EPA Review Annex Documents - DFID

Later in 2006, it was agreed to accelerate progress in the harmonisation of existing
competition and investment policy frameworks and to create an intra-regional framework
as a means to improve regional integration and promote competitiveness of the regional
economy.
There were still several points to be agreed at this time. However, they agreed to
proceed to the next phase of negotiations, in order to start the discussion of the general
structure of the agreement and the EPA Reference Framework. At the same time of this
phase of negotiations they would complete the remaining issues (production capacities,
etc).
At the beginning of 2007, it seemed that, in addition to financial aid issues, there were
minor, unimportant issues that could impede the signing of the EPA. They agreed that
there would be a flexible and phased introduction of all aspects in the implementation of
EPA and the EC also agreed that it would be willing to support a regional development
fund to support EPA implementation, if the region agreed to establish that mechanism.
In March 2007, the EC handed its liberalisation offer to each EPA group and West Africa
started to work on its market access offer, focusing on the elaboration of a common
external tariff for ECOWAS. It was expected that by June 2007, the West Africa region
would present its offer containing the liberalisation schedule as well as the list of
excluded products so that detailed negotiations can begin. This is the point where the
main differences began.
While still preparing its offer, West Africa negotiators requested transition periods of 25-
30 years. The EC proposed that only extremely sensitive products be given a 25 year
transition period. 15 In September 2007, as a way of putting pressure on the different
regions, the EC rejected the possibility of EPA alternatives that include an extension of
the WTO waiver. As the same time, the EC proposed a two stage approach. An interim
EPA would be signed leaving the most problematic and time consuming issues to be
dealt later. However, the deadline arrived and West Africa did not hand in its market
access proposal.
The region stated at the beginning of 2008 its intention to continue negotiating the EPAs
as a bloc. 16 However, Cote d’Ivoire and Ghana initialled an interim EPA with the EU,
which would be eventually superseded by a regional EPA. Despite the intentions of
adoption of the common external tariff, there were some controversial issues within West
Africa. Particularly, Nigeria demanded the creation of a fifth band at 50% as an addition
to the existing UEOMA rate. The UEMOA common external tariff contained four bands
(0%, 5%, 10% and 20%). Nigeria was pushing for an additional band in order to protect
its pharmaceutical industry. 17
In April 2008, West Africa region countries were still defining the national sensitive lists.
It was hoped that these lists could be combined into one acceptable group list in order to
finally present the regional market access offer. However, the progress in the definition
of the market access offer was linked to the finalisation of the ECOWAS common
external tariff as they considered that the establishment of a Custom Union was a
prerequisite for a regional EPA with the EU.
15 Trade Negotiations Insights, Vol. 6, No. 5, September 2006.
16 Trade Negotiations Insights, Vol. 7, No. 1, February 2008.
17 Trade Negotiations Insights, Vol. 7, No. 3, April 2008.
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