EPA Review Annex Documents - DFID

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Table 12 Dominican Republic Costs Estimates for EPA Negotiations 2006-2007 Description 2006 2007 Total Type B Negotiator Level of Effort A - Total Working Days in Field 282 403 685 B- Working Days in D.R. (3 for 1) 1410 2,015 3,425 C- Travel Days (person per one day) 98 155 253 Total Working Days for EPA (A+B+C) 1,790 2,573 4,363 Daily Rate (US$) 90 90 90 Total Level of Effort 161,100 231,570 392,670 Per Diem Rate (US$) 350 350 350 A- Total of Days in the Field 282 403 685 B- Travel Days (50%) 49 78 127 Total Per Diem Rate 115,850 168,175 284,025 Air Fair Caribbean (US$700) 36,400 84,000 120,400 Europe (US$1,100) 27,000 38,500 65,500 Total Air Fair 63,400 122,500 185,900 Total Type B 340,350 522,245 862,595 Type A Level of Effort A - Total Working Days in Field 13.00 32 45 B- Working Days in D.R. (3 for 1) 65 160 225 C- Travel Days (person per one day) 8 22 30 Total Working Days for EPA (A+B+C) 86 214 300 Daily Rate (US$) 170. 170 170 Total Level of Effort 14,620 36,380 51,000 Per Diem Rate (US$) 500 500 500 A- Total of Days in the Field 13.00 32 45 B- Travel Days (50%) 4 11 15 Total Per Diem Rate 8,500.00 21,500 30,000 Air Fair Caribbean (US$1,000) 1,000 19,000 20,000 Europe (US$1,400) 4,200 4,200 8,400 Total Air Fair 5,200 23,200 28,400 Sub-total type A 28,320 81,080 109,400 TOTAL (A+B) 368,670 603,325 971,995 Estimated Cost of Negotiating Round in Santo Domingo 50,000 50,000 Total Estimated Cost 2006 418,670 603,325 1,021,995 Source : Author’s own calculations Under the above parameters, total cost of the negotiations, on a conservative estimate, for the Dominican Republic, for years 2006 and 2007 totalled $1.02 million. The breakdown for these estimates corresponds to: • An estimated $443,600 for the level of effort (working days) allocated by Dominican trade officials only in the process for preparing and participating the different EPA negotiations meetings. • An estimated $314,000 for per diems allocated to D.R. trade officials in overseas trips. 77
• An estimated $214,000 in travelling • An estimated $50,000 for organising one of the negotiating rounds in Santo Domingo during 2006. If we also include the active participation of civil society (primarily Dominican organised business sector), and take as an estimate that civil society (business sector) equalled around 50% of the manpower allocated by D.R. officials, the total cost amounted to $499,000. In addition, it is important to point out that for mostly all meetings the CRNM financed the cost of one participant, including both per diems and airfare. These funds were obtained through different international grants. In addition, to that it might be appropriate to add the D.R. budgetary contribution to the CRNM, which account to $250,000 per year. After adding the two years, the estimated costs add up to $2 million. The resources to support EPA negotiation came from the D.R. internal budget. Each ministry was in charge of allocating its own resources to cover the expenses of the trade negotiators. Cost-benefit analysis of counterfactual costs The D.R. had a very clear offensive interest from the beginning of the process in obtaining market access for some agricultural commodities and better rules of origin for apparel exports. Concretely, banana, cigars, rum, textiles, footwear, cocoa and some vegetables were exported under the Cotonou agreement, accounting for €198 million, and not covered by GSP preferences. In addition, extensive liberalisation under CAFTA- US, its main trade partner, reduced the impact on trade diversion and on revenue loss. Fontagne et al. (2008) and Milner (2006) estimate revenue loss is around €50 millions. However, the case study reflects a lower dependency on tariff revenues once accounted for CAFTA-US, from 16.4% (Fontagne et al. 2008) to 8%, bringing the estimate loss to less than €24 millions. Therefore, for the D.R. the expected benefits from EPAs clearly outweigh the costs of GSP. Table 13 Counterfactual costs (millions) EPA GSP Negotiating costs a $2 0 Impact on exports (+Preferential access for €198) a Preferential access for €198 Trade creation positive 0 a b c Revenue loss €50-€24 0 Employment €24 0 Adjustment b Other issues (trade,.) Positive benefits 0 Source: a Own calculations, b Miner (2006) and c Fontagne et al. (2007) Comparison with CAFTA Regarding the negotiating process, it is interesting to compare the EPA experience with D.R-CAFTA negotiations. Under the D.R.-CAFTA the D.R. had limited involvement in 78
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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
Page 27 and 28: 2006. Moreover, PACP countries cons
Page 29 and 30: Table 3 Main Problems and Divergenc
Page 31 and 32: 4. Final comments The EPA’s negot
Page 33 and 34: creation) but can also lead to impo
Page 35 and 36: preferences and hence are likely to
Page 37 and 38: 3. Impact of the EPAs by Region One
Page 39 and 40: Cape Verde (loss of 4.1% of GDP) an
Page 41 and 42: SSA ECOWAS CEMAC COMESA EAC Table 2
Page 43 and 44: Perez (2005) CGE, 2001 base year 80
Page 45 and 46: Whilst most studies appear to agree
Page 47 and 48: 7. Annex Literature Countries Metho
Page 49 and 50: Hinkle and Schiff (2004) "Economic
Page 51 and 52: Milner, Morressey and McKay (2008)
Page 53 and 54: Karingi et al (2005) “Assessment
Page 55 and 56: 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: Table 11 Negotiating Meetings and R
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 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
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Table 5 Capacity Building Programme
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Table 7 Cost of EPA Negotiation-Rel
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ADDRESSING THE LABOUR MARKET EFFECT
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Table 9 Annual Cost of Nigeria Trad
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Though the current negotiating stru
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• The simultaneous application of
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understand the changing environment
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7. Summary of Findings and Main Les
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opportunity cost could be quite sub
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• There is adequate technical adv
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5. Appendices Appendix Table 1 Rang
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EPA Review Study Dominican Republic
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c. Technical Level At a regional le
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2) From the ministers of trade of C
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The fact that the DR had previously
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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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EPA Review Annex Documents - DFID

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