Statement by EU Trade Commissioner Peter Mandelson

Transcription

1 Statement by EU Trade Commissioner Peter Mandelson The 21st century offers new challenges and opportunities that affect the daily lives of each and every one of us, whether in Europe, West Africa or wherever. We must face them together. We need to act now if we are to create a world where people s prospects are no longer blighted by poverty and underemployment, a world that promises younger people a brighter future. The Economic Partnership Agreement currently being negotiated with West Africa pursues an ambitious objective. That objective is to make West Africa an economic magnet that attracts investment and stimulates private enterprise, a hive of economic activity that guarantees sustained growth and drives more sustainable economic, social and environmental development. The Agreement will build on the already considerable achievements of regional integration in West Africa. The UEMOA countries have a long history of integration, strong institutions, a common currency, a customs union that has been up and running since 2000, decision-making machinery geared to establishing regional policies and a common trade policy. Few schemes in Africa have taken integration so far. ECOWAS, too, has a long history. It plays a key role in preventing and settling conflicts. This is why I applaud earlier initiatives by President Obasanjo of Nigeria and President Kufuor of Ghana to speed up West Africa s economic integration by weaving links between UEMOA and non-member countries. I believe this crucial because language barriers cannot be allowed to develop into economic barriers. That the region has great ambitions is borne out by the encouraging results already achieved since negotiations got under way in October This brochure sets out what has been done and what remains to be done. The next ministerial meeting will take place in Brussels on 27 October. The issues are complex, which is why a debate is needed if we are to achieve our development goals. This brochure is intended to show our commitment to harnessing trade to development. I hope its contribution to the debate will be constructive. 1 Peter Mandelson EU Trade Commissioner October 2005

2 EU Trade Commissioner Peter Mandelson visits a cotton ginning plant in Bamako, Mali, in April Economic Partnership Agreements (EPAs) are part of a comprehensive approach. They are the key to revitalising the development relationship between the EU and the ACP countries. Let me quote from the World Bank rather than the EU s own words here: If the EPAs provide enhanced market access to the EU, tear down external and intra-regional trade barriers in the regional EPA groupings, and reduce institutional frictions to trade, the development gains could be great. That is precisely what we are seeking. For what we are doing in our trade relations meets my broader view of politics. It s about providing a framework of opportunity in which economic change and social justice combine. It s about finding one s way in the global economy, dealing with its inequalities and harnessing its strengths. The EPAs are, at root, about putting progressive trade policy into practice. That s why we are joined in a common endeavour and to embark on this journey with you is one of the greatest privileges of my job as Europe s Trade Commissioner. Excerpt from Mr Mandelson s speech to the Joint Parliamentary Assembly in Bamako on 19 April

3 3

4 4

5 TABLE OF CONTENT 1. Europe and West Africa in a changing world New opportunities The scope of the Economic Partnership Agreement between the EU and West Africa A partnership encompassing development cooperation Negotiations so far Involving all stakeholders Frequently asked questions Further information Glossary and acronyms

6 1. EUROPE AND WEST AFRICA IN A CHANGING WORLD A new stage in a longstanding partnership The Lomé Conventions between the African, Caribbean and Pacific (ACP) countries and the EU framed the close trade relations between Europe and West Africa in the period The year 2000 marked the beginning of a new stage in the relationship. It was decided, in the Cotonou Agreement between the EU and the ACP countries, to overhaul the existing trading arrangements that had not achieved their objectives (economic development, diversification, increase in trade, etc.) and to negotiate economic partnership agreements (EPAs) between the EU and geographical groupings of ACP countries. An EPA, which will give The Cotonou Agreement The European Union (EU) and the African, Caribbean and Pacific (ACP) countries signed their cooperation agreement in Lomé, Togo, in After four successive Lomé conventions, a broader partnership agreement was signed in Cotonou, Benin, in June Known as the Cotonou Agreement, it was signed by the Heads of State of all EU and ACP countries. This international treaty defines how the EU and ACP will cooperate on political, development and trade issues. development goals a central role in trade relations, is now being negotiated with West Africa. It will enter into force on 1 January Towards an ambitious Economic Partnership Agreement The EPA between Europe and West Africa involves two regions, each with its own long history of regional integration. What is innovative about this North-South trade agreement is that it unites the two regions behind a common objective: promoting the development of West Africa, home to many of the world s poorest countries. The EPA is a joint response to the challenges of globalisation and development. This trade instrument for development will enable the EU to help West Africa become more competitive, diversify its exports and build a regional market with the uniform, transparent and stable rules needed to reinforce economic governance. The aim is to build a genuine partnership for development, tailored to West Africa s specific circumstances and going far beyond the benefits and limits of the current trade arrangements, which are basically confined to access to the European market for West African products. 6

