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The acp-eu-trade.org newsletter -- No. 33/October 2009
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In this issue:
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I. Trade Negotiations Insights Vol.8, No.8
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II. News: Highlights of the month
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III. Selection from the acp-eu-trade.org Library
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IV. Resources from Recent and on Upcoming Events
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Dear readers,
Welcome to the October issue of the acp-eu-trade.org newsletter!
Below you will find a link to the October issue of Trade Negotiations Insights, a collection of press articles published during the past month and a selection of recently added documents in the acp-eu-trade.org library. As usual, we also provide some resources on recent and upcoming events relevant to ACP-EU trade relations.
ACP-EU stakeholders are encouraged to participate in the various services provided via this website with the aim to exchange relevant information, build up trade negotiating capacity and facilitate networking activities. We therefore invite our readers to take an active role in www.acp-eu-trade.org by:
• Registering on-line as a trade and development expert to help mobilise the best expertise in ACP-EU trade and development matters and give interested parties easier access to information on relevant internationally recognized experts or consultants;
• Submitting relevant background and policy documents, news and links that will enrich the ACP-EU trade debate;
• Subscribing to this monthly newsletter as well as other partners’ to be kept informed of latest developments in the ACP-EU trade realm;
• Sharing your views on the current ACP-EU Trade debate and providing feedback on the relevance and future focus areas of www.acp-eu-trade.org
We appreciate any feedback on this newsletter and look forward to your reactions. You may send your comments to acpeutrade@ecdpm.org.
Enjoy your reading!
Editors: Fantu Mulleta (fm@ecdpm.org) and Mélissa Dalleau (md@ecdpm.org)
I. Trade Negotiations Insights Vol.8, No.8
The October 2009 issue of Trade Negotiations Insights (TNI), a joint monthly publication by ICTSD and ECDPM, is available online at: www.ictsd.org/tni/index.htm and www.acp-eu-trade.org/tni
Trade Negotiations Insights, Vol. 8, No. 8, October 2009
• The Lisbon Treaty – Implications for ACP-EU Relations (Eleonora Koeb)
• Editorial & News and publications In brief
• Services and EPA: A Difficult but Vital Relationship (Fabien Gehl)
• Bananas, Economic Partnership Agreements,and the WTO (Giovanni Anania)
• Some Lessons of the CARIFORUM-EU EPA (Norman Girvan)
• Specialty Food Products from Southern Africa: Aid that views Africa as a Commercial Partner (Amanda Hilligas)
• WTO Roundup
• EPA Negotiations Update
• Calendar and resources
Eclairage sur les Négociations, Vol. 8, No. 8, Octobre 2009
• Le traité de Lisbonne – conséquences pour les relations ACP-UE (Eleonora Koeb)
• Éditorial & Nouvelles et publications En bref
• Services et APE : une relation difficile, mais essentielle (Fabien Gehl)
• Les bananes, les Accords de Partenariat Economique et l’OMC (Giovanni Anania)
• Quelques enseignements à tirer de l’APE CARIFORUM-UE (Norman Girvan)
• Produits alimentaires haut de gamme en provenance d’Afrique Australe: l’aide qui considère l’Afrique comme un partenaire commercial (Amanda Hilligas)
• Aperçu sur l’OMC
• Le point sur les négociations APE
• Calendrier et publications
** All-ACP **
* ACP nations in danger of clashing trade deals
Allan Odhiambo, Business Daily, 14 October 2009
The African Caribbean and Pacific countries are being warned of overlapping trade regimes because of lack of a standard timetable for the signing of new economic pacts with Europe. And it is the ACP secretariat raising the alarm, saying the situation could interfere with ACP-EU trade ties. “This state of affairs, which results in multiplicity of trade regimes between ACP regions and the European Union, does not bode well for strengthening of ACP-EU trade relations. Moreover, the unity and solidarity of the ACP Group is likely to be eroded,” Mr John Kaputin, the secretary-general of the ACP Group, said in statement on Tuesday.
