5_2006_EPA_1 - European Commission ECONOMIC PARTNERSHIP...

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European Commission E E C C O O N N O O M M I I C C P P A A R R T T N N E E R R S S H H I I P P A A G G R R E E E E M M E E N N T T S S M M e e a a n n s s a a n n d d O O b b j j e e c c t t i i v v e e s s
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EPA S : M EANS AND O BJECTIVES 2 C ONTENTS 1. Need for a new approach. ............................................................................................... 2 2. Importance of South-South integration. ....................................................................... 3 3. Reciprocity in a Free-Trade Agreement (FTA) is an opportunity, if handled with care. .................................................................................................................................. 4 4. Development dimension . ................................................................................................ 6 5. Transparent and open negotiations. .............................................................................. 7 1. N EED FOR A NEW APPROACH Trade between African, Caribbean and Pacific (ACP) countries and the European Union (EU) under the Lomé Convention has been too limited in its ambition Trade preferences can give a competitive edge and can offer opportunities, but have a limited impact, if the beneficiary country is not in a position to seize them. Also, preference margins are bound to gradually be eroded as multilateral trade liberalisation progresses. They will thus further lose their importance for directing trade. To be secure, unilateral preferences under Lomé and Cotonou required a WTO waiver It is clear that the waiver granted in Doha will not be extended beyond 2007. Unilateral preferences do not tackle the main problems in ACP countries This is reflected in the share and the composition of EU imports from ACP countries: in 2002, only 3% of EU imports originated from the ACP against 6,7% in 1976. 65% of these imports consisted of raw materials. Also, only ten products made up for nearly 60% of EU imports from the ACP. Conclusion: Economic Partnership Agreements (EPAs) respond to the need for change: they take a new, more comprehensive approach, tackle all barriers to trade, mostly through re-enforcing regional integration and addressing supply-side constraints, and form secure, WTO-compatible trade arrangements. EU imports from ACP according of the level of the processing Raw Materials 65% Semi-finished products 16% Finished products 19% Main products imported from ACP Cocoa 4,3% Aluminium 2,3% Wood 3,8% Bananas 1,5% Diamonds 10% Sugar 2,7% Coffee 1,9% Tobacco 1,6% Petroleum 30% other 42%
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EPA S : M EANS AND O BJECTIVES 3 2. I MPORTANCE OF S OUTH -S OUTH INTEGRATION Larger, more attractive markets are a key-criterion to attract investments At present, small, segmented markets in Africa are too expensive and not competitive. EPAs will contribute to higher growth and greater opportunities through regional integration. Larger markets mean more potential customers, and are therefore more attractive to investors. More
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5_2006_EPA_1 - European Commission ECONOMIC PARTNERSHIP...

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