The EU-ACP Economic Partnership Agreements

The Sustainability Impact Assessment of the European Union-Africa,Caribbean, Pacific (EU-ACP) Economic Partnership Agreements (EPAs) has yielded several conclusions and recommendations for negotiators and other stakeholders that can help ensure that the EPAs promote development that supports economic, social and environmental sustainability.

 

Economic Partnership Agreements (EPA) are being negotiated between the European Union and 77 African, Caribbean and Pacific countries within the framework of the Cotonou agreement.

The Economic Partnership Agreements (EPAs) are being negotiated between the European Union and the African, Caribbean and Pacific (ACP) group of countries within the framework of the Cotonou Agreement. The 77 countries that make up the ACP – developing countries, least-developed countries (LDCs), landlocked countries and small island developing states – face special challenges related to development. Most ACP countries are relatively weak in terms of their trading positions with the EU and the rest of the world. There is a high level of dependence on single commodities (often where international prices are falling) and low levels of regional integration, which aggravates supply-side constraints.


Africa Caribbean
Africa Caribbean
   
Europe Pacific

The EPAs will replace the Lomé Conventions’ trade preferences.

The EPAs are being negotiated within the framework of the Cotonou Agreement. The Cotonou Agreement replaced Lomé IV as a temporary measure in 2000 and includes similar non-reciprocal preferential access to the EU market for certain ACP agricultural and other goods, through to the end of 2007. Trade provisions in the Cotonou Agreement have been sanctioned by a waiver granted by the World Trade Organisation (WTO).

EPAs will cover “ substantially all trade”, be WTO compatible, and will require a degree of asymmetry.

The EPAs will be reciprocal, cover “substantially all trade” and will be WTO-compatible. They will take into account the level of development of the Parties and the particular economic, social and environmental constraints the ACP countries face in terms of their capacity to adjust to the new trading arrangements. This is required by Article 37(7) of the Cotonou Agreement which provides that, “on the Community side, trade liberalisation shall build on the acquis and shall aim at improving current market access” for ACP countries. The negotiations will be flexible in establishing the duration of a sufficient transitional period and in the final product coverage (taking into account sensitive sectors). This requires a degree of asymmetry in terms of the timetable and extent of tariff dismantling which, in turn, requires careful consideration of what constitutes “substantially all trade”.

Negotiations should be completed in 2007.

The EPA negotiations began in September 2002 and should be completed by 31 December 2007. The EPAs will be implemented between 2008 and 2020.

The EPAs will have a strong development component.

The EPAs are intended to have a strong development component and several of the principles governing the negotiations refer to the role that the EPAs can play in promoting sustainability. Because the EPAs are situated in the broader context of the Cotonou Agreement they are perhaps better suited than many trading arrangements to address sustainability challenges. The central objectives of ACP-EU co-operation as set out in the Cotonou Agreement are: “poverty reduction and ultimately its eradication; sustainable development; and, progressive integration of the ACP countries into the world economy” (Article 19).

How can ACP countries promote economic growth and sustainable development through trade?

The EPAs present the ACP countries with new opportunities to trade, improve investment and capital flows, and generate advances in technology (including information technology) to promote economic growth, development and raise the living standards of the people in the ACP regions. Whether or not these potential gains can be realised depends on, inter alia, improving competitiveness, productivity, horizontal diversification, vertical integration, the delivery of basic services, and improved infrastructure (such as transportation, communications and financial services).

| Disclamer | Privacy | ^ Top of page ^