Presentation on theme: "1 Economic Partnership Agreements: A new approach to ACP-EU economic and trade cooperation Claude Maerten, European Commission Head of Unit TRADE C 2"— Presentation transcript:
1 Economic Partnership Agreements: A new approach to ACP-EU economic and trade cooperation Claude Maerten, European Commission Head of Unit TRADE C 2 (email@example.com) TRALAC’s Annual International Trade Law Conference 11 November 2004
3 EU Trade relations with ACP countries still the same since Lomé I (1975) A need for change Agreed in ACP-EU Cotonou Agreement WHY ?
4 EU Trade relations with ACP countries Since Lomé I (1975) Non reciprocal trade preferences All industrial goods enter the EU duty free 80% of agricultural products enter the EU duty free, and the remaining 20% benefit from preferences DID IT WORK ?
5 EU Trade relations with ACP countries Since Lomé I (1975) NO, few successful stories Fisheries, Agriculture, Commodities; Mauritius, Kenya, Cameroon, Ivory Coast, Zimbabwe; Same trade relationship during the last 30 years in a new world economic environment
6 EU Trade relations with ACP countries Since Lomé I (1975) Trade preferences had been eroded considerably (Kennedy Round, Tokyo round, Uruguay Round), and more to come with DDA In the 80s, margin of preference around 10% Today, lower than 4% in comparison with MFN, 2% in comparison with GS Not enough in the past Not a solution for the future
8 Lack of ACP export diversification 5 PRODUCTS = 60 % of total Exports (petroleum, diamonds, cocoa, fish, and wood products) AFRICAN COUNTRIES REPRESENT 60 % OF TOTAL ACP EXPORT Lome trade regime as a tool to promote exports failed
9 Lessons learnt n n Unilateral Preferences are Not Enough n n Trade relationship should go beyond market access n n Promote a synergy between aid and trade n n Mainstream trade in development support n n Need for domestic reforms n n Develop supply capacities n n WTO compatibility
11 Towards a new approach The Cornerstones of EPAs EU policies The Cotonou Agreement Development dimension Regional integration WTO compatibility
12 EU Policies Trade Policy Contribute to growth, employment and competitiveness in Europe Multilateral route the top priority; Complete the Doha round Deepen bilateral and regional trade relations; regional integration Development policy The 6 priorities CAP, Fisheries policy EPA as a link for EU-ACP partnership
13 The Cotonou Agreement Objectives Sustainable development Poverty eradication Integration into the global economy EPA is the trade chapter
14 Development dimension Monterey consensus sustainable, stable, transparent domestic policies in the South; Market Access granted by developed countries Mainstream trade policies in development strategies PRSP, Integrated Framework, EU development policy; CSP; NIP and RIP Trade and Aid Coherence; Complementarity; Coordination (PRSP, Integrated Framework, EU development policy; CSP; NIP and RIP) Supply capacities; private sector development, … Funding Market access and Rules Complementarity, parallelism between DDA, EPA
15 Regional integration Support ACP political choices (coherence, AU) First step towards gradual integration into world economy Enlarging markets for attracting investment Combined South-South-North cooperation (lock-in effects)
18 WTO Compatibility Lome/Cotonou waiver Price to pay against ACP interests Enabling clause Link between the level of RI and the level of our ambitions Article XXIV GATT Existing flexibility enough The debate Article V GATS Meaning of WTO +