Fergus O'Dowd (Louth, Fine Gael)
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Question 201: To ask the Minister for Enterprise, Trade and Employment if the Government will support the call by the Ministers of the Central African Region for more time to negotiate economic partnership agreements despite their best efforts and for the EU continuing the preferences from the Cotonou agreement; and if he will make a statement on the matter. [31681/07]

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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At the Africa Caribbean Pacific (ACP)-EU Joint Council of Ministers in May of this year, all 6 ACP regions, together with the EU, reaffirmed their intention to conclude full EPAs (including provisions on services and investment) before the deadline of the 31st of December 2007. After that date the current trading arrangements under the Cotonou Agreement must end if the EU and our ACP partners are to meet our international obligations in the World Trade Organisation.

However, some of the ACP regions, including Central Africa, have since indicated that it will be difficult for them to agree the terms of a full EPA by that deadline. For those cases, the Commission has issued, in October last, a Communication setting out its proposals for a two-step approach. This approach is to put in place new arrangements to deal with trade in goods after the 31st of December and to continue with negotiations for all other aspects of a full EPA into next year.

At the EU General Affairs Council of the 21st of November last, the Development Ministers considered the current state of the negotiations for EPAs and the Commission's proposals for this two-step approach. In its Conclusions, the Council described the Commission's proposals as pragmatic and endorsed the approach as an interim solution. On the issue of continuing negotiations for full EPAs into 2008, the Council called for a flexible and phased approach.

Ireland agrees that the negotiations must be conducted in a spirit of goodwill, flexibility and understanding. We have always said that any resulting agreements must be supportive of ACP countries' development needs and their poverty reduction strategies.

The current trading arrangements under the Cotonou Agreement are not compatible with the rules of the World Trade Organisation. In order to allow time for the EU and its ACP partners to negotiate new agreements, the WTO granted a waiver until the end of this year. Once that waiver expires, developing countries that are not in the ACP regions will have the opportunity to challenge any trading regime that does not meet the requirements of the WTO. Trading arrangements that are legally vulnerable would not be in interests of the ACP countries, or its traders. For this reason, it is not feasible to look to continue the preference system under the Cotonou regime.