Ndamu Sandu
18 November 2007
MEMBERS of the Eastern and Southern Africa (ESA) and the European Union (EU) have agreed on an interim trade as the two regional trading blocs hammer out a comprehensive pact in line with international trade rules.
Zimbabwe belongs to the 16 grouping ESA, currently negotiating Economic Partnership Agreements (EPAs) with the EU.
These agreements are expected to result in reciprocal trade arrangement under World Trade Organisation (WTO) rules.
ESA and European Commission officials met at a ministerial meeting in Brussels on Monday, 12 November.
They were taking stock of negotiations in light of the impending expiry next month of unilateral trade preferences set out in the 2000 Cotonou Agreement.
In a joint statement, the two parties said they "agreed to work towards a Framework Agreement of an EPA that will comprise trade in goods, development co-operation, fisheries and any other sectors on which negotiations would have been concluded.
"They decided to conclude the negotiations of a comprehensive EPA by the end of December 2008 which will replace the Framework Agreement," it said.
The Framework Agreement will be signed no later than Friday, 23 November, enabling the EC to incorporate the names of the countries or subgroups into the annex of the regulation currently under preparation.
Negotiations will continue on outstanding areas as laid out in the agreed roadmap.
The conclusion of an interim trade agreement ends months of speculation that the two parties would rush to end talks to meet the 31 December deadline.
It also comes on the backdrop of concern from non-state actors in the ESA region who are strident in their calls for signatories to exercise caution before signing the agreement.
The non-state actors have been calling for a 25-year transitional period before the reciprocal trade regime is introduced.
Zimbabwe will lose its beef and sugar quota to the EU as it will have to compete with other producers in line with WTO "fair trade" rules.
A policy series document published by the Regional Network for Equity in Health in East and Southern Africa, the Southern and Eastern African Trade Information and Negotiations Institute and Training and Research Support Centre said Zimbabwe will lose a staggering US$18.4 million in import tariff revenue if it adheres to the new provisions under EPAs. An EPA provides for tariffs to be removed on EU imports.
Felix Mutati, Zambia's Minister of Commerce, Trade and Industry led the ESA delegation during Monday's meeting while EU commissioners for Trade and Development Peter Mandelson and Louis Michel respectively represented the EU.
Monday's meeting concluded that ESA countries or subgroups who have agreed on a tariff liberalisation schedule compatible with article XXIV of General Agreement on Tariffs and Trade will benefit fully from the Framework Agreement that will be applied provisionally from 1 January 2008
"Signatory ESA countries or subgroups which are in the process of finalization of their tariff schedules will benefit from provisions in the fisheries section of this Framework Agreement as from 1st January 2008," the ministers said.
On development co-operation, the ministers agreed signatory ESA countries or subgroups which are in the process of finalization of their tariff schedules will benefit from provisions in the development co-operation chapter of the Framework Agreement as from 1 January 2008.
The EU was mandated to contribute towards the necessary resources to finance adjustment costs and to reinforce regional integration for the ESA States as well as contributing to the provision of additional resources necessary to meet the development needs for EPA implementation and adjustment costs.
ESA and EC ministers agreed that the Framework Agreement should provide for Dispute Settlement provisions independent of the WTO Dispute Settlement System except in the case of multilateral Anti-Dumping and Safeguard Measures for WTO members.
African, Caribbean and Pacific (ACP) countries used to enjoy unilateral trade preferences with the EU for almost three decades under the Lomé Conventions. The Fourth Lomé Convention was replaced by the Cotonou Partnership Agreement in 2000, which extends these unilateral trade preferences up to the end of 2007.
EPAs cover trade issues in six areas: fisheries; services; agriculture; market access; development and trade related issues.
Be the first to Write a Comment!
Copyright © 2007 Zimbabwe Standard. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
