Ethiopia and EPA Negotiation 2008 - FES Ethiopia

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to “crowbar” the so- called Singapore Issues into the final deals. 14 It is clear, however, the European Union would want see the liberalization of the service sector. 3.1 Outcome of the ESA configuration EPA Negotiation The EU originally expected to conclude separate EPAs with the Regional Economic Communities (RECs). The declared objective of the EPAs was to give new impetus to advancing the regional integration agenda. When the EU was unable to reach agreement with any of them, it decided to negotiate interim agreements with any country or economic grouping willing to conclude before the end of 2007. Although signing an individual agreement seems unthinkable at the start of negotiation, it is now the order of the day. 15 The EU concluded a full Economic Partnership Agreement (EPAs) with the Caribbean covering goods, services, investment, trade rules and development. In the Pacific, the EU has an interim agreement with the two countries that account for almost all trade with the EU – Papua New Guinea and Fiji. Other non-LDCs in the region have minimal goods trade with the EU and so did not seek WTO compatible interim agreements at this stage. The aim is to agree a full regional EPA covering the whole region in 2008. 16 Within sub-Saharan Africa a high proportion of non-LDCs than LDC initialed the agreement. Ten of the thirteen non-LDCs concluded interim EPAs, the three exceptions being Congo (Brazzaville), Gabon and Nigeria. Of the 25 SSA LDCs, only eight initialed interim EPAs. The reason for this difference was that these LDCs were eligible for duty-free treatment under the EBAs, which of course, did not require duty liberalization by beneficiary countries. The three non-LDC countries, i.e., Congo, Gabon and Nigeria, who did not conclude interim EPAs, were relegated to the GSP list and thus they do not have the duty-free access into Europe for a number of agricultural products and garments available under the EPAs. 17 Also, the rules of origin are more restrictive since provisions on third 14 Peter Mendelson, Speech to the European Parliament Development Committee, Brussels, 28 January 2008. 15 See section 5 below for the discussion whether the decision to sign individual agreements will obstruct regional integration or not. 16 European Commission, EU-ACP Economic Partnership Agreements: State of Play and Key Issues for 2008 17 Two months after losing preferential access to EU markets, Nigerian cocoa producers and processors face millions of dollars in losses, as the effects of poor infrastructure and high 12 | P a g e
country inputs in such key areas as agriculture, fisheries and apparel are allowed under the EPAs but not under GSP. In this paper, our main focus is the ESA configuration, to which Ethiopia is a member. Five Eastern and Southern African countries (Kenya, Uganda, Tanzania, Burundi, and Rwanda) signed an Interim EPA in the framework of the East African Community and the Indian Ocean states and Zimbabwe signed as ESA configuration. See table 1 for the outcome of the ESA configuration EPA negotiation. Table 1 Outcome of the ESA Configuration EPA Negotiation Non-LDC Countries EAC Interim EPA Kenya ESA Interim EPA Mauritius, Seychelles, Zimbabwe LDCs Tanzania, Uganda, Burundi, Rwanda Comoros, Madagascar Volume of Trade Liberalized 80(15Years), 82( 25Yrs) 80-98(15 Yrs) 18 Exclusions Agricultural products, wines and spirits, chemicals, plastics, wood based paper, textiles and clothing, footwear, glassware Live animals and meat, edible products of animal origin, fats, edible preparations and beverages, operating costs are compounded by higher tariffs and competition from neighbouring countries that retained duty-free access to Europe. See Jean Boyle, Nigerian cocoa processors to lose millions, TNI, Volume 7. Number 2 / March 2008. One would assume that Congo and Gabon did not sign the Interim EPA given oil, their largest exports, never wants for takers. 18 Comoros, Madagascar and Zimbabwe has agreed to liberalize 80% of their trade within 15 years transition period while Mauritius 96% of its trade and Comoros 96% of its trade will be liberalized within the same period. 13 | P a g e
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Page 3 and 4: References ........................
Page 5 and 6: Unilateral preference programs not
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Page 31 and 32: etween the EU and Ethiopia as these
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Page 45 and 46: importance of technical cooperation
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Page 49 and 50: addressed since most of the CARIFOR
Page 51 and 52: References 1. Agritrade, EPA Negoti
Page 53 and 54: 19. Roberta Piermartini, The Role o
Page 55 and 56: Scope of Application Article 6 Clas
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Ethiopia and EPA Negotiation 2008 - FES Ethiopia

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