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Economic Partnership Agreements (EPAs) and Cotonou

EPAs

The EU is currently negotiating Economic Partnership Agreements (EPAs) with 79 African, Caribbean and Pacific (ACP) countries. These 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 ACP, agreed in June 2000 – for details see below).

Negotiations on EPAs began in September 2002.  At the opening ceremony the then EU Trade Commissioner Pascal Lamy said, “The EU and ACP will work together to integrate poorer countries better into the global economy and to fight poverty through trade and economic co-operation”.

EPAs are due to come into force by 2008 and will progressively remove barriers to trade between the EU and the ACP countries concerned. EPAs will be fully WTO compatible and will therefore put EU trade relations with the ACP countries on a secure and sustainable footing, as well as contributing to regional integration of the ACP itself. The ACP countries are divided into 6 regions which are each negotiating their own EPA. The regions are: the Caribbean, the Pacific, East and Southern Africa (ESA), the Southern African Development Community (SADC), West Africa (ECOWAS) and Central Africa (CEMAC).

The aim of economic and trade cooperation is to advance the smooth and gradual integration of the ACP countries into the world market, with the emphasis on promoting sustainable development and contributing to poverty eradication in ACP countries.

The UK Government is working closely with the European Commission (who are negotiating these agreements on behalf of the EU), EU Member States and ACP countries to ensure that these agreements are truly development focused and designed to deliver long-term development, economic growth and poverty reduction in ACP countries.

In March 2005, the UK Government published a position paper on EPAs and continued to raise dialogue on EPAs with EU member states and the European Commission throughout the UK Presidency of the EU in the latter part of 2005. In February 2006, Ian Pearson, then Minister for Trade and Investment made a statement in the House of Parliament maintaining the high profile attached to EPAs (both of these documents can be viewed by clicking on the related documents link).

The Department for International Development (DFID) is providing support to strengthen the trade policymaking process in the ACP countries through a number of programmes. In addition DFID has undertaken a considerable programme of research on key development issues within EPAs, such as reciprocity, inclusion of investment and competition and transitional assistance. Further information can be found on the DFID website in the related external links.

At a meeting in April 2006 the General Affairs and External Relations Council adopted the Council Conclusions on the Economic Partnership Agreements. These conclusions have the support of all member states. For full details of these conclusions see attached paper in the related links.

The UK is now focused on ensuring an effective review of the EPA negotiations, due to conclude in early 2007. The aim of the review is to take stock of progress across the ACP on specific priority issues, including full participation of the ACP, which is essential for a constructive joint review, and to help steer the EPA negotiations during 2007 towards successful conclusion.

The Cotonou Agreement

The Cotonou Agreement is a commitment between the ACP and the EU to work together towards the achievement of the objectives of poverty eradication, sustainable development, and the gradual integration of the ACP into the world economy (see related document links at the top of this page for full text).

The fourth Cotonou Convention expired at the end of February 2000 and was replaced by a new overarching agreement on 1 March 2000. This new agreement was signed on 23 June 2000 in Benin, and is now known as the Cotonou Agreement.

It replaced the Lome Convention which 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. Under Cotonou, the ACPs have open, non-reciprocal access to the EU market for substantially all industrial goods and for a wide range of agricultural products. Current trade arrangements with the ACP will be rolled over during the transitional period, until completion of the EPA negotiations in 2008.  

Before 2008, new WTO compatible arrangements will have to be agreed. These new EPAs will be in the form of reciprocal Free Trade Agreements between the EU and 6 regions of ACP countries, and therefore represent a significant improvement in the nature of EU/ACP trade relationships, and a positive move for ACP countries towards smoother integration into the world economy. The negotiations began on 27 September 2002 and will be agreed by the end of 2007.

For the latest news on the EPA negotiations please use the link on the right.

contacts:

Simon Collingwood
Tel: 0207 215 5550
Fax: 0207 215 2235
E-mail: Simon.Collingwood@berr.gsi.gov.uk