CONCLUSION OF THE MINISTERIAL TASK FORCES ON EPAS AND THE CUSTOMS UNION - 02/08

The Ministerial Task Forces on Economic Partnership Agreements (EPAs) and the Customs Union (CU) met in Lusaka, Zambia from 10th to 11th February 2008 following its establishment by the Twenty Fourth Meeting of the COMESA Council of Ministers on 26th November 2007. The objective of the Meetings was to review progress and provide necessary political guidance on EPAs and the launch of the Customs Union.

1. ECONOMIC PARTNERSHIP AGREEMENTS

On Implementation and Review of the Interim Agreement

(i) mandated the Secretariat to prepare and circulate to Member States within a week terms of reference, rules of procedure and composition of the EPA Committee for review and implementation of the Interim Agreement;

(ii) called on the early convening of the EPA Committee to support the implementation of the interim agreement in order to avoid trade disruption. The Secretariat to write urgently to the EC requesting the operationalisation of commitments on sugar and tuna derogation in particular; and

(iii) agreed on the need to identify areas of concern in the interim agreement for improvement and/or negotiations with the EC in particular the EU interpretation of substantially all trade (SAT), transitional period, Most Favoured Nation (MFN) Clause and National treatment taking into account the outcome of the December 2007 EU-Africa Summit declaration on EPAs.

On Coordination between ESA, EAC, SADC, and AU

The Ministers agreed as follows:

(i) to expedite arrangements for convening a joint COMESA-EAC-SADC Meeting of Ministers responsible for EPAs to review, among other issues, the status of EPA negotiations and implication on regional integration and to enhance coordination of their positions in the negotiation of a comprehensive EPA; and

(ii) the need for all the regional negotiating groups: namely ESA, EAC and SADC to harmonise negotiating positions taking into relevant AU decisions on EPAs.

On Continuation of Negotiations

The Ministers agreed as follows:

(i) the need to focus on attaining a full EPA with the EU that addresses two key objectives relating to fostering the structural transformation of the ESA Economies and their diversification; and support to regional integration initiatives in the ESA region;

(ii) the need for ESA states to start preparing positions on the built in agenda as contained in Article 53 of the ESA –EC Interim Agreement ;

(iii) the need to intensify efforts to mobilise additional resources to support EPA implementation; and

(iv) to put on the above issues on the agenda of the joint ESA-EC Ministerial scheduled for 3 March 2008.

On Strengthening the ESA Structure

The Ministers agreed as follows:

a revised ESA negotiations structure comprising;

Ministers, ambassadors and senior officials to provide policy guidance on ESA negotiating positions;

(i) a team of technical negotiators chosen on the basis of merit to advance the negotiating positions with the EC on behalf of the group;

(ii) technical experts to initiate technical analysis and evolve negotiating positions; and

(iii) the Secretariat to facilitate technical analysis and consultations at all levels.

2. CUSTOMS UNION

(i) The Third Meeting of the Special Ministerial Task Force on the Customs Union was held in Lusaka, Zambia on the 11 February, 2008 to discuss progress and arrangements towards the launch of the COMESA Customs Union by 8th Dec. at an extra ordinary Summit of Heads of State and Government.

(ii) The objective of the Customs Union is to establish a single economic space leading to reduction of costs of doing business and improving competitiveness

(iii) The Ministers appreciated the underlying benefits of establishing a Customs Union particularly with respect to the creation of a larger market that would enhance competitiveness of producers in the COMESA region, induce economies of scale as well as enhanced welfare implications arising from reduced consumer prices.

(iv) The Ministers agreed on the work programme to be fulfilled for the launch of the Customs Union which includes alignment of National Tariff Schedules with the agreed COMESA Common External Tariff and finalization of the products to be accorded differential tariff treatment under the CET.

(v) The Ministers under scored the involvement of all stakeholders, particularly the private sector in the implementation of Customs Union work programme.

(vi) The Ministers reiterated the importance of the work of the Tripartite Task Force involving COMESA, EAC and SADC in harmonizing their trade regimes specifically with respect to the Common External Tariff and related trade policy areas as well as overlapping membership.

(vii) The Ministers recalled the Authority decision on sovereignty and policy space and flexibility for the implementation of the Customs Union, including the possibility to conclude trade agreements with third countries or trading blocs.