West Africa EPA negotiations deadline extended from June to October 2009

So as to ensure that both parties benefit from the EPA trade regime and the implementation of the EPA Development Programme, the Heads of State and Government directed the ECOWAS and UEMOA Commissions to step up the negotiation process so as to ensure the signature, in line with the agreed timetable, of a regional agreement that would in the initial phase, cover trade in goods and development cooperation within the scope of the EPA. In this regard, they urged the Chief Negotiators to finalise discussions on outstanding issues in particular, the improvement of the development-oriented market access offer. They called on the European Union and its Member States to demonstrate clear commitment to the financing of the EPA Development Programme.

West African leaders also reaffirmed their commitment to the consolidation of the regional integration process. With regard to the regional Common Market, the summit approved the expansion from four to five bands of the tariff regime for West Africa. This will see the Common External Tariff (CET) for the region increase from the four tariff regime bands of between 0 and 20 per cent for goods imported into the region from non-ECOWAS member states to include a fifth band to allow for Member States to increase their peak tariff on imported goods from 30% to 35 % for certain categories of goods imported into the region. Leaders urged the Commission to speed up discussions on the regional methodology to determine what products would fall within the 5th band and their re-classification. Specifically, the Heads of State and Government called on Member States to ensure the effective application of the ECOWAS Protocols on the Free Movement of Persons and Right of Residence and to put an end to all forms of harassment along corridors and borders. A joint committee of the Technical Committee on Trade, Customs and Free Movement will meet later to undertake the process of reclassification to determine the goods that will qualify for this agreed new peak tariff.

The European Union and West African negotiators agreed to conclude a regional agreement on trade in goods and development cooperation by October 2009 at their meeting on 17 June 2009. Doubts about its readiness to sign EPA by end June deadline were expressed by the Nigeria’s Minister of Commerce and Industry, Chief Achike Udenwa as conditions that must be on the ground for the overall development of the country and the region are not yet in place. He drew attention to contentious issues that needed to be settled before the conclusion of the EPA such as development issues, supply-side constraints, infrastructure facilities, capacity building, regional integration and adjustment cost of liberalization. Chief Udenwa said government is being cautious due to the adverse economic impact the EPA is likely to make on the economy of the country. Earlier, Ghana President, John Evans Atta Mills, criticised clauses in the draft EPA claiming it is meant to allow European countries dump their cheap and highly subsidised goods and services on Ghana. Both sides reaffirmed their commitment to moving forward the longer term process to build a lasting partnership between the EU and West Africa.

Nigeria and the EU agreed to intensify political dialogue and cooperation through a broader political framework called the "Nigeria-EU Joint Way Forward" at their meeting Ministerial Troika Meeting on 9 June 2009. The purpose is to establish the principles, objectives, modalities, guidelines and priority subjects for enhanced political dialogue and cooperation between the Parties. The Parties also reaffirmed their commitment to urgently conclude the negotiations for a comprehensive regional EPA that would foster economic governance, regional integration, contributing to the eradication of poverty and to the achievement of the Millennium Development Goals.

ECOWAS EPA Negotiating Ministers called for an unequivocal EU commitment to funding EPA development programme to ameliorate the effects of the agreement on West Africa before singing an EPA at the Ministerial Monitoring Committee meeting in Abuja on 15 May 2009. Such a contribution to the EPA Development Programme (EPADP) should be "adequate and accessible" beyond the commitment already made in the European Development Fund (EDF). They stressed the need for a financing plan to be presented by the EU prior to the signature of the agreement. On the issue of the liberalisation of market access for European goods, the ministers reiterated their position that only between 60 and 70% of the regional economy should be affected over a transition period of 25 to 30 years preceded by a 5 - 7 period of moratorium.

Cote d’Ivoire is in principle due to start the liberalisation under the Interim EPA in September 2009. Given that supplementary time is required to complete the rules of origin negotiations together with the period of about a year required by the European Commission for all its administrative processes before the start of the implementation of the rules or origin agreement, the West African Ministerial Monitoring Committee recommends to Cote d’Ivoire to envisage within the framework of its EPA Committee the postponement of at least a year of the beginning of the liberalization to ensure that appropriate rules of origin are set in place. The agreement will enter into provisional application on receipt of notification from Côte d'Ivoire that the necessary procedures have been completed. However, the primary focus is currently on negotiation of the full regional EPAs that will replace these interim agreements.