Africa: EPA wrinkles

It seems certain that the deadline for EU and the African, Caribbean and Pacific (ACP) bloc of 79 countries to conclude lingering negotiations over Economic Partnership Agreements (EPAs) will be missed on Wednesday. At the end of 2007, the EU pressed hard to initial six regional EPAs -- one for the Caribbean, one for the Pacific and four for Africa -- before the expiry of preferential access to European markets enjoyed by ACP countries under the Cotonou framework, which was out of compliance with WTO rules.  However, final negotiations still have yet to be concluded.

For Africa, there are additional complicating factors. The EPA negotiations tried to engage with Africa’s regional integration blocs as the basis for the four deals.  However, most of these blocs are internally divided on questions of trade.  Moreover, there are more than four blocs, and overlapping memberships will eventually complicate the implementation of any final EPA.  Another division is between low-income and middle-income countries -- under the EU’s Everything But Arms initiative the former will continue to enjoy preferential access to EU markets for virtually all exports except sugar and rice.  However, each bloc contains at least one country which does not qualify for this initiative, creating different incentives for different countries within the same bloc.  Countries such as Namibia, Ghana and Ivory Coast initialled draft EPAs separately.

As a result, even within the same negotiating bloc, there are a variety of time frames which have so far been negotiated for the implementation of certain aspects of the EPAs, particularly tariff reductions on EU exports to the region.  ACP leaders meeting in Ghana last week called for more time to finalise negotiations.  The resignation last week of EU Trade Commissioner Peter Mandelson, who will return to the UK cabinet, will also add a wrinkle to the negotiations process. Pity his successor.