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UPDATE ON THE EPA NEGOTIATIONS

UPDATE ON THE EPA NEGOTIATIONS. CUTS/WTO Regional Outreach Workshop Nairobi. By: Ambassador Nathan Irumba SEATINI (Uganda ). Structure of presentation. Introduction The Interim FEPA Rendezvous Clause Outstanding Market access issues Substantive negotiations Challenges. Introduction .

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UPDATE ON THE EPA NEGOTIATIONS

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  1. UPDATE ON THE EPA NEGOTIATIONS CUTS/WTO Regional Outreach Workshop Nairobi. By: Ambassador Nathan Irumba SEATINI (Uganda )

  2. Structure of presentation • Introduction • The Interim FEPA • Rendezvous Clause • Outstanding Market access issues • Substantive negotiations • Challenges

  3. Introduction • What are EPAs? • New reciprocal trade arrangements between the EC & ACP • Negotiations started in Sept. 2002 , were slated to be completed by December 2007 • Negotiations not completed

  4. Interim EPA • Why an interim EPA? • To avoid to any disruption in trade. • Major pillars • Trade Regime for Goods /market access • EC offer –Duty Free& Quota free market access ( apart from rice & sugar)

  5. The EAC market access • Commitment to gradually open its market to goods from the EU over a period of 25 years in three phases. • 1st phase (2008-2010), 64%. • 2nd phase (2015-2023)16% , • 3rd 2020-2033, the EAC 2% • Total of 82% • Exclusion of 18%

  6. On-going negotiations • Outstanding market access issues : • Negotiations are still ongoing on the following issues • Art 13 (Standstill Clause) - the parties agree not to increase their applied customs duties their mutual trade . • Art. 16 Most Favoured Nation (MFN) Any preferences EAC gives would be automatically extended to EC.

  7. Cont. • Export taxes- (Article 15)- Prohibits export taxes on exports yet these are essential for value addition at national level. • Safeguards (Article 20&21): • These are measures which can be taken by a country if a sector of a domestic industry of that country suffers injury.

  8. On-going negotiations • Substantive issues-Rendezvous Clause: • Customs and trade facilitation; • Outstanding trade and market access issues, including rules of origin; • Technical barriers to trade and sanitary and phyto-sanitary measures; • Trade in services;

  9. Cont. • Trade related issues, (competition policy, investment and private sector development, trade, environment and sustainable development, intellectual property rights, and transparency in public procurement); • Agriculture; • An elaborate dispute settlement mechanism and institutional arrangements; • Economic and development cooperation; and • Any other areas that the parties find necessary.

  10. Ongoing negotiations • Customs and Trade facilitation • To ensure the smooth flow of goods & services • EAC interested in cooperation • Sanitary and Phyto-sanitary measures. • Border control measures to protect human, animal or plant life & health • Measures should not be barriers to trade • Negotiations are about addressing the methods of putting the measures in place & capacity building to meet the standards

  11. Cont. • Technical Barriers to Trade( TBT): • These are technical regulations or standards imposed by governments on imports i.e labelling, packaging requirements.. • Negotiations are about reducing possibilities of using TBTs as barriers to trade.

  12. Economic Development and Cooperation • Uganda’s priority areas are: Transport infrastructure, Energy, Private Sector development, Information and Communication technology, industrial development and agriculture. • At EAC level -economic , social and environmental sustainability be included • EC,-these issues are already taken care of in the Cotonou agreement. • EAC to develop a text on Development cooperation Strategy & a Development matrix • EC reluctant to commit on additional funds.

  13. Cont. • Trade in Services: • The EC interests: computer, postal and courier, telecommunications, financial, e-commerce and maritime transport. • EAC interests- supply of service through the presence of natural persons. The range of services includes professional services i.e legal, architecture, telecommunication, postal services, tourism … • Issues to note-lack of regulatory frameworks; Services include welfare sectors

  14. Trade related areas • These areas include; Competition policy, Intellectual Property and Transparency in government procurement. • The EC is interested in negotiating binding rules • The EAC is interested more in cooperation to be able to put in place laws and appropriate regulatory frameworks. • Competition policy –Kenya & Tanzania have national legislation, a regional competition law has just been adopted

  15. Challenges • Limited time –Conclusion of a comprehensive EPA by July 2009 • Limited financial & Human resources • Overlapping membership –Tanzania in SADC , the others in COMESA • Balancing LDC & non-LDC interest ( Kenya the only Non-LDC) • Inclusiveness of stakeholders.

  16. END • THANK YOU FOR YOUR ATTENTION

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