Dáil Éireann Debate, Thursday - 18 May 2006
135 Ms O. Mitchell asked the Minister for Foreign Affairs if, in the context of a global economy with different stages of production occurring in various countries, it would not be appropriate to reform the Rules of Origin which will apply under the Economic Partnership Agreements in a manner which will facilitate full cumulation of goods from any of the 77 countries entering EPAs with the EU; and if he will make a statement on the matter. [18974/06]
View answerThe Cotonou Agreement forms the framework for the trading relationship between the ACP states and the EU. Under this Agreement, cumulation relates to the use by producers in an exporting country of inputs from another country, without in effect losing their preferential market access for the final product. Cumulation provisions are, therefore, important in that they can significantly improve the sourcing opportunities for producers. The rules of origin provision of the Cotonou Agreement provides for full cumulation among the ACP countries. However, it is clearly important that this be effective in practice.
In this regard, article 37.7 of the Cotonou Agreement envisages that Economic Partnership Agreements (EPAs) to be negotiated under the Cotonou Framework would "aim [...] at improving current market access for the ACP countries through, inter alia, a review of the rules of origin. Negotiations shall take account of the level of development and the socioeconomic impact of trade measures on ACP countries and their capacity to adapt and adjust their economies to the liberalisation process.”
In furtherance of this objective, and in the context of the ongoing WTO Doha Development Agenda negotiations, the Commission adopted a Green Paper on rules of origin in 2003. This document provided an overall assessment of the current issues relating to problems of Origin in preferential agreements, and an overview of options available for their improvement. In the Green Paper, and in a further Communication of March 2005, the Commission indicated a commitment to simplifying the rules of origin in the context of these Economic Partnership Agreements, as well as an openness to rules of origin that provide more favourable conditions for ACP countries than for the EU (so called asymmetric rules of origin).
The above principles form a sound basis for the negotiations on the Economic Partnership Agreements. Crucially, they respect the different levels of development of ACP countries. I would hope that the ACP states themselves will, as the negotiations evolve, be able to achieve a coordinated position on the criteria for rules of origin that would enhance cumulation across ACP countries and thus improve their access to EU markets. Ireland will continue to urge the Commission to ensure that the EPA negotiations result in agreements that are supportive of ACP countries' development needs and their poverty reduction efforts.
