Economic Partnership Agreement (EPA) Negotiations
EPAs in southern Africa are being negotiated with the European Union by two blocks of countries:
- 16 countries of the Eastern and Southern Africa (ESA) group and
- SADC group (the SACU members - Botswana, Lesotho, Namibia and Swaziland plus Mozambique, Angola and Tanzania and, recently, South Africa).
RTFP has provided support to both groups as indicated below and has also taken initiatives at the All-ACP level on Rules of Origin.
Many of the countries in the region are members of more than one Regional Economic Community, as can be seen in the linked diagram of overlapping membership. For a description of how the configuration of the two main EPA negotiating blocks evolved and the implications on the negotiations of the TDCA between the EU and South Africa, see the paper on "Negotiating an Economic Partnership Agreement for Eastern and Southern Africa" written in October 2005 by the RTFP Programme Director.
Some of the countries have been under pressure to make a decision as to which grouping's Customs Union they should focus on. However, taking the case of Zambia, a briefing document prepared by RTFP argues that this may be unnecessary and misleading pressure. "COMESA or SADC which way to jump?"
The three main RECs in the area (COMESA, EAC and SADC) meet frequently and share a common approach in several areas. As a contribution to greater understanding and cooperation between them, RTFP are now fulfilling the role of Secretariat to the Joint Task Force of COMESA, EAC and SADC (see below).
RTFP has been instrumental in developing All ACP Rules of origin for use by all the negotiating groups (as directed by the ACP Council of Ministers). The model in question has been examined by the ACP Group of Experts in three meetings financed by RTFP, the last of which was in July 2007 (see photograph of the Secretary General of the ACP, Sir John Kaputin, Mme Helene Fiagan on the left and RTFP Programme Director Mark Pearson on the right at the February meeting). RTFP has also contributed its technical expertise to lead the formulation of the Draft Protocol. The meeting in October also agreed that the results of the studies underway in the regions should be assessed before adopting a position on rules of origin regarding sea fish products. Accordingly these were considered at a separate meeting in February 2007.
The 6th meeting of the Group of Experts was again held at ACP House in Brussels on 9 & 10 July 2007. Presentations were received from the Secretariat and representatives of the 6 negotiating regions; UNCTAD on a draft Model Protocol and Dr Bartels of the University of Cambridge on the legal implications of the EU Convention on Rules of Origin with focus on cumulation rules as indicated in: The Summary Conclusions in English (116.46 Kb) andFrench (77.63 Kb()
In order to assist the negotiating groups RTFP, in conjunction with UNCTAD, has developed a comparative table on Rules of Origin 209.42 Kb, existing in the Cotonou Agreement, SADC, ESA and the proposed EU EPA options.
Eastern & Southern African (ESA) Region EPA Negotiations:
RTFP has supported the ESA group through the financing of a Senior Trade Policy advisor based in the COMESA Secretariat and through technical assistance provided either by the RTFP Programme Manager or contracted consultants. Specific areas currently being worked upon are:
Rules of Origin for Fish & Fish Products for the ESA Region: The Programme Director of RTFP played an instrumental role in the development of Rules of Origin for Fish and Fish Products. English 386.59 Kb and French The discussions are taking place within the context of a general trend to liberalise trade, reduce tariffs (which can lead to an erosion of preferences) and harmonisation of Rules of Origin. Coordination on fish is also taking place with other EPA negotiating blocks such as the Pacific Forum. and the Caribbean. However, since different ESA countries have different constraints, a more cautious and holistic approach to liberalizing existing Cotonou Rules of Origin is being encouraged which could result in a broader partnership.
A study was commissioned by RTFP and carried out in June 2007 to examine the relative cost structure of tuna production and exports to the EU as related to Mauritius, the Seychelles and Thailand. It included examination of whether EU Sanitary and Phyto-Sanitary (SPS) requirements are applied equally in each of these three countries; also, whether any discrimination exists in the application of the WTO SPS Agreement in respect to these countries.
Another study carried out in October 2007 looked at the Development of the Inland Fisheries Sectors in the ESA Region with regard to SPS and Other Barriers 333.71 Kb
Revenue Impacts of the EPAs
In 2006 RTFP financed the publication of a study undertaken for COMESA on the Revenue Impacts of the EPAs between the EU and ESA countries.
ESA – EPA Trade in Services:
As part of the ESA region's negotiations, RTFP agreed to finance COMESA's preparations with an assessment of the trade in services in the region.
The work is being implemented in collaboration with UNCTAD and the World Bank and involves the development of National GATS Templates (the WTO General Agreement on Trade in Services) following national assessments (and conversion) of the existing regulatory framework in each of the 16 countries participating in the ESA-EPA.
Through the conversion of sector regulations into GATS-type language and the administration of sector questionnaires, the region will have a measure of their services sectors to allow for comparison with others. Appropriate sequencing is an important issue. As well as informing sequencing decisions, the work will assist negotiators in deciding whether there is a need to have a specific agreement on trade in services with the EU (which would need to be WTO+) and whether and how a safeguard mechanism in the area of trade in services could be established.
Migration and Mode IV: Towards a Trade and Development Approach
The ESA-EPA group has been working with the Commonwealth Secretariat to develop a negotiating position for GATS Mode IV (with particular reference to nurses). The RTFP financed this work, which has resulted in the development of recommendations and options for a pilot project of managed temporary migration for nurses to the Netherlands, Ireland and the UK. A meeting was held in South Africa in June 2007 with the countries which may be initial beneficiaries (Mauritius, Kenya, Malawi and Uganda).
SADC Group Negotiations:
Since 2004 the RTFP has financed a full-time Trade Policy Adviser to the SADC Secretariat and although his TOR cover a wide range of trade policy issues, he has devoted almost all his time to EPA work. The RTFP has also provided technical assistance and funding to carry out a number of studies that have been instrumental in developing negotiation positions and undertaking other important preparatory work. These include studies aimed at:
Identifying sensitive products
Developing a negotiation position on SPS and TBT
Assisting each BLNS to develop its negotiating strategies
(These studies are not in the public domain.)
Undertaking a comprehensive review to assess SADC’s state of preparedness and capability to effectively negotiate an EPA beneficial to its members. The review also assessed the effectiveness of its negotiating structure and whether negotiations will be completed on time as scheduled. The document is not available for public dissemination.
In June 2007 RTFP co-hosted and financed a conference on the challenges of the SADC EPA negotiations with particular reference to the short time remaining before the end of 2007 when negotiations are due to be finalised. Suggestions were made as to how this problem could be overcome whilst the conference also looked as issues (such as the inclusion of South Africa) which have complicated the negotiations.