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Final <strong>Report</strong>
RoO Derogation under the PACP-IEPA
APPENDIX 1
TERMS OF REFERENCE (ANNOTATED)
<strong>Report</strong> on the implementation of the derogation to the standard rules of origin granted to
the Pacific ACP States in the framework of the Interim Economic Partnership Agreement
FWC COMMISSION 2011 - LOT 1 : Studies and technical assistance in all sectors
EuropeAid/129783/C/multi
1. BACKGROUND
Context of the <strong>Report</strong>
The concept of Economic Partnership Agreements (EPAs) between the EU and ACP States (ACP) was
agreed in Cotonou in the year 2000 by all parties. EPAs were conceived as an instrument to foster
ACP integration into the global economy and to support ACP sustainable development. The
agreements pursue an overarching development objective which includes a trade component.
To date, only one comprehensive EPA has been concluded, with the Caribbean region. In Africa and
the Pacific, ACP and EU have concluded interim EPAs to minimise any possible trade disruption for
the ACP arising from the expiry of the Cotonou trade regime whilst proceeding towards the
conclusion of comprehensive regional EPAs. On 20 December 2007 the EU Council of Ministers
adopted a Regulation (Market Access Regulation) providing duty free and quota free access to those
ACP countries that had initialled a WTO compatible interim agreement with the EU. Negotiations of
the comprehensive regional EPAs with the various ACP regions advance at different rhythms.
Progress on the signature and ratification of the interim EPAs varies from region to region and from
country to country.
In the Pacific region, an interim agreement has been signed with the two countries that account for
almost all trade with the EU, namely with Papua New Guinea (PNG) on 30 July 2009 and with Fiji on
11 December 2009, and is being provisionally applied with PNG since 20 December 2009 Fiji has not
yet notified the EU of provisional application. The Interim Agreement is therefore not implemented
with Fiji, and Fiji continues to benefit from market access to the EU under the Market Access
Regulation. The Least Developed Countries (LDCs) of Kiribati, Samoa, Solomon Islands, Tuvalu and
Vanuatu all benefit from the Everything But Arms (EBA) initiative of the EU's Generalised System of
Preferences (GSP) which offers duty free and quota free access to the EU market. The Pacific ACP
(PACP) non-LDCs that did not join the interim EPA (Cook Islands, Tonga, Marshall Islands, Micronesia,
Niue, Palau and Nauru) have benefited from the EU's regular Generalised System of Preferences
since 1 January 2008. Trade between most of the ACP Pacific States and the EU is very limited and
erratic. The PACP share of EU trade is just 0.06 %. Their most important export products to the EU
are palm oil, copper, sugar, coconut (copra) and fish (see fact sheet attached as annex for more
information).
The interim Pacific EPA includes a derogation to the standard rules of origin for processed fish
products. The so-called "global sourcing" provisions for products of CN headings 1604 and 1605
(prepared/processed fish, mainly tuna) allow the use of non-originating raw materials of Chapter 03
landed in a port of a Pacific State on condition that it is then processed in on-land premises. The
provisions on special rules of origin were already included in the Market Access Regulation
(Regulation 1528/2007 of 20 December 2007) applicable since 2008.
The objective of this derogation concerning the rules of origin for processed fishery products is to
support the development of onshore processing capacity for fish (notably tuna) products in the
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