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The acp-eu-trade.org newsletter -- Special issue #4 - January 2008
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EPA negotiations: Where do we stand?
- A recap -
In this issue:
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I. EPA negotiations: Where do we stand? A recap
A. Current state of EPA negotiations as of 1 January 2008
B. Next meetings at the All ACP-EC level
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II. Some insights into the negotiation process: TNI Vol.6, No.8, Dec. 2007 - Jan. 2008
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Dear readers,
To conclude the series of special issues during a particularly eventful phase of negotiations, this issue of the acp-eu-trade.org newsletter aims to give a recap of the agreements that have been initialled in each region by the end of 2007.
In 2008, a new crucial phase of EPA negotiations is beginning. ECDPM will continue providing the latest information on the state of play in each ACP region negotiating with the EU at dedicated webpages accessible via http://www.acp-eu-trade.org/epa.
Updates will no longer be weekly as in the final months of 2007, but we will still aim at making news available “as-it-happens”, drawing from various reliable sources of information.
These spaces remain open for contribution and we invite all stakeholders and interested parties on ACP-EU trade relations to actively contribute, share or suggest any relevant piece of information on the on-going negotiations.
As usual, French versions of the updates are available for the All ACP overview as well as for the regional pages on Central Africa, West Africa and Eastern and Southern Africa (ESA).
Enjoy your reading!
Editors: Davina Makhan ( dm@ecdpm.org ) and Corinna Braun-Munzinger ( cbm@ecdpm.org )
To read the latest “EPA negotiations: Where do we stand?” online click on the following link http://www.acp-eu-trade.org/epa
To download the pdf document of 11 January 2008, click here
Pour les regions “Tous ACP”, “Afrique centrale », « Afrique de l'Ouest » et « AfOA », la mise à jour du 11 janvier 2008 en format pdf est disponible ici
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I. EPA negotiations: Where do we stand? A recap
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A. Current state of EPA negotiations as of 31 December 2007 and trade regimes applied from 1 January 2008
The Caribbean is the only region that initialled a full EPA with the EU by 31 December 2007 , the date of expiry of the waiver covering the Cotonou trade preferences. In order to establish a new WTO compatible trade regime from 1 January 2008 , most African non-LDCs (except for Nigeria , Republic of the Congo , Gabon and South Africa ) and two Pacific non-LDCs have concluded interim agreements with the EU. In total, 35 ACP countries initialled either a full or an interim agreement by the end of 2007.
Countries that have neither initialled an agreement nor have access to the EBA regime export to the EU under the GSP regime, which implies an increase in tariffs. As of 20 December 2007, these are Nigeria, Republic of the Congo, Gabon, as well as the Pacific countries Cook Islands, Federated States of Micronesia, Nauru, Niue, Palau, Marshall Islands and Tonga.
South Africa will export under the TDCA.
The remaining ACP countries have either initialled an interim agreement or will export to the EU under the EBA regime available to LDCs.
[For an overview, see ACP Market Access outlook 1 January 2008 , European Commission, 20 December 2007 .]
A brief look at each of the six negotiation regions gives a more precise picture of the new trade regimes applied from 1 January 2008 . For details on the content of each of the agreements concluded, please follow the links to our regional web pages:
• In the Pacific , 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 . A full regional EPA is expected to be concluded by the end of 2008.
§ To read more, click here
• Two interim agreements have been initialled in Eastern and Southern Africa (ESA), an ESA-EU framework agreement and an EAC-EU framework agreement. These are expected to lead to two full EPAs by the end of 2008 and by July 2009 respectively.
Those countries in the region that have not initialled an interim agreement (or have done so without submitting a market access schedule, as in the case of Zambia ) are exporting under the EBA initiative since 1 January 2008 , for which they are eligible due to their LDC status. These are Djibouti , Eritrea , Ethiopia , Malawi , Sudan and Zambia .
§ To read more, click here
• In the SADC EPA region, A first step agreement has been initialled between the EU on the one side and Botswana , Lesotho , Namibia , Swaziland and Mozambique on the other side. Botswana , Mozambique , Swaziland and Lesotho initialled this interim agreement with the EU on 23 November 2007 . Namibia , which had voiced concern about several provisions on 5 December, initialled the agreement on 12 December 2007 . Namibia initialled the agreement on the understanding that its concerns would be addressed through the negotiations towards a comprehensive EPA. A statement in this regard is annexed to the agreement, outlining that Namibia will sign and ratify the full EPA only if agreement on outstanding issues is found.
According to the EC, Angola intends to join the agreement "as soon as possible".
South Africa has indicated that it does not plan to initial. It will continue exporting to the EC under the TDCA. The non-participation of South Africa might have implications on the implementation of the interim agreement, as it forms a customs union with Botswana , Namibia , Lesotho and Swaziland under SACU.
§ To read more, click here
• In Central Africa , no regional agreement with the EC has been concluded by the end of 2007. In order to safeguard market access for the non-LDC Cameroon after 31 December 2007 , Cameroon and the EC have initialled an interim agreement on 17 December. Negotiations with Gabon are going on, but no interim agreement has been initialled yet. Such an agreement may be concluded in 2008. The third non-LDC in the region, Republic of the Congo , has according to European Commissioner Mandelson shown little interest in the negotiations. The LDCs Central African Republic, Chad , Democratic Republic of the Congo , Equatorial Guinea and São Tomé and Principe export under the EBA initiative since 1 January 2008 .