7 It is in this spirit and with this ambition that the European Union and 16 West African countries, represented by the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (UEMOA), are currently negotiating the EPA. This brochure has been designed to contribute to a broad debate by informing the people of West Africa, their elected representatives, the business world, trade unions and non-governmental organisations about the negotiations. 2. NEW OPPORTUNITIES Towards sustainable development West Africa s sustainable development requires economic growth to generate the opportunities and jobs needed for the region to take its rightful place in the world economy. Because of poverty and their small scale, West Africa s economies can only develop if they cooperate to create an open, competitive economic area. This is the underlying approach of the Economic Partnership Agreement with the EU. It is crucial that trade relations between West Africa and the EU evolve and adapt to the changes that have transformed the international economy since These changes bring new challenges, including tougher competition from the Asian economies in some sectors traditionally occupied by West Africa, for instance commodities. They also, however, bring new development opportunities in, say, the service sectors. Bilateral trade between Europe and West Africa The EU is West Africa s leading trading partner, accounting for almost 40% of the region s trade. Bilateral trade between the EU and West Africa has recently totalled about 25 billion a year. The region s exports to the EU totalled 10.5 billion in The main categories of exports were minerals (fuels accounting for 43%, iron 3%, aluminium 2% and gold 1%), agricultural products (cocoa 19%, fresh fruit 3%), fishery products (5%) and forest products (timber 2%, rubber 2%). In 2004 the EU exported goods worth 12.1 billion to West Africa (including electrical equipment, energy, transport equipment, medicines and dairy products). Of the ACP regions negotiating EPAs, West Africa is the biggest in terms of trade, accounting for over 40% of all EU-ACP trade. 7

8 In recent years a number of key initiatives have marked the emergence of a new Africa. With the foundation of the African Union and the New Partnership for Africa s Development (NEPAD) in 2001, the African continent now has a vision and a project for peace, security and economic development. Regional Partenaires Commerciaux de la CEDEAO + Mauritanie 2003 MERCOSUR 3% Japon 4% ANASE / ASEAN 4% Chine 4% Inde 5% Reste du monde 14% Afrique 12% UE 35% ALEAN / NAFTA 19% 8 economic communities such as ECOWAS are the cornerstones of the new Africa. They attest to the determination of Africa s leaders to build African development on a foundation of regional markets. The World Trade Organisation (WTO) is now a key international organisation: the main purpose of the current WTO negotiations on the Doha Development Agenda is the development of countries like those in West Africa. All the West African countries are WTO members, the only exceptions being Liberia and Cape Verde, which is currently negotiating to join. Europe is - and will remain - an important trade and investment partner for West Africa, and trade in both goods and services offers considerable scope for expansion. But West Africa must become more competitive and diversify its production and trade if is to make the most of existing opportunities and create new ones. This is one reason for the negotiation of the EPA: to help raise output and quality and so create synergies between countries and trade in the region, improve the people s well-being and strengthen economic partnership with Europe and the rest of the world. Strengthening regional integration The first step is to create a unified regional market. Only by cooperating at regional level can West Africa s small economies Nigeria being a significant exception create conditions conducive to trade, investment and growth. Whereas intra-regional trade accounts for about 60% of Europe s total trade, it currently accounts for only 12% of the West African total. There is therefore enormous potential for development, for enhancing synergies between neighbouring countries and exploiting complementarity.

