1 EPAs and Agriculture Dougie Brew, DG Trade, European Commission EPA Seminar for the EU outermost...

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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

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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