I am writing to update you about the final stages of negotiations on Economic Partnership Agreements. Unfortunately, we will be unable to complete Parliamentary scrutiny of these negotiations in advance of taking a decision in Council.

  You will appreciate that as the deadline for negotiations approaches, work has inevitably become very fast moving. The Government has done its very best to keep you informed throughout the discussions. I note that you have not yet had the opportunity to consider my Explanatory Memorandum on the Regulation (14968/07). The Regulation was finalised only on 19 November, and you received my EM on 23 November. The Commons Committee cleared this EM at a Standing Committee B debate on EPAs on Monday 3 December. As indicated in the EM, I anticipate that we will agree this Regulation in Council at the next GAERC, on 10 December.

  The Commission also finalised and released a Staff Working Paper entitled, "EU-ACP Economic Partnership Agreements: WTO compatible solutions that provide non-LDC ACP countries improved access into the EU market and guard against trade disruption" (294/07) on 4 December. This will also be discussed at the 10 December GAERC. I will provide you with an EM as soon as I am able, but clearly not before the GAERC.

  I trust that this is satisfactory, and thank you for your continuing support. I will submit EMs on all goods-only EPAs that emerge from negotiations in due course.

6 December 2007

  I wanted to write to you to update you on the Economic Partnership Agreements (EPAs) between the EU and African, Caribbean and Pacific countries (ACP). Since the expiry of the Cotonou trade regime on 31 December 2007, the EU has agreed eight EPAs, based on WTO compatible trade in goods arrangements, across the ACP. As a result the 35 ACP countries that agreed to an Economic Partnership Agreement with the EU now benefit from important improvements in their access to the EU, predominantly duty and quota free access to EU markets for all goods (with the exceptions of rice and sugar which are subject to transitional arrangements ending in 2009 and 2015 respectively). According to the Overseas Development Institute up to €1.4 billion (£1.1 billion) of exports from ACPs will benefit from this.

  EPAs also provide for significantly improved Rules of Origin (exporting rules to the EU) which will have positive effects on a range of products of strategic interest to the ACP—notably textiles, fisheries and other processed agricultural produce. I have already heard from a number of ACP governments about the benefits that these agreements will bring to their economies and prospects for further growth.

  To comply with WTO rules, the agreements also allow for tariff liberalisation on the ACP side. The 35 signatories brought forward market opening commitments, reducing tariffs on EU imports on at least 80% of product lines over approximately 15 years with safeguard provisions should there be a threat of an import surge from the EU. This provides for up to 20% of sectors to be excluded from any form of tariff reduction. Of the countries which have not yet initialled an EPA, the majority are Least Developed Countries (LDCs), and will continue to receive duty and quota free access under the EU's Everything But Arms scheme. We expect little trade disruption for the remaining 11 non-LDCs who have not yet signed an EPA due to the minimal trade they have with the EU, with the exception of Gabon, which has faced a rise in tariffs on around 5% of their exports to the EU. We continue to monitor this situation closely.

  The next step is formal notification of the agreements to the WTO. The EU Council will need to agree to the EPA being signed. This process is just starting and I have the pleasure in attaching an Explanatory Memorandum on the proposal for a Council Decision on the EU-Cariforum EPA. We expect over the coming weeks to provide similar documents for scrutiny of the interim agreements in Africa and the Pacific. Once notification to the WTO has taken place, this will secure the improved market access commitments by making the EPA trade regime compatible with WTO rules.

  I will write to you again in the summer to appraise you of progress, but in the meantime UK Government will continue to play an active role on EPAs to ensure they live up to their development objectives, which remains our overriding priority.

28 April 2008