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Ethiopia and EPA Negotiation 2008 - FES Ethiopia

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4. Content of the Interim <strong>EPA</strong>s<br />

As of December, <strong>2008</strong>, the European Union has concluded an Interim <strong>EPA</strong> with<br />

countries in Central Africa, East African Community, East <strong>and</strong> South Africa, West<br />

Africa, South Africa Development Community, the Caribbean Region <strong>and</strong> the<br />

Pacific Region. All the Interim <strong>EPA</strong>s outline the scope of the agreement, issues to<br />

be negotiated under rendezvous clauses, development cooperation provisions,<br />

the period <strong>and</strong> scope of liberalization.<br />

One exception to this general rule is the Caribbean region. All the 15<br />

CARIFORUM countries with the Caribbean Region have concluded a full<br />

regional <strong>EPA</strong> covering all subjects, including services, rules, trade in goods <strong>and</strong><br />

development support.<br />

A common factor in all the Interim <strong>EPA</strong>s is the extension of full duty <strong>and</strong> quota<br />

free market access on the EU side except rice (which will be liberalized in 2010)<br />

<strong>and</strong> sugar( which will not be liberalized until 2015) <strong>and</strong> an asymmetric<br />

liberalization schedule on the ACP side. The East African Community was able to<br />

negotiate a transition period of 25 years within which about 82% of the trade<br />

volume will be liberalized. On the other h<strong>and</strong>, the ESA countries come up with a<br />

separate country- specific liberalization schedule for more than 80% of trade<br />

volume with a transition period of 15 years.<br />

The Interim <strong>EPA</strong>s have liberal rules of origin for a number of important ACP<br />

exports such as for agriculture, fisheries <strong>and</strong> textiles. For textiles in particular while<br />

EBA <strong>and</strong> Cotonou required multiple transformations, the <strong>EPA</strong>s however only<br />

require a single transformation to be eligible.<br />

The EU hopes to deepen <strong>and</strong> exp<strong>and</strong> the interim <strong>EPA</strong> into full ones by the end of<br />

<strong>2008</strong> 13 . The rendezvous clauses outline the issues to be negotiated in the<br />

comprehensive <strong>EPA</strong>s. They will include rules governing services, investment,<br />

government procurement, trade rules <strong>and</strong> development. The Caribbean Region<br />

is considered as an example for what can possibly be achieved although, as<br />

the EU admits, what goes into the final agreement with others will depend on<br />

the different regional capacities <strong>and</strong> circumstances. The EU feels that the socalled<br />

“Singapore” issues-the questions of investment, competition <strong>and</strong><br />

government procurement- as well as services are Cotonou issues too <strong>and</strong> as<br />

such should be addressed to attract investment. The EU Trade Commissioner,<br />

Peter M<strong>and</strong>elson, promised that he would not use the final stage of negotiations<br />

13 It should be noted here that the exact deadline of the negotiation is not the same for all<br />

regions. In the case of EAC, July <strong>2008</strong> is the deadline while in the case of ESA the deadline is<br />

December 31, <strong>2008</strong>.<br />

11 | P a g e

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