The Tripartite FTA Gerhard Erasmus tralac Annual Conference Cape Town 7 April 2017
In this Presentation….. � Where do we stand with the TFTA? Where do we stand with the TFTA? Where do we stand with the TFTA? Where do we stand with the TFTA? � Main Features Main Features Main Features Main Features � How will it be implemented and when? How will it be implemented and when? How will it be implemented and when? How will it be implemented and when? � What will change? What will change? What will change? What will change? � Relationship with the CFTA Relationship with the CFTA Relationship with the CFTA Relationship with the CFTA � Can it be a building block for the CFTA? Can it be a building block for the CFTA? Can it be a building block for the CFTA? Can it be a building block for the CFTA? � What are What are What are What are we learning about Reg. Integration in Africa? we learning about Reg. Integration in Africa? we learning about Reg. Integration in Africa? we learning about Reg. Integration in Africa?
Where do we stand with the TFTA? � Kampala Decision of October 2008 Kampala Decision of October 2008 Kampala Decision of October 2008 Kampala Decision of October 2008 � High level promise became state High level promise became state High level promise became state High level promise became state- -driven negotiations - - driven negotiations driven negotiations driven negotiations � Definition of Definition of Definition of Definition of acquis: In the context of the Tripartite Free Trade acquis: In the context of the Tripartite Free Trade acquis: In the context of the Tripartite Free Trade acquis: In the context of the Tripartite Free Trade Agreement it means that the negotiations should start from Agreement it means that the negotiations should start from Agreement it means that the negotiations should start from Agreement it means that the negotiations should start from the point at which of the COMESA, EAC and SADC trade the point at which of the COMESA, EAC and SADC trade the point at which of the COMESA, EAC and SADC trade the point at which of the COMESA, EAC and SADC trade negotiations have reached. Tariff negotiations and the negotiations have reached. Tariff negotiations and the negotiations have reached. Tariff negotiations and the negotiations have reached. Tariff negotiations and the exchange of tariff concessions would be among exchange of tariff concessions would be among exchange of tariff concessions would be among exchange of tariff concessions would be among Member/Partner States of the Tripartite FTA that have no Member/Partner States of the Tripartite FTA that have no Member/Partner States of the Tripartite FTA that have no Member/Partner States of the Tripartite FTA that have no preferential arrangements in place between them. This will preferential arrangements in place between them. This will preferential arrangements in place between them. This will preferential arrangements in place between them. This will both preserve the acquis and build on it. both preserve the acquis and build on it. both preserve the acquis and build on it. both preserve the acquis and build on it. � Negotiations began in 2011 Negotiations began in 2011 Negotiations began in 2011 Negotiations began in 2011 – – “Launched” June 2015 but … – – “Launched” June 2015 but … “Launched” June 2015 but … “Launched” June 2015 but … sans tariffs, sans tariffs, sans tariffs, sans tariffs, RoO RoO & Trade Remedies RoO RoO & Trade Remedies & Trade Remedies & Trade Remedies � Negotiations still incomplete: Built Negotiations still incomplete: Built Negotiations still incomplete: Built Negotiations still incomplete: Built- -in Agenda - - in Agenda in Agenda in Agenda � But the enthusiasts signed … CFTA announced in 2012. But the enthusiasts signed … CFTA announced in 2012. But the enthusiasts signed … CFTA announced in 2012. But the enthusiasts signed … CFTA announced in 2012.
Technical Features of the TFTA � No legal person No legal person No legal person No legal person � Framework Agreement: How do we know? Framework Agreement: How do we know? Framework Agreement: How do we know? Framework Agreement: How do we know? � No Secretariat No Secretariat No Secretariat No Secretariat � Covers only trade in goods Covers only trade in goods Covers only trade in goods Covers only trade in goods � Consists of Agreement, Annexes and Protocols Consists of Agreement, Annexes and Protocols Consists of Agreement, Annexes and Protocols Consists of Agreement, Annexes and Protocols � Obligations qualified … or WTO duties repeated. Obligations qualified … or WTO duties repeated. Obligations qualified … or WTO duties repeated. Obligations qualified … or WTO duties repeated. � Whiff of Dispute Settlement Whiff of Dispute Settlement Whiff of Dispute Settlement Whiff of Dispute Settlement � RECs existing alongside RECs existing alongside RECs existing alongside RECs existing alongside � What does Art XXIV GATT imply? Interim arrangement; What does Art XXIV GATT imply? Interim arrangement; What does Art XXIV GATT imply? Interim arrangement; What does Art XXIV GATT imply? Interim arrangement; needs plan & schedule needs plan & schedule needs plan & schedule needs plan & schedule
How will the TFTA be implemented? When? What will then change? � Complete the built Complete the built- -in agenda in agenda Complete the built Complete the built - - in agenda in agenda � Sign, ratify and deposit ratifications (or accede) Sign, ratify and deposit ratifications (or accede) Sign, ratify and deposit ratifications (or accede) Sign, ratify and deposit ratifications (or accede) � Binds only the future Parties Binds only the future Parties Binds only the future Parties Binds only the future Parties � Domesticate what’s necessary & update tariff books Domesticate what’s necessary & update tariff books Domesticate what’s necessary & update tariff books Domesticate what’s necessary & update tariff books � Tell businesses about it….. Tell businesses about it….. Tell businesses about it….. Tell businesses about it….. � What will then happen/change? What will then happen/change? What will then happen/change? What will then happen/change? � Obligations mostly re cooperation & WTO Obligations mostly re cooperation & WTO Obligations mostly re cooperation & WTO Obligations mostly re cooperation & WTO � Variable geometry Variable geometry Variable geometry Variable geometry � And if there are complaints about unfair practices or And if there are complaints about unfair practices or And if there are complaints about unfair practices or And if there are complaints about unfair practices or violations? violations? violations? violations?
Relationship with the CFTA � It increased enthusiasm to launch CFTA It increased enthusiasm to launch CFTA It increased enthusiasm to launch CFTA It increased enthusiasm to launch CFTA � Preamble: Preamble: Preamble: Commited Preamble: Commited to championing and expediting Commited Commited to championing and expediting to championing and expediting to championing and expediting the continental integration process the continental integration process the continental integration process the continental integration process � Art. 4 & 5: Art. 4 & 5: Art. 4 & 5: Objectives Art. 4 & 5: Objectives Objectives Objectives: Promote economic : Promote economic : Promote economic : Promote economic development, create a large single market, enhance development, create a large single market, enhance development, create a large single market, enhance development, create a large single market, enhance the regional & continental integration processes; the regional & continental integration processes; the regional & continental integration processes; the regional & continental integration processes; progressively eliminate tariffs, establish institutional progressively eliminate tariffs, establish progressively eliminate tariffs, establish progressively eliminate tariffs, establish institutional institutional institutional framework framework for implementation framework framework for implementation for implementation for implementation of TFTA. of TFTA. of TFTA. of TFTA. � But what about other Protocols on Services But what about other Protocols on Services etc But what about other Protocols on Services But what about other Protocols on Services etc etc etc? ? ? ? � Has TFTA process reached its premature end? Has TFTA process reached its premature end? Has TFTA process reached its premature end? Has TFTA process reached its premature end? � To be submerged into CFTA…. or exist as collection of To be submerged into CFTA…. or exist as collection of To be submerged into CFTA…. or exist as collection of To be submerged into CFTA…. or exist as collection of new FTAs? new FTAs? new FTAs? new FTAs?
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