9 Founded in 1975, the Economic Community of West African States (ECOWAS) has gradually set up joint institutions. In recent years it has made great headway towards a regional common market, an edifice that will be topped off by the customs union scheduled for The eight members of the West African Economic and Monetary Union (UEMOA), which was founded in 1994, already form a customs union and share a single currency. The EU provides financial and other support for these West African regional integration initiatives and the two organisations involved. The Economic Partnership Agreement with the EU will build on the foundations of an "The main objective of the EPA is to promote the deepening of the regional integration process and sustainable economic development in the West African region. Nigeria is actively involved in the EPA negotiation process and has significantly contributed to the adoption of the road Map which addresses some of the key concerns relating to deepening of the integration process in West Africa, improving competitiveness capacity building and upgrading as well as the overall preparation and conduct of the negotiations" "As one of the main founders of ECOWAS, Nigeria remains committed to the complete realisation of the organisation's regional integration initiatives, particularly in the area of economic and trade cooperation" Extract from Nigeria s submission at the Trade Policy Review of Nigeria, WTO, Geneva, May 2005 increasingly integrated West African economy and anchor that integration process. The synergies between the intraregional dynamic and the relationship with Europe will be a magnet for regional and foreign investors. 3. THE SCOPE OF THE ECONOMIC PARTNERSHIP AGREEMENT BETWEEN THE EU AND WEST AFRICA Beyond trade Though the EPA will further increase West Africa s already considerable access to European markets, its true goal is far more ambitious: in line with the Cotonou Agreement, EPAs offer a response to the challenges of globalisation and development. They are intended to create an economic area where goods, services and capital are freely traded and lay down the clear, stable, transparent rules needed to provide a secure business and investment environment. 9

10 The EPA between the EU and West Africa will be a unique negotiated agreement setting out future mutual commitments between the two regions on a wide range of trade-related issues: customs duties on imported goods, the standards governing market access, trade in services, The EPA is not just another trade agreement EPAs should no longer be conceived as trade agreements in the conventional sense where both sides are seeking mutual advantage The purpose of EPAs is to promote regional integration and economic development. Peter Mandelson, European Commissioner for Trade, in a speech at the London School of Economics, February 2005 intellectual property rights, competition policy and investment policy. The EPA will bolster the ambitious regional integration process that is already under way and help maximise its benefits. The EPA will be flexible enough to reflect the region s specific social and economic circumstances. The EPA s compatibility with WTO rules will guarantee stable trade relations and preferences, which third countries will no longer be able to contest. The system of preferences currently enjoyed by West Africa in the EU is based on a derogation from WTO rules that is set to expire at the end of Towards better market access: trade in goods As pledged in the Cotonou Agreement, the EPA will maintain and improve access for West African products to the European market. Key topics for discussion will be the rules of origin (the identity card for products) necessary to ensure that preferential access is confined to goods actually produced in West Africa and capacity-building measures on such technical issues as product standards and food safety requirements. We need to get away from the traditional focus on trade-restricting customs duties and quotas. Why? Because over 98% of exports from West Africa already enter the EU without the payment of customs duties, yet the region is still not able to maintain its market share and diversify its exports. Of course, the EPA will also improve access for food products, such as green beans and citrus fruit, which are currently subject to restrictions but offer considerable scope for development in West Africa. However, West Africa stands to gain most from the EPA in other areas. 10

11 First and foremost, the region will be helped to create its own market for the free movement of goods. The region has set itself ambitious targets for opening up its markets, a fact borne out by the road map for the EPA negotiations: free movement of goods and establishment of the UEMOA common external tariff for the whole of the West African region. The EPA s development component supports this process. This will be followed by a gradual and partial opening-up of West African markets to European products: this is above all necessary to boost economic development, What will be the end result of these negotiations? A single trade regime at the regional level, with common and modern custom procedures, that give sufficient protection to larger markets enabling them to expand as trade grows. To attain this, what matters is the political will of EPA regions to cooperate internally and respect their own intraregional treaties. But we stand ready to help. enhance consumer welfare by increasing purchasing power, make firms more competitive and meet legal obligations. On a legal level, WTO rules offer two options: (i) non-reciprocal preferences for developing countries under the Enabling Clause and (ii) reciprocal preferential agreements under Article XXIV of the GATT. In the first case, the same level of preferences has to be applied to all developing countries, the only exception being a positive discrimination against the Least Developed Countries (LDC). In fact, the European Union, through its Everything But Arms (EBA) initiative, has granted full access to its markets for all products originating from LDCs. Within the West African region only Ivory Coast, the Ghana and Nigeria are non-ldcs. Unfortunately, other West African countries that are LDCs have not been able to take full advantage of the EBA initiative. Hence, there is a strong case for the EPA: to go beyond market access issues to address the real constraints. In order to achieve the objective of a regionally unified market in West Africa and to guarantee preferences that go beyond those granted to all developing countries, the EPA must be based on reciprocity, as dictated by Article XXIV of the GATT. Without such reciprocity, which is to be established over a long period of time (given the development objectives of the West African region), the present preferences granted by the EU will be contested by other non-acp developing countries. 11

