In an interview with Trade Negotiations: Insights (September 2007 edition), the European Union Trade Commissioner, Peter Mandelson, said the EU would not engage in an alternative strategy concerning African, Caribbean and Pacific (ACP) trade relations with Europe at the World Trade Organisation (WTO), stressing that there is definitely “no Plan B” for EU trade relations with the ACP. New Era spoke to trade analyst, Wallie Roux, wherein he responds in his personal capacity to Mandelson’s assertions.
By Catherine Sasman
What would the consequences be if the Doha Round stalls on the EPA negotiations?
The WTO (World Trade Organisation) Doha Round started in 2001 and was earmarked as a Development Round to accommodate the specific needs of the developing countries. The Round was supposed to be concluded early 2005, leaving sufficient time to engage and conclude the EPA negotiations under ‘new’ WTO rules.
However, this never materialised and the EPAs are negotiated according to Cotonou Article 37.7, that reads, “…while remaining in conformity with WTO rules then prevailing”, in other words, the ‘old’ WTO rules.
Should the Doha Round be concluded by year-end, as indicated by the new deadline and in favour of the developing countries, it would be interesting to see whether the EU would allow the new rules to be accommodated in the EPA text.
What market access would ACP countries have to EU markets compared to what they would receive under the Doha Round?
While Mr Mandelson is mentioning that ‘EPAs would remove all remaining tariffs and quotas for all products – which is a phase-in period for rice and sugar’, he, however, did not mention the condition attached to it.
This duty-free, quota-free offer from the EU will only apply to those countries that have signed an EPA before or on December 31. In the case of the SADC-EPA, there is the stalemate with the EU regarding the negotiation of services and the new generation issues before the end of this year, which makes the signing of an EPA before year-end unlikely.
What needs to be solved for the EPAs to be concluded by the end of the year?
Mr Mandelson specifically mentions regional integration as a complex and sensitive issue as part of the problems that need to be solved for the EPAs to be concluded by the end of the year.
Cotonou Article 35.2 recognises regional integration as a ‘key instrument for the integration of the ACP [African Caribbean and Pacific] countries into the world economy’. It furthermore states that ‘economic and trade cooperation shall build on regional integration initiatives of ACP states’.
As a result of the exogenously inspired EPA process, the most profound regional integration initiative in southern Africa, namely SADC, is currently split between three different EPA configurations. The other regional integration initiative, SACU [Southern African Customs Union], was also divided until South Africa was allowed as a full member of the SADC-EPA in February.
Furthermore, what will happen to regional integration if not all of the countries within a configuration would sign the EU’s duty-free, quota-free offer by 31 December? To solve this problem in practical terms before the end of this year borders on near impossibility.
Part of the problem of regional integration in southern Africa in the current EPA context is the TDCA [Trade, Development and Cooperation Agreement] between the EU and South Africa. This agreement stems from an unsuccessful application of South Africa to become a full member of the Lom???_?_’???_?’???_?