Ethiopia and EPA Negotiation 2008 - FES Ethiopia

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e left with no viable choice within ESA configuration but to align itself with its neighbors in the Horn of Africa. The most significant drawback of this option is that fact that the region is one of the most politically unstable in the world. There is a political tension within all countries in the Horn of Africa. The current relationship between Ethiopia and Eritrea is as bad as it gets. Without political stability, the integration would be shallow and its benefit minimal. Ethiopia must also explore if it is wise to align itself to the Horn countries, which for most part are politically unstable. 6.3.4 Concluding EPA on an individual Basis Given the fact that different countries have made different decisions and have different interests, another possible option for Ethiopia to take is to sign the full EPA on an individual basis. Already, the precedent is set by other countries. In West Africa, Côte d’Ivoire and Ghana intialled the Interim EAP individually to avoid market disruption after the Cotonou Partnership Agreement expired by the end of 2007. The significant drawback of this approach for Ethiopia would be it is limited effect in strengthening regional integration processes with the region. EPAs should contribute to the establishment of effective regional markets in the ACP, thus attracting and stimulating both domestic and foreign investment, a necessary condition for sustainable development. This will happen only if a regional grouping is a party to EPA. Cognizant of the is fact, the West African countries plan to replace the interim EPAs signed by Ghana and Côte d’Ivoire by a comprehensive regional EPA. A comprehensive EPA for Ethiopia should not only address tariff barriers, but also non-tariff and technical barriers to trade, as well as a number of trade related ‘behind-the-border’ measures.. This broad coverage will provide greater, more effective market access and market integration, thus increasing the benefits from trade. With a comprehensive coverage, EPAs should contribute to locking in policy reforms in the ACP, thereby increasing the relevance and credibility of the regional integration process of the ACP regions, as well as facilitating their integration into the world economy. Ethiopia’s objective should be to negotiate a comprehensive and development friendly EPA that addresses both the border measures and regulatory issues and will help in creating the right environment for attracting and stimulating both domestic and foreign investment. These objectives might be sacrificed if Ethiopia signs EPA on an individual basis. 42 | P a g e
7. Conclusion: Key Issues Ahead The current negotiations for a comprehensive EPA require better preparation given the fact that most of the issues that are up for negotiation are controversial and given the short time-framework for finalizing the negotiations. Negotiators should at all times be mindful of the implications of EPAs for regional integration efforts. Bilateral EPAs, bilateral schedules of tariff liberalization commitments and other specific issues on the negotiating table will lead most regions in further fragmentation of countries into categories of countries with EPAs and without within regional economic communities. Ethiopia should have a two track work process in the current negotiation while focusing on the continuation of the negotiations. This two track work process relates both to the contentious issues identified in this paper and the pending negotiation of trade in services and new generation issues such as investment, government procurement, competition policy and the like. First, Ethiopia should prioritize the controversial issues in the interim EPAs as starting points of the on-going negotiations. It should also try to build consensus among all countries within ESA on the need to open negotiation on these contentious issues. Recent declarations by European Trade Commissioner Peter Mandelson suggest that he does not want to reopen and renegotiate interim deals. On 14 April 2008, in a speech to members of the European Parliament International Trade Committee, Commissioner Peter Mandelson ruled out "any suggestion of renegotiating the agreements already initialled". 48 Any renegotiation would constitute "a new threat of legal uncertainty to the agreements but would also be a disaster for the ACP countries", according to Mr. Mandelson, who restated his goal of concluding "full EPAs with comprehensive regional coverage" in the six geographical regions. Ethiopia should argue that it be allowed to import any provision agreed to by the EU in another interim or full EPA, into a final EPA it will sign. Ethiopia should also argue that the declaration made by Commissioner Mandelson shouldn’t be made applicable to countries that didn’t sign the Interim EPA. Ethiopia’s case is unique compared to signatories asnon-signatory it is not going back on the 48 http://www.europarl.europa.eu/news/expert/infopress_page/026-26533-108-04-16- 903-20080414IPR26532-17-04-2008-2008-false/default_en.htm 43 | P a g e
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Page 3 and 4: References ........................
Page 5 and 6: Unilateral preference programs not
Page 7 and 8: Cotonou Agreement. The Cotonou Agre
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Page 11 and 12: 4. Content of the Interim EPAs As o
Page 13 and 14: country inputs in such key areas as
Page 15 and 16: African LDCs signed the Interim EPA
Page 17 and 18: the policy space of developing coun
Page 19 and 20: have the audacity to claim otherwis
Page 21 and 22: sale for export between the parties
Page 23 and 24: goods involved in the fraud and imp
Page 25 and 26: instruments remain to be negotiated
Page 27 and 28: 6.1 Initialling/ acceding to Develo
Page 29 and 30: The EBA regime provides duty free a
Page 31 and 32: etween the EU and Ethiopia as these
Page 33 and 34: cost. It should also be noted that
Page 35 and 36: different documentation requirement
Page 37 and 38: negotiation on the Full EPA with EC
Page 39 and 40: The final outcome of the EAC-EC EPA
Page 41: and eastern African countries. Harm
Page 45 and 46: importance of technical cooperation
Page 47 and 48: the framework rules on procurement
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
Page 57 and 58: Relations between this Agreement an

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