Maritime boundaries - Political decisions needed
Foreign Minister Michael Frendo says political decisions are needed to solve issues over disputed maritime boundaries which are holding up oil exploration efforts.
Political decisions are needed to solve the impasse over disputed maritime boundaries, Foreign Minister Michael Frendo said.
"I think the problem is that if you look at the issue legally, there are so many interpretations of where the median line should be, what the limit of a continental shelf is and how to delineate boundaries under maritime law. It ends up as a discussion between experts who each present their point of view.
"In the end I think we are going to need some political decisions. I cannot see any breakthrough in any of these areas if we keep it simply to the legalistic approach. We have to have the courage to say let's risk this together - and it has to come from both sides," he said.
Around 70 per cent of Malta's continental shelf is disputed by neighbours Libya, Tunisia and Italy. Malta lost part of the area to Libya when it took the case to the International Court of Justice.
Malta is currently awaiting the scheduling of a meeting with Libya on the issue. The meeting was meant to be held this month to follow up on points agreed in Libya last month. While it waits for the date, internal meetings are being held to determine Malta's strategy, involving the Oil Exploration Division and Resources Minister Ninu Zammit.
"We look forward to activating the things agreed upon in our joint statement. Those included a discussion on working together on oil exploration with regards to areas adjacent to our maritime boundaries. We hope that this particular Joint Commission is more oriented towards action than talk."
After so many years of countries politely playing for time, why should things actually get sorted out?
Dr Frendo believes that it would be a win-win situation.
"At the end of the day, areas adjacent to our maritime borders are unavailable to either us or Libya because we are contesting them, so international oil companies are not willing to get involved. So there is something in it for everybody if an agreement is reached.
"For Libya, it also highlights our neighbourly relations and engages us closer together. Certainly, Libya does not need energy security as much as we do. So we are hoping that the spirit that prevailed in the joint commission will permeate the working groups as well. I don't think you can afford to lose heart because what you are talking about is energy security. You need to keep discussing issues until you get results," he said.
Malta is also awaiting a response to an invitation extended to Tunisia to hold informal talks on ways to "take the process forward". Dr Frendo admitted that it was a slow process.
"These are not rapid processes as they involve considerable consultation and there are a lot of players that have to be satisfied before any agreement can be reached. With Tunisia, we have zoomed in on the issues where we can collaborate."
There is also disputed territory adjacent to Italy and Dr Frendo admitted that he did not think a major effort had been made yet with this particular neighbour.
"In this case, we are encouraging the experts to meet again and after that I think we should take it to a political level. We need to open these fronts with our three neighbours. The discussions are quite independent of each other, but we need to reactivate the negotiations."
The other major pending diplomatic issues are with the US: a double taxation agreement and a visa waiver scheme.
A delegation was in Washington at the time of this interview and Dr Frendo said his impression was that things were moving closer.
"As a ministry, we and the finance ministry tried very hard to make progress but the real breakthrough was when Prime Minister Lawrence Gonzi went to speak to President George Bush. "I had a meeting that same day with the Treasury Department and things starting moving. There is a specialised team dealing with this and we are really pushing to conclude.
"It is clear that we are fully OECD compliant; we changed other aspects of our taxation recently and we are now also fully EU compliant. So we now have a system that is no longer in doubt or contested at EU level. This development, around three months ago, put us in an even better position with regards to double taxation.
"I am not aware that there is anything specific at this point which would need to change as we have already changed so much to meet the concerns of the EU," he said.
The visa waiver is another important issue but Dr Frendo pointed out that there are movements in the US against it altogether and want to remove it from the 15 countries of the EU that have it, let alone to extend it to others.
"But I think the administration is very much in favour of extending the scheme, with the full comfort of the Homeland Security Department," he said.
"Still one has to take into account the the current situation in the US; the fact that Congress is dominated by another party might complicate matters a bit."
The visa waiver would require biometric passports, which should be available in Malta later this year. Which issue is on the top of Dr Frendo's agenda?
