Economic Partnership Agreements:

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Economic Partnership Agreements A new
approach to ACP-EU economic and trade
cooperation Commission Européenne Accra, FAO
Regional Clarification seminar, 17 february 2005


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• EPAs a new approach to EU-ACP trade cooperation
• State of negotiations in West and Central Africa
  Region
• Conclusions

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1. EPAs a new approach to EU-ACP trade
cooperation
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LACK OF ACP EXPORT DIVERSIFICATION (2003)

• 5 PRODUCTS 60 of total Exports
• (petroleum, diamonds, cocoa, fish, and wood
  products)

9 AFRICAN COUNTRIES REPRESENT 60
OF TOTAL ACP EXPORT
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(No Transcript)
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• LESSONS LEARNT
• Unilateral Preferences
• Are Not Enough
• Preferences do not encourage diversification
• Perverse incentive against trade liberalisation
• Preference erosion increases as multilateral
  liberalisation progresses

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• TOWARDS A NEW APPROACH
• The Cotonou Agreement
• Three pillars
• Political dialogue
• Development co-operation
• Economic and trade co-operation

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• TOWARDS A NEW APPROACH
• The Cornerstones of EPAs
• Partnership
• Development dimension
• Regional integration
• WTO compatibility

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• Development dimension
• EPAs as process and instruments for development
• Integrated approach (Cotonou pillars)
• Trade policy as instrument for development
• Mainstream trade into development strategy (RPTF)

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• Regional integration
• First step towards gradual integration into world
  economy
• Enlarging markets for attracting investment
• Support ACP political choices
• Combined South-South-North cooperation (lock-in
  effects)

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• WTO compatibility
• EPAs will be fully compatible with WTO rules
• Gradual introduction of reciprocity
• Asymmetry, flexibility, differentiation, variable
  speed and geometry
• Complementarity DDA/WTO and EPAs

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• 2. State of negotiations in West and Central
  Africa Region
• September 2002 October 2003
• First phase at all-ACP level
• Clarification phase
• Development dimension, Legal issues, Market
  access, Trade-related areas, Agriculture,
  Services
• Joint Report and Declaration
• October 2003 end 2007
• Regional negotiations and Coordination at all
  ACP level
• 2008 Entry into force

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State of negotiations in West and Central Africa
Region

• Road map
• Deepening Regional Integration
• Competitiviness
• Preparation and follow up of negotiations
• Calendar for negotiations
• The RPTF

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State of negotiations in West and Central Africa
Region

• Road map The calendar
• Introductory priority setting phase (3 months)
• Convergence on strategic approach (until mid
  2005)
• Understanding on regional integration policies
  and priorities and on level of integration to be
  achieved when EPA implementation starts
• Structuring and consolidation (until mid 2006)
  
• Remaining trade related issues to be included in
  EPA
• Prepare liberalisation scenarios
• draft outline of EPA
• Finalisation of negotiations (until end of 2007)
• Negotiation of market access
• Finalisation of EPA

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Regional Preparatory Task Force

• Objectifs
• Mainstream trade in development policies
• Bridge between pilars of the Cotonou Agreement
  Trade pilar and financing cooperation pilar
• Complementarity with development partners

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EC Trade Support Initiatives

• Intra-ACP horizontal All ACP instruments
• WTO negotiation capacity building facility 10
  M
• EPA negotiation capacity building facility 20
  M
• Trade.Com 50 M
• ProInvest 110 M (TRINNEX)
• Centre for the Development of Enterprise - 90 M
  
• Pesticides programme 29 M
• Fisheries programme 43 M
• Programmed Aid 9th EDF
• West Africa Regional Indicative Programme - 235
  M
• National Indicative Programmes
• Investment Facility

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3. Conclusions

• EPAs are an opportunity
• ACP development is the objective
• Make the RPTF work
• Very little time left