Joan Burton (Dublin West, Labour)
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Question 445: To ask the Minister for Foreign Affairs the benefits that might reasonably be expected to accrue to a least developed country such as Tanzania, which is a priority Irish Aid country, should that country agree to sign up to an economic partnership agreement with the EU, in view of the fact that LDCs already enjoy duty free and quota free access to EU markets; the way these benefits are to be balanced with the negative effects that will arise out of an EPA; and if he will make a statement on the matter. [34300/06]

Conor Lenihan (Dublin South West, Fianna Fail)
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The Economic Partnership Agreements (EPAs) are trade agreements currently being negotiated between the European Union and the African, Caribbean and Pacific (ACP) group of states to replace current trading arrangements under which ACP states enjoy unilateral trade preferences into the EU. These arrangements are due to expire at the end of 2007.

The mandate for the negotiation of EPAs comes from the legally binding Cotonou Agreement, the central objective of which is that of "reducing and eventually eradicating poverty, consistent with the objectives of sustainable development and the gradual integration of the ACP countries into the world economy". I am aware of the questions raised about the impact of EPAs on developing countries. Ireland's position, as repeated at the General Affairs and External Relations Council (GAERC) of 16 and 17 October last, is that development concerns must be to the fore in these Agreements.

Tanzania, like other Least Developed Countries (LDCs), currently enjoys duty-free, quota-free access to EU markets under the Union's Everything But Arms (EBA) initiative. However, while EBA offers preferential access to EU markets for all LDC exports, except arms, it does not advance the process of regional integration in ACP regions. The concept of regional integration is fundamental to the EPA process. On their own, the small, segmented markets of the ACP countries are poorly positioned to take advantage of the global trading system.

For EPA negotiating purposes, ACP states are organised into six regional groupings. Tanzania currently negotiates as part of the Southern African Development Community (SADC) grouping. EPAs are intended primarily to foster trade between, as well as within, these groupings. Stronger regional integration, which will facilitate an increase in production and competitiveness, is the critical first step toward greater participation in international trade.

The Cotonou Agreement envisages that EPAs will come into force in 2008. Until that time, it is open to Tanzania, or any LDC within the ACP, to decide whether they wish to enter an EPA or not. Should they decide not to, they will continue to benefit from preferences under EBA. Ultimately the matter of whether a country chooses to enter into an EPA is a sovereign decision for each country.

I recognise that, for a country such as Tanzania to take full advantage of the trading opportunities afforded by EPAs, greater and more effective trade-related assistance will be required. In this regard, EU Ministers for Development meeting at the General Affairs and External Relations Council referred to earlier, pledged to ensure that a substantial share of Community and Member States' trade-related assistance, which will rise to €2 billion by 2010, would be devoted to ACP countries and that Member States' contributions would be additional to EDF resources. Ireland is committed to increasing our funding substantially for Aid for Trade initiatives in the coming years.