"I raised both issues with State Secretary Condoleeza Rice at my meeting. But the double taxation is moving so I put more emphasis on the visa waiver scheme as I think that it would be extremely useful for the Maltese, in terms of business and travel.
"It would also be a natural extension of the positive attitude towards the US in this country. At a popular level, there is a lot of goodwill towards the US, in my view.
"I don't know which is more doable in the short-term - visa waiver or double taxation - but we would like to both, of course."
Visas also feature in another international issue: Malta's entry into the Schengen area, through which member citizens can wander at will without passports or even ID cards.
An important factor in this will be the planned Central Visa Unit, which now has premises and a budget, as well as a list of posts which will soon be advertised.
"We hope it will be functioning some time this year as it will be part of the Schengen Information System. We will be issuing Schengen visas either directly through our consulates, or through the agreement we have with the Austrians.
"We also ratified an agreement with the Italians a few weeks ago, which means any Italian consulate can issue Schengen visas for Malta. This is very useful for Malta.
"But Schengen is a big challenge for us. Once we issue a Schengen visa, we become guardians of the border, which will put a lot of pressure on us. At the high level meeting of ministry officials and resident ambassadors last week, visa policy and Schengen were a major item on the agenda."
Foreign trade?
Embassies are already doing more commercial work than before. The new one in China is doing a considerable amount of trade and investment promotion. The High Commission in India, to be headed by Wilfred Kenely, will also be commercially oriented.
The ministry is also devolving more activities to the embassies, following the example of other countries. For example, they are also responsible for compiling and updating the country brief, which until now was done by the head office.
"As the ones on the ground, we felt that they should be the ones leading this process. For some ambassadors this will be a new experience, so we may have to hold their hands a bit at first," Dr Frendo said. Delegating tasks as efficiently as possible is a case of necessity. There are just 30 people in the head office now - the lowest levels ever - although a new intake is the final process of recruitment, which was based on an interview as well as a "tough" written exam.
The ministry is also using its resources overseas to help other national entities like Malta Enterprise and the Malta Tourism Authority, which have resource limitations of their own. Space is being made available where possible for them to base personnel or to hold meetings. MTA has identified four or five places where it wants space, he said.
This is just one of the indications of how complex trade has become as a portfolio. Still, as was pointed out during a recent seminar on trade policy, do we need four ministries (competitiveness, foreign, finance and investment) to handle trade?
Dr Frendo said that each had different roles, ranging from regulation to external trade and internal trade. However, he said discussions were underway on the possibility of moving the External Trade Division to his ministry from the Economic Planning Division of the Finance Ministry - assuming his ministry had the capacity to handle this. "There has been discussion in government as to whether things could be streamlined but it is hard to do. Many countries have external trade under the foreign ministry as obviously a very strong part of foreign policy is based on positions related to foreign trade.
"In fact, this year, to focus our thinking, we want to publish an external trade policy, which will indicate the general lines of our policy in terms of external trade.
"The problem is how to integrate the other functions."
To EU or not to EU?
Asked for his assessment of EU membership - last year he had felt it was too early - Dr Frendo said the impact had been absorbed by the resilience of the Maltese, who had withstood competition, perhaps with the exception of the agricultural sector, which was still feeling the pressure. However, he believes the most important achievement was that Malta was sitting around the table as an equal.
"To my mind, this is because we have not allowed anyone to treat us any other way and stood up for our rights. We worked as a team player to win respect. Once you win that respect, in my view, then when your own interests are at stake they know you are only acting that way because it is extremely important for your county. In other words: Don't cry wolf!"
He also pointed out that obtaining Objective 1 status had been absolutely crucial - perhaps more than people think.
"I remember when I went to the European Council of Ministers and made a categoric statement that it was unacceptable to us that in our first seven years we would not be Objective 1. This was a clear indication that there would be no agreement on the financial perspectives.
