, and offers the following orientations in this regard:

Commitment I: Increasing financial resources for ODA

3. Notes with satisfaction that the Union is on track to exceed its commitment to achieve the collective target for increasing the volume of ODA by 2006, welcomes the efforts of the Acceding Countries in this regard, and agrees on the need for sustained efforts to ensure that these commitments are met;

4. Welcomes the provision by a number of Member States of national timetables for the attainment of the UN target of 0.7% ODA/GNI and encourages all Member States which have not yet done so to set a timeframe for achievement of the UN target;

5. Underlines the importance of increasing ODA volumes in order to meet the MDGs, and the need to make a substantive contribution to the 2005 MDG review;

Commitment II: Harmonisation and Coordination

6. Recalls the Council conclusions on coordination of development policies since 1974 and notes that further concrete measures need to be taken by the EU to fully implement those as well as to support the implementation of the harmonisation agenda

7. Recalls Commitment II made in Barcelona; to take concrete steps on coordination of policies and harmonisation procedures before 2004, both at EC and Member States level, in line with internationally agreed best practices including by implementing recommendations from the OECD Development Assistance Committee Task Force on donor practices.

8. Welcomes the progress that has been made to implement the recommendations of the 2003 DAC High Level meeting and the Declaration of the Rome High Level Forum through steps by the EC and the Member States to intensify co-ordination of policies and harmonisation of procedures, particularly at the country level, with the objective of making ODA more effective, reducing transaction costs on our partners in development and thereby contributing to the quality and visibility of EU assistance;

8567/04 (Presse 116) 14 EN 9. Underlines that sustained and accelerated progress requires enhanced joint planning by the EU and other donor partners, led by partner governments and focused on alignment with nationally owned development strategies such as Poverty Reduction Strategies (PRS). Coordination efforts at the level of Headquarter offices play an important role in creating the enabling environment for field level coordination, and removing obstacles to progress in this regard; 10. Emphasises the importance of effective implementation by the Member States and the EC of the EU’s commitments and initiatives on coordination and harmonisation including through pilot programmes in a number of partner countries;

11. Underlines the added value of coordination and complementarity of development cooperation undertaken by the EU, with a view to improving the effectiveness of development aid and strengthening the coherence in the external action of the Union;

12. The 2004 enlargement process, following which all the acceding States will have established their own bilateral assistance programmes, further underlines the need for stronger EU coordination and support to the acceding States to develop their capacities for aid delivery, and enhancing public awareness of development policy. In this context, the Council underlines the importance of full and active participation by the acceding countries in relevant fora that govern the development policy of the Union and in the implementation of the assistance channelled via the Community;

13. Emphasises that action at EU level should serve the purpose of translating the Rome Declaration on Harmonisation into practice. The Union shall continue to act as a proactive and driving force in the international aid effectiveness debate and will make a strong and substantive contribution to the Second International High Level Forum on Aid Effectiveness, which will take place in the spring of 2005;

14. Takes note of the recommendations from the Commission for further action at EU level on coordination of policies and harmonisation of procedures;

15. Agrees on the need to take further concrete steps at the level of the Union, consistent with and adding value to international efforts to improve donor coordination and harmonisation, to translate the second Barcelona commitment into practice;

16. In the context of the above, requests that experts on harmonisation be directed to undertake a detailed examination of the Commission recommendations, in particular to:

- Develop and solidify joint EU approaches, contributions and actions on concrete aspects of harmonisation and co-ordination;

- Establish an EU Action Plan for co-ordination and harmonisation in EU pilot countries with a view to introducing this practice to any partner country where two or more EU donors have a co-operation programme and extend the practice of an annual report on the state of play in EU co-ordination to all partner countries at a time considered feasible by the Council;

8567/04 (Presse 116) 15 EN - Open any donor-wide initiatives involving one EU Member State to all EU partners present in that country;

- Develop a strategy and a timeframe to apply sector and thematic guidelines agreed at EU level to bilateral and Community assistance and using it as a common platform for the dialogue with partner countries and the donor community;

- Develop a strategy to implement by the EU multiannual programming and the harmonisation of key analytic and diagnostic inputs for the EU programming cycles around the national policy framework and budget cycle of each pilot country;

- Develop a common framework for aid implementation procedures;

- Develop an operational strategy for complementarity within the EU;

