EPA Negotiations: Where do we stand? - Pacific - State of Play - Recent developments - Additional resources	Click here for a complete summary of the state of play in all regions (in pdf format)

Current state of play

After the initialling of interim agreements with the EU by Papua New Guinea and Fiji , negotiations towards a full EPA are continuing at the regional level.

PACP leaders met on 19 August (before the Pacific Forum leaders meeting) and underlined their commitment to conclude a comprehensive EPA by the end of 2008 and stressed that the EPA should reflect the differing circumstances and economic interests of all the PACPS and deliver significant benefits to all of them.

An exchange of letters took place between PACP spokesperson Hans Joachim Keil and Commissioner Peter Mandelson in July. For EPA negotiations in 2008, Keil reportedly requested to focus on finalising outstanding issues including trade in goods, fisheries and development. Negotiations on trade in services and most trade-related issues should be suspended and addressed at a later stage in the future.
EU sources indicate that Mandelson continues to stress the importance of services and investment for development. However, the EU is aware that some PACP countries may not be able to make commitments in these areas.  Mandelson, therefore, suggests continuing negotiations with all PACP countries on jointly agreed issues and allowing those which so desire to make commitments on services and trade related issues. 
PACPs are currently preparing a response to Mandelson before the next negotiation meetings planned for 15-16 September 2008.

The conclusion of interim agreements (and the planned full EPA) with the EU is likely to trigger negotiations with Australia and New Zealand under PACER. An informal meeting of PACER trade officials in this respect took place in May.

Trade regime from 1 January 2008

Papua New Guinea and Fiji , who are the region's main exporters of goods to the EU, have initialled an interim agreement with the EC on 23 November 2007 .

Seven other non-LDCs ( Cook Islands , Federated States of Micronesia , Nauru , Niue , Palau , Marshall Islands and Tonga ) did not join the interim agreement so far and export to the EU under the GSP regime since 1 January 2008 . For most of these countries, the absolute export volume to the EU is low, however, it can be significant relative to their overall country exports and thus they may face serious disruption of trade.

The LDCs East Timor, Kiribati, Samoa , Solomon Islands , Tuvalu and Vanuatu export under the Everything But Arms initiative since 1 January 2008 .

Interim agreement between the EU and Fiji and Papua New Guinea

Text of the agreement:
--> Pacific-EU interim agreement

Summary of the agreement:
"Market Access Schedule
The offer of Papua New Guinea (PNG) foresees to liberalise the range of included products on the date of application of this agreement which has been announced by PNG to be the 01 January of 2008. The coverage of the offer is 88 % as regards the value of imports from the EU and 82 % as regards tariff lines. All sectors are covered.
The offer of the Republic of Fiji Islands ( Fiji ) foresees to liberalise 24 % of value of imports from the EU corresponding to 9 % of tariff lines on the date of application of this agreement which has been announced by Fiji to be the 01 January of 2008. Fiji will eliminate another 13% of value and 13 % tariff lines by the end of year 5, by the end of 10 years 41 % of value and 40 % of tariff lines and by the end of 15 years 4 % of value and 18 % of tariff lines. The coverage of the offer is 81.5 % as regards the value of imports from the EU and 80 % as regards tariff lines. All sectors are covered.

Agreement (Goods)
The agreement covers all major provisions of a trade in goods agreement such as provisions on customs duties, export taxes, a standstill clause, a non discrimination clause, trade defence instruments (anti-dumping and countervailing measures, multilateral and bilateral safeguards), special provisions on administrative cooperation in customs matters, a chapter on customs and trade facilitation, a chapter on technical barriers to trade and sanitary and phytosanitary measures as well as exception clauses.
The respective offers of the parties as well as the applicable rules of origin are set out in annexes attached to the agreement. The agreement also contains an annex on mutual administrative assistance in customs matters.

Agreement (other components)
This Agreement focuses on safeguarding the market access interests both of Papua New Guinea and Fiji and any other Pacific State that may still wish to join. It, hence, focuses on trade in goods aspects.
The Agreement contains also a clause on the ongoing EPA negotiations. The parties confirm their commitment to these negotiations and to the objective of concluding a comprehensive EPA containing all relevant components and including all interested Pacific countries by the end of 2008. The Agreement also emphasises the need to cooperate closely at the national level to maximise the synergies between development cooperation and the objectives of this Agreement.
The Agreement also contains provisions regarding on the relation with the Cotonou Agreement and WTO as well as a dispute settlement mechanism, institutional provisions, and general and final provisions."
(Summary provided by the European Commission)

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