Economic Partnership Agreement (Southern Africa)

Economic Partnership Agreements (EPAs)

PRESENTATION

Formal EPA negotiations with seven members of the Southern African Development Community (Botswana, Lesotho, Namibia, Swaziland, Mozambique, Angola and Tanzania), known as the SADC group, were launched in Windhoek, Namibia, on 8 July, 2004. South Africa, which initially had an observer status, has been fully included in the EU- SADC EPA negotiations since February 2007. Tanzania is now negotiating in another regional EPA configuration.

The first round of senior-level and technical talks took place in December 2004 and March 2005 respectively. On 23 November 2007, an interim EPA was initialled with Botswana, Lesotho, Namibia, Swaziland and Mozambique, including a WTO-compatible market access schedule and provisions on development co-operation and other issues. This agreement was initialled by Namibia on December 11 2007. An Interim Agreement was signed between the EU and Botswana, Lesotho and Swaziland on 4 June 2009 in Brussels, and shortly after, on June 15 2009, with Mozambique in Maputo.

Factsheet on Economic Partnership Agreements: SADC EPA Group (September 2010)

Factsheet on Interim Partnership Agreements: SADC Group (January 2010)

Factsheet on the Interim Partnership Agreements: an Overview of the Interim Agreements (January 2009)

Factsheet on the Interim Partnership Agreements: SADC Group (January 2009)

Economic Partnership Agreements: EU and Southern African Countries Sign Interim Deal (June 2009)

For further information on the EU-SADC EPA negotiations, visit:
http://ec.europa.eu/trade/wider-agenda/development/economic-partnerships/negotiations-and-agreements/#_sadc

BACKGROUND

Where do EPAs come from?

With the objective of strengthening its relationship with the African, Caribbean and Pacific (ACP) groups of States, the EU signed the Cotonou Agreement in June 2000. This comprehensive Partnership Agreement builds on three inter-linked pillars: political dimension, economic and trade co-operation and development finance co-operation.
http://ec.europa.eu/development/geographical/cotonou/cotonou2000_en.cfm

The Economic Partnership Agreements (EPAs) are defined by the Cotonou Agreement as the major instrument of economic and trade co-operation between the EU and the ACPs. Therefore, despite their independent legal status, EPAs are an integral part of the Cotonou approach. Their objectives and principles are defined in detail in the Agreement.

EPAs are being negotiated with ACP regions engaged in a regional economic integration process, and are thus intended to consolidate regional integration initiatives within the ACP. EPAs are designed to foster the smooth and gradual integration of the ACP countries into the world economy, thereby promoting their sustainable development and contributing to poverty eradication in the ACP countries. Thus, EPAs are, above all, an instrument for development.

On 17 June 2002, EU foreign ministers unanimously adopted the mandate for the European Commission to negotiate EPAs with the ACP. The strategy underpinning the mandate is set out in the explanatory memorandum:
Recommendation for a Council Decision authorising the Commission to negotiate Economic Partnership Agreements with the ACP countries and regions (April 2002)

On the ACP side, guidelines for the negotiations were agreed by ACP Trade and Finance Ministers on 21 June, and confirmed by the ACP Council on 27 June, 2002:

ACP Guidelines for the Negotiation of Economic Partnership Agreements (July 2002)

EPAs: an Instrument for Development?

EPAs are based on four pillars:

• Partnership: EPAs are partnership agreements, entailing rights and obligations for both sides. Compliance with the obligations by each side is essential for the achievement of the entire undertaking. In particular, while the Union has further opened up its market to ACP products and tackle all other trade barriers, the ACP States must be prepared to implement appropriate policies to strengthen their supply capacity and to reduce transaction costs.

• Regional integration: Regional integration is a powerful means of fostering integration into the world economy. The EU itself has built its strength on regional integration. The recent progress made in regional integration within the ACP reflects the political decision of the ACP States to base their own integration into the world economy on regional economic integration. EPAs will therefore be based on regional integration initiatives existing in the ACP.

• Development: EPAs are above all instruments for development. They will therefore be designed taking into account the economic, social and environmental constraints of the ACP countries concerned and of their capacity to adapt to the new trading environment.

• Link to WTO: Economic Partnership Agreements (EPAs) are not an end in themselves but are intended to act as a stepping stone to the gradual integration of the ACP countries into the world economy. They will therefore build upon the rules of the WTO, taking into account the results of the Doha Development Agenda.

In order to provide a qualified assessment of the EPAs, the Commission launched a Sustainability Impact Assessment (SIA) in parallel with the negotiations. SIA is a process undertaken before and during trade negotiations, which seeks to identify economic, social and environmental impacts of a trade agreement. Its purpose is to integrate sustainability into trade policy by informing negotiators of the possible social, environmental and economic consequences of trade agreements. For more information, visit the SIA-EPAs website:

The EU ACP Economic Partnership Agreements: Sustainability Impact Assessment

For updated information on EPAs, visit:
http://ec.europa.eu/trade/wider-agenda/development/economic-partnerships/

RESPONDING TO EPA MYTHS

Economic Partnership Agreements: Frequently Asked Questions (May 2010)

Answer to the Petition from EU Trade Commissioner Catherine Ashton to Traidcraft (January 2009)

Interim Economic Partnership Agreements: Questions and Answers (March 2008)

EPAs: Addressing the Misconceptions (January 2008)

SUCCESS STORIES

For "EPA Testimonials" from our ACP partners, visit:
http://trade.ec.europa.eu/doclib/stories/index.cfm?sort=topic&langId=EN

CALENDAR

For a calendar of upcoming EPA negotiating rounds and events, visit:
http://ec.europa.eu/trade/wider-agenda/development/economic-partnerships/