The EPA Negotiations in Africa & at the SADC level: some comments

1. The EPA Negotiations in Africa & at the SADC level: some comments Subtitle: TIPS Myriam Velia 5th March 2008 Presenter: Date:

2. Reflection: • Main points from yesterday? • Does the past matter?

3. Background: • 1975: ACP Convention → Preferential treatment on exports to the EU (no/lower duties and quotas) • Issues with the WTO in 1995 – discrimination (GATT Art. XXIV) – banana trade war; • In parallel: Cotonou signed in June 2000. • Waiver to the WTO to the end of 2007 obtained by the EU → arrangement in “line” with WTO principles; • 7 EPA groupings (regional configurations) with reciprocal FTAs. Considerations? But would be the reasons for uptake? • Aid/aid for trade; • market access guarantees; • Re-assessment of RI grouping coherence? Overlap with RI commitments within single custom grouping? And are EPAs catalyst to redefine specific (RI) focus, priorities or alliances (e.g. Tanzania)? • What about integration into multilateral trading system and position around this? • Negotiations? • Understanding of the deal & common understanding of the deal? • details & scope of the deal? E.g. RI - DDA progress? Scope of liberalisation to meet WTO comptatibility requirements vs. GSPs & EBA alternatives?

4. Focus: • Negotiations – EPAs put on the table in 2002; • Review: • Engaged by SAIIA (South African Institute of International Affairs) staff for ECOWAS, SADC, Central Africa (in draft) • & for CEMAC (Communauté Economique et Monétaire de l’Afrique Centrale), ESA (Eastern & Southern Africa [group]), ECOWAS (Economic Community of West African States) & SADC (final Review) → UN Economic Commission for Africa in 2006 & 2007 ECA (2007) “EPA Negotiations, African Countries Continental Review”, Review Report, African Trade Policy Centre (ATPC), Work in Progress No. 64. • Review & collect information & data (secondary & primary – examination of documents & face to face interviews): • Examination of country specific material; • Approached representatives from National Development Trade Policy Forums (NDTPF) – to be set up as specified in Cotonou and to “channel” the view of the “non-state actors” (NSAs – incl. civil society organisations – CSOs); • Approached regional Negotiating Forums. NTDPFs report to these forums;

5. Focus: • What do you think were the problem areas associated with the negotiations?

6. Negotiations Process: Main Findings From the ACP African Partners side: • Not inclusive – severe under-representation & lack of communication sought from NSAs (CSOs + private sector rep. & associations); • Lack of representativity  lack of awareness on the EPA process and the details thereof vs. which NSA to involve in the discussion (selection by National Authorizing Officer)? • Lack of funds & no transparency on fund use in terms of engaging & managing the negotiation process – transparency important since EPAs approved by national parliaments; • Beyond LDCs/non-LDCs division, substantial economical, political, cultural divergences – LDCs possibly “more complacent about the process” & stakes are lower.* • Lack of efficiency around the regional preparatory task forces; lack of capacity [compounded by timing and regional & multilateral trade negotiations uncertainty - RI, DDA negotiations], & lack of co-ordination in terms of engaging with the consultations + getting feedback on those consulted & in terms of the reporting back process; • Lack of preparedness;

7. Negotiations Process: Main Findings Specifically commenting on general EU behaviour: • Development Finance: details somewhat unclear & whilst EDF seen as critical also commented upon as difficult to access in any case; • New issues brought under the EPAs & position or details on some issues not clarified (e.g. standards, services, ROO). Generally: • Sectoral impact: not detailed/established – agriculture & tourism; • Important variations in negotiation speed; • Different arrangements, configurations etc.

8. SADC EU EPA Review: Main Findings • For SADC, main negotiator: Botswana’s Minister of Trade & Industry with EC; • Focus of the SADC-EC EPA (2005 at the meeting of SADC Trade Ministers): • SPS; • TBT; • Technical Assistance; • Information • Generally, disagreements on the modalities of the deal … • … but EPA seen as a natural follow up of RI.

9. SADC EU EPA Review: Issues • Lack of resources (which affected NSA involvement*); • Devt assistance & trade articulation? One of SADC pillar not guaranteed by the EC. • Lack of assessments carried out for some countries (e.g. sectoral analysis for Tanzania which was in the early stages in the SADC configuration - switch to the EAC); • Sensitive list of products with BLNS & link with SA (SACU & TDCA); • The problem of the SADC trade structure – (production &) trade diversification – production & trade structure similarities →  tariff reductions incentives?;

10. Intra-Bloc Trade Source: 2007 World Development indications

11. Source: 2007 World Development indications Intra-Bloc Trade

12. SADC EU EPA Review: Issues • Lack of resources (which affected NSA involvement*); • Devt assistance & trade articulation? One of SADC pillar not guarantee by the EC. • Lack of assessments carried out for some countries (e.g. sectoral analysis for Tanzania which was in the early stages in the SADC configuration - then switch to the EAC); • Sensitive list of products with BLNS & link with SA (SACU & TDCA); • The problem of the SADC trade structure – (production &) trade diversification – production & trade structure similarities →  tariff reductions?; • Impact on consumers and on govt revenues for countries in the region; • Incoherent RI / EPA configuration & questions about EPA displacing RI development related resources; In parallel, SADC slow lib pace & lack of readiness to the move towards a CET.

13. Comments on the general pattern & Implications thereof? • On the difference in “requirements” between the SADC region & Africa? • On the importance of NSAs for the forthcoming negotiations and long-term progress of the EPAs

14. SADC-EPA Configuration and Continental Africa: Evaluation of the EPA negotiation pace (% of all responses) Source: ECA (2006) & ECA (2007)

15. SADC-EPA Configuration and Continental Africa: Outstanding Issues (% of responses – multiple responses allowed) Source: ECA (2006) & ECA (2007)

16. SADC-EPA Configuration and Continental Africa: Coherence RI & EPA (%) Source: ECA (2006) & ECA (2007)

17. SADC-EPA Configuration and Continental Africa: Level of Reciprocity sought in the liberalisation (EPA) (% of responses) Source: ECA (2006) & ECA (2007)

18. SADC-EPA Configuration and Continental Africa: Preferred Transition Period (% of responses) Source: ECA (2006) & ECA (2007)