* EU-Africa policy to focus on wealth creation
European Commission Development I-center, 28 September 2009
The Third EU-Africa Business Forum concluded its discussions in Nairobi, Kenya, (28-29 September 2009) with a consensus on the need for Africa to shift its policy objective from poverty reduction to the more dynamic goal of wealth creation. There was also broad agreement on the need for greater regional integration, increased investment and improved infrastructure. The EU has pledged some €5 billion in funding, 1.5 billion of which has been earmarked for the specific goal of promoting regional integration. Commenting on the Forum, Stefano Manservisi, the European Commission’s Director-General for Development noted that now, more than ever, good policy must be in place along with a sound enabling framework allowing the private sector access to credit, knowledge and skills. […]
European Union companies were encouraged to increase investment in Africa to take advantage of the huge opportunities that currently exist on the continent. Erastus Mwencha stressed that the continent offers impressive returns on investment and immense potential, particularly in areas such as agro-pressing, industrial production, construction and the service sector. He also pointed to the paramount importance of infrastructure and energy which feature prominently on Africa's development agenda and where, he noted, huge opportunities exist for joint ventures.
-> See also African Union endorses controversial trade deal, Macharia Kamau, The Standard online, 29 September 2009,
-> See the events section for more resources on the Third EU-Africa Business Forum
* Africa's terms for EU full market access
Steve Mbogo, Business Daily, 29 September 2009
Africa is asking its team of trade negotiators working on the Economic Partnership Agreement to focus on economic development before deciding on opening up markets to the European Union.
Mr Erastus Mwencha, the deputy head of African Union Commission, says the continent should not be tied to timelines on the deal that envisages full access to African markets by 2025.
* From 1 October 2009 all products from all least developed countries enter the EU market duty and quota free
European Commission, 1 October 2009
The European Union’s “Everything but Arms” regulation included transitional restrictions for sugar and rice which have now lapsed thus granting full 100 per cent duty-free and quota-free market access for all products from all LDCs
* NGOs Welcome EU’s Vow Not to Push Africa into EPAs
Isolda Agazzi, Bilaterals.org. 9 October 2009
"The Commission continues to seek tailor-made solutions for all countries within a regional EPA in order to secure their duty-free, quota-free access to the EU and provide an improved framework for their economic development. It considers that it is up to the ACP (African, Caribbean and Pacific) partners themselves to decide which type of trade-related rules they want to negotiate at this stage and to what extent." This statement by the European Commission (EC), released on Oct 1, sounds like a victory for the Stop EPA Campaign which has been running for years now.
** West Africa **
* ECOWAS gets tough on EU
Business News, 20 October 2009
On arguments that ECOWAS might just be interested in protecting its current 0.5% community levy, Mr Hormeku remarked that the EU’s promise of 700million dollars in support assistance for 70 countries cannot in anyway compare with what the region can itself generate, stressing “It is important for the regional body to generate its own funds.”
* EU-West Africa EPA: negotiators meet in Brussels (21-25 September 2009)
EC Press release, 30 September 2009
European and West African negotiators met in Brussels from 21 to 25 September to discuss the way forward towards a regional Economic Partnership Agreement.
The talks, at technical and senior-officials' level, addressed West Africa's market access offer and other issues such as agriculture. Both sides converged on the need to include a non discrimination clause in the agreement. Regional levies, development co-operation (the EPA Development Programme or PAPED) and rules of origin were also part of an agenda that both sides consider important for their future relations.
Further talks are scheduled to take place on 23 and 24 October in Abidjan (Côte d'Ivoire) and at senior-officials' level on 6 November (venue to be decided).
* EPA negotiations in limbo – Daramy
bilaterals.org, 30 September 2009
ECOWAS Commissioner for Trade and Industry, Mohammed Daramy, said a meeting between ECOWAS and the EU last week in Brussels did not make any progress due to the unresolved issues of market access, adding that an agreement scheduled for signing at the end of next month, "might not happen".
