EPA: Content, challenges and opportunities for the Private pp rt niti s f r th Pri t Sector Sector Hon Mohammed B Daramy Hon. Mohammed B. Daramy Commissioner, ECOWAS Trade Customs & Free Movement of People Trade, Customs & Free Movement of People
O Overview i � Introduction � Economic & Trade Structure � Negotiation: Structures; Phases; Process � Challenges Ch ll � Opportunities for the Private Sector pp � Recommendations � Way forward Way forward
I Introduction d i History � Yaoundé Lomé I-IV Cotonou � Yaoundé, Lomé I IV, Cotonou ECOWAS Ghana WAEMU WA- EU EPA Liberia Nigeria Benin Burkina Faso Mauritania Cape Verde Côte d’Ivoire Guinea Bissau � Waiver: End of 2007 Waiver: End of 2007 Sierra Leone Mali Niger Gambia Senegal Togo � WTO Article XXIV Guinea WA EPA region � Aim: Foster smooth and gradual integration of ACP States into world economy � 6 RECs: West Africa =16 countries (ECOWAS +Mauritania)
ECOWAS ECOWAS economic structure i � Population: 252 million (IMF, 2005) � GNP per capita: US$501 p p $ � Low UN Human Development Index ranking � Real GDP: US$162.5bn (2005) R l GDP US$162 5b (2005) � Real GDP: Nigeria (61%); Cote d’Ivoire + g ( ) Ghana + Senegal (21%); Others (18%) � 41% below poverty line (below $1 per day) � 41% below poverty line (below $1 per day)
ECOWAS ECOWAS trade structure d E Exports* to EU25 t * t EU25 � Increased from $8.8bn (2002) to $14.0bn (2005) � Mineral Products (69%); Prepared Foodstuffs (12%); Mi l P d t (69%) P d F d t ff (12%) Transportation Equipment (6%); Others (13%) Imports* to EU25 Imports* to EU25 � Machinery & Mechanical Appliance (20%); Transport Equipment (16%); Chemical Products Transport Equipment (16%); Chemical Products (11%); Mineral Products (10%); Base Metals (8%); Others (35%) ( ) Intra-regional trade � Est. < 14% of regional trade g * ECOWAS 2005 statistics
Process � Cotonou Partnership Agreement (June 2000) � Decision A/Dec 11/12/01: Mandate given by g y Heads of State/Government for ECOWAS (+ WAEMU) to negotiate for region (Dec 2001) WAEMU) to negotiate for region (Dec 2001) � All ACP phase (Sept 2002) � Regional REC Phase (Oct 2003) � Roadmap (Aug 2004) p ( g ) � Phases I (Sept 2005); II (Oct 2006); III(2007)
N Negotiation structure i i � Negotiations held at three (3) levels (with representation from ( ) ( f Private Sector Organisations): � Chief Negotiators � Chief Negotiators � Senior officials ECOWAS Council of ECOWAS Council of Ministers Ministers � Experts Monitoring Ministerial Ministerial Facilitation Team Monitoring Ministerial Committee Ministerial Facilitation Team Committee Technical Support Technical Support Technical Support Group of Ambassadors Committee Regional Negotiation Group of Ambassadors Committee Regional Negotiation Committee Committee Contact Group Contact Group Regional Preparatory Task Regional Preparatory Task Contact Group Regional Preparatory Task Force Force Thematic Groups and ad- National Negotiation Thematic Groups and ad- National Negotiation hoc Committees Committees hoc Committees Committees
N Negotiation phases i i h Phase I Phase I FTA, Customs and Trade facilitation 1. Standards Quality SPS & TBT Standards, Quality, SPS & TBT 2 2. Competition & TRIPS 3. Investment & Services Investment & Services 4 4. Productive sectors 5. Phase II EPA support measures 1. Market Access 2. Drafting of text agreement 3.