17. In the context of the above, the Council concludes that an ad-hoc working party of the Council consisting of experts on harmonisation should be established. This working party should examine in detail the above recommendations and other relevant proposals with a view to translating the Barcelona Commitment II into practice. The Working Party is invited to report back to Council no later than November 2004, in view of adoption by the Council of an EU Action Plan for Coordination and Harmonisation for submission to the Second High Level Forum on Harmonisation and Alignment for Aid Effectiveness to be held in Paris in 2005;

Commitment III: Untying of Aid

18. Welcomes the presentation of the Commission's proposal for a Regulation integrating provisions for further untying of aid into all EC development cooperation instruments in line with the conclusions adopted by the Council in May 2003. In the same context, welcomes Commission proposals for a renegotiation of relevant provisions of the Cotonou Agreement;

19. Encourages and supports progress at international level on further untying of aid beyond the DAC recommendations. In this respect, it looks forward to the results of the ongoing studies by OECD/DAC and the Commission on the added benefit and impact of further untying;

Commitment IV: Trade Related Assistance (TRA)

20. Underlines the importance of trade related assistance for developing countries within the framework of the Doha Development Agenda and calls on Member States to sustain and further increase levels of TRA;

21. Acknowledges the need to improve co-ordination, within the EU and with other donors, of TRA-activities in favour of developing countries, including productive capacity building and measures addressing supply side constraints, especially in LDCs, and agrees to improve information exchange in multilateral frameworks and at the recipient country level;

8567/04 (Presse 116) 16 EN Commitment V: Global Public Goods (GPGs)

22. Takes note of the ongoing work on GPGs in the context of the international Task Force and agrees to broaden the level of EU participation in the process;

23. In this context, invites the Commission to take a more active role and to ensure that the next annual progress report on the follow up of the Monterrey commitments will include a section on the work to date of the Task Force and on possible actions to be taken;

Commitment VI: Innovative Sources of Financing

24. Notes the work ongoing in Member States regarding innovative sources of financing and encourages the Member States and the Commission to explore possibilities for common ground with respect to the different proposals under discussion. In this context, it emphasises the important role of public private partnerships (PPPs);

Commitment VII: Reform of the International Financial System

25. Encourages Member States and the Commission to review proposals aimed at strengthening the voice of developing countries at the International Financial Institutions (IFIs), through capacity building to improve developing countries’ participation in decision making at country and institutitional level, and through changes in the voting structures of the IFI boards. In this context, it recalls the Common Understanding adopted by the Economic and Financial Committee (EFC) in February 2003; and agrees to consider a review of the Understanding should any new proposals emerge in the run up to the 2004 Annual Meetings;

26. Encourages further exploration of the possibilities for improving the quality of EU coordination at the IFIs;

Commitment VIII: Debt Relief

27. Notes the progress made in implementing the Heavily Indebted Poor Countries (HIPCs) initiative and the major contribution made by the EC and the Member States through their funding of HIPC multilateral debt relief and their provision of bilateral debt relief both within and beyond the terms of the initiative;

28. Notes that non-HIPCs can benefit from tailored treatments which are foreseen by the Evian approach that was adopted by the Paris Club in October 2003;

29. Recognises that long term debt sustainability, post-HIPC, will continue to be an issue that requires particular attention, including in the context of development financing, and notes that proposals regarding a framework for long term debt sustainability are under active consideration at the IFIs;

30. Invites Commission and the Member States to take into account important research and analysis which has already been undertaken in this area with a view to supporting the development of appropriate strategies and mechanisms at international and country level so that debt sustainability is made central to all future lending and borrowing decisions;

8567/04 (Presse 116) 17 EN 31. Notes that some HIPCs may not become eligible for HIPC debt relief within the established timeframe and that it will be necessary to help these countries exit from their unsustainable debt situation, either through a possible extension of HIPC, or by other arrangements to be established on a case-by-case basis."

– UN Millennium Development Goals - Council conclusions

The Council held a policy debate on preparations for an EU contribution to a United Nations 'High- Level event', to be held next year to review progress, five years on, towards the Millennium Development Goals adopted by the UN in 2000. It adopted the following conclusions:

The Council,

"RECALLING:

The Council’s conclusions of January 2004, which inter alia:

- underlined that achieving the Millennium Development Goals (MDGs) is a key objective for the European Union and the wider international community; - undertook to ensure that the EU is well positioned to provide leadership in the international stocktaking of the MDGs in 2005, and - agreed to consider, at its meeting in April, inviting the Commission to take on a coordinating role in this regard.

