Current situation and future prospects

27th Meeting of the ACP-EU Economic and Social Interests Groups

EESC, 30-31 October 2014

Isabelle Ramdoo

Deputy Head,

Economic Transformation and Trade Programme

Economic Partnership Agreements

1. Setting the scene: where do we come from and where are we?

2. EPA: Who’s in and who’s out? What’s and what’s out?

3. ACP-EU trading landscape

4. What implications for EPAs and what future prospects?

Structure of the presentation

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1. Where do we come from and where are we now?

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ACP: 77 countries

2. EPAs: Who’s in? Who’s out?

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What’s in?

1. On the EU side, save for South Africa, all countries have DFQF on all products: Timeframe, since 1st January 2008 for those that were covered under MAR; for others, once EPAs enter into force

2. On the ACP side: with the exception of CARIFORUM EPA, other are trade in goods agreement + devt;

Coverage: at least 75% openness over up to 25 years

South Africa: 105 GI; EU: 251 GI

Subsdies on agric. Exports eliminated

Development: PAPED Euros 6.5 billion

Flexible RoO

What’s out?

Sensitive products, including both agricultural and industrial products that are produced domestically

What’s in? What’s out?

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3. What regimes apply to ACP?

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1. Africa

2. Caribbean and Pacific regions

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4. What implications of EPAs and what future prospects?

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A: Let’s not over-expect from what EPAs can do or not.

1. Trade is not an end in itself and EPAs are not a panacea: A tool, which can be a friend or a foe, depending on how you handle it. To be beneficial, trade provisions should be activated together with other policies: domestic reforms; support to private sector; accompanying measures for losers, effective implementation of commitments on both sides;

2. Are EPAs good or bad? Neither naysayers nor advocates are totally right: the truth is somewhere in the middle (and will be in the eating)

1. There are opportunities: successful implementation of agreements will require leadership, coherence and coordination among all stakeholders, including private sector and CSOs. The development aspects will have to be worked out! And responsibilities for this need to be shared.

4. There pose (systemic) challenges for future intra-African integration, trade and industrialization

i) EPA regions are not necessarily consistent with existing RECs (save for EAC and ECOWAS) – challenging for RI agenda

ii) Multiple trade regimes in Africa (with NA – 5 trade regimes)

iii) Multiple trade regimes vis-à-vis the EU (different exclusion lists; schedules of commitments, RoO etc)

iv) More favourable treatment given to EU compared to neighbouring countries/ regions;

v) Mega-trade deals may erode trade preferences and set new rules/ standards;

5. BUT let’s be honest: as they currently stand, (save for caribbean) EPAs are partial agreements, quite old-fashioned and frozen in time… soon to be supplemented by new-generation of mega-trade deals

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B: How to move forward and make EPAs work for development?

1. Negotiations are not over! Partial agreements will lead to partial results, but need proper sequencing to prevent more challenges to regional agenda;

2. A key objective is regional integration and fostering integration in global economy: needs to address potential challenges that can affect regional integration, development of value chains;

3. Implementation will be key: requires ensurement development is “activated” – will not happen on its own;

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Thank youwww.ecdpm.org

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