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Ethiopia and EPA Negotiation 2008 - FES Ethiopia

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internal<br />

taxation <strong>and</strong><br />

regulation<br />

Article 18.6<br />

Bilateral<br />

safeguards<br />

Article 21.5 b)<br />

Economic <strong>and</strong><br />

Development<br />

Cooperation<br />

Fisheries<br />

national treatment for<br />

infant industries <strong>and</strong><br />

also more broadly for<br />

development needs.<br />

There is a bias in favour<br />

of LDCs - so that they<br />

can apply safeguards<br />

to protect infant<br />

industries for 15 years<br />

instead of 10 years.<br />

ESA has 16 dedicated<br />

articles on specific<br />

development<br />

cooperation aspects.<br />

The texts are identical<br />

caveats.<br />

There is no distinction<br />

between LDCs <strong>and</strong><br />

non-LDCs in the EAC<br />

text.<br />

EAC has one article<br />

that states broad areas<br />

of cooperation - such<br />

as sustained growth,<br />

regional integration,<br />

fostering structural<br />

transformation,<br />

addressing supply<br />

capacity, etc.<br />

Paragraph 2 also spells<br />

out funding will come<br />

from the EDF, Aid for<br />

Trade <strong>and</strong> the EU<br />

General Budget.<br />

The ESA text better reflects<br />

the needs of <strong>Ethiopia</strong>.<br />

There is very little in terms of<br />

attention being paid to<br />

development needs in the<br />

EAC text. The ESA text has<br />

little of financial value<br />

either but the areas<br />

covered make it more<br />

comprehensive.<br />

AREAS FOR<br />

FUTURE<br />

NEGOTIATIONS<br />

Rendez-vous<br />

Clause<br />

Article 53 ESA,<br />

Article 37 EAC<br />

DISPUTE<br />

AVOIDANCE<br />

AND<br />

SETTLEMENT,<br />

INSTITUTIONAL<br />

AND FINAL<br />

PROVISIONS<br />

General<br />

exception<br />

clause<br />

Article 40 EAC,<br />

Article 56 ESA<br />

g) mentions current<br />

payments <strong>and</strong> capital<br />

payments<br />

i) mentions good<br />

governance<br />

No extra paragraph.<br />

Neither of these areas<br />

are included in the EAC<br />

text for future<br />

negotiations.<br />

Paragraph h) gives an<br />

extra exemption to the<br />

EAC countries. This is<br />

where practices are<br />

inconsistent with<br />

Articles 17 on National<br />

Treatment, provided<br />

that the difference in<br />

treatment is aimed at<br />

ensuring the effective<br />

or equitable imposition<br />

or collection of direct<br />

taxes in respect of<br />

<strong>Ethiopia</strong> may wish to review<br />

the content of the future<br />

negotiations very carefully<br />

as it includes TRI <strong>and</strong><br />

services. The inclusion of<br />

these topics may not be<br />

commensurate with the<br />

ambitions of <strong>Ethiopia</strong>.<br />

This allows an exemption in<br />

relation to tax policy,<br />

perhaps this should be<br />

included in the ESA text.<br />

56 | P a g e

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