Noting:

- the 2003 UNDP Human Development Report states that Sub-Saharan Africa will not achieve all the MDGs until 2165 if global progress continues at the current pace;

THE COUNCIL

1. Notes that in 2005 the UN will undertake a major review (“stocktaking”) of progress to date in implementing the Millennium Declaration and towards achievement of MDGs.

2. Underlines the importance of ensuring a strong and well-coordinated EU contribution to this review process.

3. Invites the Commission to take forward work on the preparation and coordination of a consolidated EU contribution to the international stocktaking of the MDGs, and recommends that this contribution should take the form of individual reports by each Member State and the EC, together with a synthesis report to be prepared by the Commission. Each of these reports should be based on a similar structure, in order to ensure coherence and comparability.

4. Emphasises that the EU contribution to the stocktaking exercise should focus on (i) the extent to which EC and Member States (MS) have focussed their development policies and instruments on the implementation of the Millennium Declaration and the achievement of the MDGs, (ii) the documentation of progress being made by the EC and MS in helping contribute to the attainment of the MDGs (iii) identification of further actions to be taken at national/EC/EU level to promote achievement of MDGs.

8567/04 (Presse 116) 18 EN Invites therefore the Commission to use the draft structure in annex as a basis for defining the common reporting structure, and urges Commission and Member States to reach agreement on this issue as soon as possible.

5. Stresses that the EU contribution should not duplicate work being undertaken by the UN, the OECD/DAC, and the World Bank on analysing progress towards MDGs, but should instead focus on reviewing how the EC and the Member States are contributing to the MDGs, with a particular emphasis on, and more detailed analysis of contributions to MDGs 7 and 8.

6. Stresses this work should build on the efforts already made by a number of Member States in monitoring their contributions to MDG8, and ensure synergy with follow-up processes relating to other key international conferences and summits, including Monterrey, Johannesburg and Doha.

7. Invites Commission to inform Council on the progress of this work at its meeting in November 2004, and to submit its synthesis report to Council for discussion and approval no later than April 2005."

– Commodities and cotton- Council conclusions

The Council held an exchange of views and adopted the following conclusions:

" 1. The Council recognises the crucial importance of agricultural commodities for poverty reduction in developing countries. It stresses the need for urgent measures to address the situation of commodity producers who currently face major challenges, in particular in the most commodity-dependent developing countries (CDDCs) where implications extend to the macro level;

2. The Council recognises that addressing the issues of international agricultural commodity chains, dependence and poverty is complex and requires a package of measures and a multidisciplinary approach, as well as collaborative and coordinated efforts by all stakeholders - including governments, producers, the private sector, non-governmental organisations, international organisations, and bilateral and multilateral donors;

3. In this context it recalls Council conclusions of 17 November on the cotton crises in Africa and of 8 December 2003 on reviving the Doha Development Agenda (DDA). It welcomes the proposal for an EU Action Plan on agricultural commodity chains, dependence and poverty, and the specific proposal for an EU-Africa Partnership in support of cotton sector development set out in the Commission Communications;

4. The Council endorses the objectives, orientations, policy priorities and measures of the proposed EU Action Plan; and agrees that the EU and its Member States should pursue these, including the issue of resources, in their bilateral and multilateral cooperation as well as in relevant international fora, and where appropriate, in their respective bilateral dialogue with CDDCs. In this context, it is important to have a gender sensitive approach and to take measures to ensure environmental sustainability. It further invites the EC and Member States at the level of their relevant services to develop measures, actions and means to operationalise the EU Action Plan and invites the Commission to report on progress in the context of the Annual Report.

