Economic Partnership Agreements (EPAs) are a scheme to create a free trade area (FTA) between the European Union and other countries. They are a response to continuing criticism that the non-reciprocal and discriminating preferential trade agreements offered by the EU are incompatible with WTO rules. The EPAs date back to the signing of the Cotonou Agreement. The EPAs with the different regions are at different states of play. The EU has signed EPAs with the following countries: the Southern African Development Community (SADC), ECOWAS (16 states), six countries in Eastern and Southern Africa, Cameroon, four Pacific states, and the CARIFORUM states. [1] Their defining characteristic is that they open up exports to the EU immediately, while exports to the partner regions is opened up only partially and over transitioning periods. [2]
Following the withdrawal of the United Kingdom from the European Union, the United Kingdom duplicated eight EPAs, such as with Cameroon, Ghana, the Caribbean, and the pacific states. [3]
There is also an EU-Japan EPA, which is however symmetrical in opening markets, and thus only an EPA in name; similarly the UK–Japan Comprehensive Economic Partnership Agreement is only an EPA in name for the same reason.
Due to the continuing WTO incompatibility of previous arrangements, the EPAs' key feature is their reciprocity and their non-discriminatory nature. They involve the phased out removal of all trade preferences which have been established between the EU and the ACP countries since 1975 as well as the progressive removal of trade barriers between the partners. In order to fulfil the criterion of being a non-discriminatory agreement, the EPAs are open to all developing countries,[ citation needed ] thereby effectively terminating the ACP group as the main development partner of the EU.
The establishment of a reciprocal trade agreement confronts the EU with the problem of how to reconcile the special status of the ACP group with the EU's obligations to the WTO. The solution proposed for this dilemma is an agreement which is only as reciprocal as necessary to fulfil WTO criteria. In reality, the ACP countries will have some room to manoeuvre and to maintain some limited protection of their most vital products. The extent to which trade must be liberalised under the new EPAs is still a widely debated issue and it remains to be seen whether the WTO provisions regulating regional trade agreements will be revised in favour of the EPA scheme at the end of the Doha Round.
True to the Cotonou principle of differentiation and regionalisation the developing countries are encouraged to enter into the EPAs in regional groupings. So far the ACP countries have formed seven [4] regional groupings in which they intend to enter into EPAs with the European Union. These regional groupings are
The new regional grouping established due to the EPA scheme causes the problem of how to reconcile this approach with the previous special treatment of the group of least developed countries (LDCs) among the ACP countries. Currently, 40 of the 79 ACP countries are defined as LDCs by the United Nations. The LDCs constitute a special group among the developing countries and have usually been treated separately.
Therefore, the EPAs will provide special arrangements for this particular group. As opposed to the other ACP countries, the group of LDCs will be invited to reject the EPAs and continue trade relations under the "Everything But Arms" (EBA) regulation. Launched in 2001 by the Council of Ministers, this amendment to the EC's Generalized System of Preferences has since then regulated the trade relations between the EU and the LDCs that have chosen to use this facility, granting duty-free access to all products from LDCs without any quantitative restrictions – except to arms and munitions. While this provision facilitates the situation of the LDCs under the new trade scheme, it has also been criticised because the EBA initiative prevents LDCs from opening up their markets for EU products within the context of an EPA. Another weakness of the EBA initiative is that it utilises the rules of origin of the GSP which require double stage transformation for textiles and clothing. The rules of origin of the EPAs on the other hand allows single stage transformation for the exports of these sectors. This is one of the reasons why Mozambique and Lesotho (both LDCs) initialled the SADC EU Interim EPA in November 2007, and then went on to sign this agreement in July 2009. Angola (the other LDC in the SADC EPA configuration) has chosen to continue trading under EBA as their main exports to the EU are oil and diamonds which as 'wholly obtained' originating products enjoy duty and quota free entry under the EBA rules of origin.
Researchers at the Overseas Development Institute predict the impact of the EPAs, however, to be rather minimal. [9] Because most African, Caribbean and Pacific (ACP) group states already enjoyed duty and tariff free access of about €1.4 billion from the Cotonou Agreement that expired in 2007, there was little new that could be offered. [9] The expected impact described by the ODI: [9]
Following the Brexit referendum, the United Kingdom replicated eight of the European EPAs in order to achieve trade continuity with EPA countries following Brexit. These agreements duplicate the majority of its clauses and text from the European agreements. The following agreements, with countries and regions, were entered into force following Brexit:
The Caribbean Community is an intergovernmental organisation that is a political and economic union of 15 member states throughout the Americas and Atlantic Ocean. They have primary objectives to promote economic integration and cooperation among its members, ensure that the benefits of integration are equitably shared, and coordinate foreign policy. The organisation was established in 1973, with its four founding members signing the Treaty of Chaguaramas. Its primary activities involve:
The European Union has a number of relationships with foreign states. According to the European Union's official site, and a statement by Commissioner Günter Verheugen, the aim is to have a ring of countries, sharing EU's democratic ideals and joining them in further integration without necessarily becoming full member states.
The Lomé Convention is a trade and aid agreement between the European Economic Community (EEC) and 71 African, Caribbean, and Pacific (ACP) countries, first signed in February 1975 in Lomé, Togo.
The Cotonou Agreement is a treaty between the European Union and the African, Caribbean and Pacific Group of States. It was signed in June 2000 in Cotonou, Benin's largest city, by 78 ACP countries and the then fifteen Member States of the European Union. It entered into force in 2003 and was subsequently revised in 2005 and 2010.
