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Trade and Development dimension:West Africa – European Union
Economic Partnership Agreement (EPA)
4th Regional Meeting of the ACP – EU Joint Parliamentary Assembly: West Africa
Ouagadougou, 28 – 30 October 2009
ContentIntroductionNegotiation: Structures; Phases; ProcessEPA text
OverviewKey Issues
EPA Development Programme (EPADP) Formulation processOverview of the EPADP Operational plans and its financing
Conclusions / Recommendations
IntroductionHistory
Yaoundé, Lomé I-IV, Cotonou
WA- EU EPAWaiver: End of 2007 WTO Article XXIV Aim: Foster smooth and gradual integration of ACP States into world economy6 RECs: West Africa =16 countries (ECOWAS +Mauritania)
ECOWAS
WAEMU
Guinea
Gambia
Ghana
Nigeria
Mauritania
Liberia
Sierra Leone
Benin Burkina Faso
Côte d’Ivoire Guinea Bissau
Mali Niger
Senegal Togo
WA EPA region
Cape Verde
Negotiation: StructureNegotiations held at three (3) levels (with representation from Civil Society Organisations):
Chief NegotiatorsSenior officialsExperts
ECOWAS Council of Ministers
ECOWAS Council of Ministers
Regional Preparatory Task Force
Regional Preparatory Task Force
Group of AmbassadorsGroup of Ambassadors
Contact GroupContact Group
Technical Support Committee
Technical Support Committee
Ministerial Facilitation TeamMinisterial Facilitation Team Monitoring Ministerial
Committee
Monitoring Ministerial Committee
Regional Negotiation Committee
Regional Negotiation Committee
Thematic Groups and ad-hoc Committees
Thematic Groups and ad-hoc Committees National Negotiation
Committees
National Negotiation Committees
Negotiation: Process (1)
Cotonou Partnership Agreement (June 2000)Decision A/Dec 11/12/01: Mandate given by Heads of State/Government for ECOWAS (+ WAEMU) to negotiate for region (Dec 2001)All ACP phase (Sept 2002)Regional REC Phase (Oct 2003)Roadmap (Aug 2004)Phases I (Sept 2005); II (Oct 2006); III(2007)
egotiation: Process (2)Status as at the expiration of Dec 2007 deadline
Interim Agreements: Cote d’Ivoire (signed); Ghana (initialled)Generalized System of Preferences (GSP): NigeriaEverything But Arms (EBA): 12 LDCs + Cape Verde (transitional period)
Regional meetingsEPA Ministerial Monitoring Committee (MMC)Numerous thematic meetings/workshops
Negotiation meetings
egotiation: Process (3)ief Negotiators meeting: June 2009To take stock of progress with regard to the negotiations, and to provide political guidance for their conclusionParties expressed their satisfaction at progress made in he conduct of the negotiationsDecided to adopt a two-phase as follow:
An intensive phase of negotiation with a view to reaching agreement by October 2009 on a regional EPA covering trade in goods, EPA-related development cooperation and certain trade-related issues;a phase initiated not later than January 2010 with a view to broaden the negotiations in order to cover the remaining topics
hi h ill l t th i l EPA
PA texterviewDivided into eight sections and its annexes, bringing together provisions relating to both trade and the developmental dimensionsDetails the different commitments by each partySeeks to situate the EPA within the development dynamic of he West Africa region, highlighting the need
for special and preferential treatment for West Africa on all trade issuesto strengthen the regional integration process in West Africa, and for specific support programmes for the region within those sectors which contribute to improving the competitiveness of the West African economies
Priority programmes necessary for the improvement of the competitiveness of the region are contained in the EPA
PA texty IssuesEC Internal support measures
In 2005 WTO Hong Kong meeting, developed countries had undertaken to substantially reduce support measures that negatively affect the competitiveness of developing countries
Treatment of Community Levy and Solidarity LevyAutonomous source of financing regional integration. Should be excluded from provisions relating to the treatment of customs duties and therefore scope of the tariff dismantlement
Sectoral policyReserve the right of recourse to certain tariff incentive measures in order to support certain regional sectoral policies
PA text y Issues (cont’)Most Favoured Nation clause
Removes WA’s margin of manoeuvre in all future trade agreements; Automatically granting the EC further benefits without going through the negotiation processWTO does not make such a clause mandatory for free trade agreements.
