SADC EPA (ECdraft consolidated proposal 05.06.07 – basis for 21-24 June round)

ECONOMIC PARTNERSHIP AGREEMENT

BETWEEN THE SADC GROUP OF STATES, OF THE ONE PART,

AND THE EUROPEAN COMMUNITY AND ITS MEMBER STATES,

OF THE OTHER PART

(draft EC consolidated proposal – each Party reserves its right to submit further changes to this text)

Possible Outline

PART I. TRADE PARTNERSHIP FOR SUSTAINABLE DEVELOPMENT

- objectives

- principles

- sustainable development

- regional integration

- cooperation in international fora

- development cooperation framework

- development finance cooperation

PART II. TRADE AND TRADE-RELATED MATTERS

TITLE I. Trade in Goods

- free trade area

- classification and definition of goods

- basic duty

- customs duties of a fiscal nature

- charges having an equivalent effect

- rules of origin

- Review clause

Chapter 1. Customs duties

- Industrial products

- tariff elimination by the EC as applicable to imports from SADC EPA

States

- Exceptions as applicable to imports from South Africa

- tariff elimination by SADC EPA States as applicable to imports from

the EC

- Exceptions as applicable for tariff elimination by AMT

- Agricultural products

- definition

- tariff elimination by the EC as applicable to imports from SADC EPA

States

- Exceptions as applicable to imports from South Africa - Exceptions as applicable to imports from AMT

- tariff elimination by SADC EPA States as applicable to imports from

the EC

- Exceptions as applicable for tariff elimination by AMT

- Processed Agricultural products

- Fisheries products

- tariff elimination by the EC as applicable to imports from SADC EPA

States

- tariff elimination by SADC EPA States as applicable to imports from

the EC (Reference to TDCA Annex VII – Fisheries products)

Chapter 2. Trade defence instruments

- anti-dumping and countervailing measures

- safeguard clause

- safeguard procedures

- Exceptions

Chapter 3. Non-tariff measures

- prohibition of quantitative restrictions

- national treatment on internal taxation and regulation

- Customs unions and free-trade areas

Chapter 4. Customs and trade facilitation

- Objectives

- Customs and administrative cooperation

- Customs and legislative procedures

- Relation with business community

- Customs valuation

- Harmonisation of regional standards

- Cooperation

- Special Committee on customs and trade facilitation

Chapter 5. Rules of Origin

( reference to origin protocol )

- Context

- Objectives

- Cumulation

- Exceptions

Chapter 6. Technical Barriers to Trade

- Multilateral obligations

- Objectives

- Scope and definition

- regional collaboration and integration

- transparency

- measures for identifying, preventing and eliminating

technical barriers to trade

- Cooperation


Chapter 7. Sanitary and Phytosanitary Measures

- Multilateral obligations

- Objectives

- Scope and definition

- Competent authorities

- regional collaboration and integration

- transparency

- Exchange of information and consultation

- Cooperation

TITLE II. Establishment - Trade in Services / E-Commerce

TITLE III. Current payments and capital movement

- Current payments

- Capital movements

- Balance of payment difficulties

- Safeguard measures

TITLE IV. Trade Related Issues

Chapter 1. Competition

- Definition

- Principles

- Implementation

- Exchange of information and enforcement cooperation

- Public entreprises and entreprises enthrusted with special

exclusive rights including designated monopolies

- Cooperation

Chapter 2. Innovation and Intellectual Property

- Context

- Objectives

- Innovation

- Regional harmonisation

- participation in framework programmes

- cooperation in the area of competitiveness and innovation

- Cooperation on science and technology

- cooperation on information society and communication

technologies

- cooperation on economic innovation and renewable energy

- cooperation in cultural industries

- Intellectual property

- Principles

- Nature and scope of obligations

- regional integration

- transfer of technology

- Exhaustion

- Copy-rights and related rights

- trademarks

- Geographical indications

- Industrial designs

- patents

- plant varieties

- genetic resources, traditional knowledge and folklore

- Enforcement of Intellectual property

- general obligations

- entitled applicants

- presumption of authorship or ownership

- evidence

- measures for preserving evidence

- right of information

- provisional and precautionary measures

- corrective measures

- injunctions

- alternative measures

- damages

- legal costs

- publication of judicial decisions

- border measures

- codes of conduct

- cooperation

Chapter 3. Public Procurement

- General Principles

- (definitions

- Scope)

- Transparency of government procurement

- (methods of procurement)

- (selective tendering

- limited tendering) / tendering procedures

- rules of origin

- (technical specifications

- Qualification of suppliers

- negotiations

- opening of tenders and awarding of contracts

- information on contract award)