§ To read more, click here
• West Africa did not complete a regional EPA by 1 January 2008 , due to insufficient progress in major areas of the negotiations. According to ECOWAS, 18 months of additional negotiation time are needed to conclude a full EPA. In light of the above, interim agreements were concluded between the EC and Cote d'Ivoire and Ghana , two of the four non-LDCs in the region. The remaining non-LDCs, Nigeria and Cape Verde , export respectively under the standard GSP and under the EBA initiative since 1 January 2008 . Instead of negotiating an interim agreement, Nigeria has applied for the GSP+ scheme. As no decision on this application has been made, it is currently exporting to the EU under the standard GSP regime. Cape Verde is classified as a non-LDC from 1 January 2008 , but it will be able to export to the EU under the EBA regime for a transition period of at least three years. The LDCs Benin, Burkina Faso , Gambia , Guinea , Guinea Bissau, Liberia, Mali , Mauritania , Niger , Senegal , Sierra Leone and Togo export under the EBA initiative since 1 January 2008 .
§ To read more, click here
• The Caribbean is the only region to have initialled a full EPA with the EU so far. Visit the Cariforum regional web page for details on the provisions of this agreement.
§ To read more, click here
[For an overview by the European Commission, see Update: Interim Economic Partnership Agreements , EC, 19 December 2007 ]
Table 1 below gives an impression of the liberalisation commitment contained in initialled agreements and table 2 provides an overview of sensitive products excluded from liberalisation.
Table 1a: Liberalisation schedules agreed in initialled interim agreements (cumulative value of imports from the EU, to be liberalised by the specified year )
|
2008 |
2010 |
2012 |
2013 |
2017 |
2018 |
2022 |
2023 |
2033 |
total |
|
|
Fiji |
24% |
|
|
37% |
|
78% |
|
81.5% |
|
81.5% |
|
Papua New Guinea |
88.1% |
|
|
|
|
|
|
|
|
88.1% |
|
EAC |
|
64% |
|
|
|
|
|
80% |
82% |
82% |
|
Comoros |
|
|
|
21.5% |
|
|
80.6% |
|
|
80.6% |
|
Madagascar |
|
|
|
37% |
|
|
80.7% |
|
|
80.7% |
|
Mauritius |
24.5 % |
|
|
|
53.6% |
|
95.6% |
|
|
95.6% |
|
Seychelles |
|
|
|
62% |
77% |
|
97.5% |
|
|
97.5% |
|
Zimbabwe |
|
|
45% |
|
|
|
80% |
|
|
80% |
|
Botswana, Lesotho, |
|
86% |
|
|
|
|
|
|
|
86% + 47 tariff lines |
|
Mozambique |
78.5% |
|
|
|
|
|
|
|
|
80.5% |
|
Cameroon |
|
|
|
|
|
50% |
|
80% |
|
80% |
|
Cote d'Ivoire |
|
|
|
|
|
69.8% |
|
80.8% |
|
80.8% |
|
Ghana |
|
|
|
|
|
62.24% |
|
80.48% |
|
80.48% |
|
Caribbean |
52.8% |
|
|
56% |
|
61.1% |
|
82.7% |
86.9% |
86.9% |
Table 1b: Liberalisation schedules agreed in initialled interim agreements (cumulative percentage of tariff lines, to be liberalised by the specified year )
|
|
2008 |
2010 |
2013 |
2015 |
2017 |
2018 |
2022 |
2023 |
2033 |
total |
|
Fiji |
9% a |
|
22% a |
|
|
62% a |
|
80% a |
|
80% a |
|
Papua New Guinea |
82.1% a |
|
|
|
|
|
|
|
|
82.1% a |
|
EAC |
|
|
|
|
|
|
|
|
|
74% a |
|
Mauritius |
26% a |
|
|
|
73% a |
|
96.6% a |
|
|
96.6% a |
|
Botswana , Lesotho , Namibia , Swaziland |
|
86% a |
|
44 b |
|
3 b |
|
|
|
86% a + 47 tariff lines |
|
Mozambique |
|
|
|
|
|
100 b |
|
|
|
|
|
Cote d'Ivoire |
|
|
|
|
|
83.9% a |
|
88.7% a |
|
88.7% a |
|
Ghana |
|
|
|
|
|
72.81% a |
|
80.01% a |
|
80.01% a |
|
Caribbean |
|
|
|
|
|
|
|
85.1 % a |
90.7 % a |
90.7 % a |
a cumulative percentage of tariff lines
b additional number of tariff lines to be liberalised by the specified year
Table 2: Goods excluded from liberalisation
Pacific |
Certain agricultural and forestry products as well as non agricultural processed goods are excluded from liberalisation by both Papua New Guinea and Fiji . The main criterion of these exclusions is the desire to protect infant industry and maintain fiscal revenues. |
EAC |
Exclusions include: agricultural products, wines and spirits, chemicals, plastics, wood based paper, textiles and clothing, footwear, glassware. The main criterion of these exclusions is the desire to protect infant industry. |
ESA |
Several products from different sectors have been excluded from liberalisation, mainly due to the need to protect sensitive products or infant industries in the countries. In the case of Seychelles , these include meat, fisheries, beverages, tobacco, leather articles, glass and ceramics and vehicles. In the case of Zimbabwe , excluded products include products of animal origin, cereals, beverages paper, plastics and rubber, textiles and clothing, footwear, glass and ceramics, consumer electronics and vehicles. Mauritius excluded from liberalisation live animals and meat, edible products of animal origin, fats, edible preparations and beverages, chemicals, plastics and rubber articles of leather and fur skins, iron & steel and consumer electronic. In the case of Comoros , the excluded goods are mainly of animal origin, fish, beverages, chemicals and vehicles. For Madagascar, the excluded products comprise meat, fish, products of animal origin, vegetables, cereals, beverages, plastics and rubber, articles of leather and fur-skins, paper and metals among others. |
