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EPAs and Agriculture
Dougie Brew, DG Trade, European CommissionEPA Seminar for the EU outermost regions and OCTs
Brussels, 13-15th June 2005
EU - ACP Agriculture TradeEU - ACP Agriculture Trade
Objectives of EPAs and AgricultureObjectives of EPAs and Agriculture
Market Access and Regional integrationMarket Access and Regional integration
Related Areas (SPS, Rules of Origin etc)Related Areas (SPS, Rules of Origin etc)
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5 products or 9 countries
(Diamonds, Wood, Fish, Cocoa, Oil)DD
60% of ACP Exports to the EU are From
(i) Half the agricultural goods it exports
(ii) A lot of manufactured goods
The ACP Imports
EU – ACP Agriculture Trade TestEU – ACP Agriculture Trade Test
3
EU – ACP Agriculture TradeEU – ACP Agriculture Trade
Share of Agricultural products in EU imports f rom ACP
20%
25%
30%
35%
40%
2000 2001 2002 2003 2004
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EU – ACP Agriculture TradeEU – ACP Agriculture Trade
AGRI CULTURE : ACP export to EU
cocoa27%
other30%
floriculture4%
tobacco4%
bananas6%
sugars10%
fish19%
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EU – ACP Agriculture TradeEU – ACP Agriculture Trade
AGRI CULTURE : OCT export to EU
fish87%
RICE1%
other8%Sugar
4%
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Objectives of EPAs for AgricultureObjectives of EPAs for Agriculture
Same as those that apply to Same as those that apply to allall Trade Trade
Improved CompetitivenessImproved Competitiveness
Broad Trade and Reduced DependencyBroad Trade and Reduced Dependency
Reduce non AReduce non Agriculturegriculture barriers barriersTackle Agriculture Issues (SPS)Tackle Agriculture Issues (SPS)Larger domestic / regional marketsLarger domestic / regional marketsImproved investmentImproved investmentGreater opportunity in 3Greater opportunity in 3rdrd countries countries
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ACP Preferential Market Access into the EUACP Preferential Market Access into the EU
Good for ACP (97% open already) and the Good for ACP (97% open already) and the EU will maintain or improve thisEU will maintain or improve this
Safeguard key areas but products and Safeguard key areas but products and schedules to be agreedschedules to be agreed
Include joint review of commodity Include joint review of commodity protocolsprotocols
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Increased Incomes and Secured Livelihoods
- BUT THE WORLD CHANGED AND THEY -
Increased marginalisation and vulnerability
Restricted diversification and innovation
Were unable to guarantee incomes
Effect of Unilateral PreferencesEffect of Unilateral Preferences
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Possible Changing Market Access EffectsPossible Changing Market Access Effects
For ORsFor ORs Increase in ACP importsIncrease in ACP imports Impacts on “regime specifique agricole”Impacts on “regime specifique agricole”
For OCTsFor OCTs Increased competition with ACP Increased competition with ACP ACP stop using “OCT route” for rice and sugarACP stop using “OCT route” for rice and sugar
EPAs by 2008 but Changes in EU Market Access EPAs by 2008 but Changes in EU Market Access in Particular Laterin Particular Later
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EU Access to ACPEU Access to ACP
Be gradual, asymmetric and WTO Be gradual, asymmetric and WTO compliantcompliant
Cover products and schedules to be Cover products and schedules to be agreedagreed
Be Regionally SpecificBe Regionally Specific
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Regional Integration of MarketsRegional Integration of Markets
A step towards the world by a South-South-North approach
Create larger investment markets and reduce internal costs
Support existing efforts
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Small Print Big ImpactsSmall Print Big Impacts
Rules of Origin, Sanitary, Phytosanitary Rules of Origin, Sanitary, Phytosanitary and TBT measuresand TBT measures
Addressing Market Demands in a Product Addressing Market Demands in a Product ApproachApproach
Capacity Building and Trade FacilitationCapacity Building and Trade Facilitation