2008-05 - EU Support for EPA Implementation and Regional Integration - Agenda on Services and...

8/7/2019 2008-05 - EU Support for EPA Implementation and Regional Integration - Agenda on Services and Investment

1/29

European CommissionDG Development and

Relations with ACP States

EU support for EPAimplementation and regional

integration agenda onservices and investment

Alex Nakajjo28th-29th May 2008


2/29

Outline

1. Development support for Services

Background: legal basis in Cotonou &IEPA

EU instruments

Actions that could be supported

2. Services and regional integration


3/29

Cotonou and IEPAs

Cotonou.Chapter 2. Investment &PSD. Art 21.1:

The Cooperation shall supportnecessary eco and inst reforms atnational & regional level aimed atfavourable envt for private investment &

dev of a competitive private sector. [] Chapter 4. Trade in Services. Art 41.1:

The Community shall support the ACP

States efforts to strengthen theircapacity in the supply of services. []


4/29

Cotonou provisions cont-

Chapter 2. Regional cooperationand Integration. Art 28:

Cooperation shall provide effectiveassistance to achieve the objectivesand priorities, which the ACPcountries have set themselves in thecontext of regional and sub-regionalcooperation and integration. []


5/29

Cotonou provisions cont-

Cooperation in the area of regionaleconomic integration and regional

cooperation should support the main fieldsidentified in articles 29 and 30 of theCotonou Agreement. Furthermore, article

35 provides that economic and tradecooperation shall build on regionalintegration initiatives of ACP States


6/29

IEPA Provisions

EAC interim EPA: Chapter V. Article 37.notes that negotiations will continue in

the areas of trade in services and traderelated issues including investment.

On the Development cooperation, the EAC

IEPA notes recognition of developmentneeds and parties agree to work together todefine and address development needs.


7/29

IEPA Provisions

Other IEPA in the ESA region make reference to theDevelopment Matrix developed by the region as abasis for cooperation. The Matrix identifies the main

areas where support is needed in order to fullybenefit from regional integration and an EPA. Theseaddress supply-side constraints (infrastructuredevelopment, productive capacity, private sector

development), trade policy and regulations, andadjustment costs.


8/29

IEPA Provisions

Types of Interventions (non-exhaustive list): policy development; legislation and regulatory framework development; institutional/organizational development; capacity building and training.[1]; technical advisory services; administrative services; support in SPS and TBT areas

operational support including equipment, materials and relatedworks

.[1] "capacity building: may include in particular training, institutionaldevelopment, organizational development (structures and procedures),inter-institutional communication and cooperation procedures, operationalsupport.


9/29

Instruments

1. COMESA Regional Indicative Programme 9th and 10th EDF

2. Country National Indicative Programmes3. EU Member States own instruments

4. Other community instruments:

EIB Investment Facility

Horizontal all-ACP instruments: Infrastructureand Energy partnerships


10/29

RIP 9th EDF

Under the 6th, 7th and 8th EDFs, the ESA-IO region had threeseparate regional indicative programmes, aimed mainly atfunctional cooperation.

Current RIP under 9th EDF-moved from predominantly

functional cooperation to policy support Focus on:

Regional economic integration and trade agenda sustainable management of natural and marine resources Socio-economic infrastructure-Transport and communications

(incl. water and energy) And also:

Agriculture and food security ; HIV-AIDS ; Gender; Peace andsecurity


11/29

RIP 10th EDF

10th EDF should enter into force in the comingweeks.

The RIP is in the process of finalisation: Commission

aims to sign it later this year (645Mn). Opportunity to integrate priorities from

COMESA/EACs integration Agenda and secondphase of EPA negotiations.

RIP would also build on needs identified by RegionalPreparatory Task Force (RPTF) Intention to limit number of intervention areas and

increase focus on trade and regional integration.


12/29

Indicative Prioties-RIP10th EDF

Indicative Programme ESA-IO 645m Regional Economic Integration (including

Infrastructure, and Natural Resources,Environment and Food Security): 85 percentof the total allocation.

Regional Political Integration/

Cooperation : 10 percent of the totalallocation. Other programmes: 5 percent of the total

allocation.


13/29

RIP 10th EDF

major interventions foreseen shall be

-Trade-Related assistance and Capacity Building

- Alleviation of the impact of economic and fiscal adjustments on publicexpenditure

- Support private sector development

- Removal of Supply-Side Constraints

- Improvement of land and water resources management to developagricultural and food production

- Improve the capacity of the region in deriving economic benefits from

its marine resources and managing it in a sustainable way


14/29

National indicative programme

Each country has NIP which target addressingcountry specific constraints.

For Uganda, 439Mn is provided for 2008-2013

Budget Support: 42% includes 7Mn to trade andMTTI capacity building

Focal sector 1: Support to Transport sector(39%).

Focal sector 2: Rural Development (14%) Non focal sector: 5% -non state actors,

democratisation, etc.


15/29

EU Member States contrib.

