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UPDATE ON THE EPA NEGOTIATIONS

CUTS/WTO Regional Outreach WorkshopNairobi.

By: Ambassador Nathan IrumbaSEATINI (Uganda )

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Structure of presentation

Introduction

The Interim FEPA

Rendezvous Clause

Outstanding Market access issues

Substantive negotiations

Challenges

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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

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Interim EPA

Why an interim EPA?To avoid to any disruption in trade.

Major pillarsTrade Regime for Goods /market access

EC offer –Duty Free& Quota free market access ( apart from rice & sugar)

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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%

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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.

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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.

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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;

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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; andAny other areas that the parties find necessary.

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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

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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.

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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.

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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

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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

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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.

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END

THANK YOU FOR YOUR ATTENTION