REPA Booklet - Stop Epa
REPA Booklet - Stop Epa
REPA Booklet - Stop Epa
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20<br />
Europe’s Quest for Legitimacy<br />
How does the Commission expect ACP countries to ‘own’ these outcomes?<br />
European sensitivity to allegations that free trade is about power and profits underpins a multi-layered façade of<br />
consultation, openness and impact assessments that it has constructed around the Cotonou negotiations:<br />
- An ACP-wide Sustainability Impact Assessment by a consortium led by PriceWaterhouseCoopers;<br />
- Consultations with ‘non-State actors’ at national and regional levels; and<br />
- National and Regional Impact Assessments prepared mainly by economic consultants.<br />
“A major<br />
concern … is the<br />
impact that the<br />
trade<br />
liberalisation to<br />
be wrought by<br />
EPAs would<br />
have on fiscal<br />
revenue. … The<br />
prospect of<br />
falling<br />
government<br />
revenue,<br />
combined with<br />
falling<br />
commodity<br />
prices and huge<br />
external<br />
indebtedness,<br />
imposes a heavy<br />
burden on your<br />
countries and<br />
threatens to<br />
further hinder<br />
your ability to<br />
achieve the<br />
Millennium<br />
Development<br />
Goals.”<br />
(UN Secretary<br />
General Kofi<br />
Annan, 2004)<br />
Why was a Sustainability Impact Assessment commissioned from PriceWaterhouseCoopers?<br />
In 1999 the EU adopted a policy to identify the sustainability impacts of current and future trade agreements, so<br />
they could mitigate the negative effects and promote the positive impacts. So in 2003 the Commission awarded<br />
a 4-year ‘framework’ contract for a Sustainability Impact Assessment of Economic Partnership Agreements<br />
across the entire ACP. The contract went to a consortium led by PriceWaterhouseCoopers (PWC) – a transnational<br />
management firm whose website boasts of 769 branches in 144 countries that employ 122,000 people, and that<br />
services 83% of the companies in the Fortune Global 500. PWC is a stalwart of the European Services Forum,<br />
the main corporate lobby for extending free trade in services. The opening sentence on the (EC-funded)<br />
website for the Sustainability Impact Assessment leaves no doubts about its approach: ‘Trade liberalisation is<br />
not an end in itself, but rather an essential tool contributing to sustainable development’.<br />
How has PriceWaterhouseCoopers gone about the Sustainability Impact Assessment?<br />
This is a classic high-price, low value exercise that has nothing to do with the lives, livelihoods, environment and<br />
culture of the diverse communities that will be affected by Economic Partnership Agreements. In their phase 1<br />
report, finalised in February 2004, the consortium set the priorities for the regions. Then they developed a<br />
socially meaningless framework for the Sustainability Impact Assessment using quantitative General Computerised<br />
Equilibrium modeling, extended where data was available to include social impacts associated with poverty and<br />
equity; and qualitative techniques of ‘causal chain analysis’. Having developed this framework, they planned<br />
to consult with governments, civil society, private sector and other experts on its application. Their Phase 2<br />
report proposes to conduct in-depth Sustainability Impact Assessments in specific sectors they chose: agriculture<br />
in Western Africa, tourism in the Caribbean and fisheries in the Pacific.<br />
How has the PWC Consortium involved the people of the ACP regions in the process?<br />
They haven’t. The ‘dialogue’ in their first phase was conducted through their website (which assumes people<br />
know about it, have the technology to access it and can respond usefully to what is there). They also held two<br />
regional meetings, in the Caribbean and West Africa, which were attended by 40 participants from across<br />
governments, the EU, private sector, civil society and municipalities. Not surprisingly, the report contains minimal<br />
references to the Pacific, most of which are bracketed with the Caribbean. Indeed,in January 2005 the Forum<br />
Secretariat said it was not aware of the entire process, including the proposed Phase 2 study of the impact on<br />
Pacific fisheries!<br />
How can the European Commission claim this has any credibility?<br />
Presumably it doesn’t care, provided it can tick the box saying a Sustainability Impact Assessment was prepared.<br />
Where do the National and Regional Impact Assessments fit in to this?<br />
These are a quite different exercise. Each region is meant to conduct an Impact Assessment covering national<br />
and regional levels to inform their strategies. Progress has been slow and uneven, with many complaints that<br />
they have been drafted without input from local experts (in some cases by European consultants). Once they<br />
are completed they are often not available for comment, even to the ‘non-State actors’ who are being consulted<br />
under Cotonou.<br />
Who are ‘non-State actors’ and what is their role in the Cotonou process?<br />
The homogenised entity called ‘Non-State Actors’ groups together the ‘private sector, economic and social<br />
partners, including trade union organisations; and civil society in all its forms according to national characteristics’<br />
A People’s Guide To The Pacific’s Economic Partnership Agreement 41