Transcript Slide 1
External Trade
EPAs and Development
Peter Thompson
Director: EPAs and Development
DG TRADE
19 May 2008
External Trade
Where do EPAs come from?
• Why? Failure of old formula to
deliver development
• Where? ACPs
• How? Cotonou Agreement (2000)
• When? End 2007 (expiry of
Cotonou trade provisions and
WTO waiver)
External Trade
Unilateral Preferences under Cotonou
• Did secure trade position
- BUT THE WORLD CHANGED AND THEY •
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Entrenched marginalisation and vulnerability
Restricted innovation and diversification
Were unable to guarantee incomes as prices fell
Offered no incentive for better governance
Discriminated among developing countries
No longer complied with global rules
External Trade
Share of imports from ACP in EU total
imports, 1976-2005
8%
7%
6%
5%
4%
3%
2%
1%
0%
76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05
External Trade
ACP exports to EU, 1997-2007
ACP exports to EU in bn €
18
16
Agriculture
14
12
Fuels
10
8
6
Industry
4
2
0
1997
2005
2007
External Trade
Lack of ACP export diversification:
3 main products = 54% of exports to the EU
(2005):
other
34%
Fuels
37%
Sugar
2%
Aluminium
3% Wood Fish
3% 4%
Cocoa
6%
Diamonds
11%
External Trade
EPAs are one of EU’s Trade Policy
Tools for Development
•
WTO Rules
•
Aid for Trade and Cooperation
•
GSP (all Developing Countries)
•
GSP+ (implementation of labour rights and environment)
•
EBA (all LDC)
•
EPA (New Cotonou trade regime for 77 ACP + South Africa)
External Trade
What are EPAs supposed to do?
• Integrate ACPs into world economy
(Globalisation)
• Improve economic attractiveness
(Governance)
• Improve competitiveness
• Promote diversification
• Provide more, better and cheaper
goods and services
External Trade
What’s new in EPAs?
• Trade Agreement with
development objectives
• Reciprocal (but not symmetric)
• Unlike other FTAs linked to
Association Agreements
• Assistance in text (TRA)
External Trade
EPA State of Play January 2008
• 9 LDCs and 26 non-LDCs countries have
entered into EPAs and interim EPAs:
- 1 comprehensive EPA with the Caribbean region
- 7 interim agreements based on WTO compatible
goods trade arrangements
• 32 LDCs beneficiating from the EBA initiative
• 10 non-LDCs under the standard GSP
External Trade
EPA
Caribbean
Antigua & Barbuda
Bahamas
Barbados
Belize
Dominica
Dominican Republic
Grenada
Guyana
Haiti
Jamaica
St Kitts & Nevis
St Lucia
St Vincent & Grenadines
Surinam
Trinidad & Tobago
Pacific
Papua New Guinea
Fiji
EBA
East Timor
Kiribati
Samoa
Salomon Islands
Tuvalu
Vanuatu
GSP
Cook Islands
Tonga
Marshall Islands
Niue
Micronesia
Palau
Nauru
External Trade
EPA
EBA
West Africa
Ivory Coast
Ghana
Benin
Burkina Faso
Cape Verde
Gambia
Guinea
Guinea Bissau
Liberia
Mali
Mauritania
Niger
Senegal
Sierra Leone
Togo
SADC
Botswana
Lesotho
Namibia
Mozambique
Swaziland
Angola
GSP
Nigeria
External Trade
EPA
Central
Africa
Cameroon
Eastern /
Southern
Africa
EAC
Burundi
Kenya
Rwanda
Tanzania
Uganda
EBA
Central African Rep.
DR Congo (Kinshasa)
Chad
Equatorial Guinea
São Tomé e Príncipe
ESA
Comoros
Madagascar
Mauritius
Seychelles
Zimbabwe
GSP
Gabon
Republic of Congo
(Brazzaville)
Djibouti
Eritrea
Ethiopia
Malawi
Somalia
Sudan
Zambia
NB. Non-LDCs are shown in bold and South Africa is not included as its TDCA trade regime
is unaffected by the expiry of the Cotonou agreement
External Trade
What’s in?
• TRADE IN GOODS
Duty free / Quotas free access to EU Market
Short transition periods for RICE and SUGAR
ACP level of liberalisation
80 % in value over 15 years
• RULES OF ORIGIN
Based on the Cotonou Agreement
Improvement on specific areas: TEXTILE and CLOTHING
sector, AGRICULTURE, FISHERIES
• SAFEGUARDS
Exception from WTO multilateral safeguard measures
Asymmetry, infant industries clauses
External Trade
What’s in?
• CUSTOMS AND TRADE FACILITATION
Simplification and modernisation of customs procedures
Aid for trade
• TECHNICAL BARRIERS TO TRADE
Increasing protection of health, safety, consumers and
environment
Improving capacity to eliminate unnecessary obstacles to
trade
• SANITARY AND PHYTOSANITARY MEASURES
Commitments to the term of the WTO SPS Agreement
Cooperation to enhance relevant information exchange
Implementation of SPS measures
External Trade
HOW DEVELOPMENT?
• Regional Preparatory Task Forces
• EU Aid for Trade strategy (EU MSs €s)
• €s from the European Development Fund
(10th EDF 2008 – 2013)
Regional programmes reinforced by 35%
National indicative programmes:
competitiveness
governance and public administration reforms
Infrastructure
External Trade
NEXT STEPS
1. Signature/Ratification process
WTO Notification
2. Completion of full regional EPAs
All regions fully committed to conclude
Timing: end 2008/mid 2009