ACP-EC Convention of Lome ACP-EC Cotonou Agreement

Annual report of the ACP-EC Council of Ministers (2000) A great deal of additional information on the European Union is available on the Internet. It can be accessed through the Europa server (http://europa.eu.int).

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Luxembourg: Office for Official Publications of the European Communities, 2002

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PRINTED ON WHITE CHLORINE-FREE PAPER CONVENTION ACP-CE DE LOME ACP-EC CONVENTION OF LOME

LE CONSEIL THE COUNCIL

LES SECRETAIRES THE SECRETARIES

Brussels, 1 9 -09- 2001

The Hon. Mr John Corrie The Hon. Mr Serge Clair

Co-Chairmen of the ACP-EC Joint Parliamentary Assembly, 102

European Parliament, LUXEMBOURG

Sirs,

At its meeting in Brussels on 11 May 2001, the ACP-EC Council of Ministers instructed the Committee of Ambassadors, in conjunction with the Secretaries of the Council of Ministers, to fmalize the Annual Report which it has to publish pursuant to Article 342 paragraph 4 of the Fourth ACP-EC Convention, as amended by the agreement signed in Mauritius on 4 November 1995, and to forward it to the Joint Parliamentary Assembly.

As this report has now been fmally approved, we are pleased to communicate the text thereof to the Joint Parliamentary Assembly in order that it may be examined by that body in accordance with Article 350 of the revised Fourth ACP-EC Convention.

The necessary copies of this text will be made available to your services as soon as possible.

Yours sincerely,

Jean-Robert GOULONGANA

Enc: 1

Rue de Ia Loi 175 1048 BRUSSELS

Tel (02)285 61.11 -Telegrams: Consilium Bruxelles- Telex. 21711 Constl B Contents

Page

I. Introduction 4

II. Overview of the work of the ACP-EC institutions 6 1. Council of Ministers 6 2. Committee of Ambassadors 10 3. Joint Assembly 12

Ill. Activities of the ACP-EC Council of Ministers in the various areas of cooperation 14 1. Trade and customs cooperation 14 2. Sugar 14 3. Cooperation on commodities 14 4. Development finance cooperation 14 5. Industrial cooperation 14 6. Agricultural and rural cooperation 14

IV. Relations with South Africa 15 1. Trade, Development and Cooperation Agreement between the European Community and the Republic of South Africa 15 2. Regulation on development cooperation with South Africa 15

V. Annexes 17

3 I. Introduction nance as a fundamental and positive ele­ ment of partnership, a subject for regu­ lar dialogue and an area for active (a) The year 2000 was marked by the final­ development support. isation on 3 February 2000 of the nego­ tiations and the signature, on 23 June in Cotonou, Benin, of the new ACP-EC The Agreement lends a new democratic Partnership Agreement to replace the dimension to the partnership by actively fourth Lome Convention, which expired encouraging the involvement of civil on 29 February 2000, as well as by the society and non-State actors in shaping first steps towards its implementation. the future of their countries. It makes provision for informing and consulting The joint bodies under the Convention, those new actors and strengthening their in particular the ACP-EC Council of capacities. Ministers, also reviewed the implemen­ tation of cooperatton under the Lome At the heart of the Agreement lies an Convention and addressed the problems interactive cooperation strategy linking encountered. the development strategies and the trade and economic partnership agreements. (b) The new Partnership Agreement which associates 77 African, Caribbean and Both parties agreed on the process to Pacific (ACP) States with the European establish new trading arrangements that Community and its Member States, will pursue trade liberalisation between whilst building on 25 years of develop­ the EU and the ACP States as well as ment cooperation through the succes­ between the ACP States themselves, the sive Lome Conventions, is innovative in ultimate goal being a better integration many ways. of the ACP States into the world econo­ my. Negotiations for World Trade This Agreement addresses in a compre­ Organisation (WTO) compatible trade hensive way a broad spectrum of areas partnership agreements will start no of cooperation, ranging from enhanced later than September 2002. This two­ economic and trade cooperation to an year preparatory period will be used to effective political dialogue. It intends to strengthen regional integration process­ refocus development policies on pover­ es and the capacity of ACP States to ty-reduction strategies. conduct trade negotiations. A six-year period is programmed for these negotia­ It has a strong political content. Dia­ tions. The new arrangements will thus logue is at the very core of the new enter mto force no later than 2008. In Agreement, enabling the parties to dis­ 2004, an evaluation will be made of the cuss openly fundamental development situation of those countries (except for issues and any subjects of mutual inter­ the least developed countries) which est. Respect for human rights, demo­ have decided that they are unable to cratic principles and the rule of law are negotiate partnership agreements. The essential elements of the Agreement, as EU would then study the possible alter­ was the case m the Lome IV Conven­ natives in order to offer those countries tion. But a new procedure has been a new trade framework equivalent to drawn up for cases of violation of one their existing situation in compliance of these essential elements. with WTO rules.

The new Agreement entails a firm com­ The new Agreement foresees an mitment on both sides to good gover- improved trade regime for all least

4 developed countries (LDCs), of which funds (EUR 10 000 million), will cover 39 belong to the ACP Group. the period 2000-07. The European Commission has made a political under­ taking to ensure, with those resources Both parties agreed on the interim trade and over that period, a significant regime to be applied between 2000 and increase in disbursements for the ACP 2008. The ACP States and the Commu­ States. Taking up this challenge entails a nity have asked the WTO for a waiver major overhaul of the old Convention's that will allow them to keep the present instruments and procedures, as well as preferential arrangements during this an in-depth reform of procedures and preparatory period. implementatiOn modalities on both sides. As regards financial cooperation, a number of radical changes were also The financial protocol will be adjusted introduced. The allocation of funds will every five years. The ACP-EC Council be based not only on an assessment of of Ministers will be able to review regu­ each country's needs but also of its per­ larly the procedures for implementing formance. A new system of rolling pro­ cooperation and the approaches taken to gramming was put in place, allowmg development strategies. This new the Community and beneficiary country approach will make for greater flexibili­ regularly to adjust their cooperation ty and allow countries to learn from programme. Instruments of cooperation experience and adapt the system of will be rationalised. An investment cooperation to changing situations and facility was created to support the requirements. development of the private sector. The system for the stabilisation of ACP and The decision to implement the Agree­ OCT export earnings (Stabex) and the ment for a penod of 20 years is a sign of special financing facility for ACP and the determination of both parties that OCT mining products (Sysmin) will be the ACP-EC partnership should be a abandoned. Considering the vulnerabili­ long-term relationship. ty of the ACP economies to fluctuations in export eammgs, it was agreed to take into account the consequences of such fluctuations, but in a much more coher­ ent manner in the programming process and with a view to supporting general or sectoral reform efforts.

The ninth European Development Fund (EDF) will be worth EUR 13 500 mil­ lion, of which EUR 10 000 million is in­ tended for the long-term financial enve­ lope, EUR 1 300 million for the regional envelope and EUR 2 200 million for the investment facility. On top of this comes EUR 1 700 million in European Invest­ ment Bank (EIB) loans. The total will therefore be EUR 15 200 million.

It has been agreed that this amount, plus the outstanding balances of previous

5 II. Overview of the work of the Joint ACP-EC Ministerial the ACP-EC institutions Committee on Trade;

1. Council of Ministers (1) • the compendium on cooperation strategies;

(a) The ACP-EC Council of Ministers held its 25th session in Cotonou, Benin, on • the 1999 annual report of the 22 June 2000. ACP-EC Council of Ministers.

(i) Under the 'A' items the Council: (ii) During a discussion on the various aspects of ACP-EC cooperation, under 'B' items of the agenda, the - adopted the formal and informal Council addressed, in particular, the titles of the Partnership Agree­ following questions. ment:

Trade cooperation • formal name:

(a) Implementation of the Agree­ 'Partnership Agreement between ment on Sanitary and Phytosani­ the members of the African, tary Measures (SPS) on fish and Caribbean and Pacific Group of pesticides States, of the one part, and the European Community and its Member States, of the other • Fish part, signed in Cotonou on 23 June 2000'; While sharing the concern for human health, the ACP States insisted that the • informal name: measures taken by the Community be proportionate to the actual risks and that the procedures mtended to resolve the 'the Cotonou Agreement'; trade difficulties encountered by the ACP States be applied swiftly. The ACP - delegated its powers to the States concerned also asked for finan­ ACP-EC Committee of Ambas­ cial and technical assistance so as to be sadors to approve: able to conform with EU standards.

• the transitional measures appli­ The Community noted these concerns cable from 2 August 2000 until and stated that a programme was under the entry into force of the Coto­ way to bolster the ACP States' ability to nou Agreement; tackle sanitary and veterinary problems. Mr Nielson, Member of the Commis­ • the rules of procedure applicable sion, informed the meeting that the to: Commission was currently preparing a communication on the contribution from the fisheries sector towards pover­ the ACP-EC Council of Minis­ ty reduction. ters,

C) The minutes of that meetmg are contamed m As for the list of countries authorised to document ACP-CE 2134/00 - ACP/211005/00. export fishery products to the EU, the

6 ACP side reiterated that certain coun­ (c) Request for a waiver at the WTO tries were still awaiting a response from the Commission. The ACP side asked the Community to do its utmost to obtain this waiver in Emphasising the importance that the EU good time by withstanding any pressure attached to consumer protection, Mr applied to link a waiver to the banana Nielson said that: dispute.

the measures suspending arrangements The Community stated that the process with Tanzania had been lifted; in Geneva had started with the discus­ sion of the EC request for a waiver for the measures against Uganda and Kenya the ACP-EC Partnership Agreement at would be lifted as soon as the recommen­ the WTO Council for Trade in Goods on dations made for settling the problems 5 April and at an informal meeting of bad been implemented satisfactorily. the WTO Council on 18 April.

• Pesticides It was in the EC's interest not to lose credibility and to reassure its partners, in particular the United States and the The ACP States pointed out that unless banana producers, that it was not seek­ maximum residue limits (MRLs) for ing a waiver from Article XIII. pesticides introduced unilaterally by the Community were standardised and noti­ fied in advance they would hamper ACP • Sugar exports to the Community. The ACP-EC Council of Ministers took The Community stressed that these note of a statement by the ACP ministe­ measures were aimed primarily at pro­ rial spokesman on sugar, on behalf of tecting consumers and Mr Nielson stat­ the ACP States party to the sugar proto­ ed that, at the explicit request of the col of the Lome Convention, who ACP States, it had been decided that reminded the meeting that the current application of the new maximum arrangements were due to expire in June residue levels would be postponed until 2001 , and asked the Commission to 1 July 2001. He referred to the technical retain the guidelines used in the present assistance action plan for the ACP system in its proposal on the future States which the Commission had system. announced on 11 April 2000 at the meeting of the ACP-EC Trade Coopera­ Mr Nielson answered that the prices tion Subcommittee. guaranteed to ACP States were compa­ rable to those available to Community (b) Follow-up to the WTO Ministerial producers but were still above world Conference in Seattle market prices. He stressed that the ACP sugar industry had to adapt to the 1iber­ alisation of the world market and to Both sides considered that this confer­ fiercer competition. ence had failed and agreed that a future meeting needed to be better prepared, with a view to reaching a higher degree • Bananas of convergence and to better integrating developmg and, in particular, ACP The Council heard a statement made on countries into this process. behalf of the ACP States. Particular

7 reference was made to the ACP resolu­ quota system agreed by all the parties. tion adopted at its meeting on 20 and 21 So far, it has not been possible to bring June 2000, which: these discussions to a close owing to persistent differences in positions.' reiterated the ACP position in favour of maintaining the tariff Customs cooperation quota system for at least 10 years and of introducing a tariff of EUR Both parties agreed upon the necessity of 275 for the ACP quota; improving information and administrative cooperation to avoid problems. asked the Community to ensure that the commitment made towards the Enlargement ACP be honoured by guaranteeing access to the European market for ACP bananas, maintaining the As required by the Convention (Article 358), advantages that they currently the EU Presidency briefed the Council on enjoyed on thts market and continu­ the progress of negotiations for accession to mg to offer these advantages in the the Union. new Partnership Agreement, and by making sure that the States Somalia concerned had sufficient time to restructure their economies and to adapt to developments in the The Council heard a statement from Minis­ situation; ter Elmi Borh of Djibouti on the conference taking place in Arta, Djibouti, to restore peace and security in Somalia. The minister considered that the EU had done referred to the resolution that the Council of everythmg in its power to make the ACP Ministers adopted on 21 June asking system compatible with WTO rules the Union to allow the new institutions but that 1t had run into strong oppo­ emerging from that conference to benefit sition from the United States and from all of the provisions of the Cotonou from certain producers in Latin Agreement. America.