"They just want to give 80 per cent market opening, but based on our technical analysis, we don’t believe we are ready to go 80 per cent right now."
"Until these points are cleared, I don’t see any time-frame for signing an EPA agreement," he said. Mr. Daramy said ECOWAS could give "at most" 70 per cent of its market under the terms and in return would demand commitment of the EU to support EPA development programmes. "I must reiterate that confining West African countries to the production of primary commodities amount to condemning them to remain locked in the commodity trap," he said. "West Africa is not negotiating for time — we are concerned with reducing poverty and development of our people — we’ll negotiate for the next 20 years if that is how long it will take to get our concerns addressed," he said.
-> See also (in French): APE-Négociations sans fin? Les raisons d’un nouveau report de la signature. Dialigué Faye, Lequotidien (Sénégal). 16 octobre 2009.
** ESA **
* COMESA secretary General challenges the European Union to come up with realistic, practical and honest approach in partnership with Africa
COMESA e-Newsletter, 2 October 2009
This was done at the 3rd EU-Africa Business forum taking place in Nairobi Kenya from the 28th to 29th September 2009. Under the theme “On the road to new win-win partnerships”
COMESA secretary General Mr Sindiso Ngwenya who was a panellist on EU and regional integration, pointed out that quite often the rules and demands set by multilateral agreements, and economic partnerships negotiations are extremely unrealistic. “Those who have developed make the rules, climb the ladder and once up remove it and expect you to climb without it! They expect us to climb at the same pace when the ladder is no more there… they have gone through the same paths but expect us to simply summersault over! Quite often we find this approach dishonest” noted Mr Ngwenya.
* East Africa Agrees On Common Market
The New Times, 6 October 2009
Starting July 2010, there will be free movement of people, labor and services across the East Africa Community (EAC). This follows the conclusion of the Common Market Protocol negotiations last week.
Juma Mwapachu, the EAC secretary general, disclosed how each of the five states of Uganda, Tanzania, Kenya, Burundi and Rwanda had ceded ground or compromised for a deal to be reached.
-> See also Services Sector to Benefit from EAC Common Market, Allafrica.com, 11 October 2009
-> See also Comesa Compensates Country for Losses Resulting From EAC Integration, bilaterals.org, 7 October 2009
* Trade agreement with EU slowly takes shape
Allan Odhiambo, 16 October 2009
Kenya and other member states of the East African Community (EAC) are currently negotiating new economic partnership agreements (EPAs) with the European Union (EU).[…]
Business Daily sought the views of Mr Eric van der Linden, head of the European Commission delegation to Kenya, about the status of the negotiations, as well as the overall relationship between Kenya and the commission.
* Why give up our markets for subsidised EU goods? - Mauritius
Inter Press Service, 14 October 2009
Why should we surrender ourselves to the invasion of highly subsidised European goods? What will be the effect of capital outflows because of strategic services such as telecoms, port, energy and water services liberalised and privatised in the interest of European companies?
These are the questions that Rezistans ek Alternativ, a Mauritian political movement, wants answers to after its country's government, along with Madagascar, Seychelles and Zimbabwe, signed an interim economic partnership agreement (EPA) with the EU last month.
** SADC **
* EPAs: The ‘battle’ rages on
Isolda Agazzi, The Swazi Observer, 17 October 2009
The SACU Secretariat said it was a challenge for the customs union that its members were party to two separate trade regimes as South Africa trades with the EU under the Trade and Development Cooperation Agreement (TCDA) while the other members had previously traded with the EU under the Cotonou Agreement which expired in 2007.
The Council said there was, therefore, a need to harmonise these two trade regimes with the EU in order to adhere to the objectives of the customs union, which are a common external tariff in relation to trade with third parties and the free movement of goods among its members.
* SACU Council aims to sort EU deal issues
Charlotte Mathews, Business Day, 22 September 2009
The Southern African Customs Union (SACU) Council agreed at a special meeting at the end of last week to redouble efforts to resolve outstanding issues in signing trade deals with the European Union (EU), hinting at the possibility of a change in SACU’s structure.