Non-Execution ClauseWA is opposed to its inclusion. Political aspects of the ACP/EU partnership are governed by the relevant provisions of the Cotonou Agreement, and not the EPA
Market Access (GATT Article XXIV)S d lib li ti i d
PA text y Issues (cont’)Approach to Trade in services
Clause setting up sectoral negotiations, spread over a 3-year period, to identify special commitments for the WA liberalisation process
Treatment of Competition and InvestmentCooperation
Disputes SettlementEC should refrain from applying provision for settlement of disputes for a specified period of time
Rules of OriginSpecial derogation for West Africa on working or processing,
PA text y Issues (cont’)Modalities for financing the operational costs of the organs
Organs created for the implementation should be defined in a protocol
Modalities for the financing of EPADP & other support measuresEPA support is placed within framework of cooperation instruments currently provided by Cotonou Agreement. Therefore EC must undertake to take responsibility for financing support measure for the entire duration of EPAEPADP must be made the subject of a binding protocol annexed to the agreement
Link between trade liberalisation & support to the EPACoherence between implementation rate for its commitments & EC payment for cost of support programmes in order to increase
PA Development Programmemulation process
EPADP was initiated by WA region and offers a coherent ramework for the implementation of priority activities related o the development dimension of the EPAEPADP is coherent with axes identified for the ECOWAS Community Development Programme, UEMOA Regional Economic Programme, WTO Aid for Trade initiative, and Regional, National, and Sectoral development strategiesFormulation of EPADP and operational plans based on a participatory approach involving regional stakeholder, with exchanges with the European partydentification of criteria to select EPADP activities
Diversification nd increase of production capacities
A competitive and harmoniously integrated regional economy integrated into the global economy which stimulates growth and
sustainable development
Development of intra-regional
and facilitation of access to
Improving regional and
national trade related
1. ECOWAS of States to an ECOWAS of people; 2. A borderless region;
3. A space where the population can live in dignity and peace within the framework of law and good governance;
4. A region well integrated into the global community
E
Adjustment costs and other
trade related needs
Implementation and monitoring & evaluation of the
EPA
Benefit from the opportunities of the EPA and mitigate against potential negative effects
E
PA Development Programme
PA Development Programmeration
EPADP is in keeping with a long-term vision of he development objective expected from the
EPAFor operational purposes, EPADP is to be mplemented in five years stages sequencesMatrix of priority activities for the first five years phase has been elaborated in the form of national and regional operational plans
PA Development Programmetional Operational plansAnalysis based on the 16 national operational plans eceived from West African States (ECOWAS +
Mauritania)Varying expression of trade related needs under the five axes of the EPA Development ProgrammeCoherence sought through linkages to national development strategies and budgetary instrumentsWork in progress to ensure coherence and prioritize activities based on selected criteria
PA Development Programme
Axes 120%
Axes 214%
Axes 364%
Axes 42%
Axes 5>1%onal Operational Plans -
ggregated per axeree axes represent ~98% total cost
ominated by Trade-related frastructure (Axe 3)ss emphasis on
djustment costs (Axe 4) d Implementation/
onitoring of EPA (Axe 5)
PA Development Programmeancing modalities for EPADP
EC financing in the framework of the Cotonou Agreement, in particular the EDF; financial instruments of EU general budget; other financial mechanisms after he expiration of the Cotonou AgreementBilateral donor programmes of EU member StatesEU-wide institutions and initiativesFacilitation of support from other donorsCommitment by WA member States
PA Development Programmevelopment dimension in the EPA text : WA positionNegotiations in progress to ensure legal security in the text of EPA or the implementation of EPADP, mainly on the financing and mplementation modalities
EPADP Protocol should be an integral part of the Agreement
Find synergy between rhythm of implementation of WA commitments and support received to improve the competitiveness of the WA region
Response:EU detailed response to the EPADP is being prepared
Expected products by end 2009:Political statement detailing the EU commitment to support the EPADP
plementation Activities and ActorsLarge scope of the thematic areas covered by the EPADPImplementation actors: Regional Organizations, specialized agencies, development institutions, States, non-state actors, implementing agenciesActivities entrusted to the appropriate institution, most qualified and closest to the action and can achieve results stitutional implementation mechanismSteering CommitteesImplementation, coordination and monitoring CommitteeTechnical support unitImplementing bodies/ agencies
PA Development Programme
onclusions (1)Due to the fragile nature of West African economies and he current global economic climate, the EPA appears as both a challenge and an opportunityEPA must contribute towards :
Deepening Regional integrationGradually integrating the region into global economy
Significant progress has been made in negotiations, however key divergences, common to regions yet to conclude negotiations, still remainEPA Development programme seeks to:
maximizing opportunities offered by the agreement, andi i i i i l i k i d i h lib li i
onclusions (2)Significant effort made by WA to elaborate EPADP framework and the national operational plans, which provides adequate nformation on relevant and priority activities, to be undertaken in the EPA supporting framework. Needs mainly centred around trade-related infrastructure
West Africa committed to mainstreaming identified activities nto budget instruments. However, further work being undertaken to ensure coherence and prioritisation requires an ndication of the financial level of resources to be provided byhe European party
EC commitment remains at a political level with a lack of visibility on the level of financial support to implementation of he first 5 years of the EPADP
onclusions (3)Activities identified within the EPADP exceed resources available (e.g. under the 10th EDF National/Regional ndicative Programmes) therefore requiring additional unding
The presentation of a financing plan for the EPADP is necessary to appreciate the contribution towards making he EPA a veritable tool for development, and constitutes a prerequisite for the signature of the EPA
WA reiterates its commitment to concluding a development-friendly Agreement which is centered around regional integration
ecommendations (1)PA must allow for special and preferential treatment for
West Africa on all trade issues and strengthen the regional tegration process in West Africa
all for the commitment of all EU member States and other onors in providing support to EPADP as well as extending eir assistance to more West African States
wnership by, and mobilisation of, all actors needed for the mplementation of EPADP: mainly member States, egional Integration Organisations, donors etc.
creased absorption capacity and improved donor oordination is necessary to optimise the level of
f ff
ecommendations (2)Measures must be taken to ensure entry into force of nterim Agreement does not disrupt regional integration process
tonou Partnership Agreement: Articles 6 & 17Stronger involvement and participation for Parliamentarians
Involvement in national policy development and implementationParliamentary committees to monitor development in negotiationsFamiliarisation with domestic processes to provide timely input
ncreased Representational, Oversight, Legislative roles
Thank you for your attention -----
Merci de votre attention-----
Obrigado
r more information please contact:B. Daramymmissioner for Trade, Customs, Industry, Mines and Free Movement,OWAS Commission, 101 Yakubu Gowon Crescent,