Accessions to the The Union then made the following Partnership Agreement statement:

The Council agreed to the Cook Islands, the 'The Community is continuing its inter­ Republic of Nauru, the Republic of Palau, nal discussions on the modification of the Republic of the Marshall Islands, Niue its banana regime, on the basis of a pro­ and the Federated States of Micronesia posal by the Commission. We are becoming contracting parties to the Cotonou assessing the different aspects of this Agreement. It was agreed that these coun­ modification in the light of the interests tries would be accepted as signatories to the of all stakeholders, including, of course, Agreement. The accession of these countries the ACP and Community banana suppli­ was welcomed. ers.

The Commission 1s continuing its con­ ACP-EC Joint Assembly tacts with all stakeholders in search of a solution based on a method of distribu­ The Council took note of the resolutions tion of licences in a transitional tariff adopted by the ACP-EC Joint Assembly at

8 its meetings held in Nassau, The Bahamas, By this decision, the parties, in particu­ in October 1999 and in Ahuja, Nigeria, in lar, agreed to provide for an early appli­ March 2000. cation of the Cotonou Agreement with the exception of provisions concerning (iii) The Council took note of reports from the release and implementation of finan­ ministerial meetings of the Commodities cial resources from the ninth EDF. Committee and of the Development Financial cooperation during the interim Finance Cooperation Committee (see period will be financed with resources below). remaining from previous EDFs. Pro­ gramming of resources available from the ninth EDF could, however, be start­ (iv) Under the 'C' items, there was an infor­ ed immediately, implying an indicative mal exchange of views on the following allocation but not a commitment of items: funds.

modalities for implementing politi­ (c) Decision No 212000 of the cal dialogue; ACP-EC Council of Ministers on granting financial support to an modalities for the consultation and investment financing programme participation of non-State actors in for industrial and business devel­ the ACP-EC partnership; opment in the ACP States (3)

HIV I AiDS and other communica­ This decision takes into account the key ble diseases in ACP countries. role assigned by the fourth ACP-EC Convention to the private sector in help­ (b) Decision No 112000 of the ing to restructure the ACP economies, ACP-EC Council of Ministers of especially by creating jobs, boosting 27 July 2000 regarding transition­ earnings and integrating these al measures valid from 2 August economies into the global economy, as 2000 until the entry into force of well as the European Community's new the ACP-EC Partnership Agree­ strategy for private sector development ment in developing countries, placing empha­ sis not only on support to macroeco­ nomic reform policies, -but also on sup­ In the follow-up to the decision the port to intermediary c:nd m1croeconomic ACP-EC Committee of Ambassadors had levels. taken on 28 February 2000 C) whereby transitional measures applicable until 1 August 2000 were adopted, and in accor­ In order to ensure continuity of develop­ dance with the second subparagraph of ment financing operations until the Article 366(3) of the Convention, the entry into force of the new investment ACP-EC Council of Ministers adopted, facility ef the Cotonou Agreement, it on 27 July 2000, transitional measures to provides for unallocated and unused cover the period between 2 August 2000 resources from the sixth, seventh and and the entry into force of the eighth EDFs to finance risk capital Agreement (2). operations in ACP States of up to EUR 300 million. ct) OJ L 56, 1.3 2000 (2) OJ L 195, I 8.2000 C) OJ L 17, 19.1.2001.

9 (d) Decision No 3/2000 of the (b) The ACP-EC Committee of Ambas­ ACP-EC Council of Ministers on sadors held its 48th meeting on 26 Sep­ the adoption of specific financial tember 2000 in Brussels to discuss, in measures to ensure the continu­ particular, a draft decision concerning ity of certain activities of the the establishment of a reserve to finance eighth EDF before the entry into decisions under Stabex and Sysmin for force of the Cotonou the period 2 August 2000 to 31 Decem­ Agreement (1) ber 2000 (see document ACP-CE 2143/00) (2).

By this decision, both parties ensured that, while awaiting the entry into force The ACP side referred to its requests of the Cotonou Agreement, the follow­ regarding Stabex transfers for Burundi and Sudan and transfers not honoured ing activities can be pursued through for implementation years 1990 to 1993. using unallocated funds from the eighth EDF: On the question of Burundi and Sudan, the Commission stressed that there was Centre for the Development of no problem regardmg the availability of Enterprise (CDE) budget 2001: funds, and stated that: EUR 22 million

the last technical problems standing Technical Centre for Agriculture in the way of freeing up funds for and Rural Development (CTA) Burundi would soon be resolved; budget 2001: EUR 12 million

regarding Sudan, the statement additional funds for indicative made by the Community at the 25th national and regional programmes: meeting of the ACP-EC Council of EUR 125.6 million Ministers in Cotonou and the expla­ nations given at that time still intra-ACP regional cooperation: held e). EUR 265 million In reply to the ACP States' requests - atd for refugees: EUR 100 million regarding transfers not honoured for implementation years 1990 to 1993, the Commission made the following state­ 2. Committee of Ambassadors ment:

(a) The ACP-EC Committee of Ambas­ 'The Commission draws attention to the sadors held its 47th meeting on 15 May fact that, m allocating financial 2000 in Brussels to prepare for the pro­ resources for the new programming ceedings of the aforementioned meeting under the ninth EDF, account will be of the Council of Ministers. taken as far as possible of problems resulting from fluctuations in export The minutes of that meeting are con­ earnings, as provided for in the Cotonou tained in document ACP-CE 2136/00 Agreement. - ACP/22/006/00. (2) The minutes of that meeting are contamed m document ACP-CE 2145/00 - ACP/22/007/00. (') OJ L 8, 12.1 2001 (3) See document ACP-CE 2134/00.

10 Two specific elements will be proposed: activities of the eighth EDF before firstly, providing support in the case of the entry into force of the Cotonou export-earnings fluctuations, and, sec­ Agreement (document ACP-CE ondly, taking account of the past level 2157/00). of Stabex transfers.' Both decisions were subsequently for­ The ACP agreed in principle to the tran­ mally adopted by the ACP-EC Council sitional measures proposed in document of Ministers through the written proce­ ACP-CE 2143/00 pending receipt of the dure (see above). written text of the statement and provid­ ed that the transfers not honoured for As regards the compendium pro­ implementation years 1990, 1991 , 1992 viding policy guidelines in specific and 1993 which amounted to EUR areas or sectors of cooperation (see 2 200 million were taken into account in Article 20 of the Cotonou Agree­ the programming of resources under the ment), the ACP-EC Committee of ninth EDF for the 42 ACP States con­ Ambassadors noted that there was cerned. political agreement on the text of the compendium, as amended (doc­ This decision was formally adopted on ument ACP-CE 2142/00 + AMD 26 September 2000 (Decision 1), instructed a group of experts to No 3/2000 of the ACP-EC Committee draw up a consolidated text on of Ambassadors published in Official those bases, and agreed that the Journal L 303 of 2 December 2000). compendium would be formally adopted by the ACP-EC Commit­ (c) The ACP-EC Committee of Ambas­ tee of Ambassadors by the written sadors held its 49th meeting on 13 procedure before 31 January 2001. December 2000 in Brussels. The Cotonou Agreement states that the The ACP-EC Committee of Ambas­ objectives of ACP-EU development sadors agreed, in particular, to the fol­ cooperation shall be pursued through lowing draft decisions, prepared by the integrated strategies that incorporate ACP-EC Development Finance Coop­ economic, social, cultural, environmen­ eration Committee at its lOth meeting tal and institutional elements that must on 1 December 2000 in Brussels (1). be locally owned. Cooperation shall thus provide a coherent enabling frame­ work of support to the ACP's own Draft decision of the ACP-EC development strategies, ensuring com­ Council of Ministers on granting plementarity and interaction between financial support to an mvestment the various elements. financing programme for industrial and business development in the ACP States (document ACP-CE Systematic account shall be taken in 2146/00); mainstreaming into all areas of coopera­ tion the following thematic or cross-cut­ ting themes: gender issues, environmen­ Draft decision of the ACP-EC tal issues, and institutional development Council of Ministers on the adop­ and capacity building. tion of specific financial measures to ensure the continuity of certain These texts are gathered together in a (I) The mmutes of that meetmg are contamed m compendium and may be revised, document ACP-CE 2163/00 - ACP/22/010/00 reviewed and/or amended by the

11 ACP-EC Council of Ministers on the (f) The ACP-EC Committee of Ambas­ basis of a recommendation from the sadors adopted a decision on interim ACP-EC Development Finance Coop­ arrangements for the continued opera­ eration Committee. tion of the Centre for the Development of Enterprise e). Following the decision by the ACP-EC Committee of Ambassadors, the com­ Pending the appointment of members to pendium was finalised and formally the executive board of the Centre for the adopted on 30 January 2001 (1). Development of Enterpnse, it shall be for the chairman of the ACP-EC Com­ mittee of Ambassadors to deal on the (d) The ACP-EC Committee of Ambas­ latter's behalf with all matters which, sadors agreed to adopt the rules of pro­ according to the relevant provisions of cedure of the ACP-EC Council of Min­ the centre's staff regulations and finan­ isters and Committee of Ambassadors cial regulation, are subject to approval by the written procedure before 2 Feb­ by the centre's executive board or the ruary 2001. Following this decision, chairman thereof, and which need to be these rules of procedure were formally disposed of as a matter of urgency in adopted (2). order to ensure that the centre continues to operate properly. (e) Concerning the procedure for the selec­ tion of the two deputy directors of the This decision shall remain in force until Centre for the Development of Enter­ the members of the executive board of prise, the ACP-EC Committee of the centre have been appointed, but no Ambassadors, referring to the provi­ later than the date of the next meeting of sions of Article 4(2) of DecisiOn the ACP-EC Committee of Ambas­ No 112000 of the ACP-EC Council of sadors. Ministers, instructed the director of the CDE to begin without delay the fair and transparent selection procedure for two 3. Joint Assembly deputy directors of the CDE, with a view to their appointment as soon as The ACP-EC Joint Assembly held its possible by the ACP-EC Committee of 30th sessiOn in Ahuja, Nigeria, in March Ambassadors for the transitional period 2000 and its first session as the up to 31 August 2002. ACP-EU Joint Parliamentary Assembly in Brussels, Belgium, in October 2000. The ACP side confirmed, m connection with the allocation of senior posts, The work of the 30th session centred on including those to be held by the ACP the future of ACP-EU relations, with States in the joint institutions, that the particular reference to the negotiations post of ACP deputy director of the CDE for the successor Agreement to the had been allocated by the ACP-EC Lome Convention. Particular emphasis Council of Ministers to the west African was given to the following issues: the region. new ACP-EU trade arrangements; the WTO; the essential elements of the new 1 ( ) DectsJon No 112001 of the ACP-EC Council of Partnership Agreement; the EDF alloca­ Mimsters on the compendmm provtdmg gmde- tions; and immigration. The Assembly 1ines m specific areas or sectors of cooperation also looked at the situation in various (document ACP-CE 2102/1101 REV 1 - ACP/21/001101). (2) Dec1s1on No 1/2001 of 30 January 2001 of the ACP-EC Committee of Ambassadors (OJ L 43, 0 Decis10n No 7/2000 (see document ACP-CE 14.2.2001) 2160/1/00 REV 1).

12 regions and countries, amongst others in Nigeria, Cote d'Ivoire, Cuba, Ethiopia!Eritrea, Haiti, Great Lakes region, Sudan, Angola, Somalia and Zimbabwe.

The work of the first session of the Joint Parliamentary Assembly, which had been set up under Article 17 of the new ACP-EC Partnership Agreement, dealt, in particular, with the ACP-EC partner­ ship and the challenges of globalisation and the new rules of procedure of the Joint Parliamentary Assembly. The Assembly looked at the situation in var­ ious regions and countries, including Liberia, Sierra Leone, Great Lakes region, Zimbabwe, Haiti and the Pacific region.

The resolutions adopted by the Joint Assembly and the Joint Parliamentary Assembly were transmitted to the ACP-EC Council of Mimsters (1).

(I) OJ C 263, 13.9.2000 and OJ C 64, 28.2.2001.

13 Ill. Activities of the ACP-EC 6. Agricultural and rural Council of Ministers in the cooperation various areas of A summary of the activities of the Tech­ cooperation nical Centre for Agricultural and Rural Cooperation in 2000 is contained in Annex VII to this report. 1. Trade and customs cooperation (see documents ACP-CE 2110/00 and ACP-CE 2159/00 in Annexes I and II)

2. Sugar

The intervention prices for sugar for the 1999/2000 marketing year to which the guaranteed prices must be bound were adopted by the EU Council in June 1999. These prices were set at EUR 52.37/100 kg for raw sugar and EUR 63.19/100 kg for white sugar.

The intervention prices for sugar for the 2000/01 marketing year to which the guaranteed prices must be bound were adopted by the EU Council in July 2000. These prices were set at EUR 52.371100 kg for raw sugar and EUR 63.191100 kg for white sugar.

