RECALLING SOME ISSUES WITH INTERIM EPAS

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RECALLING SOME ISSUES WITH INTERIM EPAS
E c o n o m i c C o m m i s s i o n f o r A f
r i c a
Stephen Karingi Chief, Trade and International
Negotiations Section, ECA
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General observations on interim EPAs

• Reciprocity seen as the only issue addressed
  fully in the interim EPAs.
• The development oriented EPA principles
  (deepening regional integration differentiation
  aid and trade coordination) found to be
  unresolved or contradicted.
• No harmony in the interim EPAs and very worrying
  deviation from common African position.

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Structure of the EPAs

• The areas covered and sequencing of issues vary,
  which would make harmonisation and coordination
  important.
• The CARIFORUM EPA suggests countries should be
  ready to deal with controversial issues.
• African countries will be expected to adopt
  extensive and substantive commitments.
• Singapore issues services capital account
  opening among others.

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Objectives of the interim EPAs

• Theres similarity across the different
  agreements, but clearly, the spirit of the
  general objectives gets lost in the specific
  objectives (ESA and EAC)
• Compatibility with Article XXIV could be seen to
  undermine diversification goal.
• There is merit in African EPAs having similar
  wording given they have same objectives.

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Principles in the interim EPAs

• Understandably, the principles focus on the
  realisation of the objectives
• Cotonou acqui regional integration asymmetry
• Some important differences
• EAC Does not mention SD treatment for LDCs.
• SADC Principle that TDCA applies for RSA.
• The spirit and letter of the principles is not
  evident in the provisions of the interim EPAs.

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Development provisions

• Provisions brief in the EAC EPA (with EU
  confirming it will contribute EDF/AFT/General
  budget. Development needs of EAC to be addressed.
• ESA EPA development provisions detailed,
  including areas and sectors (good example in
  terms of period and matrix).

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Development provisions contd

• Regional EPA fund as instrument for implementing
  accompanying measures.
• But as the ESA development matrix demonstrated,
  resources under EDF 10 and EUs AFT are
  inadequate.
• Ideally, development is a cross-cutting issue but
  a dedicated chapter should be retained to allow
  streamlining of approaches and also scope.

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Market access for goods

• Objective liberalisation as per Article 24.
• Only for signatories so no DFQF for LDCs.
• Custom duty is any duty financing of RI?
• Scheduling of tariff elimination varies, in deed,
  in ESA, schedules are country specific RIA?
• Rules of origin these are to be reviewed, but
  over different timelines.

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Market access for goods contd

• Export duties and taxes prohibition.
• Better treatment under other FTAs MFN clause
• Non-tariff measures
• e.g. agricultural subsidies prohibited/no
  increase but to be phased out only where duties
  are eliminated.
• Liberalisation of current payments and capital
  movement.

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How do the interim EPAs compare with the AU
Declarations?
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AU Declarations on EPAs binding?

• Mauritius (2003) Cairo (2005) Nairobi (2006)
  Addis Ababa (2007) AU Summit (2007 2008)
• EU argues that AU not a government and as such
  has no jurisdiction to conduct external trade
  relations.
• Response EPA declarations adopted by Governments
  of AU and are therefore collective decisions.

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Areas with common African position

• Unity and solidarity
• Harmonisation of the EPAs
• Ongoing integration processes and coordination
• Coordination of the EPA negotiations
• Rationalisation of African integration
• Social economic development

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Areas with common African position

• Social economic development
• Binding obligation on additional resources
• Amendment of Article 24
• Cotonou Acqui
• Singapore issues
• Sequencing of EPA and WTO negotiations

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Way forward

• Address issues raised with the interim EPAs.
• Controversial clauses should be resolved.
• Regional integration, should be given eminence.
• Processes towards African common markets at
  regional and continental levels should not be
  impeded.
• Development should remain the EPAs basis.
• Concessions in the different EPAs should be
  coordinated.