EPA Review Annex Documents - DFID

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eally erodes the preferential treatment offered to LDCs. The recent EU South Korea Agreement exemplifies this point. While the EU market is progressively opening up its market for developing countries like South Korea, unless LDCs like Ethiopia are supported technically and financially to improve their supply side problems and competitiveness it is certain that the market access through agreements such as EBA or GSP will remain meaningless. By concluding an EPA as it is, the EU will surely benefit by securing at least 80% preferential market. However, for many LDCs unless the EPA take due consideration for development the EPA would be considered failure. Of course, the need for development support has been a contentious issue from the start of the EPA negotiations. Ethiopia emphasised its “no development no EPA” position by stressing on the need for further resources and compensation for possible loss of revenue as a result of opening up markets and entering into additional commitment. However, the EC has repeatedly maintained its inflexible position that development component is provided under the EDF, and has reiterated that additional financing that would be available from individual EU member states as Aid for Trade. The EC also argue that development is about more than just the money available as countries signing EPAs would benefit from the lock-in effect that would signify a more stable investment climate and result in higher levels of inward investment. The challenge faced now upon the conclusion of the full ESA EPA is on how to introduce the development component, through improved market access and development support to make the EPAs a true development tool. If this does not occur then it is certain that countries like Ethiopia will not be able to take advantages promised in the full benefits of EPAs. From the perspective of Ethiopia the EPA was considered pro-development from the outset. The belief was that it would enhance its development endeavours and was not a mere market access arrangement. This goes some way in explaining why Ethiopia tried to make its position clear by saying “No development no EPA” from the initial stages. Ethiopia maintains its position on the need to explore further how to elevate the development dimension component in the negotiations. The EPA should take care of this. Box-3:- Trade Related Issues Negotiations on the trade related issues in general are still young; both sides (ESA and EC) are still in the process of articulating the scope and level of ambition of their proposals. For example, with regard to intellectual property, ESA has provided preliminary comments on the EC proposal indicating the primary concerns that the proposal is TRIPS-plus and lacks asymmetry. On competition policy, the EC side has presented its main objectives with respect to the content of the EPA. Both sides have agreed that further discussions are needed on issues such as nascent industries, monopolies and anti-competitive practices. ESA continually underlines and is insisting on the need to have technical assistance in this area. Regarding transparency in public procurement, both sides have presented their respective positions. ESA has highlighted the challenges faced by its member states on this area. Ethiopia’s position in most trade related issues has been in line with the regional position, basically cooperation in capacity building, simplifying rules and procedures in these areas. 107
4. Perspectives on EPA negotiations In order to capture Ethiopia’s perspective regarding the use of resources by the locals who were involved in EPA negotiations, this section relies on the responses that were obtained from stakeholders by means of a questionnaire. The summary of responses or answers (Ans) from the questionnaires (Qns) that were distributed to the main stakeholders (mainly NDTPF members) who were involved in the EPA process is attached as Annex I. Annex VI (Names with*) indicates those interviewee NDTPF members. The detail analysis is in Annex I. 5. Main lessons leant from negotiations The following are some of the main lessons that the country has learnt from the EPA process. i. Resource constraints: The country has been severely affected by resource constraints mainly in areas such as funding of sectoral studies and country negotiators in attending meetings (in most cases funds were provided for a limited number of negotiators per negotiation session even if the issues to be negotiated required different expertise). ii. Timeframes should not be a priority at the expense of substance: One of the main lessons learned with regards to the negotiation process itself is that deadlines for concluding negotiations should not be a priority at the expense of reaching an agreement on substantive negotiation issues. Rather, deadlines and conclusion of EPA negotiations should be premised on achievement of mutual agreement on the substantive issues being negotiated. iii. Difficulty to reach consensus in a multi-diverse group: It is extremely difficult to reach consensus on any issue being negotiated in a multi-country group with diverse interests and level of economies. The ESA group comprises of 16 countries who decided to negotiate the EPA as one economic configuration even if the configuration has no legal base as an economic regional grouping. Aside from this, the group comprises countries of different levels of growth and economic interest. Out of the 16 countries 12 are LDCs and four are non-LDC. The economy of most countries in the group is based on agriculture, while for some the economy is based on industry, fishery and services. Such divers’ interest has impacted on the unity and strength of the countries during the negotiation. 108
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EPA Review Annex Documents by Insti
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Part Three: EPAs as Instruments for
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Part One: Literature Review 4
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countries demanded more precision a
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essential and fundamental of EPA (h
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EPA group. However, after phase II
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Disagreements also existed on other
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ules of origin as a basis for negot
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would not meet WTO provisions. Even
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is only just about to conclude an i
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The EC took almost nine months to a
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Caribbean The CARIFORUM EPA was the
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services, CARIFORUM countries commi
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2006. Moreover, PACP countries cons
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Table 3 Main Problems and Divergenc
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4. Final comments The EPA’s negot
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creation) but can also lead to impo
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preferences and hence are likely to
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3. Impact of the EPAs by Region One
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Cape Verde (loss of 4.1% of GDP) an
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SSA ECOWAS CEMAC COMESA EAC Table 2
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Perez (2005) CGE, 2001 base year 80
