Economic Partnership Agreement (Southern Africa)

What are Economic Partnership Agreements (EPAs) and where do they come from?

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

Communication from the Commission to the European parliament and the Council - Economic Partnership Agreements (October 2007)

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 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.

The EU is currently engaged in negotiations with six ACP regions (West Africa; Central Africa; Eastern and Southern Africa; Southern Africa Development Community; Pacific and Caribbean). South Africa, which was initially granted an observer status in the SADC-EPA group, has fully joined the EU-SADC negotiations in March 2007.

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:
http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_112023.pdf

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:
http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_130235.pdf

Economic Partnership Agreements: 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 will be prepared to further open 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.

EPAs are scheduled to enter into force by 1 January 2008 at the latest. The non-reciprocal Lomé IV trade preferences will continue to be applied during the interim period (2000-2007).

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.

http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_112023.pdf

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.

http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_130235.pdf

 

Sustainability Impact Assessment

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, see the SIA-EPAs website

http://www.sia-acp.org/acp/uk/index.php

EPAs and the Countries of Southern Africa

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 successfully 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 in February 2007.

 For further details regarding the EPA negotiations in the other ACP regions, visit:

SADC workshop on Services and Investment in EPA negotiations (February 2008)

Trade: Economic Partnership Agreements - Addressing the misconceptions  (January 2008)

Trade: Commission and Caribbean countries decide on full Economic Partnership Agreement (December 2007)

Trade: Important step in EPA negotiations - EU cements market access for ACP countries (December 2007)

Trade: East African Community and EU reach interim Economic Partnership Agreement (November 2007)

Economic partnership agreements take centre stage at ACP-EU assembly in Kigali (November 2007)

"No alternative to EU/ACP economic partnership agreements", Trade Commissioner Peter Mandelson tells MEPs (November 2007)

http://ec.europa.eu/comm/trade/issues/bilateral/regions/acp/regneg_en.htm

EU offers full market access to Africa, Caribbean and Pacific regions in EPAs negotiations (April 2007)

EU and ACP Ministers meet in Bonn for informal dialogue on EPA Agreements (March 2007)

EU and ACP countries meet to push forward EPAs (March 2007)

The EU welcomes South Africa in the SADC EPA negotiations (February 2007)

Economic Partnership Agreements: FAQs (September 2006)

Speech by EU Trade Commissioner Peter Mandelson in Pretoria in favour of Economic Partnership Agreements and regional economic integration (February 2006)