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State of Play of the EAC-EU EPA Negotiations

State of Play of the EAC-EU EPA Negotiations. By Prof. Francis Matambalya University of Dar es Salaam fmatambalya@yahoo.com. Content. Background to EAC EPA Configuration. Essence of EAC EPA Configuration. Viability of EAC EPA Configuration. Challenges. State of Play of the NEG.

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State of Play of the EAC-EU EPA Negotiations

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  1. State of Play of the EAC-EU EPA Negotiations By Prof. Francis Matambalya University of Dar es Salaam fmatambalya@yahoo.com F. Matambalya / Cotton Marketing

  2. Content • Background to EAC EPA Configuration. • Essence of EAC EPA Configuration. • Viability of EAC EPA Configuration. • Challenges. • State of Play of the NEG. • Conclusion. F. Matambalya / Cotton Marketing

  3. 1. BACKGROUND TO EAC EPA CONFIGURATION F. Matambalya / Cotton Marketing

  4. 1.1. Origin of the Idea for EAC Configuration • Origin of the idea enshrined in the Cotonou Agreement itself: • Resolve to promote regional integration through EPAs • Flexibility allowed regarding configuration • EAC covered by: • EU-commissioned (1998) • ACP-commissioned EPA impact studies (1999/2000). F. Matambalya / Cotton Marketing

  5. 1.1. Origin of the Idea for EAC Configuration – conc. • GLR Kampala Summit of April 2002: • Attended by Presidents Mkapa (Tanzania), Arap Moi (Kenya), Museveni (Uganda), Buyoya (Burundi) • Rwanda represented by Foreign Minister Charles Murigande • DRC represented by a high level delegation • Directed that EAC States shall negotiate EPA as a bloc. • Directed that EAC States shall negotiate EPA as a bloc • Also invited to join: • Burundi • DR Congo • Rwanda F. Matambalya / Cotton Marketing

  6. 1.2. ESA EPA and SADC EPA Configurations • Contrary to the Kampala summit decision: • Burundi, Kenya, Rwanda and Uganda configured themselves to negotiate EPA in the ESA group. • Prior to this decision, Tanzania was not consulted by its EAC partners. • Tanzania decided to negotiate EPA in the SADC EPA group. F. Matambalya / Cotton Marketing

  7. 2. ESSENCE OF THE EAC EPA CONFIGURATION F. Matambalya / Cotton Marketing

  8. 2.1. Aspirations for Deeper Integration F. Matambalya / Cotton Marketing

  9. 2.2. Popular Support of the idea in the region • Academia. • Corporate East Africa. • Political East Africa. • Civil society. F. Matambalya / Cotton Marketing

  10. 3. VIABILITY OF THE EAC EAC EPA CONFIGURATION F. Matambalya / Cotton Marketing

  11. 3.1. Consistent with Cotonou Agreement • Legally, consistent with the Cotonou Agreement • Articles 35.2, 37.5 and 37.7: • EPA can be negotiated between group of ACP states and the EU • EPA can be negotiated between an individual ACP state and the EU • An ACP state can opt for an arrangement other than EPA F. Matambalya / Cotton Marketing

  12. 3.2. Critical Economic Mass for Strategic Partnership with the EU • EAC forms a critical economic mass for strategic partnership with the EU (cf. tables 1, 2, 3) • Some of the economic and/or political entities NEG with the EU are much smaller than • EAC1 (i.e., Burundi, Kenya, Rwanda, Tanzania and Uganda). • EAC2 (without Kenya). F. Matambalya / Cotton Marketing

  13. 3.2. Critical Economic Mass for Strategic Partnership with the EU – contd. F. Matambalya / Cotton Marketing

  14. 3.2. Critical Economic Mass for Strategic Partnership with the EU – contd. F. Matambalya / Cotton Marketing

  15. 3.2. Critical Economic Mass for Strategic Partnership with the EU – conc. F. Matambalya / Cotton Marketing

  16. 4. CHALLENGES TO EAC EPA CONFIGURATION F. Matambalya / Cotton Marketing

  17. 4.1. Complicated Approach to NEG • Tanzania continues to NEG in the SADC EPA configuration • The remaining EAC Countries continue to NEG in the ESA configuration • But: The 5 EAC states will sign a single EAC-EU EPA! F. Matambalya / Cotton Marketing

  18. 4.2. Lukewarm Commitment By Kenya? • Sends junior officers to NEG with the EU • Believed to divided: • Wants deeper EAC integration • Prefers ESA EPA configuration to govern its relations with the EU • Can the same be said about Burundi and Rwanda (also send junior officials to NEG with the EU) F. Matambalya / Cotton Marketing

  19. 5. STATE OF PLAY OF THE NEGOTIATIONS F. Matambalya / Cotton Marketing

  20. 5.1. Latest NEG Round – conc. • Last NEG at Ministerial level took place in Brussels on 14th November: • EAC represented by: • Burundi: • Kenya: Minister Plenipotentiary, Brussels Mission • Rwanda: Minister Plenipotentiary, Brussels Mission • Tanzania: Minister for EAC Co-operation • Uganda: Deputy PM and Minister of EAC Co-operation • EU represented by: • Commissioner for Trade • Commissioner for Development: F. Matambalya / Cotton Marketing

  21. 5.2. Main Agreements • As a CU, the EAC will engage in EPA process as a bloc and will conclude the interim EPA Agreement as a separate configuration. • EAC and EU to work towards a Framework Agreement for the time remaining until the expiry of the Cotonou Agreement on 31st December 2007. • Framework Agreement to be applied provisionally from 1st January 2008. • EAC and EU will complete a comprehensive Agreement thereafter. F. Matambalya / Cotton Marketing

  22. 5.3. Elements of the Framework Agreement • Market Access. • Development Co-operation. • Fisheries. • Built in agenda (specifying mechanism for continuation of NEG beyond 31st December 2007). F. Matambalya / Cotton Marketing

  23. 5.4. Market Access • DFQF MA by the EU to the EAC States for all products, except: • Sugar. • Rice. • 81 percent of EAC imports from the EU to benefit for liberalisation phased over a transition period of 25 years. • Sensitive list of AG and industrial products for EAC states. • EAC’s MA offer to the EU to be refined further. F. Matambalya / Cotton Marketing

  24. 5.5. Development Co-operation • EAC and EU to conclude a text on how to handle development issues. • Such text to take into account: • Text “already agreed by the EU with configurations in the region” (ESA, EPA) • Existing Interregional Co-ordination committee (IRCC) • EU to finance necessary adjustments. F. Matambalya / Cotton Marketing

  25. 5.6. Built-in Agenda / Way Forward • Technical experts to finalise the framework agreement. • Further work to be undertaken to finalise the EAC MA offer to the EU • Initialling of the framework agreement not later than 23rd November • Continuation with the NEG as per the framework agreement. F. Matambalya / Cotton Marketing

  26. 6. CONCLUSION F. Matambalya / Cotton Marketing

  27. Several Issues • Success of the EAC integration will be judged by how the handle the EPA issue. • To be successful, the EAC States need to consolidate their solidarity and commitment to the EAC. F. Matambalya / Cotton Marketing

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