A new partnership between the Caribbean and the European Union
(Dr Rudy Insanally served as Minister of Foreign Affairs of Guyana from 2001 to 2008)
March 25, 1957 remains a red-letter date on the calendar of modern Europe. It was on that day that a historic document was signed, creating a new entity called the European Economic Community which later became known as the European Community (EC) and more popularly as the Common Market. At that time, most of Europe was still suffering from the disastrous consequences of World War II; the political landscape had been radically transformed; economies were devastated, and the people disillusioned and desperate. But like the proverbial phoenix rising from the ashes, Europe hastened to address the challenges of social disarray and physical reconstruction. With the generous assistance of the United States’ Marshall Plan, Europe was able to recreate in a remarkably short time, a new and functional community.
The success of this venture is credited in large measure, to the inspired and inspiring vision of several statesmen such as Jean Monnet, Robert Schuman, Paul Henri Spaak and Konrad Adenauer who with foresight and pragmatism, laid the foundations of today’s European Union. On completing their task one of the drafters of the Treaty, Jean Monnet of France is reported to have quoted from a Swiss philosopher, “Nothing would have been possible without the work of these men… Nothing would be lasting without the institutions, pillars of civilization.” These eminent statesmen, very mindful of the region’s past mistakes, had sought to design an ideological, political, economic and social framework for building a new European polity. Using liberal socialist ideas, they planned to strengthen capitalism as its economic system, to formulate a social pact and to strive for political reconciliation between previously warring states. For more than fifty years, their endeavours have succeeded in evading a Third World War, building a strong economy and achieving a comparatively high degree of social stability.
Very importantly, the Treaty laid the foundation for an ‘ever closer union,’ creating the freedom to move goods, capital and people, and the concept of social cohesion. The provision was intended to ensure that member states should give economic support to each other to allow the countries to develop as far as possible, at the same pace in order to avoid “a two-speed” growth of Europe. Accordingly, special provisions were made in the Treaty for regional cooperation; barriers to trade and investment were broken down to spur economic growth. At the political level, the document enshrined the goal of a European Union based on peaceful reconciliation, social cohesion, international cooperation, and the preservation of peace and stability. Of special concern and interest to the EU’s partners in the developing world is the collective European development policy which was first set out in the 1957 Treaty. A European Development Fund (EDF) was established to grant technical and financial assistance to a select group of beneficiaries, mainly former colonies and overseas collectivities and territories (OCT).
Cooperation programmes with former colonies of Africa, the Caribbean and the Pacific (ACP) were embodied in a series of Agreements and Conventions. The first two agreements made at Yaoundé, Cameroon, granted preferential trade arrangements such as the duty-free access of specified African products into the European market. Additionally, financial assistance was provided through the EDF and the European Investment Fund (EIF). Upon the expiration of the Yaoundé Agreement, a new convention named after Lomé, the capital of Togo, was introduced as an improvement on the previous agreement. It represented a change by Europe from a regional to a more global and comprehensive approach in response to the introduction of the Generalized Scheme of Preferences (GSP) in 1971. With the accession of the United Kingdom in 1973, Europe’s development policy added the developing countries of the Commonwealth to Yaoundés original membership of francophone ACP countries. Although the negotiations were deemed successful, the benefits to the ACP countries were considered greatly diminished by the impact of the GSP.
The relationship between the EU and the ACP group underwent a profound transformation in the decade of the nineties. The historical ties between – the two groups – the EU and the ACP, were greatly reduced. Following the conclusion of the Single Market Programme in 1992 and the end of the Cold War, Europe’s development policy turned inward-looking, concentrating more and more on the needs of the new member countries of Central and Eastern Europe. The democratic ideals which pervaded the world at the end of the war resulted in a new politicization of international economic relations. Soon, concerns for democracy, human rights and good governance among others, crept into the negotiations of economic and technical agreements. Simultaneously, the agricultural protocols – sugar, bananas and rum – and other trading mechanisms – were modified and subsequently, withdrawn, much to the dissatisfaction of ACP producer countries. Amidst an atmosphere of disappointment and disarray, the EU-ACP parties were able to forge a new arrangement
E- the Cotonou Agreement, otherwise known as the ACP-EU partnership, which entered into force in 2000 and is due to end in 2020. At the request of the ACP countries, it was agreed to review the Agreement every five years to see whether it was functioning according to expectations and if not, to find ways to remedy any perceived deficiencies. After two revisions, the agreement was adopted to face new development challenges such as climate change, food security, regional integration, and the effectiveness of aid. The principles upon which the Agreement continues to rely are (1) the equality of the partners and ownership of the development strategies (2) although Governments are the main partners, the agreement will be open to other suitable participants (3) the pivotal role of dialogue, (4) the fulfilment of mutual obligations and (5) differentiation and regionalization. ven before the EPA emerged from the negotiations, it was criticized by many ACP states. First, it was argued that by treating separately with the six groups, the EU had seriously undermined the unity and solidarity which constituted an important strength for the ACP in the negotiation process. Moreover, contrary to promises made by the EU, the Agreement reached was not sufficiently development-oriented or people-centred. Under the new EPAs, the principle of reciprocity replaced the non-reciprocal treatment enjoyed by ACP and required that the latter remove their tariffs on substantially all imports from the EU over time. This was a significant blow for ACP treasuries since they must accord no less favourable treatment of other economic partners. As a result of these new conditions the ACP countries will no longer be Europe’s main development partner.