Ethiopia and EPA Negotiation 2008 - FES Ethiopia

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COMESA, EAC and SADAC might be a good approach in ensuring the regional coherence. In the mean time, the only realistic option that is available for Ethiopia is to continue the negotiations under the ESA configuration and consider various options of configurations for signing when the negotiation of the full EPA is concluded. Let us now consider the various options that are available to Ethiopia in signing the Full EPA. 6.3.1 Membership in the EAC EPA The EAC-EU EPA is unique in a number of respects. It is the first region-to –region, south-North free trade agreement. 45 EAC is the only African region in which all signatories have identical schedules. The reduction commitment of the EAC signatories is based on reductions from EAC CET. The EAC Customs Union commenced on January 1 2005. This economic union with its Common External Tariff (CET) strengthened the reasons for the EAC group to negotiate with the EU. 46 The EAC-EU EPA was difficult to achieve for a while because Kenya, Uganda, Rwanda and Burundi configured under Eastern and Southern Africa (ESA) and Tanzania joined the Southern African Development Community (SADC) in 2003. However, efforts to negotiate as EAC bloc bore fruit on October 11 2007, when trade ministers resolved that the EAC countries should offer a joint market access offer on trade in goods to the European Commission. In EAC Brainstorming Session for the Permanent Secretaries on EAC Brainstorming session for the Permanent Secretaries on EAC-EPA configuration on 13 th August 2007 in Arusha, it was decided that : (a) EAC Partner States being a Customs union should sign one Economic Partnership Agreement (EPA), (b) the configuration will be open to others who are willing and able to comply with the provision of the EAC Customs Union of the EAC Partner States as is (c) taking into consideration the sensitivities of EAC Partner States, the best vehicle for this is to negotiate an EAC plus (EAC+) EPA configuration (d)there will be linkages with both the ESA and SADC-EPA configurations by joint negotiations of certain aspects of EPAs as will be agreed between EAC and existing EPA regional configurations. 45 It is not clear from the EAC-EC Interim EPA if the EAC as a customs union in addition to the member states is bound by the Interim EPA. 46 Peter Kiguta, The EAC Interim Agreement: An overview, TNI,7-2 38 | P a g e
The final outcome of the EAC-EC EPA that emerged by December 2007 was consistent with the decision of the permanent secretaries of the EAC region in their 13 th August Brainstorming Session. This speaks for the excellent skills of the EAC negotiators. Only in the case of EAC have all members joined the EPA and accepted identical liberalization schedules. The Interim EAC EPA will be instrumental in reinforcing the existing regional integration initiative among these countries. Would it be feasible for Ethiopia to join the EAC EPA? It is true that the ESA grouping has little to offer Ethiopia without the EAC countries as the other island and southern African countries are not major trade partners of Ethiopia. Membership in the EAC comprehensive EPA might be one option that needs to be explored. This may be desirable in respect to the trade relationship, which is greater with Kenya than any other ESA state, excluding the Horn countries. There are significant drawbacks to this option. First, the EAC signatories will make the EAC configuration open to others only if the new countries are willing and able to comply with the provision of the EAC Customs Union of the EAC Partner States as is. 47 This means that membership in the EAC EPA will have double consequences. First, Ethiopia will be required to implements certain obligations such as the EAC-CET that emanate from EAC customs union. Considering the advanced stage of regional integration that EAC at present is in, this can be particularly onerous for Ethiopia and unrealistic given the time line. Second, there are other significant obligations that arise from the Full EPA itself. The other drawback of this approach is that Ethiopia’s minimal or no involvement in EAC EPA negotiation. The EAC Secretariat plays the role of co-ordination of EPA negotiation process within EAC, with strong support for negotiation from Partner States including Ambassadors from Brussels and technical experts from Partner States. EAC is also seeking funding to support EAC-EPA negotiation process. The EAC Secretariat has also assigned an officer competent on EPA issues to coordinate the office and offer technical support to Partner States. That Ethiopia is not a member of the EAC configuration means that it will not have the opportunity to have a say in the EAC EPA negotiation. Given this, it will be difficult for Ethiopia to be signatory of an Agreement that it doesn’t participate 47 Meeting Report, Brainstorming Session for the Permanent Secretaries on EAC Brainstorming session for the Permanent Secretaries on EAC-EPA configuration, 13 th August 2007, Arusha, Tanzania. 39 | P a g e
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Page 31 and 32: etween the EU and Ethiopia as these
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Page 41 and 42: and eastern African countries. Harm
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Ethiopia and EPA Negotiation 2008 - FES Ethiopia

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