Analytical Note, March 2013

This note provides an overview of the EPA negotiations. It illustrates the fact that the same critical contentious issues persist in the EPAs across various regional blocs. It also highlights the concerns of the highest political authorities of ACP States regarding the EPAs and the inherent dangers for regional integration, industrialization, and the development of ACP States. Activity is likely to increase further given the high probability that Europe will remove countries from being recipients of EU preferences provided under the EC market access regulation 1528/2007 if they have not signed or ratified their EPA by 1 October 2014.

Analytical Notes, June 2012

One of the main contentious issues in the Economic Partnership Agreements (EPAs) between the EU and African countries is the level of trade liberalization which Europe is asking for. This issue is certainly one of the most critical for Africa. At its heart is the question of whether the elimination of tariffs for a majority of tariff lines in the EPAs will destroy local industries and their productive capacities as well as the extent to which regional trade may be disrupted.

This issue of South Bulletin highlights a keynote speech made by the Chairperson of the South Centre, H.E. Mr. Benjamin W. Mkapa, former President of Tanzania, in which he made a critical analysis of the Economic Partnership Agreements (EPAs) that the African countries are negotiating with the European Union, and the alternatives for the East African Community and for African countries.

Analytical Note, November 2011

This study provides a simple cost-benefit analysis of the Economic Partnership Agreements (EPAs) between African countries and the European Union. It compares the costs of signing an EPA - measured as tariff revenue losses, versus the “gains” of signing an EPA - measured as duties African countries would avoid paying if they were to export to the EU market under the EU’s Generalised System of Preferences (GSP) scheme. The major question therefore is whether the tariff revenue losses resulting from the EPA outweigh the duties that countries would have to pay in a non-EPA scenario? Do the losses of EPAs outweigh the “gains”?

Analytical Note, March 2011 The European Union (EU) uses a plethora of policy instruments to protect its agricultural sector and to ensure that European farmers, despite having higher production costs, are still able to continue production for both the European and export markets. This paper provides a snapshot of these instruments and also gives an overview of the new instruments that are increasingly being used resulting from the on-going reforms in the EU’s Common Agricultural Policy (CAP).

Analytical Note, March 2011

The EU has been undertaking reform in its Common Agricultural Policy. Nevertheless, subsidies to EU agricultural producers are continuing. The major change is that 93% of these supports are now provided in the form of direct aid payments to producers. On these grounds, the EU is arguing in the WTO that its supports are no longer trade distorting, since they are not tied to farmers’ production. In some sectors such as cereals, these direct payments compensating EU farmers directly have had the effect of drastically reducing domestic prices in the EU, whilst also making these EU subsidised produce ‘competitive’ on the world market.

Analytical Note, November 2011

Trade trends are changing quite rapidly for Africa. A careful analysis of Africa’s export statistics reveals startling facts regarding the markets that are most important for Africa today, and in the years to come.

Analytical Note, November 2010

The discussion on WTO compatibility in the Economic Partnership Agreements (EPAs) between the EU and ACP countries has so far been very narrowly defined, and largely from the perspective of the European Union. This Analytical Note presents a matrix providing a comparison of the EPA commitments the EU is asking ACP countries for, and treatment of these issues in the WTO, including where appropriate, the type of flexibilities available for the different developing country groupings at the WTO.

The focus on this issue is on the Economic Partnership Agreements that African countries are negotiating with the European Commission. As is well known these negotiations have faced an impasse for a long time.

At the African Union conference of Trade Ministers in Kigali in early November, the African Trade Ministers at the AU Conference called on Europe to rethink the basic premises of these EPAs.

The Bulletin has articles analysing this latest situation.  

Research Paper 31, July 2010

This Research Paper is a legal analysis of the EC-Cariforum Services and Investment Chapter. It demystifies the many complex technical details in the EPA text and illustrates where this services and investment template goes beyond the WTO's GATS. The paper highlights implications for other developing countries embarking on similar negotiations with the EU.

June 2010

The document contains a matrix of 21 contentious issues pertaining to the goods negotiations in the EPAs. For each issue, the ‘best’ language (i.e. least damaging language) from the various EPA texts is identified. The problems posed by these contentious issues are then highlighted, and some recommendations provided.

Research Paper 28, May 2010

South Centre has released a Research Paper which examines the impact of the external shocks from the global economic crisis on industrial development of Least Developed Countries (LDCs).  These countries are heavily exposed to external shocks because of their extensive trade with the rest of the world.  Yet, they are marginalized in terms of their share in international trade and output.  They suffer from structural weaknesses and chronic balance-of-payments and fiscal deficits.  They are heavily dependent on commodity exports and external financing.The global economic crisis is a wake-up call for LDCs to reconsider their long-term industrial and development strategies.  