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Whilst most studies appear to agree
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7. Annex Literature Countries Metho
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Hinkle and Schiff (2004) "Economic
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Milner, Morressey and McKay (2008)
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Karingi et al (2005) “Assessment
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Greenaway and Milner (2003) "a grim
Page 57 and 58: Perez, R (2005) “ Are the Economi
Page 59 and 60: Case Studies Lessons 1. Introductio
Page 61 and 62: trade relation and negotiation matt
Page 63 and 64: EPAs negotiation process is paralle
Page 65 and 66: • EPA team The EPA negotiating te
Page 67 and 68: - State Secretariat of Environment
Page 69 and 70: Technical Negotiation Group (TNG) m
Page 71 and 72: spent for these impact assessment s
Page 73 and 74: Other opportunity costs Another imp
Page 75 and 76: Since domestic constituencies tend
Page 77 and 78: Table 11 Negotiating Meetings and R
Page 79 and 80: • An estimated $214,000 in travel
Page 81 and 82: The main expectation of the process
Page 83 and 84: Commission was forced to take up th
Page 85 and 86: Therefore, while negotiators could
Page 87 and 88: System Improvement & Human Resource
Page 89 and 90: Ethiopia - List of RNF meetings Amo
Page 91 and 92: Nigeria Cost of EPA negotiation-rel
Page 93 and 94: Dominican Republic Distribution of
Page 95 and 96: 1. Overview of existing resources f
Page 97 and 98: The FTRD that was responsible for b
Page 99 and 100: The support of the NDTPF and the ex
Page 101 and 102: dedicated sessions during the year
Page 103 and 104: Mauritius, Seychelles, and Madagasc
Page 105 and 106: 3. Quantification of costs of count
Page 107: Ethiopia took a clear stance from t
Page 111 and 112: 5. Qns: Had you had more resources,
Page 113 and 114: ) Basic knowledge on Cotonou Agreem
Page 115 and 116: Council of ESA Ministers Committee
Page 117 and 118: System Improvement & Human Resource
Page 119 and 120: List of RNF meetings 118 ANNEX VII
Page 121 and 122: EPA Review Study Nigeria December,
Page 123 and 124: contains the quantification of cost
Page 125 and 126: which appear to have crowded out ac
Page 127 and 128: Table 3 Resource Detail of Intra-Af
Page 129 and 130: Table 5 Capacity Building Programme
Page 131 and 132: Table 7 Cost of EPA Negotiation-Rel
Page 133 and 134: ADDRESSING THE LABOUR MARKET EFFECT
Page 135 and 136: Table 9 Annual Cost of Nigeria Trad
Page 137 and 138: Though the current negotiating stru
Page 139 and 140: • The simultaneous application of
Page 141 and 142: understand the changing environment
Page 143 and 144: 7. Summary of Findings and Main Les
Page 145 and 146: opportunity cost could be quite sub
Page 147 and 148: • There is adequate technical adv
Page 149 and 150: 5. Appendices Appendix Table 1 Rang
Page 151 and 152: EPA Review Study Dominican Republic
Page 153 and 154: c. Technical Level At a regional le
Page 155 and 156: 2) From the ministers of trade of C
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- State Secretariat of Foreign Rela
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Table 1 Distribution of the Main Tr
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Figure 2 CARIFORUM Dimensions Diffe
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with the EU, in order to present a
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Table 4 Average Monthly Salaries EP
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In additional there were eight meet
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Per Diem Rate (US$) 500 A- Total of
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5. Perspectives of EPA negotiations
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usiness and political levels repres
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expectation of increases in exports
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8. Annexes Interviews Name Institut
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MAY o 05-06: WTO TWG on NAMA, Barba
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o 05-06: Joint Meeting of the Prime
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o 10-13: 12 th Meeting of CARIFORUM
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Trinidad & Tobago, 11-15 mayo 2007
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Reviewing services negotiations in
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Table 2 MMain differeences in serrv
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3. Services coverage in the CARIFOR
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In this exercise, it is important t
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196 ANNEX Provisions of the agreeme
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Tariff and Non-tariff barriers in E
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products could be extended until ye
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extended to the original partner. F
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than the rate applied on the proces
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RoO and the EPAs 1. Introduction Ru
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Table 1 Similarity of EAC countries
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that value added in ACP countries o
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The EU has yet to deliver a simple
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arrangements, are constrained by pr
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and non-oil exporting countries wit
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Common Market for Eastern and South
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to be seen. The Ethiopia case study
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fact that countries either export o
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development assistance in the EPA.
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References Bilal, S. and Stevens, C
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SPS Issues in EPA Negotiations 1. B
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The SPS committee provides an oppor
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of equivalence. Clearly, the Econom
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In the case of Ghana, where there i
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which relevant entities within thei
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Specific provisions While the final
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‘.....In addition, the Parties sh
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imparted to EPA signatories. In pra
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of the EC Party when these products
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So what have the EPA negotiations a
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Region/Country Year Total 2002 2003
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EAC CARIFORUM PACP Region/Country Y
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EAC CARIFORUM PACP Region/Country N
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EAS SADC EAC Country/Region Mycotox
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Country/Region West Africa CEMAC Co
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Development Finance and EPAs 1. Int
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evenues, one of the main sources of
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References Braun-Munzinger, C. ( 20
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