"As things turned out, we achieved it. This means we have seven years of assistance under the Cohesion Funds. But it could mean more than that. If after seven years you are no longer Objective 1, you can then ask to be phased out. Some countries did this and got funds for 10 years instead of for seven."
"I think the problem is that if you look at the issue legally, there are so many interpretations of where the median line should be, what the limit of a continental shelf is and how to delineate boundaries under maritime law. It ends up as a discussion between experts who each present their point of view.
"In the end I think we are going to need some political decisions. I cannot see any breakthrough in any of these areas if we keep it simply to the legalistic approach. We have to have the courage to say let's risk this together - and it has to come from both sides," he said.
Around 70 per cent of Malta's continental shelf is disputed by neighbours Libya, Tunisia and Italy. Malta lost part of the area to Libya when it took the case to the International Court of Justice.
Malta is currently awaiting the scheduling of a meeting with Libya on the issue. The meeting was meant to be held this month to follow up on points agreed in Libya last month. While it waits for the date, internal meetings are being held to determine Malta's strategy, involving the Oil Exploration Division and Resources Minister Ninu Zammit.
"We look forward to activating the things agreed upon in our joint statement. Those included a discussion on working together on oil exploration with regards to areas adjacent to our maritime boundaries. We hope that this particular Joint Commission is more oriented towards action than talk."
After so many years of countries politely playing for time, why should things actually get sorted out?
Dr Frendo believes that it would be a win-win situation.
"At the end of the day, areas adjacent to our maritime borders are unavailable to either us or Libya because we are contesting them, so international oil companies are not willing to get involved. So there is something in it for everybody if an agreement is reached.
"For Libya, it also highlights our neighbourly relations and engages us closer together. Certainly, Libya does not need energy security as much as we do. So we are hoping that the spirit that prevailed in the joint commission will permeate the working groups as well. I don't think you can afford to lose heart because what you are talking about is energy security. You need to keep discussing issues until you get results," he said.
Malta is also awaiting a response to an invitation extended to Tunisia to hold informal talks on ways to "take the process forward". Dr Frendo admitted that it was a slow process.
"These are not rapid processes as they involve considerable consultation and there are a lot of players that have to be satisfied before any agreement can be reached. With Tunisia, we have zoomed in on the issues where we can collaborate."
There is also disputed territory adjacent to Italy and Dr Frendo admitted that he did not think a major effort had been made yet with this particular neighbour.
"In this case, we are encouraging the experts to meet again and after that I think we should take it to a political level. We need to open these fronts with our three neighbours. The discussions are quite independent of each other, but we need to reactivate the negotiations."
The other major pending diplomatic issues are with the US: a double taxation agreement and a visa waiver scheme.
A delegation was in Washington at the time of this interview and Dr Frendo said his impression was that things were moving closer.
"As a ministry, we and the finance ministry tried very hard to make progress but the real breakthrough was when Prime Minister Lawrence Gonzi went to speak to President George Bush. "I had a meeting that same day with the Treasury Department and things starting moving. There is a specialised team dealing with this and we are really pushing to conclude.
"It is clear that we are fully OECD compliant; we changed other aspects of our taxation recently and we are now also fully EU compliant. So we now have a system that is no longer in doubt or contested at EU level. This development, around three months ago, put us in an even better position with regards to double taxation.
"I am not aware that there is anything specific at this point which would need to change as we have already changed so much to meet the concerns of the EU," he said.
The visa waiver is another important issue but Dr Frendo pointed out that there are movements in the US against it altogether and want to remove it from the 15 countries of the EU that have it, let alone to extend it to others.
"But I think the administration is very much in favour of extending the scheme, with the full comfort of the Homeland Security Department," he said.
"Still one has to take into account the the current situation in the US; the fact that Congress is dominated by another party might complicate matters a bit."
The visa waiver would require biometric passports, which should be available in Malta later this year. Which issue is on the top of Dr Frendo's agenda?
"I raised both issues with State Secretary Condoleeza Rice at my meeting. But the double taxation is moving so I put more emphasis on the visa waiver scheme as I think that it would be extremely useful for the Maltese, in terms of business and travel.
