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UPDATE ON THE EPA NEGOTIATIONS. CUTS/WTO Regional Outreach Workshop Nairobi. By: Ambassador Nathan Irumba SEATINI (Uganda ). Structure of presentation. Introduction The Interim FEPA Rendezvous Clause Outstanding Market access issues Substantive negotiations Challenges. Introduction .

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update on the epa negotiations
UPDATE ON THE EPA NEGOTIATIONS

CUTS/WTO Regional Outreach Workshop

Nairobi.

By: Ambassador Nathan Irumba

SEATINI (Uganda )

structure of presentation
Structure of presentation
  • Introduction
  • The Interim FEPA
  • Rendezvous Clause
  • Outstanding Market access issues
  • Substantive negotiations
  • Challenges
introduction
Introduction
  • What are EPAs?
    • New reciprocal trade arrangements between the EC & ACP
  • Negotiations started in Sept. 2002 , were slated to be completed by December 2007
  • Negotiations not completed
interim epa
Interim EPA
  • Why an interim EPA?
    • To avoid to any disruption in trade.
  • Major pillars
    • Trade Regime for Goods /market access
      • EC offer –Duty Free& Quota free market access ( apart from rice & sugar)
the eac market access
The EAC market access
  • Commitment to gradually open its market to goods from the EU over a period of 25 years in three phases.
    • 1st phase (2008-2010), 64%.
    • 2nd phase (2015-2023)16% ,
    • 3rd 2020-2033, the EAC 2%
      • Total of 82%
    • Exclusion of 18%
on going negotiations
On-going negotiations
  • Outstanding market access issues :
    • Negotiations are still ongoing on the following issues
      • Art 13 (Standstill Clause) - the parties agree not to increase their applied customs duties their mutual trade .
      • Art. 16 Most Favoured Nation (MFN)

Any preferences EAC gives would be automatically extended to EC.

slide7
Cont.
  • Export taxes- (Article 15)- Prohibits export taxes on exports yet these are essential for value addition at national level.
  • Safeguards (Article 20&21):
    • These are measures which can be taken by a country if a sector of a domestic industry of that country suffers injury.
on going negotiations1
On-going negotiations
  • Substantive issues-Rendezvous Clause:
  • Customs and trade facilitation;
  • Outstanding trade and market access issues, including rules of origin;
  • Technical barriers to trade and sanitary and phyto-sanitary measures;
  • Trade in services;
slide9
Cont.
  • Trade related issues, (competition policy, investment and private sector development, trade, environment and sustainable development, intellectual property rights, and transparency in public procurement);
  • Agriculture;
  • An elaborate dispute settlement mechanism and institutional arrangements;
  • Economic and development cooperation; and
  • Any other areas that the parties find necessary.
ongoing negotiations
Ongoing negotiations
  • Customs and Trade facilitation
    • To ensure the smooth flow of goods & services
    • EAC interested in cooperation
  • Sanitary and Phyto-sanitary measures.
    • Border control measures to protect human, animal or plant life & health
    • Measures should not be barriers to trade
    • Negotiations are about addressing the methods of putting the measures in place & capacity building to meet the standards
slide11
Cont.
  • Technical Barriers to Trade( TBT):
    • These are technical regulations or standards imposed by governments on imports i.e labelling, packaging requirements..
    • Negotiations are about reducing possibilities of using TBTs as barriers to trade.
economic development and cooperation
Economic Development and Cooperation
  • Uganda’s priority areas are: Transport infrastructure, Energy, Private Sector development, Information and Communication technology, industrial development and agriculture.
  • At EAC level -economic , social and environmental sustainability be included
  • EC,-these issues are already taken care of in the Cotonou agreement.
  • EAC to develop a text on Development cooperation Strategy & a Development matrix
  • EC reluctant to commit on additional funds.
slide13
Cont.
  • Trade in Services:
    • The EC interests: computer, postal and courier, telecommunications, financial, e-commerce and maritime transport.
    • EAC interests- supply of service through the presence of natural persons. The range of services includes professional services i.e legal, architecture, telecommunication, postal services, tourism …
    • Issues to note-lack of regulatory frameworks; Services include welfare sectors
trade related areas
Trade related areas
  • These areas include; Competition policy, Intellectual Property and Transparency in government procurement.
  • The EC is interested in negotiating binding rules
  • The EAC is interested more in cooperation to be able to put in place laws and appropriate regulatory frameworks.
  • Competition policy –Kenya & Tanzania have national legislation, a regional competition law has just been adopted
challenges
Challenges
  • Limited time –Conclusion of a comprehensive EPA by July 2009
  • Limited financial & Human resources
  • Overlapping membership –Tanzania in SADC , the others in COMESA
  • Balancing LDC & non-LDC interest ( Kenya the only Non-LDC)
  • Inclusiveness of stakeholders.
slide16
END
  • THANK YOU FOR YOUR ATTENTION
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