SADC |
Exclusions focus on agricultural goods and some processed agricultural goods and are based chiefly on the need to protect infant industries or sensitive products in these countries. |
| Central Africa | Certain agricultural as well as non agricultural processed goods are excluded from liberalisation by Cameroon . The main criterion of these exclusions is the desire to protect certain existing industries or infant industry and maintain fiscal revenues. |
West Africa |
Certain agricultural as well as non agricultural processed goods are excluded from liberalisation by Ivory Coast and Ghana . The main criterion of these exclusions is the desire to protect certain existing industries or infant industry and maintain fiscal revenues. |
| Caribbean | The main exclusions are agricultural and processed agricultural products; some chemicals, furniture and other industrial products. |
(Table 2 quoted from: Update: Interim Economic Partnership Agreements, European Commission, 13 December 2007, http://trade.ec.europa.eu/doclib/docs/2007/november/tradoc_136959.12.07.pdf and EPA Flash News, European Commission, 19 and 20 December 2007)
B. Next meetings at the All ACP-EC level
EPAs are on the agenda of the African Union summit on 25 January – 2 February 2008 .
In their declaration of 13 December 2007 , ACP ministers welcomed “the assurances given by the President of the European Commission, Mr. Manuel Barroso at the EU-Africa Summit, held in Lisbon, Portugal, on 8 and 9 December 2007 that the discussions on the Economic Partnership Agreements would continue beyond the initialling of interim arrangements and that the contentious clauses therein would be opened up for re-negotiation.” They further refer to an offer by President Barroso to visit the ACP regions. It however remains to be determined whether such a meeting will take place at the regional, all-Africa or ACP level. The West African region has already indicated that it is preparing for this meeting, which should take place in February 2008 (see conclusions of the Ministerial Monitoring Committee , 17 December 2007 ). The date of February for “negotiations at the highest level” has also been mentioned in press reports . However, during a press conference in January, the EC indicated its expectation to receive a request from the ACP side in order for a meeting to take place.
To read more on recent events and find background information and additional resources relevant to the all-ACP level, click here
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II. Some insights into the negotiation process: TNI Vol.6, No.8, December 2007 - January 2008
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A special edition of “ Trade Negotiations Insights ” on the concluded agreements gives some first hand impressions by stakeholders involved in the EPA negotiation process in each of the regions. The articles also cover possible next steps and address the question of how the ‘interim' deals might impact in terms of development, regional integration and the relations between all parties involved.
Trade Negotiations Insights, Vol.6, No.8, December 2007 - January 2008 :
All ACP level:
• Good from far but far from good
• Peter Mandelson on the 'end' of the EPA negotiations
Pacific:
• EPA fails to draw the Pacific closer to the international trading system
Eastern and Southern Africa :
• East Africa : a splintered picture
• Avoiding trade disruption: focus on Seychelles
Southern Africa :
• SADC EPA negotiations: the circle of trust
• New Generation Issues in the EPAs: development in question?
Central Africa :
• EPAs: development or desolation for Central Africa ?
• The Emperor's new clothes
West Africa :
• The challenges of the West Africa EPA
Caribbean :
• All or nothing: the Caribbean EPA
General context:
• ACP and EPAs: Where's the beef?
• In focus: New Aid for Trade Strategy: a window of opportunity
• Economic growth in Africa: will EPAs help or hinder?
• Multilateralism, regionalism and bilateralism in trade and investment. The launch of the first World report on Regional integration
• EPAs and the EU-Africa Strategy: (in)coherence?
• Overview of EPAs initialled
• WTO Roundup
• Calendar and Resources
To access the full text, click here: http://www.acp-eu-trade.org/tni
Pour accéder au numéro spécial d'Eclairage sur les négociations de décembre 2007-janvier 2008, suivre le lien: http://www.acp-eu-trade.org/eclairage
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To access recent documents and news on EPA negotiations, visit also the acp-eu-trade.org library at http://www.acp-eu-trade.org/library and news section at http://www.acp-eu-trade.org/news !
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