Presented by : Eba Nguema Ismaelline Mohammed V University

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Presentation transcript:

Presented by : Eba Nguema Ismaelline Mohammed V University The end of European Tariff preferences : What are the Implications for African Countries ? Presented by : Eba Nguema Ismaelline Mohammed V University

Study Context 1947: Exception of article 1.1 Benefit to African Carribean and Pacific (ACP) countries 1979: Introduction of Enabling Clause 1993: Beginning of the contestations over the historic EEC tariff preferences in the Banana dispute 1993-2009: Duration of banana dispute

Aim of Study The aim of this study is to analyse the potential impact of the Economic Partnership Agreement on food security.

Methodology We chose 2 sub regions in Africa: SADC and ECOWAS and we analysed the legal text

SADC-EU EPA Asymmetry of economic power Asymmetry of agricultural development

Content of the agreement - EPA excluded livestock (except poultry) and milk sub sector. EPA also protects some agricultural produce which are either produced or partially produced in the region (spices, non tropical fruits and vegetables). In this situation, by liberalizing the produce which are either produced or partially produced in the region, SADC members will probably reduce prices of their importation; ultimately their food importation bill.

However, EPA included cereals in the liberalization process However, EPA included cereals in the liberalization process. This sub sector is less developed at regional level, but it is very important for F.S The liberalisation of this sub sector will increase the dependancy level. Why ?????? In times of food crisis or food shortage, the most vulnerable regions are the most dependant regions.

Safeguards measures Safeguard measures relating to wheat import from EU Safeguard measures relating to food shortage

ECOWAS _EU EPA Agriculture is a sensitive sector in ECOWAS region Content of EPA EPA excluded rice in the liberalization process, but it liberalized other types of cereals which are important for food security

Wheat accounts for 80% of cereal consumed in all regional supplies. Therefore, by liberalizing cereal (except rice) it could have bad impact on food security Why ????

Tax loss Liberalization could lead to losses in tax revenues of $ 28.4 millions (only losses tax from cereal liberalization) If we take into consideration sea products and industrial products losses could reach 1146 million euros after 5 years and 2877 millions euros after 20 years In case of external schocks, losses in tax revenue will increase vulnerability of ECOWAS members, because these countries will probably have more difficulties paying for their food import.

Conclusion This agreement will probably have a bad impact on FS. It offers little taking into consideration the sensitive Africa agricultural sector. May be African countries should revise this agreement to integrate their real interest.