3. Cooperation on commodities (see document ACP-CE 2127/00 in Annex III)

4. Development finance cooperation (see documents ACP-CE 2126/00 and ACP-CE 2169/00 in Annexes IV and V)

5. Industrial cooperation

A summary of the activities of the Cen­ tre for the Development of Enterprise in 2000 is contained in Annex VI to this report.

14 IV. Relations with South ences still persist and work to resolve Africa those differences is ongoing.

Negotiations for a fisheries agreement 1. Trade, Development and have remained stalled since 1999. Cooperation Agreement between the European The first meeting of the Joint Coopera­ Community and the Republic tion Council took place in March 2000 of South Africa in Pretoria.

On 1 January 2000, the Trade, Develop­ ment and Cooperation Agreement 2. Regulation on development between the European Community and cooperation with South Africa the Republic of South Africa (TDCA) entered into force on a provisional The European Parliament and the Coun­ basis (1). The objectives of this Agree­ cil adopted this regulation in co-deci­ ment are to promote close relations sion on 29 June 2000 C). between the parties, to support the efforts made by South Africa to consol­ The objective of this regulation is to idate the economic and social founda­ ensure the continuation of financing tions of its transition process, to activities after the expiry of the previous promote regional cooperation and eco­ Regulation (EC) No 2259/96 of Novem­ nomic integration in the southern ber 1996 on 31 December 1999. African region and to promote the expansion and reciprocal liberahsation The budget line of the European pro­ of trade and the mtegration of South gramme for reconstruction and develop­ Africa mto the world economy. ment in South Africa is intended to finance programmes aimed at contribut­ The TDCA envisages the establishment ing towards sustainable development, of a free trade area over a transitional and consolidating the foundations for a period lasting, on the South African democratic society and the rule of law, side, a maximum of 12 years and, on the as well as improving the situation of the Community side, a maximum of 10 most disadvantaged groups in South years from the entry into force of the African society. It further defines the Agreement. The free trade area covers aims and sectors of future intervention the free movement of goods in all sec­ in the light of the Trade, Development tors. The Agreement also covers the lib­ and Cooperation Agreement with the eralisation of trade in services and the European Union, signed in July 1999. free movement of capital.

An EU Council regulation implement­ ing certain provisions of the TDCA was adopted on 17 December 1999 (2).

Work towards the Wines and Spints Agreement between the parties contin­ ued during 2000. However, some differ-

1 ( ) OJ L 311, 4.12.1999. (2) Council RegulatiOn (EC) No 2793/1999 of 17 December 1999. C) OJ L 198, 4.8 2000, p. 1.

15 V. Annexes

Annex I

ACP-EC Convention of Lome

African, Caribbean and Council of Pacific Group of States the European Union

ACP/611026100 ACP-CE 2110100

Summary record of: the 56th meeting of the ACP-EC Trade Cooperation Subcommittee on: 11 April 2000 at: ACP House, avenue Georges Henri 451, H-1200 Brussels

The ACP-EC Trade Cooperation Subcom­ ACP States were mformed in good time mittee met on 11 April 2000 at ACP House. about the process of implementing the The meeting was chaired by Mr Peter Carl, SPS Agreement and the EC IS open to Deputy Director-General for Trade at the suggestions from the ACP States. In Commission. The ACP side was represented addition, a programme has been devel­ by HE Mr Peter 0. Ole Nkuraiyia, Ambas­ oped for strengthening the implementa­ sador of Kenya. tion capacity of ACP States in relation to sanitary and veterinary controls with 1. Approval of the agenda regard to fishery products. The EC side emphasised that its experience has been best with those countries which have The agenda was agreed as set out m given due importance to bolstering their document ACP/611021100 - ACP-CE competent authorities on sanitary and 2107/00. veterinary matters and cooperating with the necessary inspection visits. 2. Implementation of the Agreement on Sanitary and (ii) As regards the suspension of imports of Phytosanitary Measures (SPS) fishery products from Lake Victona, the on: EC side noted that the suspension of fishery imports from Tanzania was lift­ (a) Fish ed at the beginning of this year after the authorities provided adequate guaran­ The subcommittee discussed two items tees. Meanwhile, the other countries under this heading: the list of third countries involved have also provided additional authorised to export fishery products to the information. Another inspectiOn visit to EU and the suspension of imports of fishery Kenya will be arranged as soon as the products from Kenya and Uganda. Commission's experts have found that its recommendations have been duly (i) As regards the list of harmonised third implemented and, if the results are pos­ countries, the EC side argued that this is itive, the Commission will propose that an example for ACP-EU cooperation on the suspension be lifted. Uganda has sanitary and veterinary matters. The recently sent essential guarantees

17 relating to its sanitary and veterinary sit­ from controlled experiments, and Communi­ uation and has arranged to rely tem­ ty practices and policies in this area are sim­ porarily on a European laboratory to ilar to those of other developed countries. carry out the necessary sanitary checks. MRLs are not non-tariff barriers but legiti­ Commission experts are therefore final­ mate consumer-protection measures. The ising their examination with a view to limits are constantly reviewed to take proposing the lifting of the suspension account of the latest technical and scientific on a provisional basis. In addition, data. The current phase of the harmonisation Uganda is putting in place its own labo­ programme has a deadline of 1 July 2000 ratories which, subject to another and further work will be carried out up to inspection visit, could pave the way for 2003 at least. Uganda joining the list of harmonised countries authorised to export fishery The EC side realises that this timetable puts products to the EU. great pressure on all developing countries - as well as farmers in the Community - to The ACP States stated that the implementa­ minimise and make safer the use of pesti­ tion of the SPS Agreement places an undue cides on their crops. However, the EC is pre­ burden on exporting countries as procedures pared to provide information and assistance for export are accepted or rejected only at to the ACP States. In future, they should be the point of entry into the import market. For involved from the beginning whenever a ACP countries without the necessary infra­ phytosanitary measure is envisaged and the structure to ensure compliance with health EC is prepared to inform the ACP States as a regulations in the destination country, this group in good time whenever the WTO is places an undue risk on the exporter and in notified of a planned measure. In addition, the long term inhibits investment. ACP an action plan is being drawn up to help the countries therefore require a breathing space ACP States cope with the introduction of in which to implement necessary measures. MRLs. In this context, the EU is prepared to As regards the particular problem of fish make available technical assistance to the exports from Lake Victoria, the ACP States ACP. The EC side proposed that a meeting appreciate the solution being found for Tan­ of experts be convened as soon as possible zania and Uganda, but stressed the need for to discuss the action plan, and the results of a regional solution and for technical assis­ these discussions be presented to the tance to all three countries. ACP-EC Committee of Ambassadors.

The EC side noted that the request for tech­ The ACP States welcomed the EC effort to nical assistance was reasonable and that a harmonise its legislation on pesticide con­ formal request was likely to receive a posi­ trol, but expressed its concern with the lack tive response. of consultations and information as required under the SPS Agreement and in accordance (b) Pesticides with Article 12 of the Lome Convention. Whilst supporting the need for consumer The EC side gave some background to the protection, the ACP States said that undue current legislation. Over the 1990s the restrictions have serious implications for objective of consumer protection became diversification of ACP economies and the ever-more important and the EC embarked development of their horticultural products on a harmonisation programme for pesti­ and fruits, and argued that the EC should not cides, including fixmg maximum limits for unilaterally set MRLs that are unduly strin­ residues (MRLs), notably on fruit and veg­ gent and which do not have any relevance to etables. These maximum residue limits do the genuine protection of human health, as not discriminate between domestic and such measures have the same effect as non­ imported produce. MRLs are set on the basis tariff barriers. The ACP States expressed the of technical and scientific data resulting hope that the July 2000 deadline will be

18 extended and also that the EC will produce try on the quota administration. The ACP mechanisms for the control of pesticide rice industry would prefer: exports to ACP countries. (i) the establishment of two tranches rather The EC side believed that, as the issue was than three; that of residue limitation, and not banning of pesticides, then controlling pesticide exports (ii) for ACP exporters to be regularly was not going to solve ACP problems. On advised of the licensed EU rice the question of a deadline of the extension, importers. the EC was not in a position to be flexible, The subcommittee noted that, as these but recommended the early implementation requests were largely of a technical nature, of the action plan as a means of assisting the the experts from both sides should examine ACP States. them.

The subcommittee endorsed the proposal 4. Follow-up to the WTO Ministerial that the experts should convene as soon as Conference possible and noted that this should, if possi­ ble, take place before the meeting of the The EC side gave a brief update of the cur­ ACP-EC Committee of Ambassadors. rent state of affairs following the failure of the Seattle Conference. There were a num­ 3. EC regulation on ACP/OCTs' rice ber of political and administrative reasons why Seattle had failed but the EC believes The EC side noted that the issue of rice was, that its basic objectives for a comprehensive as ever, extremely sensitive. During the round remain valid. It shares the preoccupa­ negotiations for a partnership agreement, the tions of the ACP States regarding the lack of EC and ACP reached agreement on a joint transparency within the negotiation proce­ dures. As regards the timing of a new round, declaration that confirms the importance of despite comments that this will not be possi­ effective and transparent implementation of ble until after the US presidential election, ACP rice exports. In this context, the Com­ the Commission understands that the current mission notified the ACP States in Decem­ US administration and other partners are ber 1999 of proposed amendments for the eager to launch a new round this year. The management of the tariff quota to deal with views of the ACP States regarding the objec­ two identified problems - the overapplica­ tives for a round were extremely valuable to tion for the quota and the risk of actual the EC. Some had participated in meetings exports staying below available quantities. of the Friends Group in Geneva, and the EC These amendments were applied from 1 Jan­ would like to see more ACP countries in this uary 2000. The Commission has subsequent­ group. ly noticed a significant improvement and therefore sees no real need for further meas­ The ACP States noted that their primary con­ ures when the situation on the EU rice mar­ cerns related to the implementation of the ket remains very precarious. However, the confidence-building measures before consid­ eration is given to launching any new WTO EC is ready to establish the JOint working round. They appreciate the fact that mandated party foreseen in the context of the Partner­ negotiations on agriculture and trade in serv­ ship Agreement. ices have started, and have taken note of the efforts being made by the Director-General of The ACP States recalled that, whilst they the WTO to address the problems relating to were informed of the proposed modifica­ the integrated framework for the LDCs and tions, the regulation does not take account of reforms of the WTO decision-making proce­ the views expressed by the ACP rice indus- dure. They also note that WTO members are

19 being urged to give consideration to develop­ The ACP States emphasised that they want­ ing countries' concerns on market access, ed the waiver to be secured as soon as possi­ trade-related aspects of intellectual property ble, and saw the implications of a 'blank rights (TRIPs), trade-related investment cheque'. The ACP States have agret:d a com­ measures (TRIMs) and the extension of ex­ prehensive strategy to defend the waiver, pired transitwnal periods, and urge the EU to including a delegation to Geneva led by the be in the front line to support such measures. Secretary-General of the ACP Secretariat The ACP States would like to see greater and contacts with third countries and at all transparency in the implementation of current relevant regional and international meetings. commitments and improved market access, In return, the ACP States hope that the EC particularly for LDCs, before assessing the has lobbied support from fellow Quad mem­ need for a new round. bers, candidate countries and countries with which there are cooperation agreements. The EC side noted that the concerns of the ACP States were being discussed in Geneva The ACP States asked for an assurance that and that confidence-bmlding measures need­ the waiver would not prejudice the granting ed to be conducted as soon as possible. As of preferential treatment for ACP bananas. regards greater market access for LDCs, the The EC side said that the banana issue was EC was at the forefront in pushing for this being dealt with separately and should not within the Quad Group, which has now be affected by the waiver for the Partnership Agreement. The EC side welcomed the accepted a limited extension of the deadline views of the ACP regarding the geographical for the implementation on TRIPs/TRIMs. coverage of the waiver request and the lob­ bymg efforts undertaken by the ACP States. The subcommittee took note of the positive The EC for its part was lobbying fellow steps that were being taken in the interests of Quad members. developmg countries. The subcommittee took note of the need to 5. Request for a waiver progress the request for a waiver as rapidly as possible. The EC side noted that the process of obtaining a waiver for the ACP-EC Partner­ 6. ACP Secretariat presence in ship Agreement had commenced in Geneva Geneva and observer status in with the discussion in the WTO Council for the WTO Trade in Goods on 5 April. Furthermore, the reactions of WTO partners were more posi­ The EC side noted that the establishment of tive than expected. The draft decision text an ACP Secretariat presence in Geneva was should now be presented as soon as possible, takmg shape, and stressed the support that it in order to start the 90 days for examination. was willing to give. It hoped that both sides It had been decided, in order to reassure the would be as loyal partners in Geneva as they United States and the banana producers, not had been in Brussels. As regards the ques­ to seek a waiver from Article XIII (quotas). tion of ACP observer status, the EC com­ Concerning the geographical coverage of the pletely supported the ACP States and under­ Partnership Agreement and waiver, the EC stood that the problems that had arisen were was of the opinion that It was not reasonable with regard to the question of observer status to ask for a 'blank cheque', as would be the for organisations. case if the list of participants was open­ ended. In the EC's view, the best strategy on The ACP States welcomed the support of the this issue is first to secure that a waiver is EC and noted that it intends to finalise the granted and then, if there are new signato­ administrative procedures for the establish­ ries, to obtain an extension of the coverage ment of an office by the end of May. The in the WTO subsequently. ACP plans entail an effective presence in

20 Geneva to enable the Secretariat to relate to Commission representatives is already AC~ representatives in Geneva, EU delega­ studying these issues. This group was tions and other missions, as well as with the encouraged to accelerate its work and to heads of the WTO, the United Nations Con­ come up with concrete guidelines and pro­ ference on Trade and Development (Unc­ posals as soon as possible. ACP representa­ tad), the International Trade Centre (lTC), tives were also requested to accelerate con­ the International Labour Organisation (ILO), sultations with their regional organisations the World Intellectual Property Organisation and national authorities in order for their (WIPO) and other relevant bodies, as well as needs to be taken into account. providing technical and administrative sup­ port to ACP missions in Geneva and ACP As regards the management of this project, members outside Geneva. The additional following the internal organisation of the financing agreement will need to be modi­ Commission, the EC side assured the ACP fied in order to get the office up and running States that such technical Issues would not as soon as possible. impair the substance of the programme.