12 For business, the benefits of trade facilitation are widely accepted. It promotes transparency, cuts red tape and stops a proliferation of incompatible requirements in export markets. In summary, it saves costs and time. Given this, it is of no surprise that business, both in developing and developed countries, is united in asking for reform. Trade facilitation is also a priority for the governments of Senegal and the other members of the West African Economic and Monetary Union (UEMOA). Senegal has for a number of years been carrying out practical measures to facilitate trade by simplifying and streamlining customs and port procedures. Since most trade formalities have been abolished, UEMOA has, at the instigation of the Conference of Heads of State, commissioned a wide ranging study of the barriers to the free movement of goods and persons along UEMOA s trade corridors. The ministers responsible for the member countries law enforcement and customs services have already recommended practical measures for the removal of all barriers incompatible with the rules governing intra UEMOA trade. In this context, Senegal and Mali decided at the last meeting of the interstate joint commission to involve their private sectors closely in the application of all the trade facilitation measures recommended by UEMOA. Chief among these measures are: the construction of back to back frontier control posts, the establishment of national facilitation committees, the setting up of regional watchdogs to monitor abnormal practices on interstate routes and the application of the Inter-State Road Freight Transit Convention (TRIE). Newspaper article cowritten by EU Trade Commissioner Peter Mandelson and Senegalese Trade Minister Mamadou Diop in the run up to the meeting of African Union trade ministers in Cairo on 8 and 9 June Turning to another aspect of the movement of goods, customs and other trade procedures need to be simplified, modernised and made more transparent. This trade facilitation is another key aspect of the EPA negotiations and the multilateral Doha negotiations. Towards a new economy: trade in services Trade in services is an increasingly important part of the trade of developing countries, and the service sector accounts for a substantial share of their domestic output. This is not yet sufficiently the case in West Africa, with the exception of Senegal and a few other countries. Given the structure and costs of services in fragmented markets, West Africa has much to gain from trade in services. West Africa has yet to benefit from the significant growth in service sectors seen in many other developing countries since the 1980s. 12

13 Liberalising services can yield significant development gains, including lower transport, travel, utility and insurance costs and more efficient financial and business services. This is already recognised in the provisions of the ECOWAS and UEMOA treaties, the associated bilateral investment agreements and in domestic regulatory provisions. The EPA could help organise and create a West African market for dynamic national and regional services that will develop intraregional trade, lay the foundations for increased trade between the two regions and cut trading overheads. All modes of The role of the service sector in West Africa The service sectors vary in their structure and importance to the West African economies. In 2004 the share of services in GDP was similar to that of other low-income countries: an average of 40% for the region as a whole, with percentages ranging from 20% to 50%, depending on the country. By way of comparison, the averages for middle-income and developed countries were 50% and 70% respectively. The service sector currently employs 30% of ECOWAS s labour force. Most of these countries have a structural deficit in services. Depending on the country, this deficit ranges from 1% to 20% of GDP, with average of about 7%. This is largely attributable to transport costs, including the costs of actual transport and the associated financial costs, especially high insurance premiums. The problem is compounded by such factors as a lack of competition and a variety of official and unofficial obstacles. supply offer potential benefits. Key sub-sectors include infrastructure services such as financial services, telecoms, construction and transport services. These, like various types of business services, are closely related to trade and economic development. Further areas to consider could include distribution (i.e. retail and wholesale trade), tourism and environmental services. We recognise the importance of trade in services and its contribution to development and economic growth in our countries, in terms of job creation and foreign exchange. We pledge to strive to make the sector more efficient and so increase its contribution towards making the Union s production apparatus more competitive. Excerpt from the statement by UEMOA s trade ministers in Ouagadougou on 3 June

