Economic
Partnership Agreements (EPAs)
&
Cotonou
EPAs will be at the
heart of the economic and trade cooperation pillar of the
Cotonou Agreement (an international agreement, between the
EU and the African, Caribbean and Pacific countries).
EPAs will come into
force by 2008 and will progressively remove barriers to
trade between the EU and 77 African, Caribbean and Pacific
(ACP) countries. EPAs will be fully WTO compatible and will
therefore put trade relations with the ACP countries on
a secure and sustainable footing, as well as contributing
to regional integration.
The aim of economic and trade cooperation is
to foster the smooth and gradual integration of the ACP
countries into the world economy, thereby promoting sustainable
development and contributing to poverty eradication in ACP
countries.
The UK Government has published a position paper
on EPAs 
(85kb).
The Cotonou Agreement
The Cotonou Agreement replaced the Lome Convention in 2000. Lome
had since 1975 provided a framework for trade, aid and political
relations between the EU and 77 ACP (sub-Saharan Africa,
plus Caribbean and Pacific) countries. South Africa also
joined Cotonou in 1997 but benefited only from a limited,
political form of membership. Under Cotonou, the ACPs had
open, non-reciprocal access to the EU market for substantially
all industrial goods and for a wide range of agricultural
products. Lome also provided for EU official development
assistance to the ACP, financed by the European Development
Fund.
The fourth Cotonou Convention expired at the end of February 2000
and was replaced by a new overarching agreement on 1 March.
This new agreement was signed on 23 June 2000 in Benin,
and is now known as the Cotonou Agreement. One of its main
objectives is the integration of ACP States into the global
economy. Current trade arrangements with the ACP will
be rolled over during the eight-year transitional period.
The EU obtained a waiver from WTO rules to cover this period.
Before 2008, new WTO compatible arrangements will have to be agreed.
These new arrangements (Economic Partnership Agreements
- EPAS) will be in the form of reciprocal Free Trade Areas
between the EU and groups (yet to be defined) of ACP countries,
and therefore represent a significant change in the nature
of the EU/ACP relationship. The negotiations began on 27
September 2002. There will be a WTO-compatible safety net
for ACPs who are unable to join those regional agreements.
The Cotonou agricultural protocols will be reviewed during
the negotiations.
The EU is ready to help ACP exporters adjust to the new market conditions,
as part of substantial new capacity building efforts. The
new European Development Fund will provide 13.5 billion
euros over a five-year period.
For further information on EPAs and Cotonou please
contact:
Andy Brady
Tel: 020 7215 5778
Fax: 020 7215 2235
E-mail: Andrew.Brady@dti.gsi.gov.uk
or
Peter Stephens
Tel: 0207 215 5550
Fax: 0207 215 2235
E-mail: Peter.Stephens@dti.gsi.gov.uk
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