The EC side understood that there was 8. The Joint ACP-EC Ministerial agreement in principle to a request for a Committee on Trade modification of the financing agreement. The EC side welcomed the creatiOn of the The subcommittee welcomed the progress Joint ACP-EC Ministerial Committee on that had been made. Trade in the Partnership Agreement as an important and positive development, and 7. Capacity building in the context noted the desirability of taking the necessary of the WTO decisions regarding the rules of procedure and appointments before the signing of the The EC side stressed that it was very sensi­ Agreement. It was therefore proposed that tive to the ACP States' concerns and con­ work should start immediately with the aim straints in opening up to the international of presenting proposals to the ACP-EC trade system. There was a need for credible Committee of Ambassadors meeting (or programmes to address these concerns, and, shortly thereafter leading to the written pro­ unfortunately, there was a gap in the WTO cedure). The EC side noted that the Agree­ budget. A project had therefore been ment stated that the committee should meet launched, with EC funding of EUR 10 mil­ at least once a year, but stressed that, m lion, to support the integration of the ACP order to ensure productive meetings, it States into the world trade system in the would need to be prepared in substance. framework of the WTO. Both sides would have to be careful in planmng the best way At the proposal of the ACP States, the sub­ of spending the money available. Coherence committee mandated the ACP Secretariat with the activities of other international and the Commission to prepare the terms of organisations was also essential. reference and rules of procedure for approval by the ACP-EC Council of Minis­ . The ACP States said that they were in the ters in Fiji . process of fmalising proposals on the activi­ ties to be undertaken under the project 9. Any other business - before making appropriate proposals to the involvement of ACP regional Commission. The project would be of direct organisations benefit to ACP countries and will assist directly ACP negotiators in Geneva. The ACP States emphasised the necessity of involving ACP regional organisations in the The subcommittee was informed that a preparatiOn of the negotiation of new WTO­ group of experts composed of ACP and compatible regional tradmg arrangements,

21 within the context of the timetable stipulated in the Partnership Agreement (negotiations to start m September 2002). The ACP side proposed that the ACP Secretariat and the Commission should reflect urgently on this issue with a view to making proposals for adoption by the Council of Ministers.

The subcommittee mandated the Commis­ sion services to follow this up in liaison with the ACP Secretariat.

22 Annex II

ACP-EC Cotonou Agreement

African, Caribbean and Council of Pacific Group of States the European Union

ACP-CE 2159/0D

Draft summary record of: the 57th meeting of the ACP-EC Trade Cooperation Subcommittee on: 21 November 2000 at: ACP House, avenue Georges Henri 451, B-1200 Brussels

The ACP-EC Trade Cooperation Subcom­ welcome suggestions from the ACP side. mittee met on 21 November 2000 at ACP The support programme will enable the ACP House. The meeting was chaired by HE Mr States and regions to define their negotiatmg Peter 0. Ole Nkuraiyia, Ambassador of mandate and to participate fully in the nego­ Kenya. The European Community side was tiation process. By 2004, both sides should represented by Mr Roderick Abbott, Deputy know which countries have decided that Director-General of the Directorate-General they are not in a position to enter into an for Trade. EPA and will therefore be in a position to carry out targeted assessments. 1. Approval of the agenda The Commission services said that they The agenda was agreed as set out in docu­ were aware of some concerns within the ment ACP/61/089/00 - ACP-CE 2150/00, ACP Secretariat related to implementation procedures, and had therefore made anum­ with a proposed modification by the ACP ber of modifications to the financing propos­ side that item 4 be changed to a more gener­ al. In introducing these, the Commission had al heading of 'The impact of EU enlarge­ to integrate a certain number of procedural ment on trade relations with the ACP States', observations from the External Relations rather than simply dealing with trade in rum. Common Service and the result is something of a compromise. As it was intended to pres­ 2. Capacity building in support of ent the programme to the EDF Committee the preparation of economic on 6 December, a formal request from the partnership agreements (EPAs) ACP-EC Committee of Ambassadors was urgently required. The EU side noted that the Commission is preparing a capacity-building programme to The ACP side emphasised that there is a provide support to the ACP States in order to great and urgent need in ACP countries and assist them in preparing for the negotiations regions for technical assistance in designing for EPAs. The support will be provided pri­ and finalising negotiating mandates, in marily for capacity building at the regional capacity building in negotiating techniques level, but the Commission is not excluding and in the development of trade and trade­ other forms of assistance and would related policy. Furthermore, ACP countries

23 urgently need to organise workshops to oped countries to integrate fully into the understand the concept of EPAs and other world economy, additional measures would feasible alternative trading arrangements, be needed to address critical issues such as and to undertake impact studies of the impli­ supply-side constraints and non-tariff barriers cations on the broader economic and fiscal to trade. They hoped, therefore, that the EU adjustments entailed in the implementation would continue to do more to provide mean­ of EPAs. In this regard, there will need to be ingful assistance to the ACP LDCs, as well as capacity building for the ACP Secretariat small, landlocked, Island and vulnerable ACP and ACP regional organisations. States. Furthermore, the ACP side raised some issues of concern to the ACP Group, The ACP side noted that the plan for assis­ namely differentiation between ACP States, tance put forward by the EU side was gener­ which might undermine efforts towards re­ ally agreeable to them, although they ques­ gional integration and affect the competitive­ ness of the ACP vis-a-vis non-ACP LDCs. tioned the modalities for implementing the The ACP side drew attention to Declaration assistance and, in particular, the use of EU XXIII of the Cotonou Agreement and ex­ chosen experts. The ACP stde believes that it pressed concern that no consultations were would be more helpful to provide resources held by the Community with the ACP before for the ACP States to use the experts of their the announcement of the initiative on LDCs. choice. However, the ACP side had not fully Noting that the initiative provides for the pro­ considered the issue and had not yet seen gressive liberalisation over three years of any documentation and therefore requested trade in bananas, rice and sugar from LDCs, more time to consider the matter. the ACP side stressed that this had led to fears of a negative impact on ACPcompetitiveness. The EU side confirmed that any advice The ACP side requested that the subcommit­ given by experts to the ACP side would be tee discuss: confidential, and hoped that the ACP-EC Committee of Ambassadors would be able to the implementation of Declaration make a formal request before the EDF Com­ XXIII of the Cotonou Agreement; mittee meeting.

the preparation of impact studies on the The subcommittee took note of the fact that effect of the initiative on all ACP experts from both sides would be meeting on economies; 23 November 2000 to discuss further issues relating to implementation of the assistance consultations with the ACP side in plan. accordance with Article 12 of the Coto­ nou Agreement before a final decision is 3. European Commission proposal taken on the Commission proposal; to extend duty-free access without any quantitative that the proposal be put on the agenda restrictions to products of the first Joint ACP-EC Mmisterial originating in the least developed Committee on Trade. countries The EC side stressed that no decision had The ACP side generally welcomed the Com­ yet been taken by the Council of Ministers mission proposal to grant duty-free access on on the CommissiOn proposal, which allowed all products except arms and ammunition time for discussion with Member States and from the least developed countries (LDCs) as with the ACP Side. It was not possible for a bold measure, and hoped that other devel­ the Commission services to discuss a pro­ oped countries would follow suit. However, posal with the ACP before it was adopted by the ACP side stressed that, for the least devel- the College of Commissioners. The EU side

24 took note of the fourth paragraph of Declara­ (a) List of third countries authorised to tion XXIII 'the Parties therefore agree to export fishery products into the EU examine all necessary measures to maintain the competitive position of the ACP States The ACP side noted that, m accordance with on the Community market during the the provisiOns of Decision 97 /296fEC, third preparatory period ... ' and of the ACP countries can export fishery products mto request for impact studies. The EU side the Community only if they appear on a list pointed out that 39 of the LDCs which of approved countries and have submitted to would benefit from the proposal are ACP the relevant Commission departments a countries, which leaves another nine LDCs complete dossier on the sanitary measures as potential competitors to non-LDC ACP established in their countries. In spite of States. The EU side suggested that full their efforts, a number of ACP countries had impact studies could only be made once the not succeeded in being included on this list final decision of the Council was known. and, furthermore, the countries in question had seldom been informed of the reasons The subcommittee agreed to explore the why they had not been listed. matter further at expert level. The EU side had always assumed that there 4. The impact of EU enlargement had been good cooperation with the ACP on trade relations with the ACP States as regarded the harmonised list, and States suggested that the best way to deal with the problem of communication was via the rele­ The EU side gave a brief update of the cur­ vant technical committee. rent situation regarding the enlargement negotiations with the countries of central (b) Problems regarding the export of and eastern Europe. Of the two groups of fish from Lake Victoria to the EU countries, the 'Luxembourg Group', with which negotiations began two years ago (i.e. In raising this issue, the ACP side noted that Cyprus, Czech Republic, Estonia, Hungary, it had been under discussion for some time. Poland and Slovenia), has now opened 29 The ban on fisheries exports from Uganda chapters, dealing with all aspects of the had now been lifted, but that on exports Community acquis except institutional ques­ from Kenya remained and was having tions. The 'Helsinki Group', with which severe negative effects on the economy. negotiations began only this year, has only started to deal with 17 chapters. Chapter 25 The EU side informed the subcommittee that on customs union is still open for most can­ the Commission services had proposed to didates. On 18 November 2000, the Com­ the Veterinary Committee meeting of 21 mission adopted reports on all 13 candidates, November (the same day as the Trade Coop­ and the EU is determined to ensure an ambi­ eratiOn Subcommittee meeting) that the ban tious but realistic timetable for enlargement. on Kenyan exports should be lifted, and hoped for a satisfactory outcome. The ACP side took note of the situation and affirmed its intention to return to the issue (c) Problems relating to other sanitary once the negotiations on the customs union and phytosanitary measures chapter were completed. The ACP side expressed its concern that 5. Sanitary and phytosanitary measures relating to sanitary and phytosani­ measures tary norms for products such as fruit, vegeta­ bles, spices and meat were not communicat­ The ACP side raised four issues under this ed to ACP States in time for them to take all heading. the necessary steps to comply with the

25 norms. Instead, the ACP Group had to on WTO matters and that before Seattle a access such information via the WTO. The joint working group was established. How­ ACP side also appealed for sufficient transi­ ever, this group had not met since Seattle tional periods, in accordance with Article 10 and the EU side believed that it would be of the WTO Agreement on Sanitary and valuable for the group to start meeting again Phytosanitary Measures relating to special on a regular basis and to report to the sub­ and differential treatment, and for the neces­ committee. Recalling that Article 39 of the sary technical assistance to upgrade their Cotonou Agreement underlined the impor­ infrastructure and production to the required tance of cooperation in international eco­ level. The ACP side hoped that such meas­ nomic and trade cooperatwn in the WTO ures would not become non-tariff barriers to and other bodies, the EU side proposed that trade. the subcommittee should request the work­ ing group to establish regular meetings and The EU chair stressed the importance of to report back on progress made. these measures and food safety in general to the EU and repeated the assurance made at The ACP side supported this proposal and the previous meeting of the Trade Coopera­ stressed that there should be cooperation not tion Subcommittee that the ACP States only in the WTO but also in Unctad, the would be informed in good time whenever Food and Agriculture Organisation (FAO) new sanitary and phytosanitary measures and in the framework of the Codex were notified to the WTO (whtch they had to Alimentarius. be before they were adopted by the EU). 7. Multilateral trade aspects (d) Technical assistance (a) Update on the WTO waiver request The ACP side informed the subcommittee that a letter requestmg techmcal assistance The EU side informed the subcommittee that for the three east African countries affected there was nothing new to report on this mat­ by the ban on fish exports from Lake Victo­ ter as any decision on the request was still ria had not received any response from the being blocked by certain countries with EU, even when signed by the chairman of interests in the EC banana regime. On the the ACP-EC Committee of Ambassadors. banana question itself, the Commission hoped that there would be an agreement by The EU side took note of this problem and the ACP-EC Council of Ministers as soon as explained that a study had started which possible. should result in a financing proposal for the ACP fisheries sector during the first half of The ACP side expressed its regret that the 2001. request was being blocked and appealed to the EU to use its moral authority to ensure The subcommittee welcomed this announce­ that the waiver was granted wtthout undue ment and the fact that further information on delay. The EU stde explained that the prob­ the financing proposal would be available in lem was to persuade a majority of WTO due course. members.

