The EU's Economic Partnership Agreements (EPAs) With .

The EU's Economic Partnership Agreements (EPAs) withcountries in Africa, the Caribbean and the Pacific (ACP)Supporting businessesand communities in ACP countries

Harnessing thebenefits of tradeTrade and investment can help countries develop their economies by: creating jobsgenerating income for peoplegiving consumers and businesses access to a wider range of highquality productscutting prices.EPAs help create the right conditions in African, Caribbean and Pacific(ACP) countries for trade and investment.Together with development aid, EPAs can deliver real benefits for ACPcountries, including: More markets, more sales – by:o opening the EU market fully to imports from ACP countrieso strengthening and boosting trade between ACP countries. Better infrastructure, administration and public services to increase:o a country's capacity for producing goods and serviceso the transfer of knowledge needed to produce goods andservices. More transparency and political and economic stabilityo EPAs facilitate political dialogue - a key part of therelationship between ACP countries and the EUo By doing so they aim to uphold democratic standards,good governance and human rights.

Benefiting businesses and communities acrossAfrica, the Caribbean and the PacificEPAs directly benefit ACP manufacturers, service providers,farmers and the communities in which they operate. exporting predominantly lowervalue raw materialsDuty- and quota-free access forexports to the EU. Free access to the EUmarket of half a billion people for allACP products, providing plenty of scopefor economies of scale.More integrated regional markets benefiting ACP exporters by boostingtrade between neighbouring ACPcountries and regions.o thereby move up the valueadded ladder rather thanDevelopment dimension - EPAs alsocreate opportunities for dealing withother issues relating to trade anddevelopment, such as poorinfrastructure or burdensome red tapeat customs. A context for wider reforms - EPAsare part of the wider developmentagenda for ACP countries, to:So when a producer in one ACP countryuses inputs from another, they don'thave to pay customs duties when theyexport their final products to the EU. More flexible, simpler rules of origin –these allow ACP States to:o use cheaper, better quality ormore innovative inputs fromother countries in their exports No undue competition - ACP countrieswill only gradually open their markets toEU imports, and producers of the mostsensitive 20% of goods will enjoypermanent protection from competitionNo shocks – EPAs phase out ACP dutieson EU exports over periods of between15 and 25 years, with exceptions andsupport for ACP countries thatencounter problems.o strengthen the rule of lawo attract local and foreigninvestment ando create the conditions for greaterprosperity.

Benefiting the world'sleast developed countries (LDCs)Many of the EU’s ACP trading partners are LDCs. So they already enjoy duty- and quota-free access to the EU marketunder the EU's "Everything but Arms" (EBA) scheme. But EPAs offer LDCs even more. More flexible rules of origin - beyondfree market access, EPAs come withmore flexible rules of origin, making iteasier for ACP countries to exportproducts with inputs from othercountries especially in key exportsectors - agriculture, fisheries andtextiles and clothingHelp to address broader issuesaffecting trade, such as:o technical barriers to tradeo labour rights and theenvironmento poor infrastructureo inefficient customs and bordercontrols, oro inadequate standards Support for regional markets andrules o EPAs help promote regionalsolutions, which are good fortrade and development, byharnessing ACP regionalintegration initiatives alreadyunderwayo they are also the fruit of regionalnegotiations which take accountof regional needs and eachcountry's sensitivities andconditionsSafeguards for local economies - ACPcountries that sign EPAs must graduallyopen some 80% of their markets to EUimports, but they can exclude productsand apply "safeguard" measures toensure that EU products don't competeagainst locally produced goods.That means:o economic disruption is avoidedo local industries and consumersbenefit from cheaper inputs andconsumer goods. Respect for national sovereignty instead of imposing developmentstrategies, EPAs ask countries todetermine their own developmentstrategies and the pace and sequenceof reforms.

Partnerships of equals - EPAs arestable partnerships between EU andACP countries. EPAs establish viablecontracts between equal partners, andcan't be altered without mutualagreement.This is an important differencecompared to the EBA scheme - which isgranted, and not negotiated, by the EU –and favours long-term planning andinvestment for development.Benefiting consumers and workers in EuropeEPAs don't just benefit for people and communities in ACP countries.They have advantages for Europeans, too. Lower prices, better value – EPAs remove trade barriers, whichin turn produces healthy competition on the EU market and lowerprices for consumers. Ethical choices – European consumers will have easier access toproducts from small-scale, family-run businesses in ACPcountries. More choice, better quality – EPAs can help promote export ofnew products from ACP countries, and new varieties of familiargoods like coffee, cocoa, mangos, or pineapples. Jobs - in the long run, trade will help ACP countries become moreprosperous. In turn, that will generate more demand for Europeanproducts and expertise, which will be good for jobs in Europe.

