Economic Partnership Agreements (EPAs) are a scheme to create afree trade area (FTA) between theEuropean Union and other countries. They are a response to continuing criticism that the non-reciprocal and discriminatingpreferential trade agreements offered by the EU are incompatible withWTO rules. The EPAs date back to the signing of theCotonou Agreement. The EPAs with the different regions are at different states of play. The EU has signed EPAs with the following countries: theSouthern African Development Community (SADC),ECOWAS (16 states), six countries inEastern and Southern Africa,Cameroon, four Pacific states, and theCARIFORUM states.[1] Their defining characteristic is that they open up exports to the EU immediately, while exports to the partner regions is opened up only partially and over transitioning periods.[2]
Following thewithdrawal of the United Kingdom from the European Union, theUnited Kingdom duplicated eight EPAs, such as with Cameroon,Ghana, the Caribbean, and the pacific states.[3]
There is also anJapan–EU EPA, which is however symmetrical in opening markets, and thus only an EPA in name. Similarly theJapan–UK EPA is only an EPA in name for the same reason.
Due to the continuingWTO incompatibility of previous arrangements, the EPAs' key feature is theirreciprocity and their non-discriminatory nature. They involve the phased out removal of all trade preferences which have been established between the EU and theACP countries since 1975 as well as the progressive removal oftrade barriers between the partners. In order to fulfil the criterion of being a non-discriminatory agreement, the EPAs are open to alldeveloping countries,[citation needed] thereby effectively terminating the ACP group as the main development partner of the EU.
The establishment of a reciprocal trade agreement confronts the EU with the problem of how to reconcile the special status of the ACP group with the EU'sobligations to the WTO. The solution proposed for this dilemma is an agreement which is only as reciprocal as necessary to fulfil WTO criteria. In reality, the ACP countries will have some room to manoeuvre and to maintain some limited protection of their most vital products. The extent to whichtrade must be liberalised under the new EPAs is still a widely debated issue and it remains to be seen whether the WTO provisions regulating regional trade agreements will be revised in favour of the EPA scheme at the end of theDoha Round.
True to the Cotonou principle ofdifferentiation and regionalisation thedeveloping countries are encouraged to enter into the EPAs in regional groupings. So far theACP countries have formed seven[4] regional groupings in which they intend to enter into EPAs with the European Union. These regional groupings are
The new regional grouping established due to the EPA scheme causes the problem of how to reconcile this approach with the previous special treatment of the group ofleast developed countries (LDCs) among theACP countries. Currently, 40 of the 79 ACP countries are defined as LDCs by theUnited Nations. The LDCs constitute a special group among the developing countries and have usually been treated separately.
Therefore, the EPAs will provide special arrangements for this particular group. As opposed to the other ACP countries, the group of LDCs will be invited to reject the EPAs and continue trade relations under the "Everything But Arms" (EBA) regulation. Launched in 2001 by the Council of Ministers, this amendment to the EC'sGeneralized System of Preferences has since then regulated the trade relations between the EU and the LDCs that have chosen to use this facility, grantingduty-free access to all products from LDCs without anyquantitative restrictions – except toarms andmunitions. While this provision facilitates the situation of the LDCs under the new trade scheme, it has also been criticised because the EBA initiative prevents LDCs from opening up their markets for EU products within the context of an EPA. Another weakness of the EBA initiative is that it utilises therules of origin of the GSP which require double stage transformation for textiles and clothing. The rules of origin of the EPAs on the other hand allows single stage transformation for the exports of these sectors. This is one of the reasons why Mozambique and Lesotho (both LDCs) initialled the SADC EU Interim EPA in November 2007, and then went on to sign this agreement in July 2009. Angola (the other LDC in the SADC EPA configuration) has chosen to continue trading under EBA as their main exports to the EU are oil and diamonds which as 'wholly obtained' originating products enjoy duty and quota free entry under the EBA rules of origin.
