AFRICAN PEER REVIEW MECHANISM TO ATTRACT FOREIGN INVESTMENT

On 13 February nine African heads of state met in Kigali, Rwanda, to discuss various programmes under the New Partnership for Africa's Development (NEPAD). The NEPAD meeting agreed on rules for the review panel of the African Peer Review Mechanism (APRM), a self-monitoring instrument, and on which agencies would be involved in the review. The voluntary APRM aims to foster the adoption of policies and standards that lead to political stability, economic growth, sustainable development and accelerated sub-regional and continental integration. The APRM is also intended to assure international investors of political and economic stability before they commit financial resources to a particular country. Nations will be evaluated by teams of visiting experts and independent agencies such as the UN Economic Commission for Africa on issues such as democracy, human rights, corruption, corporate responsibility, social services and economic development. The teams will then compile a report for the host government, and make recommendations for improvement. If a particular government does not demonstrate the political will to comply with recommendations of the teams, and if further dialogue proves unfruitful, it risks facing NEPAD sanctions, which could hurt its ability to attract foreign investment and aid.

Ghana, Rwanda, Kenya and Mauritius will be the first countries to be evaluated. The other 12 countries that have acceded to the APRM are Algeria, Angola, Burkina Faso, Cameroon, Ethiopia, Gabon, Mali, Mozambique, Nigeria, the Republic of Congo, Senegal, South Africa and Uganda. Each evaluation will take up to nine months, and will be financed by the African Union, international donors and the countries under review. At the meeting, the African leaders also explored a common position on how to convince the US and EU to reduce or eliminate their agricultural subsidies.

A copy of the APRM base document is available at: http://www.touchtech.biz/nepad/files/documents/49.pdf

"African Governance Initiative Aims To Improve Investment," CNN, 17 February 2004; "African Nations to Carry Out Rigorous Self-Evaluation to Woo Foreign Investment," CNS NEWS, 17 February 2004; "NEPAD Roots for Farmers," THE EAST AFRICAN STANDARD, 16 February 2004.

BIODIVERSITY BODIES DEAL WITH TRICKY TRADE ISSUES

The seventh Conference of the Parties (COP-7) of the UN Convention on Biological Diversity was held in Kuala Lumpur, Malaysia from 9-20 February. The meeting covered topics ranging from monitoring and indicators, sustainable use, invasive alien species and access and benefit-sharing to protected areas, traditional knowledge, incentive measures, and national reporting. Trade-related considerations cropped up in almost every area of discussion, including in some unlikely places such as related to mountain biodiversity and inland water systems. Many civil society groups deplored what they saw as a "sell-out" to the WTO, calling for WTO-related issues to be kept out of the CBD discussions. While delegates managed to resolve some of the more overt disagreements over trade-related language, the impact of underlying trade considerations continued to be felt in discussions and in the final outcomes.

Following COP-7, the first meeting of the parties to the Cartagena Protocol on Biosafety is underway, also in Kuala Lumpur. The meeting covers implementation details of the Protocol, including documentation requirements for shipments of living modified organisms (LMOs), capacity building, compliance and liability. Philemon Yang, one of the organisers, stressed that "We're only at the beginning of trying to implement the Protocol. These are issues that humankind must deal with, so that we can use biotechnology in the best way for future generations". The EC is currently at odds with big producers of biotech foods, such as the US, which has not signed the Protocol and do not want to see strict labelling and traceability rules for GM products.

For a full report of the trade-related aspects of COP-7, see BRIDGES Trade BioRes, 20 February 2004. The next issue of BioRes will include an update on the outcome of the meeting on the Cartagena Protocol. For a primer on the meeting, see http://www.ictsd.org/biores/04-02-20/story2.htm.

ICTSD reporting; "Countries To Debate Biotech Trade At Malaysia Conference," DOW JONES, 22 February 2004.

ROTTERDAM CONVENTION ENTERS INTO FORCE

The Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade (PIC) became legally binding on its members on 23 February. Under the convention, countries are only allowed to export certain hazardous chemicals following the importing party's prior consent. The importing country will be provided with a "decision guidance document" containing information about the chemical and its effects, and the country will have nine months to provide a final decision or an interim response. The PIC convention also requires labelling on potential health and environmental impacts of traded chemicals.

Klaus Toepfer, Executive Director of the UN Environment Programme (UNEP), said developing countries now "will be able to reap benefits that chemicals and pesticides can offer while ensuring that their development is environmentally sustainable," noting that many pesticides banned in industrialised countries are used in the developing world. Implemented on a voluntary basis since September 1998, the convention includes 27 chemicals on the list for prior consent and notification, including asbestos, parathion and monocrotophos. Fifteen more pesticides are set for inclusion at the first meeting of the Conference of Parties to the PIC convention, scheduled for 20-24 September this year in Geneva. The convention has been ratified by 60 and signed by 73 countries. A related pact, the Stockholm Convention on Persistent Organic Pollutants -- which bans highly toxic chemicals, including pesticides like DDT -- will come into effect on 17 May. France, which submitted the 50th ratification on 17 February, triggered its entry into force three months later.

"Prior Informed Consent for Chemical Imports Now the Law," ENS, 24 February 2004; "Toxic Chemical Warnings Required Under New International Law," REUTERS, 23 February 2004.

CAFTA DRAWS DEBATE IN THE US

US President George W. Bush notified Congress on 20 February of his intent to sign a free trade agreement that the US recently negotiated with five Central American nations -- El Salvador, Honduras, Guatemala, Nicaragua and Costa Rica (see BRIDGES Weekly, 28 January 2004). He is aiming for a vote on the CAFTA (Central American Free Trade Agreement) by Congress before its August recess. This triggers a 90-day mandatory review period, after which the US President can sign the agreement, which subsequently must be approved by both chambers of Congress. The US is also negotiating to include the Dominican Republic in the overall agreement.

