The interim EPAs – some facts

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The interim EPAs some facts. TIPS Workshop, Pretoria 4-5 March Dr Mareike Meyn. Overview. Which countries are the EPA signatories? What do the liberalisation schedules say? What else had been agreed? (Export duties, standstill clauses, MFN, SPS/TBT) Trade defense - PowerPoint PPT Presentation

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<ul><li><p>The interim EPAs some factsTIPS Workshop, Pretoria 4-5 MarchDr Mareike Meyn</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>OverviewWhich countries are the EPA signatories?What do the liberalisation schedules say?What else had been agreed? (Export duties, standstill clauses, MFN, SPS/TBT)Trade defense Infant industry protectionThe rendez-vous clauses</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>1. The EPA signatories35 of 77 ACP countries initialled an EPAExcept CARIFORUM all EPA configurations lost membersMost non-signatories benefit from EBA except six Pacific and three African non-LDCsExcept CARIFORUM interim EPAs with sub-regions were initialled In Central Africa only Cameroon initialledIn West Africa two countries initialled separate agreementsIn Southern and Eastern Africa the picture is most complexNegotiations continue in 2008. Objective: comprehensive, regional EPAs</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>3211. SADC EPA2. EAC 53. ESA EPA</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>Original EPA configurations and signatory states in southern and eastern Africa</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>2. What do the liberalisation schedules say? East African Community (EAC)Only region where all countries have identical schedule based on EAC CET25 years (2 years moratorium)Regional exclusion basket of about 20% of EU import value 3 tranches; real liberalisation only starts in 2015Revenue impact will be faced in the middle of the implementation period (2015-23) and will be significant Not all countries have yet applied EAC CETMost products will be liberalised in this periodConsumer/producer effects will be end loaded </p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>2. What do the liberalisation schedules say? Eastern and Southern Africa (ESA)5 of 15 Countries have established individual liberalisation schedules in relation to COMESA CET COMESA CET has not yet been implementedLiberalisation occurs in 15 years (5 years moratorium)2008-2013: tariff reduction to meet COMESA three bands tariffsCountries never agreed a formal definition that allocated the items in the nomenclature according to the groupsChromium and thallium wasteMauritius and Comoros: raw materialSeychelles: intermediateMadagascar and Zimbabwe: final</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>2. What do the liberalisation schedules say? Eastern and Southern Africa (ESA)Exclusion basket differs between 2.5 to about 20% of EU import value among the countriesRevenue impact will be faced in the first tranche and will be very different among the countriesDepends to what extent countrys tariff differs from COMESA CETWhether tariffs can be replaced by sales tax Consequences for regional integration?Review of EPA commitments in light of COMESA CET becomes impossible</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>2. What do the liberalisation schedules say? Southern African Development Community (SADC)5 of 8 countries established 2 liberalisation schedulesLiberalisation over 10 years, no moratoriumExclusion basketsMozambique: large exclusion basket about 38% of EU import value (2004-2006)BLNS: nobody knows Theory: TDCA exclusion basket plus small number of BLNS sensitive products should mirror BLNS EPA exclusion basketPractice: Impossible to compare TDCA (negative list) with EPA (positive list)BLNS are de facto implementing TDCA</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>Summary of liberalisation schedules</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>3. What else had been agreed?Export duties no African EPA text foresees their abolition but only that duties shall not be increased/new duties introducedExemption from this principle for SADC and EAC in exceptional circumstances (such as infant industry protection or to maintain currency stability)EAC needs consent of the EU; SADC only needs to consultStandstill clause (freezing of applied tariffs level)Found in all EPA texts except CARIFORUMEAC and ESA: agreement not to increase applied customs duties comprises all tradeSADC: only for all products subject to liberalisation</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>3. What else had been agreed?MFN clause (need to extent preferences granted to major trading economies to the EU)Can be found in all textsBut: exemptions for CARIFORUM and PACP (Part I, Art. 16)2. With respect to the subject matter covered by this Chapter, the Pacific States shall accord to the EC Party any more favourable treatment applicable as a result of the Pacific States becoming party to a free trade agreement with any major trading economy after the signature of this Agreement.3. Where a Pacific State or the Pacific States can demonstrate that they have been offered by a third Party a substantially more favourable treatment in goods, including rules of origin, than that offered by the EC Party, the Parties will consult and may jointly decide how best to implement the provisions of paragraph 2.What does this mean in practice?