2008 EPA negotiations: what are the challenges for African countries? TIPS Workshop, Pretoria 4-5 March Dr Mareike Meyn

What is on the negotiation table? All African regions will continue negotiations on Service and investment liberalisation Some trade-related issues (such as public procurement, competition policies, intellectual property etc.) Services Commission proposes ‘positive list’; i.e. African countries shall determine selected services they would like to liberalise vis-à-vis the EU Approach has to be in line with GATS (‘substantial’) GATS flexibilities How to measure? How to box smart. TIPS workshop March 2008

What are possible advantages of integrating services into an EPA? What are possible risks of integrating service into an EPA? How to box smart. TIPS workshop March 2008

Services CARIFORUM had offensive interests in negotiating services in an EPA arguing most of its economies are predominantly service-based. preferential access to the EU service market can help to overcome commodity dependence and to move into high-valuable markets; Many African countries are also service-based; yet their interests are often defensive South Africa: serving the region only; Many African countries: no coherent service strategy Only few African countries have formulated offensive interests Services have not yet been liberalised on a regional level; countries negotiation positions have not been harmonised (e.g. SACU members). How to box smart. TIPS workshop March 2008

Services: formulating offensive and defensive interests Offensive interests: What are your comparative advantages? What are the barriers to enter the EU market? Can these barriers be overcome and if yes, how? Learn from CARIFORUM What sectors could gain from increased competition Defensive interests: What is the current protection level of my service sector? What sectors are already comparably open? To what extent is the EU ready to accept real asymmetry in an EPA? How to box smart. TIPS workshop March 2008

Trade-related issues Unknown what areas EC aims to cover and how What is on the table? “Some” of the following topics: Investment, competition, public procurement, tax transparency, (intellectual property), data protection, social and environmental provisions Unknown what areas EC aims to cover and how The devil is in the detail Some provisions might be pure intents of cooperation and information exchange or the reiteration of existing multilateral obligations, others might go further. How to box smart. TIPS workshop March 2008

Trade-related issues What are possible ‘trade-related obligations’ for African countries? Building-up national competition authorities; Listing selected entities that are subject to transparent procurement rules; Implementing IPR provisions, such as the protection of geographical indications. To what extent binding commitments are in a country’s / region’s interest needs to be evaluated on a case by case basis. How to box smart. TIPS workshop March 2008

Main messages We know that the EC would like to include services We do not know what trade-related issues the EC would like to cover and – most importantly – HOW Draft texts as well as the CARIFORUM EPA give only guidelines but EC emphasised that CF is no template for Africa Outcome depends on negotiations How to box smart. TIPS workshop March 2008

2008 EPA negotiations: what are the challenges for African countries? TIPS Workshop, Pretoria 4-5 March Dr Mareike Meyn