The new CAFTA treaty has had mixed reviews, including on its environment and labour provisions. Supporters of the agreement feel that its environment and labour provisions meet the guidelines of the US Trade Promotion Authority Bill of 2002, which allows the US President to sign trade treaties that Congress can either accept or reject, but not amend. A consortium of civil society organisations, including the Center for International Environmental Law and the Sierra Club, recently sent a letter to the Members of Congress indicating their discontent with the CAFTA. They criticised the treaty for its investment rules -- which allow investors to challenge existing domestic environmental laws before international tribunals -- and for its "inadequate" environmental safeguards and food safety standards. On 20 February, Democratic Congressman Sander Levin delivered a critique of CAFTA provisions requiring countries to enforce their own labour laws. He felt these provisions were inadequate, as some CAFTA countries did not effectively enforce basic labour standards recognised as by the International Labour Organisation (ILO). The US sugar industry has also spoken up against the agreement, as it fears increases in imports would negatively affect the domestic sugar industry. US rice growers, on the other hand, have supported the agreement, which would open new market expansion possibilities for them.

To view the letter from the US environmental groups to Members of Congress, go to http://www.ciel.org/Tae/CAFTA_18Feb04.html

ICTSD reporting; "Sugar, rice growers square off," 2THEADVOCATE.COM, 21 February 2004; "Bush Tells Congress He Plans to Sign Central America Trade Pact," BLOOMBERG, 20 February 2004; "Bush Notifies Congress will sign CAFTA pact," REUTERS, 20 February 2004.

CONCERNS OVER EPAS RAISED IN ADDIS ABABA

Parliamentarians from the African, Caribbean and Pacific (ACP) countries and the EU met in the Ethiopian capital Addis Ababa for the 7th Session of the ACP-EU Parliamentary Assembly from 16-19 February. The objective of the meeting was to discuss peace and security, aid, trade and health-related issues in developing countries (see BRIDGES Weekly, 19 February 2004). Delegates wrapped up by adopting three resolutions on the prevention and resolution of conflicts, on the intensification of the fight against HIV/AIDS, malaria and tuberculosis, and on economic partnership in support of poverty reduction and commerce and development.

Parliamentarians from the ACP countries raised concerns regarding the EU enlargement in May this year, and the possible diversion of EU resources to the agriculture sector of its new members. Poul Nielson, EU Development and Humanitarian Commissioner, said however that the EU's expansion to 25 member states would likely lead to increased support by "introduc[ing] new donors to the world of development cooperation". Among other topics raised, many parliamentarians expressed their concern over whether the EU-ACP Economic Partnership Agreements (EPAs) really would contribute to development. Didier Rod, a Green Group Member of the European Parliament (MEP), stressed that trade increases income disparity between countries. MEP Harlem Desir called for strengthening ACP countries' production and supply capacities and infrastructure to improve the overall development of the economies. He pointed to Taiwan's and South Korea's temporary sectoral protectionism to support their growth industries, and questioned the assertion that ACP economies were lagging behind because of protectionism. In his opinion, maintaining the principle of non-reciprocity in market access as long as necessary would be important for the development of the ACP region. Pascal Lamy, EU Trade Commissioner -- present for the first days of the meeting -- stressed the importance of gradual reciprocity, citing provisions in the Cotonou Agreement, an agreement to "promote and expedite the economic, cultural and social development of the ACP States," that would provide for compensation for lost income involving exports to the EU, starting in 2008.

"MPs Voice Concerns Over Economic Partnership Agreements in Addis Ababa," EUROSTEP PROACTIVE FILE, 20 February 2004; "Ethiopia Calls to Ease Trade Restrictions At Addis Ababa Conference," ALLAFRICA.COM, 17 February 2004.

CITES PLANTS COMMITTEE CONVENES IN NAMIBIA

The 14th session of the Plants Committee (PC-14) of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) met from 16-20 February in Windhoek, Namibia. Seventy-seven representatives of governments, inter-governmental organisations, and non-governmental organisations were present. CITES regulates trade in endangered species by classifying those under threat and mandating a system of permits and certificates for those most threatened. Discussions at the latest meeting of the CITES Plants Committee revolved around a 25 item-agenda comprising topics such as review of the CITES Appendices and their criteria, terminology related to medicinal plants, and follow-up on the 12th Conference of the Parties (COP-12) to CITES. The meeting set up working groups on specific issues such as review of significant trade, and regional representation and communication.

CITES, now ratified by 164 parties, was established in 1973 due to growing concern that international trade of wild plant and animal species was contributing to their decline. In discussion on the criteria for the Appendices classifying the endangered species, Plant Committee Chair Margarita Clemente noted that Appendix II, in which species are protected through quotas or permits, often was "demonised" as a tool to prohibit trade. Clemente called on delegates to provide examples showing that its function was to provide for sustainable use of species. On the evaluation of the Review of Significant Trade the EC submitted a document citing three principles the Plant Committee and Animals Committeeshould consider: trade impacts on non-CITES species; the use of the terms "efficiency" and "cost effectiveness," and socio-economic issues that accompany wildlife trade.

Chair Clemente introduced the working programme for the Plant Committee in preparation for COP-13, to be held this October in Thailand. The Animals Committee will meet in Johannesburg in late March to draft its own recommendations for COP-13. Many delegates noted that the challenge would be for the two Committees to draft a common position to submit for COP consideration.

For a full report of the meeting see IISD's Earth Negotiations Bulletin report at http://www.iisd.ca/cites/CITP14/