6. Joint working group on (b) ACP Secretariat presence in Geneva cooperation activities in international forums The ACP Secretary-General gave an update regarding the establishment of an ACP Sec­ The EU side explained that, since the second retariat presence in Geneva. The original Ministerial Conference in Geneva in 1998, plan for one office head and three consult­ the EU and ACP had pursued joint meetings ants now appeared insufficient for the ACP

26 Group's aims, and there has been a reorien­ persons on a temporary basis to supply serv­ tation of the project, which will require ices in the EU market. The ACP believes, increased financing. The ACP Group has therefore, that the EU should allow short­ now received authorisation from the Secre­ term mobility of workers, including for rela­ tary-General of the United Nations and indi­ tively unskilled workers for sectors such as cations of support from the Canton of Gene­ distribution, construction, health and trans­ va and should therefore get the necessary port. In return, the ACP countries would approvals. An appropriate office has been consider liberalising service sectors that are identified and the requests for refurbishment crucial to their economic development, have been made, and the process of recruit­ although they would need to consult their ment must now get under way. Geneva delegatiOns before making any firm proposals. The EU side welcomed this progress report and hoped that the Geneva offices would be The EU side suggested that this was a matter operational by early 2001. The relevant that the joint working group on cooperation Commission services would be asked to in international forums could examine, accelerate the internal procedures in order to whilst noting that, as regarded ACP requests modify the original project and adapt it to for preferential treatment, the GATS was the expanded financial envelope. designed to conform to most favoured nation (MFN) rules with exceptions being allowed (c) Multilateral negotiations on trade in only for regional economic agreements. The services concept of preferential treatment in this area would therefore need to be considered very The EU side informed the subcommittee that carefully. it had put forward to other WTO members a proposal for negotiating guidelines for the The subcommittee agreed that the joint General Agreement on Trade in Services working group should examine this matter. (GATS) negotiations, with the aim of reduc­ ing the imbalance in commitments across 8. ACP-EC cooperation in members, service sectors and modes of sup­ facilitating ACP access to ply. The EU is committed to the objectives medicines of GATS Article IV and now that negotia­ tions under GATS have started believes that The EU side emphasised that the lack of key it is crucial that developing countries start to medicines for prevention and care is acute in identify sectors and modes of supply of many developing countries and, in particu­ interest to them. The EU wishes to see the lar, in many ACP countries, and declared the inclusion of the maritime sector in this round need to establish a global contract with the of negotiations. developing countries, the pharmaceutical industry and international organisations The ACP side thanked the EU for its propos­ based on impact, affordability and research. als in this context and reported that it had yet The EU side stressed that it has been very to hold consultations on the inclusion of active in this area over the last year, and maritime services. The ACP side recalled noted that, in the light of the G8 meeting in that, during the negotiations on the Cotonou Okinawa in December 2000, it would like to Agreement, the EU declined to respond to have a clear idea of an action plan with a the ACP request for preferential market contribution from the ACP. access in services on account of impending discussions in the WTO on further liberalisa­ The EU side highlighted four issues which it tion of trade in services. The ACP side believed to be of key importance: believes that it is now time to make its requests, and one area where the ACP has a differential pricing of essential competitive edge is in the export of natural medicines;

27 local production of pharmaceuticals as a The ACP side also noted that consultations possible means of improving access to were going on in Geneva on, amongst other medicines; things, the extension of transitiOI) periods before implementation of the TRIPs Agree­ a careful review of the pricirig of key ' ment by developmg countries, and believed pharmaceuticals (including the impact of that it should await the outcome of these tariffs, taxing and fees) used to combat consultations before taking any position. tuberculosis, malari~ and HIV/AIDS; On the developmental aspects of this issue, implementation of the TRIPs Agree­ however, the ACP side called on the Com­ ment, including possible assistance missiOn to present programmes to Improve from the EU to LDCs. the healthcare sectors in ACP countries.

The EU asked whether the ACP side had dis­ The EU side said that it would be extremely cussed these issues amongst themselves and pleased to receive ACP views on the ideas whether the EU and ACP could agree on a that it had put forward whenever this was dialogue for progression in this area which possible. The ACP side agreed that the issue could be discussed at the G8 meeting. of access to medicines was important, and / suggested that an HIVI AIDS programme currently involving 20 ACP countries might The ACP Side thanked· the EU side for its be extended to cover the whole ACP Group. presentation and the paper that had previ­ ously been forwarded by the Commission 9. Any other business services, and regretted that it had not yet had time to examine this matter and so it could not be put on the agenda of the ACP-EC Nothing was raised under this heading. Committee of Ambassadors meeting. The ACP side noted that the EU sought the ACP's on the key issues that it had high­ lighted, and also noted that the EU pursues a policy of full implementation of the TRIPs Agreement by all WTO members. On the issue of TRIPs, the ACP reminded the sub­ committee that the TRIPs Agreement is cur­ rently under review and suggested that some of the revisions which could be made to take on board the concerns of the ACP States with regard to access to medicines include:

Article 27( 1) to exclude the patentabili­ ty of 'essential medicines' listed by the. WHO;

Article 30 so as to incorporate an explicit recognition of an 'early work­ ing' exception for the approval of gener­ ic products before the expiration of a 'patent;

Article 31 in order to clarify the right to grant and the slope of compulsory licences for public health reasons.

28 Annex Ill

ACP-EC Convention of Lome

African~ Caribbean and Council of Pacific Group of States the European Union

ACP-CE 2127100

Minutes of: the ninth meeting at ministerial level of the ACP-EC Commodities Committee on: 22 June 2000 m: Cotonou, Benin

The ninth meeting at ministerial level of the October 1997 to ¢e Commission .proposal ACP-EC Commodities Committee was held on the use of vegetable fats other than cocoa on 22 June 2000 in Cotonou, Benin, under butter in the manufacture of chocolate. the chairmanship of Mr William Harrington, Minister for Commerce, Trade and Industry After the examination of these amendments of Zambia. The EC spokesman was Mr Luis and the revised proposal of the European Amado, State Secretary for Foreign Affairs Commission, the ACP position was that the and Cooperation of Portugal and President inclusion of S % of other vegetable fats in of the Council of the European Union. the manufacture of chocolate could only be profitable to the ACP if the following pre­ The Ministerial Committee adopted the requisites were met: report of its eighth meeting (document ACP­ CE 2150/99 - ACP/67/036/99) and noted preservation of the quality of chocolate the joint report on the meeting of the Com­ which guaranteed the purity of the modities Committee of 8 May 2000 (docu­ cocoa-butter-based finished product ment ACP/67/012/00 - ACP-CE 2118/00). through appropriate methods of detec­ tion and quantification with a view to The following matters were discussed: determining whether the finished prod­ uct (chocolate) was made exclusively (a) use of vegetable fats other than cocoa from cocoa butter or vegetable fat other butter in the manufacture of chocolate; than cocoa butter so as to make It possi­ ble to differeJ;Itiate between 'pure (b) use of outstanding balances on Stabex: chocolate' and 'chocolate with veg­ etable fats oth~r than cocoa butter'; (i) resources under Article 195(b), (ii) transfers for Burundi and Sudan. adoption of a more legible labelling sys­ I tem to enable the consumer, in particu­ 3(a) The use of vegetable fats other lar, to know the composition of the than cocoa butter in the ingredients contained in the finished manufacture of chocolate product;

The ACP Group recalled that the European , - in order to protect the commercial interests Parliament had made 22 amendments in of shea-producing countries, it was

29 absolutely necessary to promote shea-nut directive. It highlighted that in the directive kernels and shea butter in national, re­ as it had been adopted: gional and international markets through appropriate studies and the utilisation of all all the six vegetable fats other than relevant ACP-EU instruments; cocoa butter allowed were of tropical origin; the use of vegetable fats other than cocoa butter should be restricted to trop­ enzymatic production processes would ical fats of ACP origin; not be allowed in general and for the six other vegetable fats above; the use of vegetable fats other than cocoa butter, obtained from using enzy­ the labelling required a double indica­ matic production processes, should be tion near the name of the product and prohibited in cases where this might within the ingredients. have negative consequences on the use of shea butter in the production of The Commission indicated that transparency chocolate; in the implementation of the directive was very important and that progress was being a study should be carried out on the made in finding a reliable analysis process. impact of the directive on the economic situation of ACP countries concerned so As for the study of the impact of the direc­ as to establish the nature of compensa­ tive, the EC s1de thought it would be more tion that might be necessary. useful once there was a clear picture of the real implementation of the directive. A study In response to the issues raised by the ACP would be carried out within 66 months of side, the EC gave the latest information on the entry into force of the directive and the the 'chocolate directive'. The Council of the EC side thought that such a study would be European Union had adopted on 25 May more useful at that time, when the directive 2000, at its second reading, the European could also need updating. Parliament and Council directive relating to the use of vegetable fats other than cocoa Finally, the EC side concluded that it was butter in the manufacture of chocolate. well aware of the sensitivity of this issue politically and of the need to address the The EC side added that the EC had been and issues in a transparent manner and in a spir­ was aware of the importance that ACP States it of cooperation. attached to this quest10n. The directive adopted was a result of a delicate compro­ mise owmg to the sensitivity of the subject 3(b) Use of outstanding balances on not only for the ACP States but also for the Stabex European Community which was why it had taken so long to reach agreement. It was a 3(b)(i) Use of Stabex resources under delicate and balanced compromise which Article 195(b) ensured the free movement of cocoa and chocolate products while imposing very The ACP side requested to know whether strict conditions on them in terms of compo­ the ACP-EC Council of Ministers could sition and labelling and which took account invoke Article 195(b) as considerable bal­ both of consumer interests and those of the ances remained and wondered whether the countries, especially the ACP States, which EC could agree to this. produced cocoa and other vegetable fats. The EC side added that it was awar~ that The EC side also pointed out that most of with the end of the second financial protocol the issues raised were covered in the provisions needed to be made, as per Article

30 195(b) of the current Convention, for a deci­ The EC side emphasised that Stabex could sion on the use of any outstanding balances be a very technical issue but was also related by the ACP-EC Council of Ministers and to political issues as well. that the outstanding balances on Stabex were quite considerable. On Burundi, it indicated that it seemed prob­ able that the EC was in a position to make a The Commission indicated that expenditure positive response to the ACP Council's reso­ for 1999 was higher than in previous years be­ lution but that there were some technical cause of the fall in the prices for commodities complications to be resolved before it could as a whole and especially for coffee. Expendi­ do so. It recalled that the General Affairs ture was likely to be in the range of EUR 220 Council of the European Union, at its meet­ ing on 22 May, had 'expressed the ED's million to EUR 250 million for about 20 wi1lingness, where appropriate, to make full countries. The Commission confirmed that it use of Lome instruments and other relevant would take this decision by 31 July 2000 as budget lines in order to provide, in addition set out in Article 207(3) of the Convention. to important humanitarian assistance, sub­ stantial aid for reconstruction and develop­ Ambassador Laurent, ACP Co-Chairman of ment, democratisation and institution build­ the Subcommittee on Stabex, confirmed that ing in the Great Lakes region. In this regard, there were considerable outstanding bal­ the Council invited the Commission to con­ ances on Stabex and welcomed the accept­ sider ways to increase development coopera­ ance to recourse to Article 195(b) of the tion with Burundi, notably in order to pro­ Convention and also the Commission's com­ mote the implementation of the respective ments on the 1999 year of application. peace processes and progress towards democratisation'. In reply to the remarks of the ACP co-chair­ man of the Subcommittee on Stabex on the The CommiSSIOn added that it had sent a decision on the use of the outstanding bal­ mission to Burundi to examine the use of ances on Stabex, the Commission clarified funds and to prepare a framework for mutu­ that it did not accept recourse to Article al obligations to present to the Member 195(b) of the Convention but intended to States. It hoped to be able to do this by include decisions on the use of Stabex bal­ October 2000 and then to be able to transfer ances in its proposals on transition measures the funds. from 2 August 2000. It pointed out, however, that there was a It stated clearly that no decisiOn had yet technical problem preventmg the mobilisa­ been taken on the method for deciding on tion of the Stabex funds and more broadly the Community funds. All Burundian bank the use of Stabex balances. accounts in Belgium, including those with Stabex funds, were blocked by three judicial The EC co-chairman agreed with the Com­ decisions (saisies-arrets) as a consequence mission's comments and indicated that the EC of a dispute between the Government of was in the process of examining the Commis­ Burundi and some private investors. sion proposals to decide on the use of Stabex balances in the context of the transition meas­ The Commission and the Burundian Gov­ ures but had no position at this stage. ernment were taking all the appropriate measures to exclude the accounts with Com­ 3(b)(iij Transfers for Burundi and Sudan munity funds from these decisions. A hear­ ing had taken place and a judge's decision The ACP side asked for the latest informa­ was expected. Owing to this situation, no tion on Stabex transfers to Burundi and new Stabex funds had been transferred. It Sudan. was hoped that the situation could be

31 resolved and preparations were contmuing in the meantime.