14 Towards a stable business environment: rules of the game Every trader or investor will say that clear, stable and transparent rules are vital for doing business. The benefits are even greater if the rules can also be simplified and harmonised across an economic area comprising a number of countries. And what are these rules? Customs controls and procedures top the list for those directly involved in trade; they can be either a help or a hindrance. This is why trade facilitation figures among the priorities addressed by the EPA. Examples: West Africa has expressed particular interest in the protection of geographical designations, which can help its producers profit from their labour and protection local biodiversity and traditional knowledge. Recent research has demonstrated that developing countries are particularly vulnerable to anti-competitive practices, such as international cartels, export cartels or abuses of a dominant position by foreign-based multinationals which adversely impact their own markets or foreclose access to other markets for their producers and exporters. According to certain estimates, 6.7% of the developing countries imports and 1.2% of their GDP were the subject of collusive arrangements, with a direct cost to national budgets and consumers alike. But over and above border controls, other rules can, for instance, prevent small groups cornering the benefits of trade or prevent investment being hindered by a lack of protection for investors. The Cotonou Agreement therefore identifies trade-related areas in which greater cooperation, including cooperation under the EPAs, can benefit trade and development: trade policy, intellectual property rights, environmental standards and labour standards. The investment framework and public procurement are also mentioned elsewhere in the Agreement. Benefits for consumers Building regional markets and improving trade arrangements also bring real benefits for families. These include a wider choice of better-quality or lower-priced products, an increase in local economic activity through lower import and export costs, and new investment opportunities. Firms will also benefit from trade and investment opportunities, which will help create jobs in competitive sectors. The long-term success of the EPA will depend primarily on its capacity to foster private-sector economic activity. 14

15 4. A PARTNERSHIP ENCOMPASSING DEVELOPMENT COOPERATION Trade, competitiveness and development As already pointed out, the EPA is more than just a trade agreement: it is a development partnership. The negotiations are therefore closely bound up with financial cooperation to anchor and strengthen the EPA. The European Development Fund (EDF) is the financial instrument for EU cooperation with the ACP countries. In West Africa, grants are funding a regional programme and national programmes in each country. Funding for the period totals more than 3.5 billion. More specifically, the regional programme includes a 118 million fund for regional economic integration and trade, which will basically be managed by ECOWAS and UEMOA. The fund will provide institutional support, compensation for customs revenue lost through the establishment of the regional free-trade area and aid for competitiveness. The fund extends and expands the EU s longstanding cooperation with UEMOA to the whole of the region. Where governments have made this sector a cooperation priority, trade-related support, aimed mainly at strengthening and diversifying the supply side and improving private-sector competitiveness in the recipient countries, is also funded under national programmes. The West African countries are also eligible for a number of programmes open to all ACP countries, including programmes to support investment, help exporters comply with European sanitary and phytosanitary standards and build the capacity to conduct trade negotiations. In the latter field, three programmes costing more than 85 million have covered impact assessments, meetings and seminars and the appointment of regional and national trade-policy advisors. Besides grants, the European Investment Bank (EIB) provides ACP countries with loans in support of investment, including lines of credit to small and medium sized enterprises and equity participation. Ultimately, development financing will increasingly take the form of investment rather than aid. This shift is one of the EPA s objectives. 15