The Member States of the European Unioncollectively undertake to support, by means of theirrespective development policies and instruments,

development cooperation activities for regionaleconomic cooperation and integration and for theimplementation of the cotonou and EPAs agreement

The main areas of donor intervention are trade,regional integration, agriculture, infrastructure,telecommunications including informationtechnology, environment and marine resourcesmanagement, food security, disaster management,peace and security and capacity building.


16/29

EU Member States contrib.

Several EU MS have participated in RPTF.

AfT Strategy: EU to make available 2bn per

year on trade-related assistance (half EU MSand half Commission).

ACP countries should receive in the range of

50% of the funds (an increase of 300-400Mn a year)


17/29

EU Financial contribution

Between 2001-2005, 3,3 b was receivedat the national level by the ESA countriesfrom the EU (MS & EC) to cover areas of

trade policy and regulations, buildingproductive capacity, and trade-relatedinfrastructure. Out of this amount,infrastructure accounts for almost 60 %(2 billion), building productive capacity for39% (around 1.3 billion), and TradePolicy and regulations for 1% (32 million).


18/29

EU Financial contribution

In addition, the countries in the region havehad access to global and regionalprogrammes. The EC provided 1.1 billion

for Trade-related Infrastructure for the ESAcountries and the EU Member States 851million. The EU Member States providedtogether 69% of the 1,3 billion for Buildingproductive capacity in ESA countries and theEC two thirds of the amounts devoted totrade related assistance.


19/29

Other Community Instruments

EIB Investment Facility

Infrastructure partnership and Energyfacility


20/29

Identification of needs : RPTF

Regional Preparatory Task Force(RPTF)

Link EPA negotiations with developmentcooperation

Ensure complementarity amongdevelopment partners


21/29

Identification of needs

Priorities in line both with comprehensiveEPA and COMESA/EACs own agenda, in

particular multi-annual business plan andthe Regional Indicative Strategicdevelopment Plan RISDP.

Possibility to identify additional priorities inthe context of the EPA negotiations onservices and investment :

Private sector development.


22/29


RPTF identified priority areas for support:

1) Trade in goods

2) Trade data (essentially statistics)3) EPA implementation and future negotiations.

4) Trade in core services

5) Trade related issues (competition, investment,IPR, public procurement, labour andenvironment).


23/29


4) Trade in core services: Sectors identified: Transport, Finance

(banking/insurance), Tourism, Professional Services,Education, Construction and engineering

Types of activities: Capacity building (e.g. to conform to international

standards, equipment) Institution building (e.g. regulatory frameworks) Needs assessment studies / Impact assessment studies Establishment of regulatory bodies (e.g. in finance) Support for promotion and marketing institutions (e.g. in

tourism) Establishment of accreditation bodies (e.g. for

professional services, engineering, education)


24/29


5) Trade related issues (competition, investment, IPR,public procurement, labour and environment).

Types of activities: Capacity building to develop, harmonise and implement policies

Establishment of accreditation/regulatory bodies

Development of institutional, policy and legislative infrastructure

Devt & implementation of regional Foreign Investment Strategy

Establishment and strengthening of competition authorities

Impact assessment studies (e.g. public procurement, IPR)

Capacity building for SMMEs (e.g. to participate in procurement)


25/29

Regional Integration

Trade in services and investment in particular, asinstruments of a global strategy for regionalintegration and development.

Commission is preparing a Policy Communicationon Regional Integration for Development inACP countries.

Vision of regional integration (economic dimension):

Establishment of larger markets and secure/soundregulatory and institutional frameworks as a means toenhance trade, investment and economic development

Regional integration as a springboard towards gradualintegration into world economy


26/29

Regional Integration

Goal is to support the regions ownintegration Agendas

Proposed approach could build on: (i)regional integrated markets and supportivebusiness environment (regional dimension ofPSD/diversification); (ii) connected regional

infrastructure networks; (iii) regional policiesfor sustainable development; (iv) effectiveregional governance


27/29

Regional integration

Already reflected in IEPA Art. 1 : Objectivesa) Contributing to the economic growth and development [];b) Promoting regional integration, economic cooperation and

good governance thus establishing and implementing an

effective, predictable and transparent regional regulatoryframework for trade and investment between the Parties andamong the ACP EPA States;

c) Promoting the gradual integration of the ACP EPA States intothe world economy, in conformity with their political choices

and development priorities;d) []


28/29

Issues/Challenges

Overlapping configurations and memberships: RIPsoverlap (SADC/COMESA/EAC)

Objective for development cooperation and the EPA

supportive of the regions own integration agenda Prioritising Regional Integration by EAC/COMESAmember states.

EAC/COMESA Countries taking ownership of trade

issues in their development strategies Harmonisation of all actions by developmentpartners

Managing for results-on all development programme


29/29

Thank you

2008-05 - EU Support for EPA Implementation and Regional Integration - Agenda on Services and...

Documents

Transcript of 2008-05 - EU Support for EPA Implementation and Regional Integration - Agenda on Services and...