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EPAs and services in 2008 and beyond What challenges lie ahead for the ACP countries?

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Presentation on theme: "EPAs and services in 2008 and beyond What challenges lie ahead for the ACP countries?"— Presentation transcript:

1 EPAs and services in 2008 and beyond What challenges lie ahead for the ACP countries?

2 What offensive interests do ACP have in services? A number of CARIFORUM countries; a small number of African and Pacific countries – interests in Modes 1, and 2. Mode 3 – Few ACP companies can invest overseas; some want to attract investment (are services commitments necessary?) Mode 4 – Many countries express an interest; how strong is the development case? Development cooperation support – to deal with supply-side constraints and improve competitiveness

3 What defensive interests do ACP have in services? Do we know?; limited analysis of these in the regions (especially vis a vis the EU); services trade complex, technical demands; negotiations multi-dimensional Emerging regional markets and cooperation; regional programmes developing + prioritise regional opening (e.g. COMESA) Mode 3 potentially the greatest risk, especially when includes deep commitments on investment (ECs model text states Mode 3 to also include investment outside services)

4 What progress in EPAs services negotiations? Technical preparations Formal Offers?Main issues of contention Agreement on way forward? Central AfricaLimited; EC drew up text Yes(end-2007); EC rejected, limited market access; re- submit in March 2008 CEMAC: EC Mode offer; MFn clause EC: Limited CEMAC market access offer Full EPA by July 2008; negotiations ongoing Eastern and Southern Africa Limited; 2 technical sessions to date; COMESA framework still being discussed NoServices still formally to be discussed Agree to negotiate further (no time frame) PacificSubstantial; national and regional offers developed Yes (end 2007); rejected by EC as Mode 4 request too substantial Pacific: EC Mode 4 offer EC: Pacific mode 4 request No appetite for further negotiations at moment SADCLimitedNoSADC: Want regional focus; no lib to EC EC; no dev assistance w/o lib Agree to lib 1 sector by end-2008; agree full terms by end- 2010 West AfricaSubstantial; priorities and positions identified NoWA: EC terms on Mode 4 and invest EC: No social serv Agree services terms by end-2008 (IC and Gh text?)

5 What parameters set by GATT, GATS and CPA? GATT (Article XXIV) Only trade in goods obligatory GATS (Article V) If negotiating trade in services: substantial sect oral coverage (sectors, modes, volumes) no Modes to be excluded remove substantially all discrimination (nat treatment) SDT allowed in all factors BUT no understanding or agreement on interpretation CPA (Title II, chapter 4, article 41:5) EPA to extend cooperation to services

6 What precedents set by other EU FTAs? EU-Mexico (1997) Agree to negotiate full services terms by 2004 (to be implemented by 2011) BUT option to delay negotiations until 1 year after GATS negotiations are completed Due to delay in GATS limited discussions to date EU-South Africa (1999) Reaffirmed GATS commitments Agree to begin discussions on services within 5 years Substantial cooperation development assistance (980m euros 2007-13) and cooperation. Due to delay in GATS limited discussions to date EU-Chile (2002) Agree to full services terms Joint committee to review implementation every 3 years. Mode 4 to be reviewed within 2 years EU-CARIFORUM (2007) Full details only now emerging Is the temperature changing? SEE NEXT SLIDE

7 BUT, where is EC now??? Global Europe Strategy (2006) – Identifies services market opening as priority in FTAs; move from negotiating for development and geopolitical reasons. EC-CARIFORUM EPA (2007) – CARIFORUM: committed 65%-75% of sectors (DR 90%); MFN clause; standstill clause

8 More EC-CARIFORUM CARIFORUM - Provided access in Modes 1 + 3; notified substantial limitations in Modes 3 + 4; EC - Provided new opportunities in Mode 4 (Ind Prof, Prof; Entertainment); limitations in Mode 1 (disappointed CAR) Cooperation - Agreed in areas such as tourism (including on anti competitive practices); standards, environment (is language committal enough?)

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