EPA Review Annex Documents - DFID

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negotiation positions. The civil servants discuss the negotiation issues and ensure necessary updates of the different Ministry’s top echelon used for later discussions at the Federal Executive Council Meetings. The BMOs ensure that the interests of their members are considered in any decision and insist on technical studies to highlight unclear negotiation issues. • The Ministry’s Department of Trade has 211 members of staff on its nominal roll and the EPA negotiating team has eight, six of whom have basic degrees in social sciences and business administration and two who have additional degree in law and one a higher degree in political science. None have an economics degree. Therefore, a more qualified staff is required to be involved in the negotiation of the EPA either through new employment or through temporary redistribution of existing staff with training from the Trade Promotion and WTO sections. • The average salary range of the members of staff of the Intra-Africa unit is between grade levels 7 and 13. The EPA team does not have an external adviser on the EPA negotiations, while it has just four external national consultants who get paid for conducting EPA-related studies through donor funds. • The Ministry requires a huge budget for negotiations in terms of capacity building, workshops, carrying out negotiations related studies, travels for actual negotiations and staying over in Brussels, Geneva or any of the West African countries that EPA negotiation meeting is taking place, but it does not normally have a budget for EPA negotiations. The only year that a N200 million budget was provided for EPA negotiation was in 2008 when the negotiations gathered momentum but only N3 million ($20,000), representing 1.5% of allocation was realised. • There are about three capacity-building programmes per officer per year, in the WTO unit, and most of the capacity building programmes related to this unit are mounted and sponsored by the WTO while only a few ones are sponsored by the Ministry, representing about 14.3% per year. • In the Intra-Africa unit, there are about 0.933 capacity building programmes attended per officer per year, and in a unit of eight staff, this translates to about eight aid and capacity programme in all per year for the Intra-Africa unit with sponsorship split equally between the ECOWAS and the Ministry representing a share of 43.8% each while WTO and EU sponsorship account for 6.3% each. • Training applies mostly to the Ministry officials and in few cases to the technical support team, perhaps because they are perceived as experts in their own right. Costs • The number and cost of EPA negotiation related meetings attended by government officials with the EC are those that involve travelling to Brussels to confer with the EC. These are four in number and are quite few because the negotiations are designed to be undertaken at the level of the ECOWAS Commission while Nigeria only attends as an observer. • The ECOWAS Commission is mostly responsible for the passages of the negotiators including the Nigerian participants. • The total cost of attending EPA-related meetings by the Ministry Officials spent so far during the period of negotiations between 2006 and 2009 is $56,420.8. • The negotiators incentives for participating in the negotiations consist of the per diem paid and the allowances that government pays for travelling usually referred to as daily travel allowance (DTA). This allowance is not paid for EPA meetings since the ECOWAS Commission will pay per diem rates to the officers. • The cost calculated is the explicit costs that did not take account of the time that members of staff spend travelling and the lost hours of work undone at the office during travel. The 143
opportunity cost could be quite substantial particularly when it comes to EPA meetings in the region which are on some occasions conducted almost on a monthly basis. • Between 2005 and 2009, a total of $231,015.62 has been spent on Nigerian officials and experts attending negotiations within the region, covering payment for meetings, workshops, travel and allowances which are paid for by the ECOWAS Commission, the EC, UK Department for International Development (DfID) and Nigeria’s Ministry of Commerce and Industry. Counterfactual Cost • The costs involved in negotiating other trade agreements are ridiculously low when compared to the cost of the EPA negotiations because the latter is a reciprocal trade agreement between two unequal partners with the disadvantaged partner requiring understanding of the implications of that free trade on its own socio-economic and political structures. • While EPA is costlier in the aggregate because of the discussions in the several negotiation areas, it appears cheaper when individual processes that are similar are quantified. • It costs $2.4 million to maintain the Nigeria Trade Office in Geneva in 2009, an amount that is several multiples of the amount that has been spent on the EPA negotiations so far. This differential is a reflection of Nigeria’s better commitment to the WTO and its belief that the WTO will offer more trade gains than the EPA, due to its many aspects of special and differential treatment (SDT) and capacity building as part of the Doha Development Agenda support. Role of ECOWAS Commission • The role of the ECOWAS Commission during the negotiations has revolved around helping Nigeria participate in the negotiations especially outside Abuja. ECOWAS partly funds trips to Brussels, and sometimes Nigeria’s national consultants’ negotiations meeting attendance. • ECOWAS Commission also provides the necessary guidelines and methodology for the process towards reaching regional and EPA agreements e.g. adoption of the 5 th band of the CET and related issues, sensitive products, and West Africa market access offer, among others. • The ECOWAS Commission wanted Nigeria to show leadership in the process by interrogating how the EPA will impinge on its development interests and by accommodating small and vulnerable economies’ interests in the negotiations. Stakeholders Perspectives From stakeholders’ perspectives on EPA negotiations Negotiation Resources • Inadequate negotiating resources in Nigeria slowed down EPA consultation as impact assessment studies are not done or delayed, skills of negotiators are not upgraded, and only a few people attended negotiation meetings. • Arrival of external funds from DfID helped prepare studies of sensitive products list, Rules of Origin and common external tariffs (CET) as well as funding of meeting of the Technical Committee. • Because many meetings needed to reach a national consensus on each thematic issue internally, by bringing stakeholders together to agree and for Nigeria this involved pulling 144
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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
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Case Studies Lessons 1. Introductio
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trade relation and negotiation matt
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EPAs negotiation process is paralle
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• EPA team The EPA negotiating te
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- State Secretariat of Environment
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Technical Negotiation Group (TNG) m
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spent for these impact assessment s
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Other opportunity costs Another imp
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Since domestic constituencies tend
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Table 11 Negotiating Meetings and R
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• An estimated $214,000 in travel
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The main expectation of the process
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Commission was forced to take up th
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Therefore, while negotiators could
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System Improvement & Human Resource
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Ethiopia - List of RNF meetings Amo
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Nigeria Cost of EPA negotiation-rel
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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 and 110: 4. Perspectives on EPA negotiations
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: 7. Summary of Findings and Main Les
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
Page 161 and 162: Table 1 Distribution of the Main Tr
Page 163 and 164: Figure 2 CARIFORUM Dimensions Diffe
Page 165 and 166: with the EU, in order to present a
Page 167 and 168: Table 4 Average Monthly Salaries EP
Page 169 and 170: In additional there were eight meet
Page 171 and 172: Per Diem Rate (US$) 500 A- Total of
Page 173 and 174: 5. Perspectives of EPA negotiations
Page 175 and 176: usiness and political levels repres
Page 177 and 178: expectation of increases in exports
Page 179 and 180: 8. Annexes Interviews Name Institut
Page 181 and 182: MAY o 05-06: WTO TWG on NAMA, Barba
Page 183 and 184: o 05-06: Joint Meeting of the Prime
Page 185 and 186: o 10-13: 12 th Meeting of CARIFORUM
Page 187 and 188: Trinidad & Tobago, 11-15 mayo 2007
Page 189 and 190: Reviewing services negotiations in
Page 191 and 192: Table 2 MMain differeences in serrv
Page 193 and 194: 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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EPA Review Annex Documents - DFID

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