On Stabex transfers for Sudan, the Commu­ nity made the following declaration: 'The Community wishes to refer to its previous declaration on this issue, made during the 20th meeting of the ACP-EC Council of Mmisters in Reduit (Mauritius) on 3 and 4 November 1995, where the Community set out Its reasons for the non-payment of Stabex transfers to Sudan.

Since then, the European Union decided, in November 1999, to renew political dialogue with Sudan for an initial period of one year.

This dialogue is bemg pursued and is pro­ gressing satisfactorily, but has not yet yield­ ed the tangible results which would justify a resumption of cooperation at this stage.

Until the current political dialogue with Sudan has reached a positive conclusion, the Community reaffirms that it cannot proceed with the Stabex transfers which are being claimed.'

The EC concluded that it was in a position to respond positively on transfers to Burundi but was not yet in a position to do so for Sudan.

The ACP side expressed Its appreciation for the information provided and on the progress on Burundi. It added that it would like to see more progress on the issue of Sudan and for the EU to look at this more positively. It was grateful that the EU had declared its position, which the ACP Group took serious note of.

4. Any other business

There were no items under any other busi­ ness.

32 Annex IV

ACP-EC Convention of Lome

African, Caribbean and Council of Pacific Group of States the European Union

ACP/811037/01 ACP-CE 2126/00

Minutes of: the ninth meeting of the ACP-EC Development Finance Cooperation Committee under the fourth ACP-EC Convention (ministerial level) dated: 22 June 2000

The ACP-EC Development Finance Coop­ 2. Approval of the draft minutes of eration Committee (1), established by Article the eighth meeting of the 325 of the fourth ACP-EC Convention, held Development Finance its ninth meeting at ministerial level on 22 Cooperation Ministerial June 2000 in Cotonou, Benin. The meeting Committee was chaired by the Honourable Victor (document ACP/81/010/99 +COR 1 Se1ormey, Deputy Minister for Finance of ACP-CE 2146/99 +COR 1) Ghana. The committee approved the minutes of The co-chairman for the EC was Mr Luis the eighth meeting of the DFC Ministe­ Amado, State Secretary for Foreign Affairs rial Committee as contained in the and Cooperation of Portugal. above document.

The European Commission was represented 3. Consideration of the report and by Mr Theodorakis, Deputy Director-Gener­ the resoiution of the ACP-EC al, on behalf of Mr Poul Nielson, Member of DFC Committee the Commission. (document ACP/81/010/00 REV 2 ACP-CE 2112/2/00 REV 2) 1. Adoption of the agenda (document ACP/81/025/00 REV 1 - ACP-CE 2119/1/00 REV 1) On the basis of a joint oral report by the DFC Committee (authorised representa­ tives) presented by Mr L. Amado The coillllllttee adopted the agenda as (Annex I), the DFC Mmisterial Com­ set out in the above document. mittee considered the following items.

(0 1999 progress report

The Commission representative in­ formed the committee that a certain num­ ber of measures had already been taken (I) Hereafter referred to as the DFC Committee. or were under way in order to improve

33 the implementation of financial and tech­ 4. Additional risk capital resources nical cooperation, in particular as con­ cerns the simplification and Following a suggestion by the ACP side, the harmonisation of documents and proce­ committee agreed to delegate powers to the dures and the reorganisation of its serv­ DFC Committee at authorised-representative ices. The Commission also highlighted level, meeting in the autumn, to examine this the first mid-term review which will facil­ matter with a view to coming to a decision itate future rolling programming, and the and to report back at the next meeting. EDF Committee's approval of the Com­ missiOn's proposals for implementation 5. Any other business of the contribution to the 'Heavily in­ debted poor countries' (HIPC) initiative. (a) The ACP side suggested examining the possibility of a follow-up meeting to the The EIB representative stressed, on the constructive dialogue held in November one hand, the important increase in 1999 in Accra between the ACP minis­ operations in favour of the private sec­ ters, members of the DFC Committee, tor. On the other hand, the EIB indicat­ the European Commission and the Pres­ ed that due to the situation in certain idency of the Council of the European countries it could not intervene there. Union.

Also, the EIB: The EU took note of this suggestion and will examine it shortly. recalled its full support of the HIPC initiative; (b) The committee gave a mandate to the EU co-chairman to present a joint oral stressed the role of the future invest­ report on this meeting to the ACP-EC ment mechanism as a principal Council of Ministers, under point 10 of source of long-term financing and as its agenda. a catalyst for other sources.

The co-presidents thanked the Commis­ sion and the EIB for their information.

The committee agreed on the draft report on the implementation of finan­ cial and technical cooperation contained in the above document.

M 1999 joint evaluation report

The committee confirmed the agree­ ment ad referendum on the 1999 joint evaluation report contained in the above document.

(iii) Resolution on development finance cooperation in 1999

The committee confirmed the agree­ ment ad referendum on the resolution on development finance cooperation in 1999.

34 Item 3 on the agenda of the ACP-EC (c) In paragraph 146, the brief 1999 joint DFC Committee evaluation report on pages 49 and 50 of our document sets out a work pro­ Draft oral report from the DFC gramme for 2000, governed by the Committee (authorised operational procedures we agreed on representatives) (11 may 2000) to the together and guided by the spirit in DFC Committee (ministers) which the new provisions of the Part­ (ninth meeting on 22 June 2000) nership Agreement were negotiated.

(a) The ACP-EC Development Finance (d) The draft resolution of the ACP-EC Cooperation Committee (authorised Council of Ministers, given in Annex I representatives), set up pursuant to Arti­ to the document, summarises the report. cle 325 of the fourth ACP-EC Conven­ It makes a number of follow-up recom­ tion, held its ninth meeting on 11 May mendations to be implemented by the 2000 at ACP House in Brussels. DFC Committee. Finally, it requests the DFC Committee to meet at the latest in The outcome of our Committee's work the autumn to specify its tasks and work will be found in document ACP-CE programme in the framework of the new 2112/2/00 REV 2 - ACP/811010/00 Partnership Agreement. REV 2, which contains: (e) For the sake of completeness, I would a 1999 progress report on finance add that, when the committee met at cooperation; authorised-representative level, the ACP side stressed the need to release addi­ a 1999 joint evaluation report; tional resources through risk capital under the eighth EDF. Without com­ a draft resolution on the implemen­ menting on the substance, the Union tation of ACP-EC finance coopera­ took note of this suggestion. The Com­ tion in 1999. mission will be forwarding a proposal on this to the Council of the European Union in the near future. We will then I am pleased to be able to inform you examine the matter in the hope of that the committee has reached ad refer­ quickly reaching a joint decision. endum agreement on all the questions to which I have referred and I would sug­ gest that we recommend the ACP-EC This concludes my report to you on behalf Council of Ministers to formally adopt of both sides. this document.

(b) The progress report deals, in tum, with programmable aid, debt and structural adjustment, EIB operatiOns and the question of EDF-funded contracts. The report reaches the general conclusion that commitments for the 1999 financial year are very encouraging, but payment results are rather disappointing. Para­ graphs 135 and 136 advocate solutions to deal with the situation.

35 Annex V

ACP-EC Cotonou Agreement

African, Caribbean and Council of Pacific Group of States the European Union

ACP/81/023/01 ACP-CE 2169100

Summary record of: the lOth meeting of the ACP-EC Development Finance Cooperation Committee (authorised representatives) on: 1 December 2000

The ACP-EC Development Finance Coop­ (authorised representatives) as contained in eration Committee, set up by Article 325 of the above document .. the fourth ACP-EC Convention, held its lOth meeting at authonsed-representative 3. Consideration of the follow-up to level in Brussels on 1 December 2000. The certain issues raised in the meeting was co-chaired by Mr J. L. Naka­ resolution adopted on 22 June mura for the Community and HE Mr G. K. 2000 by the ACP-EC Council of Ministers in Cotonou, Benin, on Pepson, Ambassador of Papua New development finance cooperation Guinea, for the ACP States. The Commis­ (implementation report 1999) sion was represented by Mr Nicora, Head (document ACP/811050/00ACP - CE of Unit. 2156/00)

1. Adoption of the agenda (a) HIPC initiative and structural adjust­ (document ACP/81/049/00 - ACP-CE ment facility 2155/00) (b) Counterpart funds and mternal debt of The committee adopted the agenda as set out ACP countries in the above document. (c) Private sector support and nsk capital 2. Approval of the record of the ninth meeting of the ACP-EC (d) Implementation procedures Development Finance Cooperation Committee (e) Improvement of the workings of the (authorised representatives) held DFC Committee on 11 May 2000 (document ACP/81/031/00 - ACP-CE 2122/00)

The committee approved the record of the ~ninth meeting of the DFC Committee

36 The committee: 5. Compendium providing policy guidelines in specific areas or approved the abovementioned docu­ sectors of cooperation ment, amended as follows: (document ACP-CE 2142/00)

• paragraph 7 should read as follows: The committee agreed to suggest that the 'Similarly, a firSt payment of EUR ACP-EC Committee of Ambassadors: 100 million should be made before the end of the year to the special trust record its political agreement to the text fund established with the EIB to alle­ of the compendium as amended on the viate the burden of debt owed by the basis of the amendments suggested by ACP HIPCs to the Community in the the ACP States (document ACP-EC form of special loans and risk capi­ 2142/00 + AMD 1); tal.', instruct a group of experts to prepare a • paragraph 8 should read: ' ... the con­ consolidated text on that basis; . tribution to the HIPC initiative totalling EUR 1 billion ... '; agree that the compendium should be formally adopted by the ACP-EC Com­ and agreed to submit the amended mittee of Ambassadors by the written report to the forthcoming DFC Commit­ procedure before 31 January 2001. tee meeting at ministerial level. 6. Any other business 4. Examination and adoption of two draft decisions concerning the No items were raised under any other busi­ transitional measures ness.

(a) Transitional measures relating to additional resources for risk capital (document ACP-EC 2146/00)

The committee agreed to submit this draft decision to the ACP-EC Committee of Ambassadors with a view to its adoption by the ACP-EC Council of Ministers.

(b) Transitional measures relating to specific financial measures to safe­ guard the continuity of certain activ­ ities of the eighth EDF (document ACP-CE 2157/00)

The committee agreed:

to submit this draft decision to the ACP-EC Committee of Ambassadors with a view to its adoption by the Coun­ cil of Ministers;

to have the attached Commission state­ ment entered in the minutes.

37 Annex to Annex V (ii) the above amounts will be included in the initial allocations of resources for Brussels, 28 November 2000 programming under the ninth EDF pro­ vided for in Article 3(2)(b) of Annex IV Statement by the Commission under to the Partnership Agreement signed in agenda item 4(b): Specific financial Cotonou on 23 June 2000. measures to safeguard the continuity of certain activities of the eighth EDF

1. The Comrmssion confirms that the imple­ mentation of this decision does not affect the reserve of EUR 410 926 000 estab­ lished under Article 2(c) of Decision No 3/2000 oftheACP-EC Committee of Ambassadors of 26 September 2000. That reserve is intended to support devel­ opment programmes identified following requests for aid which were submitted before 1 August 2000 but for which decisions cannot be taken before 31 December 2000 on account of the proce­ dures necessary for adopting such deci­ sions.