8567/04 (Presse 116) 19 EN 5. The Council considers that the first steps of implementing the EU Action Plan should include: - supporting commodity dependent developing countries in the design and implementation of commodity chain strategies, building on existing initiatives and in the context of national development strategies and in particular Poverty Reduction Strategies (PRS);

- advancing efforts to develop regional markets, policies and services in support of commodity sectors, in the framework of support to regional integration through both development cooperation and trade negotiations. Advantage should in particular be taken of the opportunity presented by the negotiations on EU-ACP Economic Partnership Agreements (EPAs);

- supporting the CDDCs in their effort towards diversification, in particular by encouraging livelihood diversification for commodity producers, through increasing assistance to productive sectors in rural areas; such support, where appropriate, should be provided in the context of the PRS of the particular country in accordance with the principle of ownership, bearing in mind the important role that regional integration can play to facilitate the process of transformation;

- extending access to market-based commodity risk instruments at the micro level, and piloting these tools for the macro level;

- developing multi-donor cooperation on agricultural commodities with international organisations (WB, FAO, UNCTAD, CFC), with a view to enhancing expertise and development of innovative tools to support national commodity strategies;

- in the framework of the DDA, ensuring that due attention is paid to products of specific interest to CDDCs, including traditional commodity products and products of importance for diversification and taking into account the issues of major interest for CDDCs in all relevant aspects of the negotiations, as outlined in particular in the Council conclusions on Trade and Development adopted in November 2002; the Council encourages all WTO Members to make special efforts in this regard;

- encouraging all developed countries to give duty and quota free access to all products from LDCs, as the EU has done under the Everything But Arms (EBA) initiative. Major developing countries should also be encouraged to open their markets for commodities;

- ensuring that the forthcoming reform of the GSP system continues to provide generous and predictable access for CDDCs to the EU market, including through revision of the rules of origin requirements;

- ensuring that in the short term, resources such as Flex and budget support are provided to CDDCs to mitigate the adverse impact on poverty of shortfalls in export earnings;

- developing coordinated efforts to encourage sustainable corporate practices and investments, in particular in CDDCs; including the development of public private partnerships, and valorising instruments for private sector developments in non- traditional sectors, bearing in mind the important role that the fair trade movement and the international discussions on codes of conduct can play with regard to sustainable development.

8567/04 (Presse 116) 20 EN 6. The Council recognises the important role of International Commodity Bodies as fora for co-operation between producer and consumer countries, both at government and private sector level; in particular, the participation of private sector should be encouraged. It invites the EC and Member States to undertake assessments, deepen the reflections and where appropriate make proposals with a view to ensuring the efficiency of these bodies and of their contribution to market functioning, sustainable development and other common interests of the sectors, and to commodity chain strategies in CDDCs.

7. The Council endorses the proposal for an EU-Africa partnership on cotton as an important application of the proposed EU Action Plan. The Council urges the EC and Member States to address the issues raised, including the question of financial resources, and to undertake all necessary actions to implement it, while basing their activities on the principle of local ownership and effective coordination. This implies

a. obtaining fairer international trade conditions by:

- supporting an effective and specific solution on cotton within the WTO agricultural negotiations.;

- encouraging all developed and major developing countries to follow the EU in providing complete market access to cotton and cotton based products from LDCs;

- aiming within WTO at the elimination of all forms of export subsidies for cotton;

- striving to secure a commitment from major cotton producing countries to undertake reforms with respect to trade distorting domestic support. In this context, the Council welcomes the fact that the EC has concluded the reform of its own cotton regime, which, while taking account of the interests of its own producers, will also reduce its trade-distorting impacts and improve coherence with the EC's development policy. The Council notes the intention of the Commission to establish a mechanism that will allow it to monitor the impact of its subsidy schemes and reform measures on cotton production and trade.

- supporting African countries through trade related technical assistance and capacity building to defend and negotiate their case in the multilateral trade context.

b. supporting cotton producing countries in Africa, and in complement to the measures recommended above for the EU Action Plan to:

- intensify cooperation efforts to consolidate competitiveness of the African cotton sector and rural growth of cotton producing areas;

- strengthen policies and institutions, encourage private investments for value addition, favour technological innovations and support international recognition of the African cotton quality, in line with national poverty reduction and development strategies;

- ensure that the potential of EPAs is fully exploited to support the development of the cotton economies, in particular through efforts in the area of trade facilitation and investment clauses;

8567/04 (Presse 116) 21 EN - support African countries’ access to market-based mechanisms that mitigate commodity risks for cotton farmers.

8. The Council invites the Commission to consider EC membership of the International Cotton Advisory Committee (ICAC), as one of the main fora for the sector."

– EU external aid

Over lunch, Ministers held an exchange of views on progress in reform of the management of EU external aid and assistance, on the basis of a report from the Commission.

