Mastering Trade Negotiations: How to Box Smart Workshop

1. How to box smart TIPS Workshop, Pretoria 4-5 March Dr Mareike Meyn

2. The pros and cons • It is true… • the negotiation power is highly asymmetric; • EC has often delayed process and has not been responsive to ACP ideas; • having to give away market access in IEPA might have decreased ACP negotiation power • Interim EPAs are sufficient to guarantee WTO compatibility • but…. • taking EPAs out of the ‘headlight’ might help finding compromises; • African countries have supporting groups within the EU (NGOs, private sector, research institutes, Parliamentarian, single member states…) • IEPA countries have committed themselves to continue negotiations EPAs - How to box smart? TIPS workshop March 2008

3. “There is no substitute during tough negotiations for a good argument and proper preparation.” Wilhelm Smalberger, member of the South African trade negotiation team when negotiating the EU-South Africa free trade agreement EPAs - How to box smart? TIPS workshop March 2008

4. How to move things forward • Analyse the EPA • What provisions should be improved? • Are some of the provisions more onerous than those of other regions? • Improve the information exchange with other regions • What are their priorities and objectives? • What strategies did/do they apply? Are they suitable for your region? • Learn lessons • What went wrong when negotiating the interim EPAs? • How can former mistakes be avoided? EPAs - How to box smart? TIPS workshop March 2008

5. How to move things forward • Identify your offensive interests • ACP prime focus in EPAs was defensive (maintaining market access; avoid market opening • Identify also your offensive interests with respect to services and trade related issues; and • With respect to A4T (identify gaps; propose allocation) • Formulate a coherent strategy for 2008 • Consult with national and regional stakeholders • Mainstreaming trade into your development strategy • Lobby for your interest by finding allies • Other ACP countries, development departments of EU member states, other WTO members… EPAs - How to box smart? TIPS workshop March 2008

6. How to box smart • Important to remember that both parties need to present ‘successes’ • Some provisions might only be ‘make-up’ but allow the EC to sell the EPA as ‘comprehensive’ • Example of public procurement in the CARIFORUM EPA • CF submitted a positive list of public entities that shall treat “any eligible supplier of either … Party equally in accordance with the principle of open and effective competition.” • ?What is an ‘eligible supplier’? • Plus: • several areas are excluded from the provisions • Limited tendering allowed in cases such as ‘extreme urgency’ • Implementation of chapter is linked to technical assistance and subject to a 3 years transition period (5 years for LDCs) EPAs - How to box smart? TIPS workshop March 2008

7. A regional negotiation machinery • Heads of States of the single African regions did not agree on a negotiation strategy and did not establish a joint negotiation machinery • To establish a regional negotiation machinery is hard work: • harmonisation of national positions • creation of a regional position; • continued information exchange, consultation and dialogue • according adaptation of the regional negotiation position; • However, there are significant advantages: • Best use of resources and sound advice to single countries; • A coordinated strategy is much more powerful • The risk that the region is split-up during negotiations is lower EPAs - How to box smart? TIPS workshop March 2008

8. Basic rules how to box smart • Analyse the text and the obligations arising from it carefully. • Cooperate closely with countries that successfully negotiated with the EU (such as Mexico, Chile, CARIFORUM). • Develop a coherent national strategy and harmonise it on a regional level. • Consult with your regional partners how a non-acceptable provision could be rephrased to become acceptable. • Identify what you would like to get out of the EPA and link your obligations to • technical and financial assistance • transitional periods during which capacity is built. EPAs - How to box smart? TIPS workshop March 2008

9. Basic rules how to box smart • Take advantage of the Special and Differential Treatment Provision when negotiating transitional periods • CF achieved longer transitional periods for its ‘lesser developed members’ in case or regional liberalisation; service liberalisation, public procurement, and IPR. • Bundling power when addressing the development component: • All ACP claim for binding commitments to tackle transitional costs (linked to single chapters!) • Finding supporters (EU states, European Parliament, lobby groups…) EPAs - How to box smart? TIPS workshop March 2008

10. How to box smart TIPS Workshop 5-6 March 2008