ESA (Eastern And Southern Africa)

EAC (East African Community)

Negotiations for the adoption of the EPA for East Africa were launched in February 2004 in Mauritius. Sustainable development and smooth and gradual integration into the global economy, the eradication of poverty and disease were the main points of the initial discussions along with the six key areas outlined: development, market access, agriculture, fisheries, trade in services and other trade related issues. The aim of the EPA is to promote sustainable growth, increase production and supply capacity of ESA countries, foster structural transformation and diversity and support regional integration. A timetable of 3 phases was originally drawn up. It has been agreed that development should be anchored in the EPA, both with a dedicated chapter and across the chapters in the trade agreement. The second phase of the negotiations kicked off in 2006 and was characterized by discussions on market access, fisheries, trade in services and other trade related issues. In the summer of 2007, Kenya and 4 other countries decided to break off and negotiate their own interim EPA with the EU in the hope of having it concluded by the deadline of 1 January 2008.

An interim EPA had been initialled by 5 of the EAC (East African Community) countries by the deadline of January 2008. Another interim agreement was initialled by 6 ESA (Eastern and Southern Africa including Zambia) countries. The remaining countries of the region that have not signed the interim agreement are all LDCs and thus will continue to benefit from duty free access for their goods to the EU from the EBA.

Negotiations for a full agreement are in the process. In March 2008, Eastern African countries announced that they would continue to negotiate with the EU as a collective body of 16 countries; this includes EAC countries which also, nevertheless, continue to hold separate EAC-EU negotiations in parallel to these talks. A full-fledged EPA is expected to be signed in 2009 and is meant to include all countries in the region (include LDCs).

According to the interim EPA, tariff barriers have been removed on all goods with the exception of sugar for which quotas will be gradually reduced. The EAC commitment encompasses 100% duty free quota free access for exports to the EU and tariff reductions on 82% of imports from the EU to be gradually phased in over the course of 25 years. The majority of products that are excluded from this are agricultural.

For the ESA, the interim agreement involves duty free quota free access of goods as of 1 January 2008 with special provisions for sugar and rice. The agreements on imports from the EU vary according to each country and are primarily focused on agricultural products.

Zambia was the first African country to sign the Millennium Development Goals (MDG) contract with the European Commission on March 5, 2009. This agreement provides for long-term budgetary support aimed at helping Zambia meet the MDGs agreed by the UN.

The ESA and EAC interim EPAs both grant duty free quota free access on goods with the exception of sugar which in each case is subject to a gradual reduction in tariffs and quotas. The continuing issues cited by the ESA countries in the EPA negotiations are the ‘standstill clause’ (preventing any increase in tariffs once an agreement is initialled), the issue of export taxes, the definition of ‘substantially all trade’ and the ‘MFN clause’. On the EU side the biggest outstanding issue is in market access, but SPS issues and rules of origin are also important.

• Statement by Kenyan Minister for Trade and Industry, The Hon. Dr. Mukhisa Kituyi, E.G.H, M.P, at the 11th Regional Negotiation Forum
• Text of the Interim EPA signed by the EAC
• Text of the interim EPA signed by the ESA
• COMESA