2. The Commission can also state that:

(i) the above reserve was established on the basis of the indicative maximum amounts that could be allocated to the various ACP States concerned; those amounts are shown in the table below and are subject to approval by the Community decision­ making bodies for the relevant specific de­ velopment programmes;

Millwn EUR Botswana 30.0 Dominican Republic 30.0 Gabon 35.0 Ghana 40.0 Guyana 4.9 Mauntania 45.0 Namibia 25.0 Niger 55.0 Papua New Guinea 50.0 Senegal 55.0 Sierra Leone 25.0 Suriname 7.0 Zambia 9.0 ·Total 410.9

38 Annex VI the amount devoted to operational activities. In 2000, the overall transfer amounted to Centre for the Development EUR 742 000. of Enterprise (CDE) Evolution of the main indicators of The year 2000 in brief performance in 2000

Following signature of the ACP-EC Partner­ The figures in the summary table attest to ship Agreement in Cotonou on 23 June 2000 the high level of operational activity main­ and as from 2 August 2000, all the resources tained by the centre thanks to a sustained and activities of the Centre for the Develop­ effort to continue to improve the way in ment of Industry (CDI) were transferred to which it manages its operational activities. the Centre for the Development of Enterprise (CDE). Requests for assistance The Cotonou Agreement has given the cen­ tre a much wider mandate. The sectors eligi­ In line with its policy of improving the qual­ ble for assistance will be industry and agro­ ity of the assistance it provides, the centre industry, construction, tourism, telecommu­ continued to place emphasis on compliance nications, transport, private infrastructure with its requirements for the presentation management and support services lmked to and substantiation of requests for assistance. all of these sectors. The beneficiaries of the centre's assistance will be ACP enterprises, In 2000, 1 353 requests for assistance were private sector organisations, development registered compared with 1 153 the previous finance institutions, investment promotion year. organisations, consultants and advisory companies. Per region, the main source was west Africa The year 2000 therefore saw the start of a (29 %) followed by east Africa (18 %), period of transition during which the centre southern Africa ( 16 %) and the Caribbean will gradually adapt to its new mandate. (15 %).

Budget Analysis on the basis of origin shows that the two main sources were the centre's own As in previous years, one of the centre's pri­ initiatives (30.7 %) and the ACP promoters orities in implementing its budget was to themselves (29.2 %). ensure maximum utilisation to the benefit of operational activities. ACP enterprises assisted

The contribution from the European Devel­ opment Fund to the centre's 2000 budget In order to maximise the impact of the assis­ amounted to EUR 18 988 000, representing tance it provides, the centre may sometimes an increase of 8 .8 % over the figure for group enterprises together within either a 1999. country or a region.

The amount initially available for opera­ As shown m the summary table, the steady tional activities was EUR 8 687 000. How­ rise in the number of enterprises assisted ever, for the fifth year running and as a was maintained. Overall, the centre assisted result of a general policy aimed at reducing 654 enterprises in 2000. Of these, 260 administrative costs, it was possible to real­ received their first assistance during the locate funds within the budget to supplement year.

39 A more detailed analysis of the enterprises 34 %. The average contribution of the EU assisted shows that: partners was 9.51 %and that of the EU insti­ tutions 8.80 %. per region, 24 % were in east Afnca, 23.55 % in Southern Africa and ACP network 22.63 % m west Afnca; Over the years, the centre has consolidated a per sector, 40 % were in agro-industry, network of antennae and correspondents 33.65 % in construction materials, wood throughout the ACP countries. Their main and metal and 15% in leather and textiles; tasks are to represent and promote the centre and carry out a prelimmary screening of per type, 38.99% were undergoing reha­ requests for the centre's assistance. bilitation or consolidation, 35.4 7 % were undergoing expansion or diversification The criteria for assessing eligibility for and 25 .54 % were new enterprises; assistance are those applied by the centre. However, in countries or regions where the 91.13% were private enterprises. centre is targeting one or more key sectors, it may request the antennae also to focus on The percentage of enterprises assisted requests emanating from the latter. through partnership with an EU company was 35.47 %. In line with the emphasis that the centre places on the quality of the assistance it pro­ Interventions vides, the antennae are required to ensure that all proposals are adequately substantiat­ In order to increase the impact of its assis­ ed and give an indication of the impact that tance, the centre pursued its policy of pro­ may be expected of the assistance requested. viding longer-term assistance with more than one intervention per enterprise. Decentralisation of activities

Overall, 849 interventions were processed in With its wider mandate, the centre has had to 2000. As an intervention may be implement­ reassess its operational strategy. ed over two financial years, this figure may be broken down as follows: One of the major steps will be to decen­ tralise gradually the management of inter­ interventions that started in 2000: 502 ventions to regional offices (one in each of the six ACP regwns). These offices will also mterventions carried over from 1999 enable the centre to coordmate and monitor for completion in 2000: 347 more effectively the activities of its ACP network at regional level. and During the last quarter of the year, arrange­ interventions completed in 2000: 525 ments were finalised for the first of these offices. Located in Santo Domingo, Domini­ interventions carried over can Republic, and covering the Caribbean for completion in 2001: 324 region, the office became operational in Feb­ ruary 2001. The average overall cost of the interventions processed was EUR 25 493. EU network

The average contribution of the centre was The centre has an extensive institutional and 47.69 % and that of the ACP promoters technical network of contacts in the EU

40 Member States. These mclude national or one of the main sources of the requests 1t regional development and investment pro­ receives for assistance. motion agencies, chambers of commerce, ministerial departments and other organisa­ After selecting a sector that has potential for tions and institutions related to the promo­ growth m an ACP country or region, the tion of development in the ACP countries, as centre then proceeds to select 20 to 25 key well as technical, professional and sectoral enterprises in the country or region con­ bodies in the EU that work directly with the cerned and a similar number of European ACP enterprises. companies that are interested in collabora­ tion. In addition, the centre has bmlt up a vast network of specialised consultants and com­ In the centre's experience, these relatively panies that it engages to implement interven­ small and focu~ed meetings engender rapid tions and to assist in joint venture agree­ contacts, particularly at marketing and tech­ ments between EU and ACP companies. nical levels. They also encourage collabora­ tion not only between the ACP and Euro­ The EU network is one of the interfaces pean participants, but also between the ACP between the needs of the ACP enterprises participants themselves. and the specific interventions implemented by the centre. Out of the 849 interventions in Another positive aspect is that these meet­ 2000, 367 were carried out by EU experts ings enable the centre to improve its knowl­ and 117 by the EU partners themselves. edge of the sectors and subsectors in the countries or regions concerned. Surveys conducted prior to each meeting focus, for An essential component of the network is example, on the availability and specifica­ the institutional cooperation agreements at tion of raw materials, on the enterprises that national or regional level. are active in the sector and their plans for expansion, on existing and potential markets In 2000, the EU network generated addition­ (local or foreign), and on the need for new al resources amounting to a total of EUR equipment or for technical upgrading. 2 471 178. The activities that were co­ Thanks to the findings of these surveys, the financed were mainly twinning and partner­ centre is able to focus its assistance on the ship programmes, training programmes, enterprises and programmes that are the missions of industrialists, and direct assis­ most viable. tance to individual enterprises.

The most active EU countnes in terms of co­ financing activities with the centre in 2000 were Portugal (27 %), Spain (17 %), Luxem­ bourg (16 %), Sweden (12 %) and Italy (5 %). Co-financing from EDF programmes accounted for 5 % of the total co-financing generated.

Of the programmes and projects co-financed in 2000, west Africa accounted for 36 %, south­ ern Africa for 28 % and east Africa for 8 %.

Partnership meetings

As mentioned earlier, the centre's own initia­ tives, such as partnership meet.ngs, are now

41 Evolution of the main indicators

Total Total Total Total Total Total 1995 1996 1997 1998 1999 2000 A. Requests registered 1 248 1 570 1 079 1 225 1 153 1353 B. Interventions Interventions carried over (situation at the end of the previous year) 83 140 239 320 313 347 Interventions started during the year 284 463 509 475 532 502 Total number of interventions processed 367 603 748 795 845 849 Active interventions (situation at the end of the year) , 140 239 320 313 347 324 Interventions completed during the year 227 364 428 482 498 525 Total number of interventions processed 367 603 748 795 845 849 Average value of the CDE's contribution to the mterventJons processed dunng the period (EUR) 15 848 13 287 10 984 11 326 11494 12 089 Idem on budgetary article for the year only (EUR) 14 394 10671 10944 10472 11 506 12 817 Average contribution to the interventions(%) -CDE 44.5 46.0 46.6 46.7 47.8 47.69 - EU institutions 18.8 15.9 13.7 10.6 9.3 8.80 - EU partners 14.1 10.6 11.2 11.0 9.8 9.51 - ACP partners 22 6 27.5 28.5 31.7 33.2 34.00 C. Enterprises assisted Number of enterprises that received therr first assistance during the year 165 279 255 269 246 260 Total number of enterprises assisted dunng the year 286 468 547 597 642 654 -New(%) 32.8 31.6 29.8 25.0 23.8 25.54 - Enterpnses undergoing expansiOn or diversification (%) 36.5 30.4 26.3 32.0 35.8 35.47 - Enterpnses undergoing rehabilitation or consolidation (%) 30.7 38.0 43.9 43.0 40.4 38.99 Percentage of fully private enterprises 82.9 85.0 87.6 86.1 88.6 91.13 Percentage of enterpnses assisted through partnership with an EU company 50.2 42.3 40.0 37.2 37.2 35.47 Distribution by sector (percentage of enterprises) - Agro-industry 418 39.3 42.6 44.6 39.1 40.06 - Construction materials, wood, metal 33.4 35.7 32.4 27.8 34.9 33.65 -Others 24.8 25 0 25.0 27.6 26.0 26.29 Distribution by region (percentage of enterprises) - West Africa 28.2 22.4 249 24.6 22.4 22.63 - Southern Afnca 20.9 24.1 20 7 21.1 23.1 23.55 -East Afnca 19.9 19.4 21.2 21 8 22.3 24.01 -Caribbean 16.7 11.8 12.8 116 11.8 13.76 - Central Africa 8.4 13.7 10.0 9.2 7.8 8.56 -Pacific 5.9 85 10 4 11.7 12.6 7.49

42 Annex VII tion by the ACP Group approved in 2000. They will be considered by the EU in 2001 Annual report of the ACP-EC Council after recommendations from the Commis­ of Ministers: year 2000 sion. The centre's proposals reflect the out­ come of discussions started between the for­ CTA contribution mer director and the staff representatives in connection with a number of areas affecting The year 2000 was a rather eventful one for conditions of service. Subsequently, those the CTA because of a number of factors. areas were amicably resolved. The main areas included arbitration and dispute settle­ First of all, 2000 was the final year of the ment, appraisal mechamsms, and periodicity medium-term plan which has informed the of contracts. annual programmes of the centre since 1997. A new framework therefore needed to be In August, staff contracts were extended on outlined for the period 200 1--05. It had the basis of Lome rules and regulations. In already been agreed that 2001 would be a the absence of new rules and regulatiOns on transitional year. Secondly, the centre's mis­ 23 June, it was necessary to have those or sion was modified in the course of the nego­ alternative interim rules and regulations in tiation of a successor agreement to the Lome place. In September, the ACP-EC Commit­ Convention and the centre and its manage­ tee of Ambassadors agreed to roll over the ment had to take account of the new direc­ Lome rules. In the draft framework agree­ tions set out in the framework agreement ment, published in the Courier and signed concluded in June 2000. by ministers, the name of the centre had been incorrectly shown at a number of At the same time, the partners agreed that points. This has since had to be corrected. the management of the centre would be rotated. In March 2000, therefore, Dr Rod­ As has been the case since 1997, the techni­ ney Cooke, Director of the centre since cal work of the centre IS divided up among 1995, was succeeded by Carl B. Greenidge, four operational departments. These are dis­ former Deputy Secretary-General and Secre­ cussed below. tary-General, ad interim, of the ACP Group. The handing-over was marked by a special Promoting contacts and exchanges meeting between the outgoing and incoming of experiences amongst ACP experts director to which the two observers of the and partners - Seminars and restricted group were invited. The event Studies Department passed smoothly. The broad objective of this department's Since the handing-over, a good deal of the programme is to promote the exchange of energies of the centre and its management experience between ACP experts and part­ have been focused on the preparation of a ners mainly in four priority information new mid-term plan. A draft was completed themes (conquering markets, intensification in December 2000 at which time the and optimisation of agricultural production, ACP-EC Committee of Ambassadors also natural resource management, and mobilis­ approved the budget for the year 2001 . ing civil society). To this end, seminars and study tours on political and strategic aspects Organisationally, some attention was devot­ of priority topics where information and ed to following up and implementing the communication are a major constraint were conclusion of the negotiations and its conse­ mounted. The seminars are either solely quences. Proposals for new rules and regula­ organised by the CTA or in partnership with tions were, in keeping with the request from other institutions (co-seminars). In order to the ACP-EC Committee of Ambassadors, increase efficiency and coverage of topics, submitted by the centre and after considera- the general strategy has been to increase the