The Presidency concluded the discussion in the following terms:

- the Council acknowledges the significant progress achieved in the reform process and supports the Commission in its continuing efforts to ensure further improvements in the effectiveness of EC assistance;

- in this context, Ministers called for sustained focus on key aspects of the reform process including inter alia, the need for benchmarks and indicators to measure the results of the reform, and the impact, quality and development effectiveness of EC assistance; financial management questions, including the need for continued improvement in the level of commitments and rates of disbursement of aid, and for consideration of proposals for budgetisation of the EDF; addressing funding requirements for further deconcentration and decentralisation of resources to the field; greater efforts in the area of conflict prevention and management; improved communication of EU efforts in the area of external assistance; and the proposal for application of resources allocation criteria, based on need and performance, to all EC development programmes;

- Ministers also underlined the importance of ensuring that the EU's development policy objectives are fully and appropriately reflected in any future revisions of institutional arrangements in foreign policy at EU level. To ensure coherence, development cooperation must form part of a mutually reinforcing mix of policies supporting the external objectives of the Union.

– International conferences

Ministers were briefed during lunch by the Presidency and the Commission on preparations for three United Nations conferences with themes related to development policy:

ƒ UN Conference on Trade and Development (UNCTAD), 13 to 20 June in Sâo Paulo; ƒ UN conference on small-island developing states, 30 August to 3 September in Mauritius; ƒ World Summit on the Information Society (WSIS), November 2005 in Tunisia.

After a short exchange of views, the President concluded in the following terms:

- the Council underlined the importance for the enlarged EU of finding ways to use its increased size and influence at the UN to promote an effective multilateral response to major global challenges in the economic and social area, particularly in securing progress towards the MDGs;

8567/04 (Presse 116) 22 EN - the Council agreed that the EU should examine means of ensuring a more integrated and strategic approach at EU level to the diverse and cross cutting agenda of global development conferences. In particular, closer cooperation is required between our representatives at all of the relevant fora to ensure the consistency and effectiveness of the EU's approach.

– ACP-EC Partnership Agreement

The Council authorised the Commission to open negotiations with the African, Caribbean and Pacific group of states on a revision of the ACP-EC Partnership Agreement signed in Cotonou in June 2000, and agreed on negotiating directives to that effect.

The negotiations will be launched by the ACP-EC Council of Ministers at its meeting on 6 and 7 May in Gaborone.

The EU is suggesting that the Agreement be reviewed on a number of themes. These include issues related to the political dimension of the Partnership, increased flexibility in the allocation of resources, regional co-operation between ACP and non-ACP developing countries, eligibility for contracts financed by the European Development Fund and financial management in situations of crisis or armed conflict or post-conflict.

OTHER BUSINESS

– Seal hunting in Canada

The Council took note of concerns expressed by the Dutch delegation, echoed by the Belgian delegation, regarding Canada's increase by in its hunting quota for seals.

Concerns expressed include both the effect of hunting on the seal population and a failure to enforce humane killing methods.

– Development and terrorism

The Council took note of views expressed by the Portuguese delegation concerning the implications for development co-operation of the European Council's Declaration of 25th March on combating terrorism.

– Burundi

The Council discussed the situation in Burundi in the light of recent developments.

8567/04 (Presse 116) 23 EN EVENTS IN THE MARGINS OF THE COUNCIL

– EU-Morocco Association Council

The EU-Morocco Association Council held its fourth meeting, with an agenda covering implementation of the EU-Morocco Association Agreement, the Euro-Mediterranean "Barcelona" Process, European Neighbourhood Policy and political dialogue on subjects of common interest: combating terrorism, Middle East, Iraq, EU Strategic Partnership for the Mediterranean and the Middle East, non-proliferation and the Western Sahara.

– EU-Russia Permanent Partnership Council

The EU-Russia Permanent Partnership Council held its inaugural meeting, taking over from what was previously the Co-operation Council. A Protocol extending the EU-Russia Partnership and Co- operation Agreement to the EU's ten new Member States was signed, and a Joint Statement on EU enlargement and EU-Russia relations issued, in the margins of the meeting. The PPC took forward preparations for the EU-Russia summit in Moscow on 21 May. The EU and Russia also discussed Iraq, Afghanistan, international security and multilateralism. (see press release 8863/04)

– EEA Council

The EEA (European Economic Area) Council held its 21st meeting, with an agenda covering the functioning of the EEA Agreement, EEA enlargement and European Neighbourhood Policy.

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8567/04 (Presse 116) 24 EN