Statement:Irish aid needs to help not hinder the developing world 2005-04-15

Analysts expect EPAs to have serious negative impact upon developing countries. Job losses, significant drops in revenue for development and the undermining of trade with other poor countries will result from unbeatable competition from EU firms.

Luxembourg has been an early doubter in the wisdom of the European Commission's approach. Already last May the head of the Luxembourg development department, speaking in Dublin, said they considered the "reciprocal" basis of EPAs "inadvisable". Under reciprocity poor countries will have to drop all taxes and restrictions on goods they import from the EU in exchange for Europe's aid and trade packages.

Similar doubts were expressed among Scandinavian countries and in the Netherlands.

But the biggest blow to the plans of EU Trade Commissioner Peter Mandelson came recently from the British government. It announced a twelve point plan to radically overhaul Mandelson's proposed EPAs.

Under the UK proposal Europe would first provide the option of an alternative to EPAs – so as to leave poor countries no worse off than at present. Secondly, the EU would stop pressing the "new issues" already rejected by developing countries at the WTO but still on the Commission's wish list. The UK also says the Commission should remove all taxes on African Caribbean and Pacific products and review some of the red tape which excludes their goods.

Crucially, the UK calls for the EU to propose changes to the WTO rule (GATT XXIV) which requires reciprocity.

These UK proposals fail to tackle the core problem of reciprocity – they just slow down its implementation from ten to twenty years. However, the UK plan is a valuable contribution to the much needed debate.

In Ireland doubts in the value of EPAs are growing. Recently, and on the same day as the UK plan was launched, the Oireachtas Committee on Foreign Affairs expressed its concern with EPAs and decided to invite Commissioner Mandelson to the Oireachtas to discuss the proposal.

The UK is seeking to build a "like-minded group" of countries on the basis of its paper. The relevant Irish ministers – Conor Lenihan TD at the Department of Foreign Affairs, and Michael Ahern at the Department of Enterprise Trade and Employment – should join this alliance and ensure that trade works to reduce poverty.

The Irish government must go further and ensure that aid is not tied in this new way. Instead reciprocity must be removed from EPAs, and WTO rules must be adapted to allow Europe to continue in its 30 year tradition of giving trade access as part of its aid without taking back with the other hand.

Conall O'Caoimh

Conall O'Caoimh is Policy Officer at Comhlámh, the Irish Association of Development Workers.

Further information and an on-line petition is available on www.comhlamh.org