16 Linking the EPA negotiations and development financing In order to establish and monitor links between the negotiations and aid programmes, West Africa and the EU have set up a joint Regional Preparatory Task Force (RPTF) for the negotiations. The RPTF s job is to take the needs identified in negotiations, translate them into operational ideas for assistance and identify suitable sources of funding. Funding may come from the European Union, from its Member States through bilateral channels or from international institutions. 5. NEGOTIATIONS SO FAR Progress of negotiations Economic Partnership Agreements negotiations began in Brussels in September 2002 between the EU and 77 ACP countries. This phase of negotiations continued October 2003 when ministers agreed a joint report that marked the beginning of regional EPA negotiations. Formal negotiations on the EU-West Africa EPA began on 6 October 2003 in Cotonou. It was agreed that ECOWAS s secretariat would negotiate on behalf of the organisation s 15 member countries (Benin, Burkina Faso, Cape Verde, Côte d Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, Togo) and Mauritania, and that the UEMOA Commission would be involved. The European Commission is handling negotiations for the EU. A road map approved by the two parties a few months later sets out the structure of the negotiations and the key issues. In line with the timetable in the road map, the first stage of 6. The two parties reaffirmed the commitments made under the Cotonou Agreement and recalled that the main objective of the Economic Partnership Agreement is to promote the deepening of the regional integration process and sustainable economic development in the West African region. In this regard, the EPA and the national development strategies of the West African region are complementary and mutually supportive. Excerpt from the road map negotiations : covered the issues in terms, primarily, of West Africa s regional integration process, which is to be the foundation of the EPA. Five technical working parties have been set up to discuss in details the main issues to be covered by the EPA and to assess its likely impact on the competitiveness 16

17 of production sectors. Ministers will meet in Brussels in late October 2005 to draw the conclusions of this opening stage of regional negotiations. In the next stage, due to start in late 2005, the negotiators will agree the actual structure of the EPA and discuss the overall approach to liberalising trade in goods and services. Ministers will meet again in 2006 to launch the final stage of negotiations, which will focus in particular on market access. Negotiations must be wrapped up by the end of 2007 so that the Agreement can enter into force on 1 January Negotiation topics The discussions that produced the road map for the negotiations enabled the two sides to agree the main issues for the EPA negotiations: tariffs and quotas, customs and trade facilitation, technical and health standards, trade in services, intellectual property rights, competition policy and investment policy. The background to the EPA negotiations is complex, and the negotiations influence and are influenced by many political and economic factors. Though not all need necessarily to be covered in the negotiating room, they do have to be taken into account. Issues that could determine the EPA s implementation include: the progress and prospects of regional integration processes in all areas; progress towards structural reforms in such key areas as public financial management, regulating and facilitating investment and the creation of new businesses, the working of judicial systems, education and vocational training; potential adjustment costs, such as the loss of tax revenue through lower customs duties; the scope for minimising those costs by continuing to protect sensitive products from liberalisation, the phasing-in of changes, and the implementation of customs and tax reforms; the most vulnerable sectors, the sectors with the greatest competitive potential and the policies needed to back up the requisite changes; trade policies compliance with WTO rules, making the most of the flexibility built in for regional trade agreements, and the progress of the 17

18 Doha Development Agenda s multilateral negotiations on issues such as agricultural support, market access and trade facilitation. 6. INVOLVING ALL STAKEHOLDERS Consultations so far The EPA negotiations, in terms both of their scope and their development objective, concern all citizens of West African countries, not just the negotiators and the governments and organisations they represent. Therefore a number of instruments have been or could be introduced to involve a range of non-state actors: An EU-financed study of the EPA s impact on sustainable development provided an opportunity to consult a number of stakeholder groups. National and regional seminars, attended by government and non-governmental representatives, provide a vehicle for explaining and debating the negotiations and the future impact of the EPA. A regional network of non-state actors should be set up to involve groups representing the private sector, trade unions, farmers, consumers, non-governmental organisations, academics and members of parliament. A consultative network of development agencies and other development-aid bodies would make sure the EPA s impact is taken on board when designing projects and programmes for the region. The stakes of the future negotiations The EPA s ultimate goal is sustainable development, in short a better life for future generations, which will mean changes affecting all the people of West Africa. Here are just a few of the expected results: The EPA is aimed at creating wealth and jobs in West Africa by expanding trade. To do so, the EPA will assist the construction of regional markets and a favourable business environment. The EPA is based on regional integration and gradually opening up markets to improve competitiveness and reduce prices. However, to allow for the vulnerability of certain sectors and the social impact of change, the EPA will include special and differential treatment, 18