- time limits of government procurement

- bid challenges

- (cooperation

- implementation period

- review clause)

- Asymmetrical transitional regime and transitional measures

(ANNEX A: Government Procurement / rules of procedures / list of entities)

Chapter 4. Environment

- Sustainable development context

- levels of protection and right to regulate

- Regional integration and use of international

environmental standards

- scientific information

- transparency

- Upholding levels of protection

- Review

- cooperation

Chapter 5. Social Aspects

- Multilateral commitments

- levels of protection and right to regulate

- Upholding levels of protection

- regional integration

- review

- cooperation

Chapter 6. Personal data protection

- General objectives

- Definitions

- Principles and general rules

- Cooperation

Chapter 7. Cooperation in the Tax and Judicial area

- Context

- Objectives

- Dialogue in tax matters

- promotion of transparency and effective exchange of information

- collaboration in fighting illegal financial activities

- cooperation

PART III. DISPUTE AVOIDANCE AND SETTLEMENT

- Objective

- scope

- consultation

- mediation

- dispute settlement procedures

- Arbitration

- initiation of the arbitration procedure

- establishment of the arbitration panel

- interim panel report

- arbitration panel ruling

- Compliance

- compliance with the arbitration panel ruling

- the reasonable period of time for compliance

- review of any measure taken to comply with the panel ruling

- temporary remedies in case of non compliance

- review of any measure taken to comply after the adoption of

appropriate measures

- common provisions

- mutually agreed solutions

- rules of procedure

- information and technical advice

- languages of the submissions

- rules of interpretation

- arbitration panel rulings

PART IV. GENERAL PROVISIONS

- List of arbitrators

- relation with WTO Obligations

- Time lines

PART IV. GENERAL EXCEPTIONS

- General exception clause

- security exceptions

- Taxation

PART VI. INSTITUTIONAL PROVISIONS

- Joint EPA Council

- Composition and rules of procedures

- Decision-making powers and procedures

- Joint EPA Implementation Committee

- Joint EPA Development Committee

- Joint EPA Parliamentary Committee

- Joint EPA Consultative committee

PART VII. GENERAL AND FINAL PROVISIONS

- Definition of the parties and fulfillment of obligations

- Coordinators and exchange of information

- Regional preference

- Relation with Cotonou Agreement

- Relation with TDCA

- Entry into force

- duration

- territorial application

- revision clause

- accession of EU new Member States

- accession of other SADC countries into EC-SADC EPA - Authentic texts

- Annexes

- Entry into force

* **

SOUTH AFRICA

NAMIBIA

BOTSWANA

LESOTHO

SWAZILAND

ANGOLA

MOZAMBIQUE

TANZANIA

hereinafter referred to as the «SADC EPA Parties»,

of the one part, and

THE KINGDOM OF BELGIUM,

THE CZECH REPUBLIC,

THE KINGDOM OF DENMARK,

THE FEDERAL REPUBLIC OF GERMANY,

THE REPUBLIC OF ESTONIA,

THE HELLENIC REPUBLIC,

THE KINGDOM OF SPAIN,

THE FRENCH REPUBLIC,

IRELAND,

THE ITALIAN REPUBLIC,

THE REPUBLIC OF CYPRUS,

THE REPUBLIC OF LATVIA,

THE REPUBLIC OF LITHUANIA,

THE GRAND DUCHY OF LUXEMBURG,

THE REPUBLIC OF HUNGARY,

THE REPUBLIC OF MALTA,

THE KINGDOM OF THE NETHERLANDS,

THE REPUBLIC OF AUSTRIA,

THE REPUBLIC OF POLAND,

THE PORTUGUESE REPUBLIC,

THE REPUBLIC OF SLOVENIA,

THE SLOVAK REPUBLIC,

THE REPUBLIC OF FINLAND,

THE KINGDOM OF SWEDEN,

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

THE REPUBLIC OF BULGARIA,

The Republic OF ROMANIA

and

THE EUROPEAN COMMUNITY, of the other part

hereinafter referred to as the «EC EPA Parties»,

CONSIDERING …..

