Economic Partnership Agreements: A New Approach in trade relations between the European Union and the Africa, Caribbean and Pacific Countries (ACP).
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The ACP (Africa, Caribbean, Pacific) countries and the EU have long and preferential relations that are governed today by the ACP-EU Partnership Agreement, signed in Cotonou on 23 June 2000 and concluded for a period of 20 years.
In order to enhance the contribution of trade to development, the ACP States and the Community decided in Cotonou to overhaul their previous trade relations. Whereas these had been primarily based, since Lomé I, on non-reciprocal trade preferences granted by the Community to ACP exports, the Community and the ACP countries have agreed to conclude new WTO-compatible trading arrangements, progressively removing barriers to trade and enhancing cooperation in all areas related to trade. This current legal framework for trade is primarily conceived as an instrument for development.
To this end, Economic Partnership Agreements (EPAs) are being negotiated with ACP regions engaged in a regional economic integration process. EPAs are thus intended to consolidate regional integration initiatives within the ACP and to foster the gradual integration of the ACP into the global economy on the basis of an open, transparent and predictable framework for goods and services. EPAs are trade and cooperation agreements at the service of development.
CURRENT STATE OF PLAY OF NEGOTIATIONS
Formal EPA negotiations at the level of all ACP countries started in September 2002. Since October 2003 regional negotiations with ACP regions (West Africa, Central Africa, Eastern and Southern Africa, East African Community, Southern African Development Community, Caribbean, Pacific) – EPA list of countries grouping have been launched. EPA negotiations are supported through Trade-Related Assistance providing support for the negotiation process, ACP supply and trade capacity.
At the end of 2007, a first full regional EPA was initialled with Cariforum and a number of interim agreements were concluded with certain countries or regions in Africa and the Pacific, that serve as a stepping stone for full regional EPAs currently under negotiation.
SUMMARIES
Update Economic Partnership Agreements – 17 June 2009
New fact-sheets on interim Economic Partnership Agreements – 27.01.2009
FIGURES
In 2007 trade with the ACP countries totalled 80 billion, with the EU importing goods to the value of 40.2 billion and exporting goods worth 39.7 billion. For most of the ACP countries – and for virtually all African ACP countries – the EU is the main trading partner. So, trade between the ACP and the EU has remained important for the ACP, but marginal for the EU.
The main products traded are: as regards ACP exports, petroleum (42% of total exports), followed by cocoa beans (5%) and diamonds (5%); as regards EU exports, machinery (22%), followed by oil (11%), vehicles (7%), ship/boats (7%), medicines (3%).
EU investment flows to the ACP increased from 1,922 million in 1996 to 4,319 million in 2002, which represented 3,3% share of EU total outflows. Investment flows to ACP Africa rose from 1,532 million in 1995 to 2,799 million in 2002. The relative importance of the ACP as a destination for investment has increased. EU capital employed in the ACP increased from 2.5% of total EU outward stock in 1996 to 3,1% in 2002 of the total EU share, amounted to 58,831 million.
Source: European Commission
