Report on the Implementation of the derogation to ... - Trade Websites

Final <strong>Report</strong>
RoO Derogation under the PACP-IEPA
in the Market Access Regulation and PNG has benefited from it since March 2008 when it made its
notification to the Commission according to the relevant procedures.
On the basis of this report, the EU and PNG shall hold consultations on the utilisation of the
derogation, taking into account in particular its development effects and the effective conservation
and sustainable management of the resources and, if appropriate, amend it by common decision of
both Parties in the Trade Committee as foreseen in the interim EPA.
Criticism has been raised against the Interim Agreement by the EU's tuna fishing industry and by the
Fisheries Committee of the European Parliament, primarily because of the derogation for the Rules
of Origin for fishery products. The industry is concerned that the provisions may lead to massive
increases in PNG exports of processed tuna products to the EU by use of raw materials originating
from Long Distance Countries fleets, e.g. China, Taiwan, Philippines, and may have a detrimental
impact on the EU's fishing industry. The industry has also raised the issue of how the given
concession would impact on illegal fishing activities, possible increased pressure on the fishery
stocks over sustainable levels and the respect of EU sanitary and phytosanitary standards. Concern
has also been expressed about the impact of the agreement on regional integration and the actual
development impact for PNG (notably for labour and environmental matters).
2. DESCRIPTION OF THE ASSIGNMENT
2.1 Global objective
Article 6.6 (c) of Protocol II of the iEPA stipulates that a report on the implementation of the special
rules of origin granted in the framework of the iEPA with Pacific countries is due three years after
the notification of the use of the derogation by the Pacific country concerned, i.e. 2011, even if the
actual use by the private sector in PNG could have started at a later stage.
The purpose of the report is to allow the Parties to the Agreement (PNG and the EU) to assess the
utilisation of the derogation provisions, taking into account, in particular, its development effects
and the effective conservation and sustainable management of the resources and whether it would
be appropriate to amend the provisions.
2.2 Specific objectives
Provide an evaluation of the implementation of the described derogation and to what extent it is
achieving the intended objectives.
i. The consultant shall assess the impact of the derogation to the rules of origin in PNG in terms of
development of the country, including the generation of revenue, investment, governance, local
employment and impact on local communities:
• Make a detailed analysis of the conditions concerning income and employment (including the
application of internationally recognised labour rights) prior to implementation of the
derogation and following its introduction.
• Assess whether the development effects foreseen in the agreement have materialised and to
what extent they may occur.
• Analyse the impact on PNG of the derogation in terms of fulfilment of the development
objectives and assessment of objectives yet to be achieved. This would include, but not be
limited to, improvement in working and social conditions, and whether the derogation has the
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