The meeting was called “to review challenges facing SACU and to deliberate on the future of the organisation”, the council said in a statement on Monday.
The meeting had “provided an opportunity for frank discussion” and identified priority areas that needed further work, it said.
* SACU takes united stand on EPAs
Jo-Maré Duddy, The Zimbabwean, 02 October 2009
SACU has decided to stay optimistic and tackle the unresolved issues in the economic partnership agreement (EPA) with the European Union (EU) as a team to try and overcome the obstacles preventing Namibia and South Africa from signing even an interim pact with the bloc.
The EPA has been singled out as a priority and the Sacu Council has requested the Sacu Commission, under chairmanship of Finance Permanent Secretary Calle Schlettwein, to come up with a strategy and timelines regarding the controversial trade pact.
Finance Minister Saara Kuugongelwa-Amadhila, currently the chairman of the Sacu Council, yesterday said the customs union decided to deal with the EPA issue “following the principle of unified engagement amongst Sacu members states in trade negotiations with third parties, including in the SADC-EC interim EPA and EPA negotiations, while recognising different levels of development and capacity of member states.”
* Trade Ministry sheds light on EPAs–Botswana
Banny Molosiwa, The Botswana Gazette, 29 September 2009
A Botswanan trade ministry official writes that in an article titled "Cautionary Note on EPA's" which appeared in your issue of Wednesday 23-29th September 2009, a Mr. Thapelo Obednick Mfosi makes incorrect, unsubstantiated and misleading allegations about the Economic Partnership Agreements (EPAs') which Botswana along with six (6) other SADC EPA Member States are negotiating with the EU. They would like to correct such unfortunate statements and in so doing hope to convey the true and balanced facts about the EPAs. [….]
we trust that Batswana will ignore the unfortunate detraction which may have resulted from Mr Thapelo Obednick Mfosi's grossly ill-informed narrative. In conclusion the Ministry of Trade and Industry would like to reiterate its call for increased efforts to exploit the available benefits in the EPA regime
** Central Africa **
* EU, Central African countries sign agreement
Afriquejet, 1 October 2009
The European Union and Central African bodies have signed an agreement in Brussels under which the EU will help develop projects with trans-border roads and railways and telecommunication infrastructure.
The agreement provides for a budget of 97 million euros aimed at achieving the economic and trade integration accompanying the Economic Partnership Agreement (EPA).
The agreement between the Central African Economic and Monetary Community (CAEMC) and the Central African States Economic Community (CASEC) and the European Community on a Regional Indicative Program (RIP) will be financed by the European Union under the 10th European Development Fund (EDF)
** Pacific **
* EU-Pacific EPA Negotiators meet in Brussels
EC Press Release, 5 October 2009
European and Pacific ACP representatives met in Brussels at technical level from 23 September to 2 October 2009 to negotiate a regional Economic Partnership Agreement (EPA). Discussions were fruitful and positions could be narrowed on a number of issues. Key aspects that require further discussions are trade in goods and fisheries as well as services and a number of specific provisions in the agreement. Four Pacific countries (Niue, Samoa, Cook Islands and Micronesia) presented market access offers for trade in goods which will be jointly reviewed. As regards services, the EC considers ways for granting sufficient flexibility to allow Pacific countries to undertake commitments in a flexible way whereas Pacific region proposes a general rendez-vous clause. The next technical negotiation round is tentatively scheduled for early 2010.
* Fiji awaits return to EU fish list
Fiji Times, 20 Oct 2009
The European Union’s (EU) introduction of a Catch Documentation scheme will not affect Fiji until it is back on the EU list, says the Solander (Pacific) Ltd managing director David Lucas.
Speaking on the challenges and constraints experienced by Fiji's longline fishing industry at the Food Summit, Mr Lucas said the EU scheme would complicate exports into the EU and could prove problematic in implementation.
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III. Selection from the acp-eu-trade.org Library
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* EPAs: To be or not to be?
