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EPAs and Development

EPAs and Development. Peter Thompson Director: EPAs and Development DG TRADE 19 May 2008. Where do EPAs come from?. Why ? Failure of old formula to deliver development Where ? ACPs How ? Cotonou Agreement (2000) When ? End 2007 (expiry of Cotonou trade provisions and WTO waiver).

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EPAs and Development

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  1. EPAs and Development Peter Thompson Director: EPAs and Development DG TRADE 19 May 2008

  2. Where do EPAs come from? • Why? Failure of old formula to deliver development • Where? ACPs • How? Cotonou Agreement (2000) • When? End 2007 (expiry of Cotonou trade provisions and WTO waiver)

  3. Unilateral Preferences under Cotonou • Did secure trade position - BUT THE WORLD CHANGED AND THEY - • Entrenched marginalisation and vulnerability • Restricted innovation and diversification • Were unable to guarantee incomes as prices fell • Offered no incentive for better governance • Discriminated among developing countries • No longer complied with global rules

  4. Share of imports from ACP in EU total imports, 1976-2005

  5. ACP exports to EU, 1997-2007

  6. Lack of ACP export diversification:3 main products = 54% of exports to the EU (2005):

  7. EPAs are one of EU’s Trade Policy Tools for Development • WTO Rules • Aid for Trade and Cooperation • GSP (all Developing Countries) • GSP+ (implementation of labour rights and environment) • EBA (all LDC) • EPA (New Cotonou trade regime for 77 ACP + South Africa)

  8. What are EPAssupposed to do? • Integrate ACPs into world economy (Globalisation) • Improve economic attractiveness (Governance) • Improve competitiveness • Promote diversification • Provide more, better and cheaper goods and services

  9. What’s new in EPAs? • Trade Agreement with development objectives • Reciprocal (but not symmetric) • Unlike other FTAs linked to Association Agreements • Assistance in text (TRA)

  10. EPA State of Play January 2008 • 9 LDCs and 26 non-LDCs countries have entered into EPAs and interim EPAs: • 1 comprehensive EPA with the Caribbean region • 7 interim agreements based on WTO compatible goods trade arrangements • 32 LDCs beneficiating from the EBA initiative • 10 non-LDCs under the standard GSP

  11. NB. Non-LDCs are shown in bold and South Africa is not included as its TDCA trade regime is unaffected by the expiry of the Cotonou agreement

  12. What’s in? • TRADE IN GOODS • Duty free / Quotas free access to EU Market • Short transition periods for RICE and SUGAR • ACP level of liberalisation • 80 % in value over 15 years • RULES OF ORIGIN • Based on the Cotonou Agreement • Improvement on specific areas: TEXTILE and CLOTHING sector, AGRICULTURE, FISHERIES • SAFEGUARDS • Exception from WTO multilateral safeguard measures • Asymmetry, infant industries clauses

  13. What’s in? • CUSTOMS AND TRADE FACILITATION • Simplification and modernisation of customs procedures • Aid for trade • TECHNICAL BARRIERS TO TRADE • Increasing protection of health, safety, consumers and environment • Improving capacity to eliminate unnecessary obstacles to trade • SANITARY AND PHYTOSANITARY MEASURES • Commitments to the term of the WTO SPS Agreement • Cooperation to enhance relevant information exchange • Implementation of SPS measures

  14. HOW DEVELOPMENT? • Regional Preparatory Task Forces • EU Aid for Trade strategy (EU MSs €s) • €s from the European Development Fund (10th EDF 2008 – 2013) • Regional programmes reinforced by 35% • National indicative programmes: • competitiveness • governance and public administration reforms • Infrastructure

  15. NEXT STEPS • Signature/Ratification process • WTO Notification • Completion of full regional EPAs • All regions fully committed to conclude • Timing: end 2008/mid 2009

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