Explanatory Memorandum to COM(2016)18 - Conclusion of the Economic Partnership Agreement with the SADC EPA States - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2016)18 - Conclusion of the Economic Partnership Agreement with the SADC EPA States. |
|---|---|
| source | COM(2016)18  |
| date | 22-01-2016 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
The attached proposal for a Council Decision constitutes the legal instrument for the conclusion of the Economic Partnership Agreement between the European Union and its Member States, of the one part, and the SADC EPA States, of the other part (SADC EPA). The SADC EPA States are Botswana, Lesotho, Mozambique, Namibia, Swaziland (BLMNS) and South Africa.
The negotiations were completed at the level of the Chief Negotiators on 15 July 2014 in Pretoria. The Agreement was initialled on 15 July 2014 in Pretoria.
Botswana, Namibia and Swaziland currently benefit from preferential market access to the EU under the arrangements laid down in the Market Access Regulation (MAR). Lesotho and Mozambique currently benefit from the arrangements under the Everything But Arms initiative, since they are classified among the Least Developed Countries (LDCs). Trade between the EU and South Africa is currently governed by the Trade, Development and Cooperation Agreement (TDCA).
The SADC EPA will provide a uniform access regime for the BLMNS countries. For South Africa, the SADC EPA will replace the relevant provisions of Titles II and III of the TDCA, dealing respectively with trade and trade related issues.
• Consistency with existing policy provisions in the policy area
This proposal implements the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States, of the one part, and the European Community and its Member States, of the other part, signed in Cotonou on 23 June 2000 (‘ACP-EC Partnership Agreement’), which calls for the conclusion of WTO-compatible Economic Partnership Agreements.
• Consistency with other Union policies
The SADC EPA is a development-oriented trade agreement. It offers asymmetric market access to the SADC EPA States, which allows them to shield sensitive sectors from liberalisation; it provides a large number of safeguards and a clause for infant industry protection; it contains provisions on the rules of origin that facilitate exports; and it eliminates the use of export subsidies in trade between the Parties. These provisions contibute to the objective of Policy Coherence for Development and are consistent with Article 208 i TFEU. The SADC EPA also contains a chapter on Trade and Sustainable Development that links the trade agreement to EU objectives in the field of labour, environment, and climate change.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
The legal basis for this Council decision is the Treaty on the Functioning of the European Union, in particular its Articles 207(3) and i and 209 i, in conjunction with Article 218(6)(a), thereof.
• Subsidiarity (for non-exclusive competence)
The common commercial policy, in accordance with Article 3 of the TFEU, is defined as an exclusive Union competence.
• Proportionality
This proposal is necessary in order to implement the Union’s international commitments, as set out in the ACP-EC Partnership Agreement, and sufficient to contribute to the Union's trade and development objectives.
• Choice of the instrument
This proposal is in accordance with Article 218(6) TFEU, which envisages the adoption by the Council of decisions on international agreements. There exists no other legal instrument that could be used in order to achieve the objective expressed in this proposal.
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
• Ex-post evaluations/fitness checks of existing legislation
Not applicable.
• Stakeholder consultations
Not applicable.
• Collection and use of expertise
Not applicable.
• Impact assessment
A Sustainability Impact Assessment (SIA) of the EU-ACP Economic Partnership Agreements was carried out between 2003 and 2007. The terms of reference for this project were published by the European Commission in 2002 under a competitive call for tender. As a result of this call for tender a five-year framework contract was awarded to PwC France in August 2002. A draft version of the SIA’s final report was presented to stakeholders in Europe during the EU Civil Society Dialogue meeting organised by the European Commission on 23 March 2007 in Brussels, Belgium.
• Regulatory fitness and simplification
The SADC EPA is not subject to REFIT procedures; it does not imply any costs for the Union SMEs; and it does not raise any issues from the viewpoint of the digital environment.
• Fundamental rights
The proposal does not have consequences for the protection of fundamental rights in the Union.
4. BUDGETARY IMPLICATIONS
Foregone duty is estimated to amount to EUR 33.3 million upon full implementation of the Agreement after ten years.
5. OTHER ELEMENTS
• Implementation plans and monitoring, evaluation and reporting arrangements
Under the general provisions of the Agreement, the Parties undertake to continuously monitor the operation and impact of this Agreement. The institutional provisions establish a Joint Council at Ministerial level to be responsible for the operation and implementation of the Agreement and to monitor the fulfilment of its objectives. The Joint Council shall be assisted by a Trade and Development Committee. The Agreement also
• Establishes a Special Committee on Geographical Indications and Trade in Wines and Spirits with the purpose of monitoring the development of the Protocol on GIs and trade in wines and spirits.
• Establishes a Special Committee on Customs and Trade Facilitation that will monitor the implementation and operation of the chapter on Customs and Trade Facilitation and the Protocol on rules of origin.
• Contains a provision that allows each Party to request consultations regarding any matter under the Trade and Sustainable Development chapter. Dialogue and cooperation may include other relevant authorities and stakeholders.
• Explanatory documents (for directives)
Not applicable.
• Detailed explanation of the specific provisions of the proposal
The Agreement contains provisions on cooperation, trade in goods, trade and sustainable development, customs and trade facilitation, technical barriers to trade, sanitary and phytosanitary measures, dispute settlement, Geographical Indications, and rules of origin. The Agreement also contains rendez-vous clauses on trade in services and investment, competition policy, intellectual property rights, and public procurement.
The EPA guarantees duty-free, quota-free access to the EU market for Botswana, Lesotho, Mozambique, Namibia, and Swaziland, with the exception of arms and ammunition. South Africa will benefit from new market access additional to the TDCA, that currently governs its trade relations with the EU. The EU will obtain meaningful new market access into the Southern African Customs Union (SACU) and will have the security of a bilateral agreement with Mozambique, one of the LDCs in the region.
The EPA is designed to be compatible with the operation of SACU, in particular by fully harmonising SACU's import trade regime. SACU presents a single external schedule of tariffs and quota arrangements applied to imports from the EU.