Sanoussi Bilal, ECDPM, October 2009
The delivery of Economic Partnership Agreements (EPAs) between the European Union (EU) and the African, Caribbean and Pacific (ACP) countries has so far been a slow, painful and incomplete process, whose future remains most uncertain. Will most ACP countries finally rally under the EPA banner, forgetting about the bumpy road to get there? Or will EPAs continue to split regions and divide ACP policy makers on the most appropriate way to pursue sustainable development and maintain a privileged relationship with an important and traditional partner, the EU?
* How Would a Trade Deal on Sugar Affect Exporting and Importing Countries?
Amani Elobeid, ICTSD Issue Paper No. 24, September 2009
This study seeks to provide policy-makers, negotiators and other stakeholders with a clear and accurate assessment of the likely implications of a trade deal on sugar along the lines of that being discussed in the WTO’s Doha Round, as well as in bilateral and regional negotiations. The study examines the implications for specific exporting and importing countries, taking into consideration the various preferential access arrangements that currently exist, recent historical trends in sugar trade in different countries and geographical regions, and the internal market reforms being undertaken in importing regions such as the EU. As such, it seeks to provide an impartial, evidence-based input into the intricate deliberations over how trade policy in this area can best support sustainable development goals.
* Overview of EPA: state of play
DG Trade-European Commission, Overview table, 22 September 2009
This table gives an overview of the state of play on EPA negotiations up to 22 September 2009.
* ACP-EU Trade Issues in the Beef Sector
Agritrade Executive brief, July 2009
This brief begins by outlining the structure of the basic EU regime for beef, including the full incorporation of the beef sector into the single-payment scheme and the link to management arrangements in the dairy sector, which may slow the reduction in the total capacity for beef production. The long-term trend in prices received by ACP suppliers is surveyed in the context of CAP reform and trade negotiations at multilateral and bilateral level, and it is noted that the EU is likely to retain safeguards against import surges.
Price reductions have reduced the attractiveness of the EU market to exporters, but a key development concerns the trend towards the consumption of higher-quality beef in the EU. This may open markets for exporters able to meet such standards, but on the other hand it threatens a rise in exports of low-quality EU beef, even in the context of net imports, which may threaten ACP markets.
* ACP-EU Trade Issues in the Rice Sector
Agritrade Executive brief, June 2009
This executive brief reviews the scope of the traditional EU rice regime, the associated import and export regimes and the process of reform initiated in 1995 and consolidated in 2003. After summarising rice production and trade in the ACP, it seeks to identify the impact of EU rice-sector reform on the ACP, notably the declining value of traditional ACP rice-sector trade preferences. In this context it notes the recent volatility in world market prices with which EU bulk-rice prices are increasingly aligned. It also reviews the new trade arrangements for rice established under the Caribbean-EU EPA and the wider implications of EPA negotiations in the rice sector.
* Benefits of export taxes
Sanya Reid Smith, Third World Network, Preliminary Report, 24 September 2009
The European Union has been attempting to discipline the use of export taxes and restrictions by developing countries in the negotiations on non-agricultural market access (NAMA) in the World Trade Organization, as well as in its Free Trade Agreements (FTAs), including the Economic Partnership Agreements (EPAs).
This paper has however outlined the benefits that developing countries will lose if they agree to such limits on export taxes.
* Implementation of the Joint Africa-EU Strategy and its First Action Plan (2008-2010) - Input into the mid-term progress-report
European Commission, Staff Working Document (SEC(2009) 1064 final), 24 July 2009
This Commission Staff Working Document (SWD) provides inputs into the next annual progress report of the Joint Africa-EU Strategy (JAES), due for October 2009. This progress report will inform the competent African and European bodies on the progress made in the implementation of the Joint Strategy and of its First Action Plan (2008-2010) since the 2008-edition of the progress report that was endorsed by the Ministerial Troika of September 2008. The report will also form the basis for the Ministers' discussion on the mid-term review of the Strategic Partnership at the next Troika meeting on 14 October 2009 [...] and the basis for subsequent discussions with EU Member States."