43 number of co-semmars relative to CTA sem­ This provided participants with an opportu­ inars. nity to share their experiences on develop­ ment of the sector, which holds much poten­ Study VISits involving groups of 15 to 20 tial for integration. Participants on a study ACP experts from six or seven ACP coun­ visit to South Africa shared their experiences tries aim at exchanging experience and on the contribution of microfinance to agri­ expertise through discussions in the field. cultural development. Under its seminar Additionally, the seminar support pro­ support programme, the CTA enabled 177 gramme, developed to enable more ACP nationals of ACP countries to share their nationals in the field of agriculture and rural experience by attending 47 national, region­ development to attend regional and interna­ al and mternational conferences organised tional conferences on topics of relevance to by other institutions. their area of work, enables more than 200 ACP experts to share and exchange experi­ Pointers to the transitional year ences in the agricultural and rural develop­ ment sector. The seminar on information for agricultural and rural development in ACP countries has The most important single activity of the suggested that the main challenge for agri­ Seminars and Studies Department in 2000 cultural development m the future IS infor­ was the organisation of an international sem­ mation management for the rural communi­ inar on information for agricultural and rural ties. Consequently, during the transitional development in ACP countries. Its emphasis year, a seminar on the development of infor­ was on new stakeholders, new media and mation production and dissemination by pro­ priority themes, and it sought to define more ducers and farmers' organisations will be clearly the roles of stakeholders and infor­ organised. In similar vein, the CTA will also mation and communication management organise consultations to help define a gen­ (ICM) in rural development. Additionally, it der strategy for the next five years. aimed to discuss priority information themes and new instruments for development­ Publishing and Dissemination oriented communication. The seminar point­ Department ed to the desirability for the CTA to develop programmes that support the definition and This department's responsibility is to publish implementation of communication strategies and co-publish information on relevant and programmes by the stakeholders them­ aspects of agncultural development m both selves and to pay attention to farmers' print and electronic formats. The current organisations, women and local service emphasis of the programme is on targeting providers. The seminar also stressed the specific readerships. The department's activ­ need to increase the use of conventional ities centre on publishing, co-publishing and media such as print and radio, and the devel­ distribution. opment of new media, which are not yet suf­ ficiently available in ACP countries and in The CTA's own publishing actlVlttes give rural areas in particular. The seminar fmd­ rise to periodicals and technical publica­ ings were used in the preparation of the tions, as well as institutional publications. CTA's strategic plan 2001-05. The technical publications mainly document the recent activities carried out by the CTA's The CTA's priority information themes were other departments. The new 'Working docu­ conquering markets and market-led develop­ ment' series introduced last year has helped ment. A co-seminar was organised on sup­ to overcome the mismatch between the allo­ port of ACP countries in multilateral trade cation of funds to certain technical publica­ negotiations involvmg agricultural products. tions and their perceived usefulness and rel­ A study visit was organised on cattle and evance for the readership; web publishing meat marketing in west and central Africa. has also helped in this regard. The serial

44 publication Spore/Esporo also reflects other Pointers to the transitional year CTA activities, but in a more topical and superficial manner. It also serves as a tool More of the CTA's own published output for the effective distribution of publications will be made available on the Internet and in on the CTA's list: over 500 requests for one CD-ROM format. Whenever possible, co­ publication were received during the year, publications will also be made available on following a single announcement in the Internet. Spore/Esporo. In view of the limited Internet connectivity Co-publishing with other organisations and in ACP countries, the CTA will make individuals, nowadays with a heavy empha­ increased use of CD-ROMs to complement sis on ACP authors and co-publishers, serves Internet delivery mechanisms. to develop new titles for the CTA's list, as well as providing valued support to endan­ The content of the publications on the CTA's gered, or embryonic, ACP publishers. Out­ list will increasingly focus on ICM and the puts in this area are categorised into series, needs of decision-makers, non-governmental technical publications, seminar and co-semi­ middle managers and women. The propor­ nar proceedings and reports, and other co­ tion of publications originated by ACP publications and periodicals. The title most nationals, and of those published by ACP in demand was a book on self-help veteri­ publishers, will continue to increase. Publi­ nary care - it alone accounted for almost cation outputs will include series specifical­ ly intended to reach limited audiences more 4 % of the credit points used by CTA's sub­ scribers during the year. Encouragingly, quickly and cheaply than those that are sub­ there has been a significant growth in the ject to the full editorial process. number of requests for review copies of titles on the CTA's list. Strengthening information and communication management - Information and Capacity The effective distribution of publications on Development Department the CTA's list is the responsibility of the Publications Distribution Service (PDS), and The mam activities of the Information and 40 % of the department's budget was spent Capactty Development Department in 2000 on this activity. Most of the CTA's publica­ were the decentralisation of the Question­ tions are distributed through a subscription and-Answer Service (QAS) and the integra­ scheme operated by the PDS. During the tion of QAS activities with those of other year, over 80 000 publications were distrib­ departmental programmes on the selective uted. Two pilot distribution schemes, with dissemination of information (SDI), the dis­ local partner organisations in Burkina Faso semination of reference books on agriculture and Zambia, became operatiOnal dunng the (DORA) and the CD-ROM service. first half of the year. The promotional cam­ paigns operated by the PDS helped to ensure The Ghana Agricultural Information Service that the CTA achieved two of its objectives (GAINS) was launched in February, and was in particular: firstly, to increase the percent­ publicised through meetings, brochures, fly­ age of subscription requests coming from ers, a newsletter, advertisements in national women and, secondly, to increase the num­ newspapers, and the creation of a web site. ber of subscribers to Esporo, the Portuguese The Nigeria Question-and-Answer Service edition of Spore. The former percentage (NAQAS) was launched in July in collabo­ doubled (to 16 %) and there was a 23 % ration With agncultural research institutions growth in the latter. Flyers aimed at promot­ and Ahmadu Bello University; these institu­ ing awareness of specific titles proved v~ry tions helped to promote the service by pro­ effective: in one case, over 2 000 requests ducing flyers, brochures and posters, organ­ were received. ising awareness meetings for users and

45 developing special web pages. The numbers and propose ICT pnontles for the CTA. of producers and traders using the QAS pro­ Among the main conclusions were that there vided by the programme for agricultural should be greater use of ICTs in CTA servic­ information services (PRAIS) based in es and that the centre needs to promote ICTs South Africa increased; most requests for that can be used on the weakest bandwidths. information came from Botswana, Malawi, In December, the CTA produced the first Zambia and Zimbabwe. issue of ICT Update, a bimonthly bulletin providing information on ICTs and their With the development of these QAS sites, application in agricultural and rural develop­ which also host CD-ROM sites, requests for ment. It is produced primarily in electronic information from CTA's SDI programme form on the Agricta web site, but printed have been falling, particularly from Ghana, copies are also available. Kenya, Nigeria, Trinidad and Tobago, and Uganda. Most of the requests received by Information Partnership and Policies the SDI programme in 2000 related to Department research institution management, agrarian systems, food technologies, integrated pest The Information Partnership and Policies and disease control measures, and land utili­ Department (IPPD) is charged with develop­ sation. The number of CD-ROM sites rose ing strategies for information management from 52 in 1999 to 62 in 2000, as part of the in ACP countries, one of the four specific strategy to strengthen the QAS sites and objectives pursued by the CTA. The specific their partner institutions. The implementa­ goal of the department is to contribute to tion of the DORA programme continued, sound policy analysis and decision-making with the emphasis on linking it with the in both the public and independent sectors of decentralised QAS sites. ACP national agricultural systems. The development of effective partnership modes The rural radio programme now supplies at national and regional levels is an impor­ 150 public and private radio stations with tant component of its work programme. It is rural radio resource packs. The packs dis­ also responsible for carrying out evaluation tributed in 2000 were on themes such as the of the CTA's programmes and services. economic and entrepreneurial role of women, sustainable soil fertility, food In 2000, the following programme areas hygiene and safety, and pisciculture. were pursued. The CTA training programme is aimed pri­ Agricultural policy management marily at improving the skills of personnel in public and private agricultural research, extension and traming institutions. During Regional bodies (Ecapapa, SADC, Ecowas, the year, 318 ACP nationals benefited from CMA/AOC, REPA, UEMOA) were provided this programme. The subjects of the training with support in strengthening their ICM in courses included the production of annual agricultural policy analysis. A methodology reports and extension materials, the design was developed for them to use for prioritising and management of a QAS, the role of infor­ information themes. Three national studies mation in analysing subsectors, web page were undertaken to develop ICM for formulat­ design, awareness building, scientific edit­ ing and implementing sustainable agricultural ing, and rural radio listenership analysis and systems and natural resource management. programme production. Market-led development In May, the CTA organised the third consul­ tative expert meeting of the Observatory on In collaboration with various organisations Information and Communication Technolo­ from the public and private sectors, the CTA gies (ICTs) to evaluate the potential of ICTs is promoting the establishment of effective

46 market information systems (MIS) at local, Ongoing pilot projects national and regional levels. The information and communication management concept In 2000, five pilot projects were initiated in that has been adopted was arrived at through addition to the four already launched in various studies and consultations. The 1999. They cover Burkina Faso, Cameroon, underlying concept is that 'an effective MIS Ethiopia, Jamaica, Madagascar, Mali, South should be localised, demand-driven, com­ Africa (two projects) and Uganda. munity or sector-specific, supported at local and national levels, and established and run The regional partnerships with Asareca, on a participatory basis'. The CTA is sup­ IRETA, CAROl, CMA/AOC and Saccar porting market information projects in were maintained. They aim at developing Ghana, Kenya and Uganda, as well as two their ICM capacity to satisfy their members. regional MIS initiatives involving the CMA/AOC and CARD!. The pilot projects Evaluations in Ghana, Kenya and Uganda aim primarily to test and improve the CTA concept over a Evaluations are undertaken to help improve three-year period. the efficiency and effectiveness of the CTA's activities through improved planning. Extension systems During 2000, the mid-term plan 1997-2000 The use of the Internet to support extension of the CTA was evaluated and an impact has been the object of innumerable discus­ sions at the meetings in Neuchatel. In 2000, study of the DORA programmes on the ben­ a study was commissioned to cast light on eficiaries was conducted in Burkina Paso the level of utilisation by different actors, to and Nigeria. analyse the constraints on access to available information and to identify the main oppor­ The CTA Advisory Committee in 2000 tunities offered. The CTA Advisory Committee, which pro­ Impact assessment vides technical and scientific assistance to the CTA's director, consists of 15 members The principal focus of the IPPD is to advance representing the EU Member States and 15 different methodologies for assessing the im­ representing the ACP Group of States. Rep­ pact of ICM on the performances of ACP or­ resentatives of the European Commission ganisations. In 2000, the CTA supported (Directorate-General for Development), of CORAF in assessing the impact of agricul­ the Secretariat of the ACP-EC Council of tural research in west Africa. A p1lot study Ministers and of the ACP General Secretari­ was conducted in Trinidad and Tobago. at attend as observers. The committee nor­ mally meets annually in June. The usual Effective national and regional partner­ June session is preceded in April by a ships preparatory meeting of its restricted group. This latter body also meets in October to fol­ The overall objectives of this programme of low up matters arising from the committee's partnership with national independent sector annual meeting. organisations and networks are to improve the effectiveness of the CTA's interventions The framework agreement had, unusually, and to reinforce the ICM capacities in the provided for the ACP-EC Committee of national agricultural systems of ACP Ambassadors to establish other supervisory countries. The pilot projects serve to test bodies, as well as new rules and regulations modalities and mechanisms of long-term for the centre after the signing of the agree­ cooperation between the CTA and indepen­ ment. These are still under consideration by dent sector structures. the committee. In order to help review the

47 proposals underlying the strategic plan 2001-05 and to facilitate independent advice on the CTA's programme 2001, as required for consideration of the 2001 budget, a con­ sultative forum was convened. This forum was composed of experts in agriculture anci rural development drawn from both the ACP regions and the EU Member States. This meeting was held from 5 to 8 September at the CTA's headquarters in Wageningen.

In the absence of the new rules and regula­ tions, transitional arrangements were approved by the ACP-EC Committee of Ambassadors on 27 September. Subsequent­ ly, the restricted group was convened and met on 14 and 15 December in Wageningen. It reviewed progress on the CTA's pro­ gramme 2000, considered the conclusions and recommendations of the September con­ sultative forum, discussed the state of prepa­ ration of the strategic plan 2001-05 and pre­ pared for the April 2001 meeting. At the same time, the centre asked the members of the Advisory Committee to consider and for­ mally approve the recommendations of the consultative forum. This they did.

Conclusion

The year 2000 was important in setting the scene for a great number of changes in the centre and for meeting new challenges including those of the Partnership Agree­ ment. The elements of this report for the year 2000 suggest that the necessary steps and measures have been taken to ensure that these challenges can be successfully con­ fronted by the centre.

48 European Commission

Annual report of the ACP-EC Council of Ministers (2000)

Luxembourg: Office for Official Publications of the European Communities

2002- 48 pp. - 21 x 29.7 em

ISBN 92-824-2055-8

Price (excluding VAT) in Luxembourg: EUR 15 ......

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