- The trade provisions of the TDCA

- The Joint SADC – EC Factual Document on the state of SADC Regional Integration;

- SADC EPA Framework for the EPA Negotiations between SADC and the EU;

- EU Response to the SADC EPA Framework as well as the Addendum to the Directives for the Negotiation of Economic Partnership Agreements with ACP countries and regions (Doc. 9930/02 of 12.06.2002);

Have agreed as follows:

PART I

TRADE PARTNERSHIP FOR SUSTAINABLE DEVELOPMENT

Article 1

Objectives

The objectives of this Agreement are:

a) Contributing to the reduction and eventual eradication of poverty through the establishment of a trade partnership consistent with the objective of sustainable development, the Millennium Development Goals and the Cotonou Agreement;

b) Promoting regional integration, economic cooperation and good governance in the SADC EPA region;

c) Promoting the gradual integration of the SADC EPA States into the world economy, in conformity with their political choices and development priorities;

d) Improving the SADC EPA States' capacity in trade policy and trade related issues;

e) Establishing and implementing an effective, predictable and transparent regional regulatory framework for trade and investment in the SADC EPA region, thus supporting the conditions for increasing investment and private sector initiative and enhancing supply capacity, competitiveness and economic growth;

f) Strengthening the existing relations between the Parties on the basis of solidarity and mutual interest. To this end, consistent with WTO obligations, the Agreement shall enhance commercial and economic relations, consolidate the implementation of SADC Trade Protocol and support a new trading dynamic between the Parties by means of the progressive, asymmetrical liberalisation of trade between them and reinforce, broaden and deepen cooperation in all areas relevant to trade.

Article 2

Principles

1. The SADC EPA is based on the Fundamental Principles as well as the Essential and Fundamental Elements of the Cotonou Agreement, as spelt out in Articles 2 and 9, respectively, of the Cotonou Agreement, as well as those of the TDCA, as spelt out in its Article 2. This Agreement shall build on the achievements of the TDCA, Cotonou and the previous ACP-EC Partnership Agreements in regional cooperation and integration as well as economic and trade cooperation.

2. The Parties agree that the Cotonou Agreement, the TDCA and this Agreement shall be implemented in a complementary and mutually reinforcing manner. The EPA replaces the current TDCA trade provisions at the date of its entry into force.

Article 3

Sustainable development

1. The Parties reaffirm that the objective of sustainable development is to be applied and integrated at every level of their economic partnership, in fulfilment of the overriding commitments set out in Articles 1, 2 and 9 of the Cotonou Agreement, and especially the general commitment to reducing and eventually eradicating poverty in a way that is consistent with the objectives of sustainable development.

2. The Parties understand this objective to apply in the case of the present Economic Partnership Agreement as a commitment that:

a) the application of this Agreement shall fully take into account the human, cultural, economic, social, health and environmental best interests of their respective population and of future generations;

b) decision-taking methods embrace the fundamental principles of ownership, participation and dialogue.

3. As a result the Parties agree to work cooperatively towards the realization of a sustainable development centred on the human person, who is the main beneficiary of development. The Parties undertake to continuously monitor the operation of the Agreement in this respect, to cooperate in order to maximise the benefits for their people deriving from the Partnership, in particular the most vulnerable groups, and to consult each other promptly over any problem arising.

Article 4

Regional integration

1. The Parties recognise that regional integration is an integral element to their partnership and a powerful instrument to achieve the objectives of this Agreement.

2. The Parties reaffirm the importance of regional and sub-regional integration amongst the SADC EPA states to achieve greater economic opportunities, enhanced political stability and to foster the effective integration of developing countries into the world economy. Without prejudice to the commitments undertaken in this Agreement, the pace and content of their regional integration is determined exclusively by the SADC EPA states in the exercise of their sovereignty.

3. The Parties support in particular the integration processes based on the SACU, SADC and Africa Union Treaties and political agendas. They aim at building and deepening their partnership on the basis of those processes and at implementing the present Economic Partnership Agreement in a mutually supportive manner with those instruments, as well as with the EC-SA TDCA, taking into account the respective levels of development, needs, geographical realities and sustainable development strategies.

Article 6

Development cooperation framework

The Parties commit themselves to cooperating in order to implement this Agreement and to support SADC EPA regional integration and development strategies within overall SADC region. The cooperation can take financial and non financial forms.

Article 7

Development finance cooperation

1. Development cooperation for regional economic cooperation and integration, as provided for in the Cotonou Agreement, shall be carried out so as to maximise the expected benefits of this Agreement. The cooperation can take financial and non financial forms.

2. The European Community[1] financing pertaining to development co-operation between SADC EPA and the European Community supporting the implementation of this Agreement shall be carried out within the framework of the rules and relevant procedures provided for by the Cotonou Agreement, in particular the programming procedures of the European Development Fund and within the framework of the relevant instruments financed by the General Budget of the European Union. In this context, supporting the implementation of this EPA shall be one of the priorities.

4. The Parties shall cooperate to facilitate other donors willing to support the efforts of the SADC EPA States achieving the objectives of this Agreement.]

Article 8

Cooperation in international fora