* Communication from the Commission to the European Parliament and to the Council- Connecting Africa and Europe: working towards strengthening transport cooperation
European Commission Communication, Offical Journal of the EU, 24 June 2009
The objective of this communication is linked to the programme implementing the strategic partnership on infrastructure adopted by the European Union and the African Union in 2007.
Following this communication, and based on the results of the dialogue between the European Union and the African Union, a priority action plan and details of the financing of such actions will be drawn up and included in a joint EU and African Union declaration.
* Multilateral Aid Organisations: Stakeholder Views on Effectiveness
Cecilie Wathne, Simon Burall, Edward Hedger, ODI - Report to DFID, August 2009
This report, written by the Overseas Development Institute (ODI) and commissioned by the UK Department for International Development (DFID), provides an overview of recipient governments’ perspectives on the key characteristics of an effective multilateral donor. In recent years there has been an increased recognition of the importance of donor effectiveness for development results – including in the 2005 Paris Declaration (PD) on Aid Effectiveness (AE) and the 2008 Accra Agenda for Action (AAA). However, while both provided opportunities for recipient stakeholders to express their views, there remains a shortage of studies and forums specifically focused on the perspectives of recipients. This report seeks to reduce this gap.
* Making Regional Integration Work in Africa: A Reflection on Strategies and Institutional Requirements
Vijay Makhan, ACBF Development Memoirs series, July 2009
It has been barely six years since the African Union (AU) was launched in Durban, South Africa – two years of interim operation, and four years since the first college of Commissioners was elected in Maputo (the two-year interim period being the transition from the OAU to AU). Now, the continent’s leadership is engaged in discussions in respect of the creation of a United States of Africa. However, what is it that Africans have achieved at the level of the AU that already gives us the assurance that we are ready to embark on the journey towards the United States of Africa? [...]
At present, national considerations over ride our march towards integration. Sovereign interests prevail over regional or continental interests. These are things that we hold on to too guardedly and jealously. The leadership may subscribe to certain decisions taken at continental meetings while not being fully convinced of their judiciousness, may be to avoid the risk of being accused of breaking ranks. But when it comes to implementation there is a concern that the decisions taken collectively will impinge on sovereignty!
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IV. Resources from Recent and on Upcoming Events
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* 3rd EU-Africa Business Forum
28-29 September 2009, Nairobi, Kenya
-> Concept Note
-> Presentations and summaries of proceedings
* WTO Public Forum
28-30 September 2009, Geneva, Switzerland
-> Agenda, IFAP Session on Agriculture
-> Opening Remarks by IFAP President
-> Closing Remarks by Chair of the WTO Committee on Agriculture Special Negotiating Sessions
-> Press release
* Convocation on the CARICOM Single Market and Economy (CSME)
9-10 October 2009, Bridgetown, Barbados
-> Press release
-> Speeches
* 13th Africa - EU Ministerial Troika Meeting
14 October 2009, Addis Ababa, Ethiopia
-> Final Communication
* Pacific Islands Forum Trade Ministers meeting
23-24 October 2009, Brisbane, Australia
-> Press Statement
-> Outcome document
* EU – Southern Africa (SADC) Senior Officials' meeting
November 2009, (precise date tbc), Brussels, Belgium
* COMESA Trade and Customs Committee meeting
2-4 November 2009, Mombasa, Kenya
* EU – West Africa Senior Officials' Meeting
6 November 2009, place tbc
* Third ACP Civil Society Forum
9-10 November 2009, Brussels, Belgium
* 4th annual African Economic Conference (AEC)
11-13 November 2009, Addis Ababa, Ethiopia
-> Programme
-> Papers
* First Meeting of the Joint Council of the CARIFORUM-EC Economic Partnership Agreement
13 November 2009, place tbc
* 18th Session of the ACP Parliamentary Assembly and ACP-EU Joint Parliamentary Assembly
30 November - 3 December 2009, Luanda, Angola
-> Draft Agenda and Work Programme