Ethiopia and EPA Negotiation 2008 - FES Ethiopia

the framework rules on procurement procedures and transparency; and
another from the liberalisation provisions envisaged in Chapter 3.
The CARIFORM-EC Economic Partnership Agreement has elaborate provisions
that might reduce the ‘policy space’ available to use preferential procurement
for development or infant industry strategies. Most developing countries use
some form of preferential purchasing to favour specified categories of
producers. These policies are often of considerable political and economic
importance for ACP governments. For example, Botswana also uses preferential
government purchasing to promote economic empowerment. Other ACP
states use preferential purchasing to favour small or medium sized companies or
national producers a part of industrial development strategies and employment
generation. 53
Unlike the CARIFORUM-EC EPA, other EU bilateral FTAs with developing countries
deal government procurement in a limited way. The EU – Morocco FTA has only
one short article (Art 41) that sets out the aim of progressive liberalisation of
procurement markets. This will have no effect until the EU – Morocco Association
Council takes specific action to add some flesh to the provisions. This approach
to developing countries was established with the Trade Development and
Cooperation Agreement (TDCA) between the EU and South Africa negotiated
in 1995. The same is true for the EU – Egypt Euromed Association agreement of
2003, which has just the one short article (Art 38) setting out liberalisation as an
objective.
Much of rule-making in public procurement is about increasing transparency.
FTAs that enhance transparency in public procurement are likely to improve
contract award procedures and enhance competition in the sector.
Liberalisation commitments do however; provide preferential access for FTA
partners. Given this, Ethiopia’s approach to the issue of government
procurement would be limited to recognizing the value of transparency in
government procurement (without making actual liberalization commitment)
and to ask technical assistance in drafting laws, procedures, training officials
and exchange of experiences.
7.3 Investment
53
See Stephen Woolcock, Public Procurement and the Economic Partnership Agreement,
Paper for The High Level Technical Meeting EPAs: The Way Forward for the ACP Cape Town,
South Africa, 7-8 April 2008
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