ECONOMIC PARTNERSHIP AGREEMENTS NEGOTIATING OBJECTIVES AND STRATEGIES OF AND OUTCOMES FOR SUB-SAHARAN AFRICAN COUNTRIES Ambassador Nathan Irumba Executive Director SEATINI

BACKGROUND TO THE NEGOTIATIONS Lome conventions Essentially offering Non Reciprocal preference market access to ACP states. Cotonou – Replaced Lome Accord Arrangements signed in June 2000 lasting for twenty years up to The Banana protocol of Lome 5 was successfully challenged at WTO and found to be WTO inconsistent. In 2001 at Doha Ministerial Meeting waiver was granted for Cotonou trade arrangements to continue until 2007 EU proposed negotiations of WTO compatible EPAs to replace the existing trading arrangements. EU Global strategy for FTAs Need to examine EPAs in context of EU global strategy.

BACKGROUND TO THE NEGOTIATIONS Cont… EUs underlying rationale for FTAs spelt out as far back in 1995 include the following: FTAs are economically beneficial, especially where they help EU to bolster its presence in the faster growing economies of the world, which is our overriding interest. This direct economic justification has also been supplemented by strategic considerations regarding the need to reinforce our presence in particular markets and to attenuate the potential threat of others establishing privileged relations with countries which are economically important to us. The level of tariffs in many of our partner countries, particularly the newly industrialized and developing countries remains high. Tariff average of 30-40% are not uncommon. It therefore, can seem obviously in our interest to persuade such countries to enter into FTAs with the Union, enabling us to encourage both tariff elimination and deregulation. The unions exports increasing include services as well as industrial goods and are, in any case often hindered more by non barriers, whether intentional or not than by tariff rates. Regulatory obstacles, subsidies, customs procedures etc. can be crucial in determining the ease with which we can trade with our partners. Equally important, the investment policies of the latter can prevent EU firms from establishing a physical presence in third country markets through foreign direct investment thereby depriving the union of trade gains which often accompany FDI (source; communications from commission, Brussels, SEC(95)322 final)

OBJECTIVES STATED OBJECTIVES AS PER COTONOU ARE: To ensure sustainable development of ACP countries To endure their smooth and gradual integration into the global economy The eradication of poverty PRINCIPLES OF EPAS The First and overarching principle is sustainable development and poverty eradication Article.34 Reciprocity as EPAs are FTAs between the EU and regions of the ACP countries. Regionalism – EPAs are being built on the basis of regional integration blocs and we must support them. The principle of asymmetry between EU and ACP countries WTO compatibility EUs APPROACH TO THE NEGOTIATIONS: EU as seasoned negotiators have advanced EPAs as instruments for development of ACP countries to be achieved through development cooperation, regional integration, access to EU markets and through rules prohibiting discrimination against EU entities especially in area of services, investment, government procurement and competition.

OBJECTIVES Cont… ACP countries locking in their reforms under SAPs in their market access offers SSA APPROACH TO THE NEGOTIATIONS African negotiators have been to focus on developmental aspects including inter alia: Increased funding and assistance to address supply side constraints Increased and assured market access which is on better legal basis and is more predictable. Arrangements that will support regional integration efforts. Measures that safeguard their policy space for development

STRATEGIES First Phase of the Negotiations was at Pan ACP level intended to have abroad framework agreement between ACP and EU on issues of common concern that will inform negotiations in phase two at the regional level this fizzled out. The EU was not in favour of Phase one negotiations and preferred to move to phase two. The AU attempted to have a common position which the sub- regional groups should bear in mind to keep Africa’s integration efforts.

Outcomes of the Negotiations.

CONCLUSION