</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>3. What else had been agreed?Special provision on administrative cooperation All texts: Refusal or undue delays of administrative cooperation can result in the temporary suspension of trade preferences.Non-tariff barriers and subsidiesAll texts: Prohibition of import or export restrictions other than customs duties and taxes (notwithstanding anti-dumping/counter-vailing measures and infant industry provisions).Some texts: agricultural export subsidies shall be abolished; all texts: national subsidies are allowed value of provisions?Exemptions in case of infant industry protection in some texts</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>3. What else had been agreed?Customs and trade facilitationCentral element in the EPAsSADC: partially regional approach: customs legislation and procedures shall be harmonisedChapter has not yet been drafted in EAC and ESASanitary and phytosanitary standards/technical barriers to tradeChapter outlines cooperation areas and technical supportSADC: list of priority products A) increasing understanding of and compliance with EU standardsB) products where regional standards shall be harmonised</p><p>Chapters have not yet been drafted in EAC and ESA</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>African priority products</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>4. Trade defence in the EPAs</p><p>TDCA and Central and West Africa EPAs: pre-emptive safeguards if availability or access to foodstuff is endangeredNo link in ESA, EAC, and SADC between safeguards and food security</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>Bilateral safeguard conditions in the ESA EPA (Art. 21)2. Safeguard may be taken where a product originating in one Party is being imported into the territory of the other Party insuch increased quantities and under such conditions as to cause or threaten to cause:(a) serious injury to the domestic industry or;(b) disturbances in a sector of the economy, .., or(c) disturbances in the markets of agricultural like or directly competitive products 3. Safeguard measures referred to in this Article shall not exceed what is necessary to remedy or prevent the serious injury or disturbances, as defined in paragraph 2 and 5(b).Those safeguard measures of the importing Party may only consist of one or more of the following:suspension of the further reduction of the rate of import duty increase in the customs duty on the product concerned up to a level which does not exceed the customs duty applied to other WTO Members, andintroduction of tariff quotas on the product concerned.</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>5. Infant industry protection</p><p>Provisions to apply safeguard measures in order to protect infant industries are more generous than in TDCA However: only applicable for 10-15 years; thereafter only safeguards Is this a problem???</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>6. The rendez-vous clause</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>6. The rendez-vous clauseWhat are the binding commitments in the IEPA?Parties committed to continue negotiations on the topics outlined in the rendez-vous clause and any other topic they would like to includeBut:African countries did not commit to agree on any of the provisions that are subject to continued negotiationsThe rendez-vous clauses for SADC, EAC and ESA do not mentionIntellectual property rights protectionSocial issues (such as commitment to respect international labour standardsProvisions for personal data protection</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>Main messagesOnly CARIFORUM has yet completed the EPA negotiationsExcept CARIFORUM and EAC only sub-regional or country EPAs existThe implications for economic regional integration:Offering chances for EACDestroy de facto SADC and COMESASome clauses (MFN, standstill) are inferior than in CARIFORUM and/or PACAny other area the parties feel being relevant can be subject to ongoing negotiations</p><p>What remains disputed:To what extent can single provisions be renegotiated?Can a region import any superior provision reached within another region?</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p></li><li><p>The interim EPAs some factsTIPS Workshop5-6 March 2008</p><p>The interim EPAs - some facts. TIPS workshop March 2008</p><p>SADC countries are now split in 4 groupsSignatories to the SADC EPA (BLNS, Mozambique)Signatory of the EAC EPA (Tanzania)Signatories of the ESA EPA (Madagascar, Mauritius, Zimbabwe)Non-EPA members (South Africa, Angola, DRC, Malawi, Zambia)COMESA is split in 3 groupsEAC (all but one are COMESA members)ESA signatories Non-ACP countries (Libya and Egypt)</p></li></ul>