3 August 2007
Press Statement

EU aid to Pacific not conditional on trade negotiations

The European Commission wishes to correct the serious misrepresentations which have been made of the EU's position on the link between its planned development funding to the Pacific and the Economic Partnership Agreement (EPA) now being negotiated between the EU and the 14 Pacific ACP States.

In a press statement issued by Pacific ACP Trade Ministers at their meeting in Vanuatu this week, Ministers expressed their "grave concern and disappointment" about an alleged new EU position whereby the granting of regional EU development funds would be conditional on the negotiation of a Pacific-EU EPA.

This is not the case. Financial assistance targeted for projects relating to the implementation of EPAs is obviously tied to a successful outcome in the negotiation. If no Pacific-EU EPA is agreed –and this is not considered, now, by the EC a likely outcome – such assistance will obviously be reassigned to other jointly agreed objectives for the Pacific within the regional indicative programme. The total amount of financial support notified will not be reduced in any way as a result of the outcome of the EPA process. At no time has the European Union used development assistance as a bargaining chip in EPA negotiations.

The European Commission has already allocated considerable sums in development assistance to build the region's trade capacity. It remains committed to assisting Pacific ACP states in their efforts at Regional Integration, as set out in the Pacific Plan, whether in trade or in any other area.

The EC's Delegations throughout the Pacific region remain available to the media for any further clarification of the above.

ENDS

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