19 including a degree of flexibility as to what products and services will be liberalised and when. The EPA involves not only maintaining access for West African products to European markets but increasing that access wherever possible and simplifying the rules. The EPA forms part of the Cotonou Agreement between the European Union and the ACP countries, which contains separate provisions on financial cooperation, which national governments and regional organisations programme with the European Commission. These funds will continue to provide financial support for the negotiations, the regional integration process and economic adjustment. The follow-up to the negotiations The negotiations between the EU and West Africa are being conducted with a view to having the EPA up and running in They represent an ambitious and innovative attempt to harness trade policy to development. The EPA will give a great boost to West Africa s development, but the scale of the task is considerable and there is no ready-made model. This means that all interested parties can take part in the process. It is open to anyone who endorses the overall objective of contributing to development, not just official bodies but the whole panoply of non-state actors. There is no single consultation instrument, but there are countless practical ways to get involved. Examples include lobbying governments, negotiators and members of parliament and discussing the issues in the forums provided by non-governmental organisations, business associations and trade unions. If the EPA is to achieve its ambitions, a broad debate is called for. We hope this brochure will contribute to the debate. 19

20 7. FREQUENTLY ASKED QUESTIONS Why can t we just leave things as they are? This is simply not an option. The economic and institutional environment has changed, and we must deal with these changes. Trade and investment in West Africa must increase in the interests of faster growth, job creation and sustainable development. Current agreements with the EU provide access to Europe s markets but contribute too little to the West Africa s economic competitiveness. They also depend on a WTO waiver. Since that waiver expires in 2007 and a new waiver would require the agreement of all other WTO members and come at too high a price, an agreement complying with WTO rules has to be concluded by But does the new arrangement have to be an EPA? In theory, no. But after careful consideration the EU and the ACP states, including the West African countries, have decided that this is the best option for linking trade policy and development goals. So why settle for second-best, why lower our sights? Some people say the EPA is just a way for the EU to force open the markets of West African countries. Is there any truth in this? Some people are mistaken. The EU s priority is to help West Africa make a success of its regional integration, so boosting growth and making the region attractive to local and foreign investors. It is on this basis, against a background of continuing access for West African products to European markets, that African markets will open up. The arrangements and timetable for opening up will be tailored to the region s needs and development factors. Selling more European goods and services to West Africa is not a priority for the EU negotiators. Both sides to these negotiations are pursuing the same overriding goal: development. I ve heard that government revenue will plummet if we lower our customs tariffs. Will this not have an economic and social impact? In West Africa customs duties average about 15% of government revenue, more than half of it from imports from the EU. So, even if duties on these imports were abolished overnight, the budget impact would be limited, though significant, especially for smaller countries. However, the EPA does not require cuts to be made overnight. Instead it provides for the gradual and partial reduction of tariffs, allowing the time needed for tax reforms to 20

21 replace external revenue by domestic revenue and to improve tax collection. At the same time the EPA will boost economic activity, including imports, and therefore government revenue. The EU s very strict health standards for food imports constitute a de facto barrier for West African producers. How can the EPA help here? The EU health standards are indeed very strict, since they reflect the demands of European consumers and safety requirements. The EPA will not change these standards or adapt them to West Africa s circumstances. It will, however, comprise technical and financial measures and support to help the region s exporters meet the standards applicable, including measures to build the region s capacity to set and enforce health and other standards. What if I have more questions? How can I get involved in the debate? Look at the following section for more information and people to contact. 21

22 8. FURTHER INFORMATION Useful links on the EPA negotiating process ACP trade relations: ACP trade statistics: Cotonou Agreement: EU trade policy: Links to the EU Trade and Development Commissioners internet sites The following internet links lead to recent speeches and articles on the EPAs: htm Suggested further reading on EPAs n.pdf section-3.pdf More information on West Africa The following contain a wealth of information on trade and regional integration in West Africa:

