Brussels, 04/06/2009 (Agence Europe) - On Thursday 4 June in Brussels, the European Union formally signed an interim Economic Partnership Agreement (EPA) with three African member states from the ACP (Africa/Caribbean/Pacific) and the Southern African Development Community (SADC) - Botswana, Lesotho and Swaziland - which will be notified to the WTO.
Concerns over the impact of the SADC interim agreement on regional integration within the Southern African Customs Union (SACU)) were addressed in the agreement reached in Namibia in March 2009 to align the tariff schedules of the interim EPA with the Southern African Customs Union.
The signing took place on the premises of the EU Council and formalises (for these three countries alone) - the interim EPA concluded at the end of 2007 between the EU and five SADC countries (the three signatories, Namibia and Mozambique). The latter signalled its intention to sign this agreement in the near future. The main exports to the EU for the four countries were aluminium, diamonds, sugar, beef and fish. Their main imports from the EU were mechanical machinery, electrical machinery, fertilisers and vehicles.
EU Trade Commissioner Catherine Ashton, who got all the interim agreements concluded with the countries and regions of the ACP as top priority of her mandate was delighted that "the signature of this agreement is an important step. It first of all guarantees market access to the European market for those countries that have signed today. More importantly, it is a vote of confidence in the process that we have put in motion to build a strong and lasting economic and trade relationship." Neo Moroka, Minister for Trade and Industry of Botswana and Chair of the SADC group, said: “The signing of the interim EPA marks a significant milestone in our trade negotiations. It ensures uninterrupted flow of SADC EPA goods into the EU market”.
Until the last minute, uncertainty surrounded Namibia's position. Its misgivings about the legal status arising from the result of the negotiations on the pending contentious issues led to an adjournment in the signing ceremony, initially planned for 7 May. Given the EU's refusal to include the concessions it wanted the EU to include in the draft interim agreement, the country refused to sign.
Angola has so far chosen not to sign an EPA. As one of the least developed countries, it benefits from the “Everything but Arms” initiative, which guarantees its products free access to the European market, without quotas. South Africa is opposed to clause on most-favoured nation, which is expected to be included in the EPA but for the time being remains on the sidelines of the interim agreement. South Africa-EU trade is governed by the Trade, Development and Cooperation Agreement (TDCA) signed in 1999, which aimed to set up a free-trade zone in 2012. It waited until 2007 before formally agreeing to participate in region negotiations begin in 2004 between the EU and the SADC. Its preferential tariff rates are for more than 90% of South Africa's exports to the EU.
The negotiations with continue between the EU and seven countries negotiating with the SADC in view of working towards a "full" EPA, which will address all outstanding issues in terms of trade in goods, and also include chapters on services and trade-related aspects such as investment, government procurement and competition.
Although the deadline for conclusion of the EPA with the ACP was set for the end of 2007, they are the only ones to have signed a full EPA with the EU and all the countries of Cariforum, with the exception of Haiti (in October 2008), an interim agreement with Ivory Coast (26 November 2008) and Cameroon (15 January 2009).
Six other SADC countries (Democratic Republic of Congo, Madagascar, Malawi, Mauritius, Zambia and Zimbabwe) are negotiating an EPA with the EU in a different structure encompassing Central Africa, East and Southern Africa. (A.N./trans/rh)