The benefits of EPAs – 12 real-life examplesIn Africa quota-free access for all Ghanaianexports. This more predictablearrangement than in the past meansGhanaian exporters can safely investmore in processing and marketing theirfruit.Madagascar – textilesTextile producers in Madagascar havefree access to the European market of500 million consumers, thanks to theEPA between the EU and the Easternand Southern Africa (ESA) region. With the added benefit of more flexiblerules of origin, they can source rawmaterials including fabric from moreefficient producers in Asia and stillexport their final products - clothes - tothe EU duty- and quota- free. The EPA offers permanently duty- ando granting free market access forthose products in Europe. The EPA with West Africa will provide astable market in Europe for around25,000 households living from mangoproduction in Senegal. It alsocontributes to programmes that helpproducers comply with the EU's planthealth and food safety standards.Ghana – pineapplesPineapple exporters in Ghana can restassured that their trading environmentwon’t be upset by any unilateraldecision by the EU, for example, tomodify market access conditions for allmiddle-income countries and increasetariffs on specific products.Senegal – mangoesfabric, and embroidery, by:o shielding it from liberalisationand Côte d'Ivoire - cottonCotton producers in Côte d'Ivoire nowhave access to cheaper inputs such asfertilisers and machinery tools.At the same time, the EPA fosters localtransformation of raw cotton intocotton-seed oil, cotton yarn, wovenSwaziland – sugarThanks to the EU's EPA with theSouthern Africa DevelopmentCommunity (SADC), Swaziland’s sugarexporters will now enjoy permanentlyduty- and quota-free access to the EU.This has increased their chances ofEuropean buyers renewing contractswith them. South Africa – rooibos teaFarmers in South Africa who groworganic rooibos can now be confidentthat their product enjoys protectionunder EU law from counterfeit "rooibos”versions, as it is now designated a'geographical indication'.

Namibia – seafoodorigin, so that they keep their freeaccess to European markets.Namibian fishermen export 75% oftheir hake catches to the EU. They'llnow find it easier to charter vesselsand still comply with the rules of Kenya, the EU's EPA with the EastAfrican Community (EAC) willguarantee permanent duty- andquota-free access to the EU market.Kenya - cut flowersFor producers of cut flowers inIn the Caribbean mixes can all enter the EU market dutyand quota-free.Fresh and processed foodThe CARIFORUM-EU EPA meansEuropeans can enjoy authenticCaribbean home cooking, as freshproduce and processed sauces andcompetition from EU products start onlygradually over long transition periods of10-25 years, giving local producers plentyof time to adjust.What's more, most EU agricultural productswill still face import tariffs in CARIFORUMcountries. The rest will face duty-freeIn the Pacific person - a trip to the localsupermarket may be enough.Fiji – coconut-based productsFijian suppliers of coconut-basedproducts have duty- and quota- freeaccess to the EU under the Pacific-EUEPA with Fiji and Papua New Guinea.So that should mean Europeans canget coconut oil and beauty productsfrom Fiji without flying there in excludes it from market liberalisation. Papua New Guinea – canned tunaPapua New Guinea, Fiji – seafoodFishermen in Papua New Guinea and Fijineedn’t fear stiff new competition from EUfish imports. The two countries will stillapply tariffs because the EPA recognisesfisheries as a sensitive industry andCanned tuna is one of Papua New Guinea’smain exports to the EU. Thanks to the EPA,it will continue to enter the EU duty- andquota-free, with much more flexible andsimpler rules of origin to facilitate globalsourcing of raw tuna for processing.

EPA with Fiji and Papua New Guinea. So that should mean Europeans can get coconut oil and beauty products from Fiji without flying there in person - a trip to the local supermarket may be enough. Papua New Guinea, Fiji –seafood Fishermen in Papua New Guinea and Fiji needn’t fear stiff new competition from EU fish imports.