Business Daily Africa, October 04, 2012


By Fredrick Njehu

  • Only 36 countries within the ACP group have concluded some sort of agreement. Eight of them are yet to sign, and 15 have not even started the ratification process.
  • The rationale of the deadline is clear: if any African or Pacific country wants to continue benefiting from duty-free and quota-free EPA market access, it must conclude the negotiations before 2014.
  • An analysis of regulations on accessing the EU market shows that it is not viable for interested parties to withdraw. Withdrawal is only permissible if a country is not in the negotiations process.

It’s 10 years since the African, Caribbean, and Pacific (ACP) group of states began negotiations with the European Union on devising a trade deal under the Economic Partnership Agreements (EPAs).

Only 36 countries within the ACP group have concluded some sort of agreement. Eight of them are yet to sign, and 15 have not even started the ratification process.

Within the same period, the European Union has signed a barrage of trading agreements with strategic partners notably with Mexico, Chile, and South Korea. Such progress shows that these markets are of high priority to the EU.

The East African Community is yet to complete signing of the EPAs. There are a few contentious issues that are being ironed out by both parties; including conditions for economic and development cooperation, rules of origin, export taxes, and the most favoured nation clause.

There is a growing sense of optimism by the negotiators that a deal is in sight and that interested parties’ concerns will be taken care of. But many past deadlines have been missed and the EU has given yet another deadline of January 21, 2014.

The rationale of the deadline is clear: if any African or Pacific country wants to continue benefiting from duty-free and quota-free EPA market access, it must conclude the negotiations before 2014.

Negotiations process

An analysis of regulations on accessing the EU market shows that it is not viable for interested parties to withdraw. Withdrawal is only permissible if a country is not in the negotiations process.

The key issue here is whether buying time is justified or could lead to loss of opportunity in terms of market access.

Either way, interested parties must provide a tangible way forward to the successful completion of EPA negotiations. Deadlines do not seem to be a realistic yardstick of assessing the progress made.

It is high time EAC countries reassessed their positions, prioritised their objectives, and identified potential issues where concessions could be made.

It should also be noted that EPAs is also a political issue and no longer purely technical. Whether East African counties reach a pact or not, EPAs will have huge repercussions on regional dynamics and the relationship with the EU.

Mr Njehu is a trade analyst, CUTS International, Nairobi

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