The Organisation of African, Caribbean and Pacific States is a group of countries in Africa, the Caribbean, and the Pacific that was created by the Georgetown Agreement in 1975. Formerly known as African, Caribbean and Pacific Group of States (ACP), the organisation's main objectives are sustainable development and poverty reduction within its member states, as well as their greater integration into the world's economy. All of the member states, except Cuba, are signatories to the Cotonou Agreement with the European Union.
Although there has been a large degree of integration between European Union member states, foreign relations is still a largely intergovernmental matter, with the 27 states controlling their own relations to a large degree. However, with the Union holding more weight as a single entity, there are at times attempts to speak with one voice, notably on trade and energy matters. The High Representative of the Union for Foreign Affairs and Security Policy personifies this role.
The Technical Centre for Agricultural and Rural Cooperation ACP-EU (CTA) was established in 1983 under the Lomé Convention between the African, Caribbean and Pacific Group of States and EU member states. Since 2000 CTA has operated within the framework of the ACP-EU Cotonou Agreement with a mission to “strengthen policy and institutional capacity development and information and communication management capacities of ACP agricultural and rural development organisations. It assists such organisations in formulating and implementing policies and programmes to reduce poverty, promote sustainable food security, preserve the natural resource base and thus contribute to building self-reliance in ACP rural and agricultural development.”. The centre is closed in 2020, after the end of the Cotonou Agreement and the subsequent end of its financing.
The European Centre for Development Policy Management, more commonly known as ECDPM, is a think tank founded in 1986. It is headquartered in Maastricht, Netherlands and has a second office in Brussels, Belgium.
Development cooperation between the European Union (EU) and the countries of the African, Caribbean and Pacific Group of States (ACP) started in 1957 with the Treaty of Rome, which first established a collective European development policy. The Treaty of Rome granted associated status to 31 overseas collectivities and territories (OCTs) and provided for the creation of a European Development Fund (EDF) intended to grant technical and financial assistance to the countries which were still under European rule at the time. More significantly, however, by means of the Treaty of Rome the six member states of the European Economic Community were expressing solidarity with the colonies and OCTs and committed themselves to contribute to their prosperity. The EDF has to date been funded outside the EU budget by the EU Member States on the basis of financial payments related to specific contribution shares, or “keys”, which are subject to negotiation. The EDF is currently the only EU policy instrument that is financed through a specific key that is different from the EU budget key, and which reflects the comparative interests of individual Member States.
The European Development Fund (EDF) is the main instrument for European Union (EU) aid for development cooperation in Africa, the Caribbean, and Pacific countries and the Overseas Countries and Territories (OCT). Funding is provided by voluntary donations by EU member states. Until 2020 the EDF was subject to its own financial rules and procedures, and was managed by the European Commission (EC) and the European Investment Bank. The EDF has been incorporated into the EU's general budget as of the 2021–2027 multi-annual financial framework.
The ACP–EU Joint Parliamentary Assembly was created to bring together the elected representatives of the European Union and the elected representatives of the African, Caribbean and Pacific states that have signed the Cotonou Agreement.
The Courier was an ACP-EU development magazine published by the Development Directorate General of the European Commission, focusing on ACP-EU Development Cooperation. Financed by the European Development Fund (EDF), it was published every two months, till it came to end in 2011. Its last edition was nr 24 covering months of July and August 2011. Its overall stated objective is to communicate, explain, promote and support the development objectives and principles of the Cotonou Agreement.
The Caribbean Forum (CARIFORUM) is a subgroup of the Organisation of African, Caribbean and Pacific States and serves as a base for economic dialogue with the European Union. It was established in 1992. Its membership comprises the 15 Caribbean Community states, along with the Dominican Republic. In 2008, they signed the CARIFORUM-EU Economic Partnership Agreement with the European Union. Guyana and Haiti expressed reservations and did not attend the signing ceremony.
Commonwealth free trade is the process or proposal of removing barriers of trade between member states of the Commonwealth of Nations. The preferential trade regime within the British Empire continued in some form amongst Commonwealth nations under the Imperial Preference system, until that system was dismantled after World War II due to changes in geopolitics and the pattern of global trade, and the United Kingdom's entry into the European Economic Community. The idea of promoting renewed inter-Commonwealth trade emerged in the late 20th century as a response to the evolution of the global economy. At one extreme, proposals have been raised for the creation of a multilateral free trade area comprising all member states of the Commonwealth of Nations.
Saint Vincent and the Grenadines and the United Kingdom have a long history, tracing back to early British settlements and British conflicts with the French during the Colonial era.
Eurafrica refers to the originally German idea of strategic partnership between Africa and Europe. In the decades before World War II, German supporters of European integration advocated a merger of African colonies as a first step towards a federal Europe.
Following its withdrawal from the European Union on 31 January 2020, the United Kingdom began negotiations on several free trade agreements to remove or reduce tariff and non-tariff barriers to trade, both to establish new agreements and to replace previous EU trade agreements. Withdrawal ended 47 years of membership during which all its trading agreements were negotiated by the European Commission on behalf of the bloc. The UK did not actually withdraw from the European Single Market and the European Union Customs Union until 31 December 2020.
Cooperation between Papua New Guinea and the European Union is developed in the framework of Cotonou Agreement within the wider ACP–EU development cooperation. While neighboring Australia as the largest donor is the only country which provides direct budget supports, European Union is one of the major other sources of international assistance in the country. Since 2011 European Union is the second largest export market accounting for 9.2% of total exports by the country.
