ACP-EU Negotiations of Economic Partnership Agreements: Threat or opportunity for regional integration in Southern and Eastern Africa ? Christoph Wagner, European Commission Brussels, June 2005

All-ACP phase (Oct. 2002- Oct. 2003) convergence Instruments for development Support regional integration Maintain and improve current level of market access WTO compatibility - with SDT to be provided for all ACPs, in particular LDCs and vulnerable small, landlocked and island countries divergence Level of discussion of certain issues (all-ACP vs regional) Sequencing negotiations and aid Need for additional funding over and above the EDF

Regions Central Africa – CEMAC + Sao Tomé Brazzaville, 4th October West Africa – ECOWAS + Mauritania Cotonou, 6th October Southern and Eastern Africa – 16 Countries Mauritius, 7th February 2004 Caribbean – Kingston (Jamaica), 16 April 2004 SADC EPA - 7 SADC States Windhoek, 8 July 2004 Pacific - ACP members of Pacific Forum 10 September 2004

Road map: broad consensus on calendar Introductory «priority setting» phase (3 months) Convergence on strategic approach (until + mid 2005) Understanding on regional integration policies and priorities and on level of integration to be achieved when EPA implementation starts Structuring and consolidation (until + mid 2006) : Remaining trade related issues to be included in EPA Prepare liberalisation scenarios draft outline of EPA Finalisation of negotiations (until end of 2007) Negotiation of market access Finalisation of EPA ESA: indicatively Identify sensitive list of imports – safeguard clausure Market access: agriculture, rules of origin, SPS, TBT Services Trade related issues

ESA Status of negotiations Opening on 7 February 2004. Roadmap – copy available July 2004 meetings: defined work for following months: fishery, market access and development Only fishery went ahead – ESA regional framework agreement – technical meeting in October 2004 in Madagascar showed differences December 04 to February 05 exchange of notes, mostly on fishery May 2005 senior level brainstorming meeting – clarified and put talks back on track Next senior level meeting probably September to launch talks on market access, agriculture and development Ministerial level for end of the year ESA: indicatively Identify sensitive list of imports – safeguard clausure Market access: agriculture, rules of origin, SPS, TBT Services Trade related issues

ESA Challenges Delays: region to organise negotiating structures: national and regional level; important role of BXL based ambassadors Nomination of regional chief negotiating advisor to push process in BXL Financing of meetings and background analysis – regional, national and all-ACP funds but problem of procedures ESA: indicatively Identify sensitive list of imports – safeguard clausure Market access: agriculture, rules of origin, SPS, TBT Services Trade related issues

SADC Status of negotiations Opening on 8 July 2004 Technical and senior level meetings: agreed on a report on SADC Trade integration in view of establishing the starting line for the future EPA (by September 2005) Also discussed progress reports on SPS and TBT with a view to facilitate SADC access to EU legislation Next Technical negotiations take place in Brussels on 13-15 June 2005 ESA: indicatively Identify sensitive list of imports – safeguard clausure Market access: agriculture, rules of origin, SPS, TBT Services Trade related issues

Geographical configuration Overall Challenges Geographical configuration SADC – ESA SACU – TDCA EAC – Tanzania South-South vs North-South focus Capacity constraints Link to development co-operation

Opportunity for regional integration – ‘spaghetti bowl’ Conclusion Opportunity for regional integration – ‘spaghetti bowl’ Comprehensive approach; involvement of stakeholders Objective is economic development of the region ESA: indicatively Identify sensitive list of imports – safeguard clausure Market access: agriculture, rules of origin, SPS, TBT Services Trade related issues