Economic Partnership Agreement (EPA) and the Pacific Trinnex, Proinvest Vanuatu, August 2010

Context Trade between the EU and Pacific states is limited and erratic (about 0.06% of EU’s trade) Most important export products to the EU are palm oil, copper, sugar, coconut (copra) and fish Cotonou agreement expired on 31 December 2007

EPA in the Pacific State of play Late 2007, the two biggest economies with significant trade flows with the EU – Fiji and PNG – agreed an interim EPA with the EU. the agreement maintains and improves PNG's and Fiji's preferences in the EU market for their main exports and ensures that they benefit from improved Rules of Origin for key products like canned tunand

EPA in the Pacific State of play The agreement was signed by the Parties in the latter half of Provisional application of the agreement for PNG started on 20 December Application for Fiji is pending a notification of provisional application or ratification. The Least Developed Countries (LDCs) of Kiribati, Samoa, Solomon Islands, Tuvalu and Vanuatu all benefit from the Everything But Arms (EBA): duty free and quota free access to the EU.

Interim EPA State of play The non-LDCs that did not join the interim EPA (Cook Islands, Tonga, Marshall Islands, Micronesia, Niue, Palau and Nauru) benefit from the EU's regular Generalised System of Preferences since 1 January 2008.

The interim Economic Partnership Agreement Concluded with PNG in July 2009, Fiji in December 2009, Major provisions of trade in goods agreement.

The interim Economic Partnership Agreement Duty free quota free access for all PNG and Fiji exports to the EU (transition for rice and sugar) Duty free quota free access for all PNG and Fiji exports to the EU (transition for rice and sugar) Asymetric and gradual tarriff reduction schedule Trade defence (safeguards) TBT and SPS Trade facilitation Clause on ongoing full regional EPA

Liberalisation commitments PNG to liberalise 88% of EU imports and excluded products from the most sensitive economic sectors (e.g. meat, fish, vegetables, furniture) and luxury products (jewellery) PNG to liberalise 88% of EU imports and excluded products from the most sensitive economic sectors (e.g. meat, fish, vegetables, furniture) and luxury products (jewellery) Fiji will liberalise 87% of EU imports over 15 years. Fiji excluded products from the most sensitive economic sectors such as meat, fish, fruits and vegetables, alcohol, tubes and iron.

OTHERS RoO  Global sourcing for canned tuna RoO  Global sourcing for canned tuna Also IUU regulation (illegal, unreported and unregulated fish) Also IUU regulation (illegal, unreported and unregulated fish) To fully benefit from iEPA  investments in facilities and quality control, secure source of raw material To fully benefit from iEPA  investments in facilities and quality control, secure source of raw material

EPA in the Pacific Way ahead Ongoing negotiations on comprehensive full regional EPA with Pacific States Continued EU support in the TRA area

EU regional suport in the TRA area Strengthening Pacific Economic Integration Through Trade (SPEITT) PIFS’ Pacific Regional Economic Integration Program (PACREIP), the SPC’s Facilitating Agricultural Commodity Trade (FACT) program, the South Pacific Tourism Organisation’s (SPTO) Pacific Regional Tourism Development Program (PRTDP) program Strengthening Fisheries Products (SFP) PROINVEST / BIZCLIM

Strengthening Pacific Economic Integration Through Trade (SPEITT) 30 mi EURO 3 main objectives: –Increased capacity in trade policy –Improved trade facilitation through improved customs management and systems –Strengthened PACPs productive export capacity Continued EU support in the TRA area

Strengthening Pacific Economic Integration Through Trade (SPEITT) 4 sub-components: –the Pacific Integration Technical Assistance Program (PITAP), implemented by PIFS; –the Pacific Regional Tourism Capacity Building Program (PRTCBP) implemented by SPTO; –the Increasing Agriculture Commodity Trade (IACT) programme implemented by SPC; –the Trade Facilitation through Customs Cooperation (TFCC) program implemented by OCO Continued EU support in the TRA area

Strengthening Pacific Economic Integration Through Trade (SPEITT) Implementation to start next year Questions? Thank you ! Continued EU support in the TRA area

EU – PNG Trade data About 7-8 % of PNG’s trade and less than 0.03 % of EU’s trade