EPA Review Annex Documents - DFID

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Summary of responses to the questionnaire 109 ANNEX I 1. Qns: In your view why did the country engage in the process of EPA when there is an option of full market access under the EBA/GSP preference? Ans: a) EBA and GSP schemes are unpredictable and not negotiable as they are unilaterally offered by EU which means it is non-contractual (or non-obligatory), and can be revoked at any time by the provider. Negotiating the EPA was a wise decision for the country considering as once agreed; it will be contractual, legally binding, predictable and more transparent. b) Unlike in the EBA and GSP schemes the EPA, if properly negotiated and implemented, may provide an enabling environment for both private sector participation and growth. c) EPA promises negotiated and lenient rules of origin (RoO), and sanitary & phyto-sanitary standards (SPS) unlike the EBA’s stringent and cumbersome RoO and SPS which makes it impossible to maximise the benefit of LDCs d) EPA promises development support. 2. Qns: What were the expectations at the beginning of the process? Ans: a) At the beginning of the process Ethiopia and many of the ACP countries expected that the negotiation would create an enabling environment for the advancement of their economies and that the EU would facilitate towards achievement. Nevertheless, this seemed to have been met with resistance from the EU side given that the community has been refusing to seriously consider Ethiopia’s financial development benchmarks. b) Developing ACP countries expected the EU to compensate the losses incurred upon the government and some of the sectors due to premature liberalisation. However, this seems to be difficult as the EU has not been forthcoming in terms of increasing significant financial aid over and above the traditional EDF funding. c) Many ACP countries had hoped that as a result of these negotiations, their domestic capacity of trading with EU would ultimately be enhanced. However, to date, this seems to be problematic as the EU has not been forthcoming in terms of increasing significant financial aid over and above the traditional EDF funding which would enable ACP countries to enhance their supply side capacities. 3. Qns: To what extend the constraints of negotiating resources have affected EPA negotiations? Ans: Very significant 4. Qns: Do you think that the EPA negotiations require more resources than other negotiations? If so, why? What specific aspects have been especially cumbersome to negotiate? Ans: a) Yes. Effective EPA negotiations demand that the country should conduct detailed sectoral studies to thoroughly identify the strength, weakness, opportunities and threats (SWOT) for each of the sectors in terms of competitiveness, both locally and internationally (in EU market). Sectoral studies were also required to identify sensitive products and sectors (or exclusion lists) and these were done at a cost. b) Our negotiators are negotiating with qualified, trained and experiences EC experts. The negotiators have to be supported by experts on each issue. But due to budget constraint this could not happen.
5. Qns: Had you had more resources, would the outcome have differed? If so, in what way? Ans: Yes. With more resources the country (and other ACP/ESA countries) could have conducted more detailed sectoral studies to get an in-depth understanding of the merits and demerits of joining the EPA. Also the country could have done more capacity building, especially in the form of training of negotiators. Armed with these studies and more human capacities, the outcome of the EPA negotiation was likely to be different as the country (or ESA group) was going to have greater chance of negotiating and getting favourable positions based on enhanced, clearer, firm and strong negotiating positions. 6. Qns: How does the fact that negotiations were conducted at the regional level impact the pace and outcome of negotiations? Do they save or consume resources? Ans: At the beginning, negotiations at the regional level were generally good as most regional (ESA) member states had similar interests and held harmonised positions. However, as time progressed and divergences arose regional member countries’ positions were not kept intact. This resulted in some original ESA member countries initialling interim EPA with EU as a subset group called EAC which weakened the outcome of ESA negotiations. Therefore, conducting negotiations at the regional level where member states had (have) different positions have not helped the outcome. Due to the absence of consensus at regional level on major issues, it was impossible to get the desired outcome, and that might have been an inefficient use of the scare resources. 7. Qns: Do you see the EPAs as an instrument for development? Why? Ans: Yes and No. a) Yes, EPA can possibly be an instrument for development as it promises and calls for building human; institutional, and infrastructural capacities (in ESA countries), and introduces efficiency through competition. b) Yes, if the development aspect of the negotiation is given both due priority and maximum attention, with legally binding commitments being included in the final comprehensive EPA document to be signed once agreed. c) No, if the development aspect of the negotiation is not given due priority and maximum attention. In that case EPA would be an unrealistic aspiration for the least developed countries (LDCs). 8. Qns: So far in your opinion, has the EPA process enhanced or hindered development progress in your country? Ans: Partly Yes and partly Not yet a) Partly Yes in that the process has initiated Ethiopia (ESA States) to take inventory of the various sectors, conduct assessment studies, involve stakeholders around common agenda and created awareness so that effort is made to be effective and efficient in business. b) Partly Not yet since the EPA is still in the negotiation stage, no concrete agreements have been implemented (so cannot infer their development impacts at this point). 9. Qns: Would you have preferred to negotiate some of the elements of the EPAs differently? If so, in what aspects? Ans: Yes. The development cluster (or aspects) should have been given more attention during the negotiations. Also trade in services should come at the later stage in fact after testing the development part of the agreement of the partnership. 110
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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
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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 and 108: Ethiopia took a clear stance from t
Page 109: 4. Perspectives on EPA negotiations
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
Page 157 and 158: The fact that the DR had previously
Page 159 and 160: - 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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