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State of Play of the EAC-EU EPA Negotiations. By Prof. Francis Matambalya University of Dar es Salaam fmatambalya@yahoo.com. Content. Background to EAC EPA Configuration. Essence of EAC EPA Configuration. Viability of EAC EPA Configuration. Challenges. State of Play of the NEG.

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state of play of the eac eu epa negotiations

State of Play of the EAC-EU EPA Negotiations

By

Prof. Francis Matambalya

University of Dar es Salaam

fmatambalya@yahoo.com

F. Matambalya / Cotton Marketing

content
Content
  • Background to EAC EPA Configuration.
  • Essence of EAC EPA Configuration.
  • Viability of EAC EPA Configuration.
  • Challenges.
  • State of Play of the NEG.
  • Conclusion.

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slide3
1. BACKGROUND TO EAC EPA CONFIGURATION

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1 1 origin of the idea for eac configuration
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).

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1 1 origin of the idea for eac configuration conc
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

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1 2 esa epa and sadc epa configurations
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.

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slide7
2. ESSENCE OF THE EAC EPA CONFIGURATION

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2 1 aspirations for deeper integration
2.1. Aspirations for Deeper Integration

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2 2 popular support of the idea in the region
2.2. Popular Support of the idea in the region
  • Academia.
  • Corporate East Africa.
  • Political East Africa.
  • Civil society.

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slide10
3. VIABILITY OF THE EAC EAC EPA CONFIGURATION

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3 1 consistent with cotonou agreement
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

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3 2 critical economic mass for strategic partnership with the eu
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).

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3 2 critical economic mass for strategic partnership with the eu contd
3.2. Critical Economic Mass for Strategic Partnership with the EU – contd.

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3 2 critical economic mass for strategic partnership with the eu contd14
3.2. Critical Economic Mass for Strategic Partnership with the EU – contd.

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3 2 critical economic mass for strategic partnership with the eu conc
3.2. Critical Economic Mass for Strategic Partnership with the EU – conc.

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slide16
4. CHALLENGES TO EAC EPA CONFIGURATION

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4 1 complicated approach to neg
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!

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4 2 lukewarm commitment by kenya
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)

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slide19
5. STATE OF PLAY OF THE NEGOTIATIONS

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5 1 latest neg round conc
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:

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5 2 main agreements
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.

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5 3 elements of the framework agreement
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).

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5 4 market access
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.

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5 5 development co operation
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.

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5 6 built in agenda way forward
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.

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slide26
6. CONCLUSION

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several issues
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.

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