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Statement by Mr. LI Enheng, Minister and Deputy Representative of China, at the General Council Meeting
Monday,May 12,2008 Posted: 21:57 BJT(57 GMT)
  From:wto mission    Article type:Original

Mr. Chairman, China shares the concern of Brazil on the consistency of the MFN clause in the EPA with the Enabling Clause.

As we pointed out at last meeting, the Enabling Clause,which was an important pillar of the multilateral trading system, allows developing countries to enjoy preference granted by developed countries or through the agreement among themselves. Article 2 clearly identifies the purpose of the clause which is “to facilitate and promote the trade of developing countries” and Article 3(a) stipulated that “developed countries would refrain from demanding reciprocity regarding concessions accorded”. Those central principles shall not be undermined by Members in any way, including actions outside of the framework of the development round negotiations.

However, with a MFN clause treatment demanded by the European Communities from the ACP countries and with such a clause inserted in the EPAs, we are of the view that the Communities is running counter to the direction as defined in the Enabling Clause and that it will certainly have negative affect on other developing Members in their efforts to negotiate trade agreements with the ACP countries and will impede the growth of south-south trade and undermine the efforts of the ACP countries for further development. In this regard, we would like to echo the point stated in the Addis Ababa Declaration on EPAs on 3 April this year that the entry into EPAs with the Communities “should not preclude Africa from taking full advantage of South-South Cooperation”.

Therefore, we urge the EC to carefully reexamine this MFN clause it demanded from the ACP countries and take action to bring all its EPAs with these countries into conformity with the spirit and objectives as designed by the Enabling Clause.

I thank you, Mr. Chairman.

(May 8, 2008)
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