"It would also be a natural extension of the positive attitude towards the US in this country. At a popular level, there is a lot of goodwill towards the US, in my view.
"I don't know which is more doable in the short-term - visa waiver or double taxation - but we would like to both, of course."
Visas also feature in another international issue: Malta's entry into the Schengen area, through which member citizens can wander at will without passports or even ID cards.
An important factor in this will be the planned Central Visa Unit, which now has premises and a budget, as well as a list of posts which will soon be advertised.
"We hope it will be functioning some time this year as it will be part of the Schengen Information System. We will be issuing Schengen visas either directly through our consulates, or through the agreement we have with the Austrians.
"We also ratified an agreement with the Italians a few weeks ago, which means any Italian consulate can issue Schengen visas for Malta. This is very useful for Malta.
"But Schengen is a big challenge for us. Once we issue a Schengen visa, we become guardians of the border, which will put a lot of pressure on us. At the high level meeting of ministry officials and resident ambassadors last week, visa policy and Schengen were a major item on the agenda."
Foreign trade?
Embassies are already doing more commercial work than before. The new one in China is doing a considerable amount of trade and investment promotion. The High Commission in India, to be headed by Wilfred Kenely, will also be commercially oriented.
The ministry is also devolving more activities to the embassies, following the example of other countries. For example, they are also responsible for compiling and updating the country brief, which until now was done by the head office.
"As the ones on the ground, we felt that they should be the ones leading this process. For some ambassadors this will be a new experience, so we may have to hold their hands a bit at first," Dr Frendo said. Delegating tasks as efficiently as possible is a case of necessity. There are just 30 people in the head office now - the lowest levels ever - although a new intake is the final process of recruitment, which was based on an interview as well as a "tough" written exam.
The ministry is also using its resources overseas to help other national entities like Malta Enterprise and the Malta Tourism Authority, which have resource limitations of their own. Space is being made available where possible for them to base personnel or to hold meetings. MTA has identified four or five places where it wants space, he said.
This is just one of the indications of how complex trade has become as a portfolio. Still, as was pointed out during a recent seminar on trade policy, do we need four ministries (competitiveness, foreign, finance and investment) to handle trade?
Dr Frendo said that each had different roles, ranging from regulation to external trade and internal trade. However, he said discussions were underway on the possibility of moving the External Trade Division to his ministry from the Economic Planning Division of the Finance Ministry - assuming his ministry had the capacity to handle this. "There has been discussion in government as to whether things could be streamlined but it is hard to do. Many countries have external trade under the foreign ministry as obviously a very strong part of foreign policy is based on positions related to foreign trade.
"In fact, this year, to focus our thinking, we want to publish an external trade policy, which will indicate the general lines of our policy in terms of external trade.
"The problem is how to integrate the other functions."
To EU or not to EU?
Asked for his assessment of EU membership - last year he had felt it was too early - Dr Frendo said the impact had been absorbed by the resilience of the Maltese, who had withstood competition, perhaps with the exception of the agricultural sector, which was still feeling the pressure. However, he believes the most important achievement was that Malta was sitting around the table as an equal.
"To my mind, this is because we have not allowed anyone to treat us any other way and stood up for our rights. We worked as a team player to win respect. Once you win that respect, in my view, then when your own interests are at stake they know you are only acting that way because it is extremely important for your county. In other words: Don't cry wolf!"
He also pointed out that obtaining Objective 1 status had been absolutely crucial - perhaps more than people think.
"I remember when I went to the European Council of Ministers and made a categoric statement that it was unacceptable to us that in our first seven years we would not be Objective 1. This was a clear indication that there would be no agreement on the financial perspectives.
"As things turned out, we achieved it. This means we have seven years of assistance under the Cohesion Funds. But it could mean more than that. If after seven years you are no longer Objective 1, you can then ask to be phased out. Some countries did this and got funds for 10 years instead of for seven."