Economic partnership agreements

Thèmes abordés

European Union effects of EU preferential treatment on exports of developing Countries African Pacific And Caribbean ACP GSP ECOWAS Caribbean

Résumé du document

The developing countries are negotiating preferential trade agreements with the European Union since
always. This paper will explain the different treaties which have been put in place along the way between
1957 and now. Since it would be too long to describe the situation implying all the ACP zones negotiating the EPAs, the ECOWAS and Caribbean regions will be zoomed on regarding to the exchange profile and the
impact of the EPAs on tariff revenue of the two regions. The first part of this paper is about a little history of the treaties or agreements that has been made from 1957.

The second part is about the impact of the EPAs on exports and imports for the different regions. It will bring to light the new aspects of the negotiations. The third part will do the same about the possible tariff losses that could affect the ECOWAS or the Caribbean countries. Everything began with the Treaty of Rome After the creation of the European Coal and Steel Community through the Treaty of Paris to reconstruct a stable economic European Continent, the treaties of Rome were signed in 1957.

The objective was to create a free trade area for the signatories countries, which were Belgium, France, Federal Republic of Germany,Italy, Luxemburg and the Netherlands. At that time, nobody speaks about free circulation of capitals, persons
or services. Regarding to the external trade, the European Economic Community (EEC) set a Common External Tariff which consisted in a tariff rate on imports coming into the Community.

But in the fifties, countries like France still had some colonial attachments. These partners were afraid of tariff rates. That's the reason why the colonies (and former ones) began to benefit from non-reciprocal trade agreements for a 5-year period. To help them, the Treaty of Rome provided an European Development Fund (EDF), also for a 5-year period. That EDF was the main instrument to grant them technical and financial aid. The same instrument would be improved in each treaty, agreement or convention negotiated afterwards.

Economic Partnership Agreements Page 5 on 52 CANZIANI - DE RONNE - WANG November 29th 2010 After that first step toward international trade, the EEC signed other trade agreements to keep these countries protected.
The first was the Yaounde Convention, signed in 1963. It was about financial, technical and trade cooperation with mostly African States. And with it, an other EDF version.

In 1975, the Georgetown agreement defined the ACP groups of States, which are organized on the basis of 6 geographical regions: Central Africa, East Africa, Southern Africa, West Africa, Caribbean and Pacific. Many of the former colonies were integrated into these regions. The objectives of the creation of these ACP groups of States are to eradicate poverty, to promote a sustainable development, to guarantee a democratic and free environment but also a gradual economic integration into the world economy. And, last but not least, the ACP countries need to cooperate with each other, before trying to trade with the whole world.

Tags: Economic partnership agreements, developing countries, Georgetown agreement, sustainable development, colonial attachments.

Extraits

[...] Annual loss as share of current governmental revenue (percentage) 0,4 N.A N.A. Country Antigua & Barbuda Bahamas Barbados Belize Dominica Grenada Guyana Haiti Jamaica St Kitts & Nevis St Lucia St Vincent & Grenadines Suriname Trinidad & Tobago Table Annual loss in share of governmental revenue. Sources : CRNM estimates based on data provided by CARICOM Member States Economic Partnership Agreements Page 34 on 52 CANZIANI - DE RONNE - WANG November 29th 2010 Comparison of the two regions The estimations of tariff losses for the two regions are a little different depending on the method used. [...]

[...] Some increases as in 2002 or 2006 where the EU's part rise again can be noted but these improvements last only a one-year period. Otherwise, although the North American's part in the ECOWAS exports fluctuates around the 34% level before 2002 with some high level as in 2000 and other low results as in 2002 their part do not stop significantly to increase from 2003 to 2008 to reach, at the end of the period The Rest of Asia's part in ECOWAS's exports represents also a significant part. [...]

[...] TOTAL EXPORTS Table 15: Imports of ECOWAS from Others Region of the World, 1996-2008 (billion Economic Partnership Agreements Page 48 on 52 CANZIANI - DE RONNE - WANG November 29th 2010 Country EUROPE European Union Rest of Europe AFRICA Central Africa Northern Africa ECOWAS East and South Africa AMERICA Northern America Central and Caribian Southern America ASIA Asia occidental Rest of Asia AUSTRALIA­OCIAN. Australia­Newziland Oceanic­Polar region Others not def. [...]

[...] This part undergoes some fluctations, for instance, the rate fell to 69% in 2002 followed by an increase to reach 85% in 2005. In 2008, the percentage is at the 83% level of the total of ECOWAS's exports. In second position, but far behind, come the products from food industries. As the mineral products, the highest rate appears in 2002 with 12% of the total exports. The fluctuations lead the food industries products to of the total in 2008 which represents the lowest rate of the period. [...]

[...] The EPA allows the region to compete in a liberalized global economy, where a competitive environment is necessary for survival, although it will produce challenges for smaller Caribbean government. The share of EU exports to Caribbean ACP countries represents only of total UE exports. Besides the amount of theses exports is decreasing. The largest part of theses exports is in manufactures sector, especially in machinery and transport equipment. In contrast the export of agricultural products is increasing since the liberalization of market which is the main sector of the export of some Caribbean ACP countries. [...]