April 2010

 A large part of the discomfort of many ACP countries vis-à-vis the EPAs have to do with what are now known as ‘contentious issues’ or ‘unresolved issues’. Negotiations on these issues took place between the EU and some African sub-regions in 2009, with agreements on some of these issues emerging for SADC and ESA countries.

This note analyses the results of the negotiations on the standstill clause; modification of tariff commitments provision; duties and taxes on exports; the infant industry clause; prohibition of quantitative restrictions; the food security clause; free circulation of goods and definition of the ‘parties’.  These form only part of the list of the overall basket of contentious issues, but they are those negotiated in 2009.

March 2010

The EPAs provide the wrong development model for Africa, and will jeopardize African countries’ development and regional integration prospects, rather than support them. Until now, only 10 out of 47 African countries have signed the EPA – most are dragging out the negotiations because they are reluctant or are resisting signing, due to their anti-developmental content. The problematic conditions of the EPAs include zero tariffs on 70-80% of all tariff lines; no increase in any tariffs; weak safeguard; prohibition of new export taxes and duties and the pressure from the EU to launch into liberalization of other issues such as services, investment, competition and procurement.

Analytical Note,  May 2009 

Currently, the EU and Central American countries are negotiating the Free Trade Agreement. The European Commission commissioned a Trade Sustainability Impact Assessment (TSIA) which is estimated to be completed by August 2009. On 6 April 2009, the draft interim technical report was published (in English). This paper assesses the draft interim TSIA and its annexes. The main conclusions are; main sustainability issues in Central America identified in the report are not sufficiently addressed such as regional integration (economic), unemployment (social) and deforestation (environmental); the results of the CGE model, and the data input and scenarios overstate the benefits of the FTA

South Centre Analytical Note, June 2009

This Analytical Note explores the options available to developing countries in negotiating agreements establishing Free Trade Areas (FTAs) involving a trade in services component with the European Union (EU). It examines the issues that are challenging for development in the EU proposals which include amongst other things the EU negotiating template, Mode 4 limitations, the domestic regulatory framework and the MFN clause. Secondly it identifies the options available to developing countries. These include cooperation arrangements with the EU, respect for regional initiatives, recognition of special treatment for LDCs and retaining the GATS architecture and flexibilities.

South Centre Analytical Note - March 2009

The Economic Partnership Agreements (EPAs) being negotiated between the EU and Africa pose a major challenge for African countries since they are essentially free trade agreements. As such, the issue of development benchmarks has often been discussed. Many realize the need to stringently monitor the implementation of EPAs where these are signed, and to put in place brakes on the liberalization process if the desired development goals are not being attained. This paper proposes three concrete development benchmark indicators, drawing on the EU’s own indicators when graduating countries out of their Generalised System of Preferences (GSP) schemes: the Development Index; Export Concentration/Diversification; and Import Concentration.

In most African countries, agriculture remains a critical sector for employment. This is particularly the case where countries have a majority of subsistence farmers. The sector is also important if broad based development is to be achieved. Incomes of small farmers must be increased. This will then stimulate demand in the local economy and lead to the production of high value added products.

Conversely, mismanaging the agricultural sector can impact very negatively on countries’ development and can also increase levels of poverty. The latter has in fact been the result of the last twenty years of structural adjustment policies in many African countries. From being net food exporters in the 1970s, the liberalization policies of the 1980s and 1990s led to only small increases in the growth of exports, but exponential growth in terms of Africa’s imports of food products.

This Issue of the South Bulletin reflects upon the ongoing financial crisis originating from US and bringing more countries into its fold. The Editorial by Dr. Yash Tandon, Executive Director of the South Centre is on “Time for a New Bretton Woods Conference”.

Analysis and commentaries appearing in the Bulletin, include on Financial Crisis: Lessons for the EPA Trade Negotiations; African Countries and the EPAs: Do Agriculture Safeguards Afford Adequate Protection?; The IBSA Summit and the Political Economy of the Global South; Communiqué on Global Financial Situation; SECURE: Ensuring Transparency and a Legitimate, Member-driven Process, and on Group of 77 and the Reform of the United Nations.

South Centre Analytical Note - September 2008

The purpose of this analytical note is to highlight the inherent imbalances interim EPA texts contain with regard to development assistance. Its analysis, furthermore, can provide guidance to regions and countries that need to draft language regarding financial cooperation in their EPAs so that they strengthen EPA legal language in that respect.

Analytical Note - May 2008

This Analytical note gives an overview of the provisions on agriculture of the interim EPA initialed at the end of 2007 between the EU et 35 ACP countries. A better understanding of the challenges that faces sub-Saharan agriculture in its expansion as well as the implentation of measures that would help it in that sense are fundamental for the formulation of a positive agenda that would appear as a chapter of the EPA on agriculture. This document is in French but will soon be available in English.