23 Information for exporters to Europe The following European Commission website contains useful information for exporters in developing countries looking to sell goods on the EU market: Contacts If you are not online, information on the Cotonou Agreement and EU development cooperation with West Africa can be obtained at the European Commission s delegations in 16 countries: Benin Av. Clozel, Bâtiment Administratif, Cotonou 01 B.P. 910, Cotonou Tel: (229) Fax : (229) mailto@delben.cec.eu.int Site web: Cape Verde Regional Delegation Achada de Santo Antonio, Praia C.P. 122, Praia Tel: (238) Fax : (238) Delegation-Cape- Verde@cec.eu.int Gambia Regional Delegation 10, 10th Street South, Fajara P.O. Box 512, Banjul Tel: (220) Fax : (220) ec@qanet.gm Guinea Immeuble Le Golfe, Dixinn, Conakry B.P. 730 Tel: (224) Delegation-Guinee- Conakry@cec.eu.int Burkina Faso avenue Kwame N'Krumah, en face de la Sonatur B.P. 352, Ouagadougou Tel: (226) Fax : (226) delegation-burkinafaso@cec.eu.int Ivory Coast 18 rue du Dr. Crozet, Abidjan 01 B.P. 1821, Abidjan 01 Tel: (225-20) Fax : (225-20) mailto@delciv.cec.eu.int Ghana The Round House, 24 Cantonments Road, Accra Tel: (233-21) Fax : (233-21) delegation-ghana@cec.eu.int Guinea-Bissau Bairro da Penha, Bissau C.P. 359, 1113 Bissau Cedex Tel: (245) Fax : (245) delegation-guineebissau@cec.eu.int 23

24 Liberia Regional Delegation U.N. Drive, Mamba Point, Monrovia C.P. 359, 1113 Bissau Cedex Fax : euliberia@yahoo.com Mauritania Rue Tevragh Zeina - Nouakchott B.P. 213, Nouakchott Tel: (222) Fax : (222) delegationmauritania@cec.eu.int Nigeria 21st Crescent, off Constitution Avenue, Central Business District, Abuja P.M.B. 280, Garki, Abuja Tel: (234-9) Fax : (234-9) delegationnigeria@cec.eu.int Sierra Leone Wesley House, 4 George Street, Freetown P.O. Box 1399, Freetown Tel: (232-22) Fax : (232-22) delegation-sierraleone@cec.eu.int Mali Immeuble UATT, Quartier du Fleuve, Bamako B.P. 115, Bamako Tel: (223) delegationmali@cec.eu.int Niger Rue du Commerce - Immeuble BIA 3ème étage Niamey B.P , Niamey Tel: (227) Fax : (227) delegation-niger@cec.eu.int Senegal Regional Delegation 12, Avenue Albert Sarraut, Dakar B.P. 3345, Dakar Tel: (221) Fax : (221) delegationsenegal@cec.eu.int Site web : Togo 37, Avenue Nicolas Grunitzky, Lomé B.P. 1657, Lomé Tel: (228) Fax : (228) delegationtogo@cec.eu.int Site web : The European Commission s postal address in Brussels is: European Commission B-1049 Brussels BELGIUM 24

25 9. GLOSSARY AND ACRONYMS ACP African, Caribbean and Pacific States - a group of 77 states with a partnership agreement with Europe, the Cotonou agreement ASEAN Cotonou Agreement Customs duty EBA ECOWAS EDF EIB EPA EU GATT GDP LDC Lomé Convention Mercosur NAFTA NEPAD Quota Association of South-East Asian Nations Partnership Agreement between the EU and the ACP states signed in 2000 at Cotonou, Benin. A duty or charge on imports Everything But Arms: the European Community initiative granting LDCs full duty-free access to its market without any quantitative limits whatsoever Economic Community of West African States European Development Fund, the EU development financing mechanism for the ACP under the Cotonou Agreement European Investment Bank Economic Partnership Agreement European Union General Agreement on Tariffs and Trade Gross Domestic Product Least Developed Country Predecessor to the Cotonou Agreement signed in Lomé, Togo Mercado Común del Sur Southern Cone Common Market (Brazil, Argentina, Uruguay, Paraguay) North American Free Trade Area New Partnership for African Development A limit on the quantity of goods that can be imported 25

26 RPTF SIA SPS Regional Preparatory Task Force, the body responsible for linking the EPA negotiations to development financing Sustainability Impact Assessment - a study on the likely impacts of EPAs Sanitary and Phytosanitary Standards, measures to protect human, animal and plant health and life, animal and plant health and life Trade in goods Trade in physical goods like agricultural products and machinery Trade in services UEMOA WTO Trade in services like insurance, training and marketing Union Economique et Monétaire Ouest Africaine - West African Economic and Monetary Union World Trade Organisation 26

27 27

28 28