ESA, EC Close To Trade Deal
MEMBERS of Eastern and Southern Africa (ESA) and the European Commission met last month to iron out "contentious issues" as the two trading blocs inch closer to the conclusion of a comprehensive trade deal.
The European Union (EU) and the African Caribbean and Pacific Countries are negotiating for an Economic Partnership Agreement (EPA), in line with World Trade Organisation’s reciprocity rule.
ESA and the EC met in Brussels, Belgium last month where they discussed the contentious issues such as Most Favoured Nation clause, safeguards or export taxes.
Under the WTO agreements, countries cannot normally discriminate between their trading partners. Granting a member special favour (such as a lower customs duty rate for one of their products) has to be applied for all other WTO members. Both parties reiterated their concerns and ESA is working on their common position on these issues.
The 24-25 June meeting was a follow up to a technical one held in May in Lusaka, Zambia, where ESA presented the various trade provisions it would like to discuss in the framework of the full EPA.
The Brussels technical meeting witnessed discussions in trade related issues — Intellectual Property Rights, Competition, Sustainable Development, Investments and Government Procurement.
EC will come back with a joint text on investments and Intellectual Property Rights detailing both parties’ interests. Standardbusiness understands that ESA is finalising a position on competition which should serve as a basis for further talks.
On sustainable development, discussions will continue on the basis of the EC proposal.
The meeting agreed that more consultations and discussions were needed on government procurement but ESA gave a state of play of the situation in the bloc.
A separate working group on services was formed. It will analyse the proposals of the two trading blocs.
The EC and ESA agreed on joint texts on Sanitary and Phytosanitary services; Technical Barriers to Trade; and Trade Facilitation.
The next meeting will take place in September.
ACP countries used to enjoy unilateral trade preferences with the EU for almost three decades under the Lomé Conventions.
The Fourth Lomé Convention was replaced by the Cotonou Partnership Agreement in 2000, which extended these unilateral trade preferences up to the end of 2007.
But because most African countries were unable to conclude comprehensive EPAs they opted for interim agreements in order to avoid trade disruption that could result from failure to conclude WTO compatible arrangements by the deadline of 31 December, 2007.
To date the EU has concluded EPA talks with the Caribbean bloc while in Africa it has concluded interim EPAs with regional blocs and individual member countries.
