No deal in Brussels

With both sides standing firm on their positions, talks between the EU and members of the ACP ended Friday.

No one was expecting any major breakthroughs and ending the meetings on a positive note was in itself seen as progress.

However, with regard to the two most important subjects, the Economic Partnership Agreements (EPAs) and bananas, little was achieved.

Still, the EU hopes that it might be able to sign a few EPAs with ACP countries like Botswana before the end of June.

"We expressed our openness to applying a new and flexible approach to the negotiation of EPAs to build confidence between the EU and ACP countries," said Deputy Czech Foreign Minister Helena Bambasova, whose country holds the rotating EU presidency.

Thus far, only Ghana, the Ivory Coast and Cameroon have signed some partial agreements on goods. Temporary deals allow ACP countries to export their products to Europe without any customs duties, quotas or restrictions.

In return, ACP countries will have to open their markets to European products. Rice and sugar would not be affected until 2010 and 2015 respectively.

Parties to keep talking

"There was commitment to continue with the negotiation process and implementation for the Caribbean region," said ACP president William Haome. He also noted that one key demand is that no country should be worse off at the end of the process.

The economic crisis, however, has significantly complicated negotiations because the developing countries want the EU to commit more financial aid in case the crisis cannot be reversed.

"In the low income countries and particularly for ACP states," said Haome, "the impact of the crisis poses problems for health and education, etc., due to the increasing number of poor people and the worsening hunger situation."

Banana prices at issue

One key demand from the ACP countries is for Europe to provide 500 million euros ($707 million) as compensation following an EU decision to lower customs duties for bananas coming from Latin America.

ACP countries fear that European demand for their bananas will slump if Latin American bananas cost less.

But talks have been dragging on in Geneva between the World Trade Organization and the ACP's top banana producers, which are resisting lowering import tariffs for Latin America.

"I find it especially important that together we recall the importance of maintaining an open, equitable and transparent trading system, especially in times of this economic crisis, and we call for an early, ambitious and balanced comprehensive agreement," said EU Commissioner Olli Rehn.

So, as is often the case with difficult negotiations in Brussels, these meetings ended with positive statements and a promise from both sides to remain flexible. Diplomatic speak for "no one budged."

Nina-Maria Potts/av
Editor: Susan Houlton