Transcript Slide 1

DG Trade
The EPA negotiations,
state of play and
challenges
European Commission
Summary
 Background of EPA
DG Trade
negotiations
 Main issues
 The challenges ahead
DG Trade
The present regime
The Cotonou waiver
 The Cotonou trade regime is better
than the GSP, fewer products excluded
(tuna, cut flowers)
 It violates Article I GATT: discriminates
in favour of ACP countries
 Waiver granted in 2001 (Doha)
 But only until December 2007!
DG Trade
This is why we
need EPAs by
1 January 2008!
The Cotonou mandate
Set up a new trade regime, supporting the
mutually reinforcing effects of trade
cooperation and development aid.
Objectives:
 To promote smooth and gradual integration of
DG Trade
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ACP economies into the world economy
To enhance production , supply and trading
capacities
To create new trade dynamics and foster
investment
To ensure full conformity with WTO provisions
The EPAs
Article 36 of the Cotonou Agreement:
WTO compatible agreements
DG Trade
The parties will:
 Remove progressively barriers to trade
 Enhance cooperation in all areas relevant to
trade
What this means:
 Move from unilateral preferences to
reciprocal trade liberalization
The EPAs
Why are EPAs unique?
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DG Trade
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Trade agreements, whose objective is the
sustainable development of the ACP states
The EU does not have any specific offensive
interest
Based on the ACP’s regional integration
initiatives
Strong asymmetry
Link between trade and development
cooperation
DG Trade
The EPAs
The regions
West Africa: CEDEAO+ Mauritania
 Central Africa: CEMAC+STP
 East and Southern Africa (ESA)
 Southern Africa (SADC)
 Caribbean
 Pacific
The ESA EPA
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15 (16?) countries all members of
COMESA
Building on COMESA regional
integration process:
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DG Trade
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COMESA CET
COMESA common initiatives in other fields
The configuration / multiple
membership issue: difficult choices
for some countries
The content of the EPA
 Trade in goods (tariff liberalization, rules
DG Trade
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of origin, safeguards, SPS, TBT)
Trade in services
Trade related issues: investment /
establishment, competition, intellectual
property rights, public procurement
Development cooperation –
accompanying meausres
State of play
DG Trade
 Commitment to meet 2007 deadline
reaffirmed in the ministerial meeting
on 28 February. Big challenge!
 A common text based on a text tabled
by ESA last year and on EU’s
subsequent comments and proposals
 EU offer on market access (duty free
quota free access). ESA to present its
offer soon
The issues at stake
DG Trade
 Rules of origin: how to make them
development-friendly
 ESA’s offer: gradual / asymmetric
opening, but must be WTO
compatible
 The development component: how
does EPA fit with the Cotonou
framework for development
finance?
The issues at stake
EPAs and development: discussion still open
DG Trade
WHERE IS THE DEVELOPMENT COMPONENT?
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The EU thinks development will be stimulated by trade
opening, regional integration and adopting a common
system of rules
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The ACPs want additional resources to the EDF – but
we have no additional resources, they will have to
come from other sources
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The cost of trade liberalization: revenue loss, reform