Transcript (EPAs), Francis Matambalya

State of Play of the EAC-EU
EPA Negotiations
By
Prof. Francis Matambalya
University of Dar es Salaam
[email protected]
F. Matambalya / Cotton Marketing
1
Content
•
•
•
•
•
•
Background to EAC EPA Configuration.
Essence of EAC EPA Configuration.
Viability of EAC EPA Configuration.
Challenges.
State of Play of the NEG.
Conclusion.
F. Matambalya / Cotton Marketing
2
1. BACKGROUND TO EAC EPA CONFIGURATION
F. Matambalya / Cotton Marketing
3
1.1. Origin of the Idea for EAC Configuration
• Origin of the idea enshrined in the Cotonou
Agreement itself:
Resolve to promote regional integration through EPAs
Flexibility allowed regarding configuration
• EAC covered by:
EU-commissioned (1998)
ACP-commissioned EPA impact studies (1999/2000).
F. Matambalya / Cotton Marketing
4
1.1. Origin of the Idea for EAC Configuration – conc.
• GLR Kampala Summit of April 2002:
Attended by Presidents Mkapa (Tanzania), Arap Moi
(Kenya), Museveni (Uganda), Buyoya (Burundi)
Rwanda represented by Foreign Minister Charles Murigande
DRC represented by a high level delegation
Directed that EAC States shall negotiate EPA as a bloc.
• Directed that EAC States shall negotiate EPA as a bloc
• Also invited to join:
Burundi
DR Congo
Rwanda
F. Matambalya / Cotton Marketing
5
1.2. ESA EPA and SADC EPA Configurations
• Contrary to the Kampala summit decision:
Burundi, Kenya, Rwanda and Uganda
configured themselves to negotiate EPA in the
ESA group.
Prior to this decision, Tanzania was not
consulted by its EAC partners.
Tanzania decided to negotiate EPA in the
SADC EPA group.
F. Matambalya / Cotton Marketing
6
2. ESSENCE OF THE EAC EPA CONFIGURATION
F. Matambalya / Cotton Marketing
7
2.1. Aspirations for Deeper Integration
F. Matambalya / Cotton Marketing
8
2.2. Popular Support of the idea in the region
• Academia.
• Corporate East Africa.
• Political East Africa.
• Civil society.
F. Matambalya / Cotton Marketing
9
3. VIABILITY OF THE EAC EAC EPA
CONFIGURATION
F. Matambalya / Cotton Marketing
10
3.1. Consistent with Cotonou Agreement
• Legally, consistent with the Cotonou Agreement
• Articles 35.2, 37.5 and 37.7:
EPA can be negotiated between group of ACP
states and the EU
EPA can be negotiated between an individual ACP
state and the EU
An ACP state can opt for an arrangement other
than EPA
F. Matambalya / Cotton Marketing
11
3.2. Critical Economic Mass for
Strategic Partnership with the EU
• EAC forms a critical economic mass for strategic
partnership with the EU (cf. tables 1, 2, 3)
• Some of the economic and/or political entities
NEG with the EU are much smaller than
EAC1 (i.e., Burundi, Kenya, Rwanda,
Tanzania and Uganda).
EAC2 (without Kenya).
F. Matambalya / Cotton Marketing
12
3.2. Critical Economic Mass for Strategic
Partnership with the EU – contd.
F. Matambalya / Cotton Marketing
13
3.2. Critical Economic Mass for Strategic
Partnership with the EU – contd.
F. Matambalya / Cotton Marketing
14
3.2. Critical Economic Mass for Strategic
Partnership with the EU – conc.
F. Matambalya / Cotton Marketing
15
4. CHALLENGES TO EAC EPA CONFIGURATION
F. Matambalya / Cotton Marketing
16
4.1. Complicated Approach to NEG
• Tanzania continues to NEG in the SADC EPA
configuration
• The remaining EAC Countries continue to NEG in the
ESA configuration
• But: The 5 EAC states will sign a single EAC-EU EPA!
F. Matambalya / Cotton Marketing
17
4.2. Lukewarm Commitment By Kenya?
• Sends junior officers to NEG with the EU
• Believed to divided:
Wants deeper EAC integration
Prefers ESA EPA configuration to govern its
relations with the EU
• Can the same be said about Burundi and Rwanda
(also send junior officials to NEG with the EU)
F. Matambalya / Cotton Marketing
18
5. STATE OF PLAY OF THE NEGOTIATIONS
F. Matambalya / Cotton Marketing
19
5.1. Latest NEG Round – conc.
• Last NEG at Ministerial level took place in Brussels on
14th November:
• EAC represented by:
Burundi:
Kenya: Minister Plenipotentiary, Brussels Mission
Rwanda: Minister Plenipotentiary, Brussels Mission
Tanzania: Minister for EAC Co-operation
Uganda: Deputy PM and Minister of EAC Co-operation
• EU represented by:
Commissioner for Trade
Commissioner for Development:
F. Matambalya / Cotton Marketing
20
5.2. Main Agreements
• As a CU, the EAC will engage in EPA process as a bloc
and will conclude the interim EPA Agreement as a
separate configuration.
• EAC and EU to work towards a Framework
Agreement for the time remaining until the expiry of
the Cotonou Agreement on 31st December 2007.
• Framework Agreement to be applied provisionally
from 1st January 2008.
• EAC and EU will complete a comprehensive
Agreement thereafter.
F. Matambalya / Cotton Marketing
21
5.3. Elements of the Framework Agreement
•
•
•
•
Market Access.
Development Co-operation.
Fisheries.
Built in agenda (specifying mechanism for
continuation of NEG beyond 31st December
2007).
F. Matambalya / Cotton Marketing
22
5.4. Market Access
• DFQF MA by the EU to the EAC States for all
products, except:
Sugar.
Rice.
• 81 percent of EAC imports from the EU to
benefit for liberalisation phased over a
transition period of 25 years.
• Sensitive list of AG and industrial products for
EAC states.
• EAC’s MA offer to the EU to be refined further.
F. Matambalya / Cotton Marketing
23
5.5. Development Co-operation
• EAC and EU to conclude a text on how to
handle development issues.
• Such text to take into account:
Text “already agreed by the EU with
configurations in the region” (ESA, EPA)
Existing Interregional Co-ordination committee (IRCC)
• EU to finance necessary adjustments.
F. Matambalya / Cotton Marketing
24
5.6. Built-in Agenda / Way Forward
• Technical experts to finalise the framework
agreement.
• Further work to be undertaken to finalise the
EAC MA offer to the EU
• Initialling of the framework agreement not
later than 23rd November
• Continuation with the NEG as per the
framework agreement.
F. Matambalya / Cotton Marketing
25
6. CONCLUSION
F. Matambalya / Cotton Marketing
26
Several Issues
• Success of the EAC integration will be judged
by how the handle the EPA issue.
• To be successful, the EAC States need to
consolidate their solidarity and commitment to
the EAC.
F. Matambalya / Cotton Marketing
27