Ch ll Challanges � Development dimension � Interpretation of GATT XXIV p � Negotiation deadline � Sequencing of activities- Regional S i f ti iti R i l Intergration � Adjustment costs � Singapore and non Roadmap issues � Singapore and non Roadmap issues
Ph Phase II: EPA support measures II EPA Improvement of Competitiveness Improvement of Competitiveness � UNIDO draft proposal for restructuring/ upgrading of the productive sectors EPA Regional Fund EPA Regional Fund � Institutional structure proposal to mobilize, coordinate and channel resources for EPA implementation Fiscal impact of the EPA Fiscal impact of the EPA � Modalities for assessing the net fiscal impact and mechanisms for payment of compensations not yet established. Study on the Computable General Equilibrium model is being Study on the Computable General Equilibrium model is being prepared Implementation of EPA rules � Support measures devoted to the implementation of the rules of the Support measures devoted to the implementation of the rules of the agreement, building of the capacities of regional integration organizations to formulate/harmonize rules and reforms, the mechanisms for implementing and/monitoring the agreement
Ph Phase II: Market Access II M k A E European market access offer k t ff � On 4 April 2007, the EC offered duty and quota-free access to their for all products (except Sugar and rice transitional to their for all products (except Sugar and rice- transitional periods) from 2008 Tariff dismantling schedule g � Based on WA liberalising over a transitional period of 25-30 years, for 60-70% of WA trade, with a moratorium of 5-7 years Liberalisation of Services � WA’ WA’s proposal will include a general framework in which l ill i l d l f k i hi h would be incorporated all GATS guiding principles, EU’s commitments for the development of services in WA
Ph Phase II: Text of the Agreement II T f h A � Preparation of a draft structure on which text of agreement will be based covering: � rules on trade in goods and services, � trade-related areas, and � trade related areas, and � provisions on development � EC submitted a draft text EC submitted a draft text � Currently, no joint draft EPA text available for consideration by Member States
R l Role of the Private Sector f h P i S � Stronger involvement and participation: � ECOWAS Treaty y � Cotonou Partnership Agreement � Areas of collaborations: � Areas of collaborations: � Negotiations (Technical/ Expert meetings) � Workshops (Private Sector meeting, June 2007) W k h (P i t S t ti J 2007) � Seminars (ITC: Business Implications of EPA, S Sept 2007) t 2007) � Resources persons
D Dual Role for Private Sector l R l f P i t S t Formulation Partnership Implementation Partnership (Policy formulation & evaluation) (Programme and Agreement implementation) Objectives Obj ti Objectives Obj ti (Represent PSO position, (Enhance PS with access to dialogue with Governments on procurement for programme strategic orientations) Implementation and for trade agreement) Monitoring and Evaluation or Agreement and programme implementations (Inform of Private sector perception of agreement and programme impact and efficiency)
A Areas of Involvement f I l � Upgrading of productive sectors Upgrading of productive sectors � Other regional integration programs g g p g � Public-Private Partnership (PPP) � Banking & Finance � Banking & Finance � Business Development Services � Policy Formulation, Monitoring & Evaluation � Capacity Building � Capacity Building
R Recommendations d i � Private sector should drive economic growth Private sector should drive economic growth through increased productions and employment generation � Strengthen Public-Private dialogue platforms � Improve regional Private Sector structures � Better collaboration of PSO at all levels B tt ll b ti f PSO t ll l l � Ownership of the EPA process � Participation in working groups � Participation in working groups � Representation & feedback � Improve supply chain relationship p pp y p � Develop Regional Private Sector policy
W Way Forward F d � Pro-development, WTO compatible EPA � Interim: Request of extension of WTO waiver q � Design Roadmap for completion of outstanding activities outstanding activities � Widen support programmes � Define WA market access offer � Sensitize ECOWAS stakeholders � Sensitize ECOWAS stakeholders
Thank you for your attention ----- Merci de votre attention ----- Obrigado Obrigado
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