Researchers at theOverseas Development Institute predict the impact of the EPAs, however, to be rather minimal.[9] Because mostAfrican, Caribbean and Pacific (ACP) group states already enjoyed duty and tariff free access of about €1.4 billion from theCotonou Agreement that expired in 2007, there was little new that could be offered.[9] The expected impact described by the ODI:[9]
Following theBrexit referendum, the United Kingdom replicated the eight European Union Economic Partnership Agreements that were entered into force prior to the UK's withdrawal from the EU on 1 January 2021.[10] These "continuity trade agreements" duplicate the majority of its clauses and text from the European agreements.[11] The following agreements, with countries and regions, were entered into force following Brexit:
The Cameroon EPA is a continuity trade agreement based on the EU's EPA with theEconomic Community of Central African States, with Cameroon being the only ECCAS member to ratify the EPA.[12][13] The trade deal was signed on 28 December 2020, while the agreement entered into force on 1 January 2021.[14]
The CARIFORUM EPA is a continuity trade agreement based on the EU's EPA with theCaribbean Forum states; these includeAntigua and Barbuda,The Bahamas,Barbados,Belize,Dominica, theDominican Republic,Grenada,Guyana,Jamaica,Saint Kitts and Nevis,Saint Lucia,Saint Vincent and the Grenadines, andTrinidad and Tobago.[15][16] The trade deal was signed on 22 March 2019, while the agreement entered into force on 1 January 2021.[17]Suriname signed and acceded to the EPA on 5 March 2021.[18]Haiti is eligible to join the EPA if it signs the agreement and bring it into effect.[19]
The Eastern and Southern Africa EPA is a continuity trade agreement based on the EU's EPA with theCOMESA states; these includeMauritius,Seychelles, andZimbabwe.[20][21] The trade deal was signed on 31 January 2019, while the agreement entered into force on 1 January 2021.[22]Madagascar signed the EPA on 4 November 2021 and joined the agreement on 1 August 2024.[23]Comoros signed the EPA on 12 April 2022, both countries will be covered by the agreement when they bring it into effect.[3]Zambia will be covered by the EPA if they sign it and bring it into effect.[23]
The Ghana EPA is a continuity trade agreement based on the EU's EPA with theEconomic Community of West African States, with Ghana being one of only two ECOWAS member to ratify the EPA.[24][25] The trade deal was signed on 2 March 2021, while the agreement entered into force on 5 March 2021.[26]
The Ivory Coast EPA is a continuity trade agreement based on the EU's EPA with theEconomic Community of West African States, with Ivory Coast being the other ECOWAS member to ratify the EPA.[27][28] The trade deal was signed on 15 October 2020, while the agreement entered into force on 1 January 2021.[29]
The Kenya EPA is a continuity trade agreement based on the EU's EPA with theEast African Community, with Kenya being the only EAC member to ratify the EPA.[30] The trade deal was signed on 8 December 2020, while the agreement entered into force on 1 January 2021.[31] All the other East African Community members are eligible to apply for accession to the EPA; these members includeBurundi,DR Congo,Rwanda,Somalia,South Sudan,Tanzania, andUganda.[32][33]
The Pacific States EPA is a continuity trade agreement based on the EU's EPA with thePacific Islands Forum states; these initially includedFiji, andPapua New Guinea.[34][35] The trade deal was signed on 14 March 2019, while the agreement entered into force on 1 January 2021.[36] TheSolomon Islands joined the EPA on the 5 January 2021.[37]Samoa joined the EPA on the 11 January 2021.[38] TheCook Islands,Kiribati, theMarshall Islands, theFederated States of Micronesia,Nauru,Niue,Palau,Tonga,Tuvalu, andVanuatu are eligible to join the EPA if they sign it and bring it into effect; Tonga has shown interest in acceding to the EPA.[39]
The Southern Africa Customs Union and Mozambique EPA is a continuity trade agreement based on the EU's EPA with theSouthern African Customs Union states; these includeBotswana,Eswatini,Lesotho,Namibia, andSouth Africa, while the UK EPA also incorporatedMozambique which had joined the customs union since the EU–SACUM EPA was signed.[40][41] The trade deal was signed on 9 October 2019, aside from South Africa which signed on the 16 October 2019, while the agreement entered into force on 1 January 2021.[42]
