Extending cooperation
EPAs: Trade for regional growth and prosperity
The six regions of the ACP group: Central Africa, East Africa, Southern Africa, West Africa, the Caribbean and the Pacific, were expected to conclude Economic Partnership Agreements (EPAs) with the EU by 31 December 2007. Tailor-made for each region, the EPA’s free trade terms are to replace the existing waiver for Cotonou’s trade preferences in the World Trade Organisation (WTO), which expired at midnight on 31 December 2007.
Market in Cotonou.
© EC / G. Barton
EU officials stress the innovative nature of these regional accords which go further than opening access for goods and products. On the table are also trade in services, public procurement and investment, and changes to the rules of origin to add value to ACP merchandise.
EU aid to underpin EPAs is an important chapter in the agreements. In addition to the €22,682 billion from the 10th European Development Fund (EDF) for ACP states over five years (2008-2013), the European Commission has agreed to an additional €1 billion to help trade in developing countries until 2010 and a further €1 billion from the EU’s 27 Member States, of which half has been earmarked for ACP nations.
EU officials say that EPAs will fast-forward regional integration in each ACP, which will lead to an increased foothold on the global economy and eventually bring greater growth and prosperity.
The centrepiece of the agreements is open access to one another’s markets. Under WTO rules, these agreements must cover "substantially all trade" although the degree of market access is open to interpretation. In April 2007 the EU put its offer on the table to open its market to all imports from ACP nations from 1 January 2008, apart from sugar and rice. Due to the sensitive nature of these products in the global marketplace, the EU proposed lengthier liberalisation timetables for both commodities.
NGOs in particular have voiced reservations about harmful competition for domestic producers and some ACP governments fear import tariff revenue losses in signing up for an EPA. At the end of December, only one regional group, the 15-member Cariforum*, had initialled a fully-fledged EPA, including goods and other aspects, to assist greater movement of trade within the region and between regions, such as trade in services, investment, government procurement and sustainable development. Several sub-regions within the six ACP regions and individual countries had submitted offers to open the substantial part of their markets to EU goods, paving the way for ‘goods only’ EPAs to be signed by the end of 2007. These ‘interim agreements’ will give more time to discuss the EPAs’ trade-related content, which will lead to finalising fully-fledged agreements with each by the end of 2008.
* The 15 members of the Caribbean Forum of ACP states (Cariforum) are: Antigua & Barbuda, the Bahamas, Barbados, Belize, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, St Kitts & Nevis, St Lucia, St Vincent & the Grenadines, Suriname, and Trinidad and Tobago.
