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Historical Background

TIPS Economic Partnership Agreements Workshop 4 March 2008 Wamkele Mene Directorate: Trade in Services ITED. Historical Background. Cotonou Agreement DFQF and no reciprocity (underscored in HKMD) WTO Incompatibility WTO Waiver Position of SA. SADC EPA Strategic Framework Document.

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Historical Background

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  1. TIPS Economic Partnership Agreements Workshop4 March 2008Wamkele MeneDirectorate: Trade in ServicesITED

  2. Historical Background • Cotonou Agreement • DFQF and no reciprocity (underscored in HKMD) • WTO Incompatibility • WTO Waiver • Position of SA

  3. SADC EPA Strategic Framework Document • Alignment of TDCA with EPA • No differential treatment for SA • Cooperative arrangement for New Generation Issues • Single trade regime • LDCs not to make commitments, DFQF • Facilitate regional integration

  4. Legal Considerations • Art XXIV of GATT • Waiver relating to Goods • “Full and Comprehensive EPA” • New Generations Issues • Art. 42 of Cotonou & Services • No legal obligation

  5. New Generation Issues – Cooperative Arrangements • LDCs in multilateral context • Annex C of HKMD • Multilateral vs Bilateral settings • Implications for policy space • Victories in Singapore & Cancun • Long-term effect of EPA

  6. SA Counter Proposal on New Generation Issues • Convergence on policy regulations • Building regional market • Addressing supply-side constraints • Technical exchanges of experts • Public policy considerations • Improving institutional, regulatory & human capacity • Time-frame

  7. Current State of Play - Outcomes • IEPA initialed in November (Botswana, Lesotho, Mozambique, Swaziland) • Angola & Tanzania • Namibia initialed based on understanding to re-open • Allowed trade flows/preferences to continue • Second stage of negotiations • Position of SA

  8. Article 67 of IEPA • Trade in Services Liberalisation of one sector Standstill provision Liberalisation of remaining sectors • Investment chapter • Government Procurement • Competition Policy

  9. Main Elements of IEPA • DFQF on all products except rice & sugar • ACP exports to EU market • Differential treatment for SA • Substantial market access for EU products • LDCs extending tariff concession at a rate of 80% coverage

  10. Concerns with IEPA • Regional integration in question • Legal definition of party • MFN clause • Free circulation of goods • Export Taxes • Broader implications for SACU

  11. CONCLUDING REMARKS

  12. Wamkele MeneDirector: Trade in ServicesTrade Policy & NegotiationsInternational Trade & Economic Development Divisionthe dtiwmene@thedti.gov.za

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