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State of Play of the EAC-EU EPA Negotiations

ByProf. Francis MatambalyaUniversity of Dar es Salaamfmatambalya@yahoo.com

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Content• Background to EAC EPA Configuration.• Essence of EAC EPA Configuration.• Viability of EAC EPA Configuration.• Challenges.• State of Play of the NEG.• Conclusion.

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1. BACKGROUND TO EAC EPA CONFIGURATION

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1.1. Origin of the Idea for EAC Configuration

• Origin of the idea enshrined in the Cotonou Agreement itself:

Resolve to promote regional integration through EPAsFlexibility allowed regarding configuration

• EAC covered by: EU-commissioned (1998) ACP-commissioned EPA impact studies (1999/2000).

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1.1. Origin of the Idea for EAC Configuration – conc.

• GLR Kampala Summit of April 2002: Attended by Presidents Mkapa (Tanzania), Arap Moi (Kenya), Museveni (Uganda), Buyoya (Burundi) Rwanda represented by Foreign Minister Charles Murigande DRC represented by a high level delegation Directed that EAC States shall negotiate EPA as a bloc.

• Directed that EAC States shall negotiate EPA as a bloc• Also invited to join:

Burundi DR CongoRwanda

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1.2. ESA EPA and SADC EPA Configurations

• Contrary to the Kampala summit decision:

Burundi, Kenya, Rwanda and Uganda configured themselves to negotiate EPA in the ESA group. Prior to this decision, Tanzania was not consulted by its EAC partners. Tanzania decided to negotiate EPA in the SADC EPA group.

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2. ESSENCE OF THE EAC EPA CONFIGURATION

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2.1. Aspirations for Deeper Integration

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2.2. Popular Support of the idea in the region

• Academia. • Corporate East Africa. • Political East Africa. • Civil society.

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3. VIABILITY OF THE EAC EAC EPA CONFIGURATION

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3.1. Consistent with Cotonou Agreement

• Legally, consistent with the Cotonou Agreement

• Articles 35.2, 37.5 and 37.7:EPA can be negotiated between group of ACP states and the EUEPA can be negotiated between an individual ACP state and the EU An ACP state can opt for an arrangement other than EPA

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3.2. Critical Economic Mass for Strategic Partnership with the EU

• EAC forms a critical economic mass for strategic partnership with the EU (cf. tables 1, 2, 3)

• Some of the economic and/or political entities NEG with the EU are much smaller than

EAC1 (i.e., Burundi, Kenya, Rwanda, Tanzania and Uganda). EAC2 (without Kenya).

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3.2. Critical Economic Mass for Strategic Partnership with the EU – contd.

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3.2. Critical Economic Mass for Strategic Partnership with the EU – contd.

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3.2. Critical Economic Mass for Strategic Partnership with the EU – conc.

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4. CHALLENGES TO EAC EPA CONFIGURATION

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4.1. Complicated Approach to NEG

• Tanzania continues to NEG in the SADC EPA configuration

• The remaining EAC Countries continue to NEG in the ESA configuration

• But: The 5 EAC states will sign a single EAC-EU EPA!

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4.2. Lukewarm Commitment By Kenya?

• Sends junior officers to NEG with the EU• Believed to divided:

Wants deeper EAC integration Prefers ESA EPA configuration to govern its relations with the EU

• Can the same be said about Burundi and Rwanda (also send junior officials to NEG with the EU)

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5. STATE OF PLAY OF THE NEGOTIATIONS

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5.1. Latest NEG Round – conc.

• Last NEG at Ministerial level took place in Brussels on 14th November:

• EAC represented by: Burundi: Kenya: Minister Plenipotentiary, Brussels Mission Rwanda: Minister Plenipotentiary, Brussels Mission Tanzania: Minister for EAC Co-operation Uganda: Deputy PM and Minister of EAC Co-operation

• EU represented by: Commissioner for TradeCommissioner for Development:

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5.2. Main Agreements

• As a CU, the EAC will engage in EPA process as a bloc and will conclude the interim EPA Agreement as a separate configuration.

• EAC and EU to work towards a Framework Agreement for the time remaining until the expiry of the Cotonou Agreement on 31st December 2007.

• Framework Agreement to be applied provisionally from 1st January 2008.

• EAC and EU will complete a comprehensive Agreement thereafter.

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5.3. Elements of the Framework Agreement• Market Access.• Development Co-operation.• Fisheries.• Built in agenda (specifying mechanism

for continuation of NEG beyond 31st December 2007).

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5.4. Market Access

• DFQF MA by the EU to the EAC States for all products, except:

Sugar. Rice.

• 81 percent of EAC imports from the EU to benefit for liberalisation phased over a transition period of 25 years.

• Sensitive list of AG and industrial products for EAC states.

• EAC’s MA offer to the EU to be refined further.

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5.5. Development Co-operation

• EAC and EU to conclude a text on how to handle development issues.

• Such text to take into account: Text “already agreed by the EU with configurations in the region” (ESA, EPA)Existing Interregional Co-ordination committee (IRCC)

• EU to finance necessary adjustments.

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5.6. Built-in Agenda / Way Forward

• Technical experts to finalise the framework agreement.

• Further work to be undertaken to finalise the EAC MA offer to the EU

• Initialling of the framework agreement not later than 23rd November

• Continuation with the NEG as per the framework agreement.

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6. CONCLUSION

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Several Issues

• Success of the EAC integration will be judged by how the handle the EPA issue.

• To be successful, the EAC States need to consolidate their solidarity and commitment to the EAC.