Title
Stepping Stone Economic Partnership Agreement between the United Kingdom of Great Britain and Northern Ireland, of the one part, and Côte d'Ivoire, of the other part
Preamble
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, hereinafter referred to as the "United Kingdom" or the "UK",
of the one part, and
THE REPUBLIC OF COTE DTVOIRE, hereinafter referred to as "Côte d' Ivoire" or the "Ivorian Party",
of the other part,
RECOGNISING the need to establish a stepping stone Economic Partnership Agreement in order to safeguard the economic and trade interests of the Parties;
WHEREAS the Parties wish to strengthen their economic and trade relations and establish lasting relations based on partnership and cooperation;
WHEREAS the Parties are committed to the principles and rules governing international trade, in particular the rights and obligations arising from the provisions of the General Agreement on Trade and Tariffs of 1994 (GATT 1994) and the other multilateral agreements annexed to the Agreement establishing the World Trade Organisation (the Agreement establishing the WTO), and to applying them in a transparent, non-discriminatory manner;
REAFFIRMING their commitment to respect for human rights, democratic principles and the tule of law, which constitute the essential elements of this Agreement, as set out in Annex 3, and to good governance, which constitutes the fundamental element of this Agreement, as set out in Annex 3;
WHEREAS the economic, cultural and social development of West African States must be promoted and expedited with a view to contributing to peace and security and to promoting a stable and democratic political environment;
WHEREAS the Parties attach importance to the development objectives agreed at the international level and to the United Nations Sustainable Development Goals;
REAFFIRMING their commitment to working together towards the achievement of the eradication of poverty, of sustainable development and of the progressive integration of the African, Caribbean and Pacific (ACP) States into the world economy;
WISHING to create new opportunities for employment, attract investment and improve living conditions on the territory of the Parties, while promoting sustainable development;
WHEREAS existing traditional links are important, in particular the close historical, political and economic links between the UK and the West African States;
RECOGNISING the difference in levels of economic and social development which exists between the West African States and the UK;
CONVINCED that this Agreement will continue the development of a favourable climate for their relations in the areas of economic governance, trade and investment, and open up opportunities for growth and development;
RECOGNISING the importance of cooperation on development for the implementation of this Agreement;
PENDING the signing of a comprehensive Economic Partnership Agreement between West Africa and the UK with a view to the sustained and harmonious development and integration of the West African Region;
REAFFIRMING their commitment to supporting the regional integration process in West Africa, and in particular to promoting regional economic integration as an essential instrument for its integration in the world economy, which helps it to meet the challenges of globalisation and achieve its economic and social development objectives,
HAVE AGREED AS FOLLOWS:
Body
Title I. OBJECTIVES
Article 1. Stepping Stone Agreement
This Agreement creates an initial framework for an Economic Partnership Agreement (EPA).
Article 2. Objectives
The objectives of this Agreement are:
a) to allow the Ivorian Party to benefit from the enhanced market access offered by the UK under this Agreement, pending the conclusion of a comprehensive EPA;
b) to lay the foundations for the negotiation of an EPA which will help to reduce poverty, promote regional integration, economic cooperation and good governance in West Africa and to improve West Africa's capacities as regards commercial policy and trade-related issues;
c) to promote the harmonious and progressive integration of West Africa into the world economy, in accordance with its political choices and development priorities;
d) to strengthen the existing relations between the Parties on the basis of solidarity and mutual interest;
e) to create an agreement which is compatible with Article XXIV of GATT 1994.
Title II. PARTNERSHIP FOR DEVELOPMENT
Article 3. Development Cooperation In the Framework of this Agreement
The Parties undertake to cooperate in order to implement this Agreement and to help support the Ivorian Party in the achievement of the EPA objectives. This cooperation shall take financial and non-financial forms.
Article 4. Development Finance Cooperation In the Framework of this Agreement
1) Development cooperation concerning economic and regional cooperation and integration shall be implemented with a view to maximising the benefits of this Agreement.
2) UK financing pertaining to development cooperation between the Ivoirian Party and the UK in support of the implementation of this Agreement shall be carried out within the framework for development cooperation as reaffirmed in Annex 3. In this context, supporting the implementation of this Agreement shall be one of the priorities.
3) The UK undertakes to support, through its development policies and instruments, development actions to encourage regional economic cooperation and the implementation of this Agreement both at national and regional levels, in accordance with the principles of efficiency and complementarity of aid.
4) The Parties shall cooperate to facilitate the participation of other donors willing to support the efforts of the Ivoirian Party to achieve the objectives of this Agreement.
5) The Parties acknowledge the usefulness of regional financing mechanisms such as a regional EPA fund established by and for the region in order to channel financing at a regional and national level and effectively implement the measures accompanying this Agreement. The UK will provide funding through mechanisms such as the UK Prosperity Fund to support implementation of this Agreement with a view to ensuring simplified, efficient and rapid implementation.
6) For the implementation of the provisions of paragraphs 1 to 5 of this Article, the Parties undertake to cooperate using financial and non-financial means including through multilateral and regional organisations in the areas defined in Articles 5, 6, 7 and 8.
Article 5. Business Environment
The Parties consider that the business environment is an essential factor in economic development and that, consequently, the provisions of this Agreement shall be aimed at contributing to this common objective. Côte d'Ivoire, which is a signatory to the Treaty establishing the Organisation for the Harmonisation of Business Law in Africa (OHADA), reaffirms its commitment to applying the provisions of that Treaty. In accordance with the provisions of Article 4, the Parties undertake to work unremittingly on improving the business environment.
Article 6. Support for Implementation of the Rules
The Parties agree that the setting of trade rules, which include provisions on cooperation detailed in the various chapters of this Agreement, is fundamental to achieving the objectives of this Agreement. Cooperation in this field shall be organised in accordance with the arrangements specified in Article 4.
Article 7. Strengthening and Modernising Productive Sectors
In relation to the implementation of this Agreement, the Parties affirm their wish to upgrade the competitiveness of the productive sectors of Côte d'Ivoire affected by this Agreement.
The Parties agree to work together using cooperation instruments and in accordance with the provisions of Article 4, and to support:
- the repositioning of the private sector vis-a-vis the economic opportunities created by this Agreement,
- the definition and implementation of modernisation strategies,
- the improvement of the private sector and of the business environments referred to in Articles 5 and 6,
- the promotion of the partnership between the Parties' private sectors.
Article 8. Cooperation on Fiscal Adjustment
1) The Parties acknowledge the challenges which the elimination or substantial reduction of customs duties provided for in this Agreement may pose for Céte d'Ivoire, and they agree to establish dialogue and cooperation in this field.
2) In the light of the tariff dismantling schedule adopted as part of this Agreement, the Parties agree to establish in-depth dialogue on fiscal adjustment measures in order to ultimately ensure a balanced budget position for Côte d'Ivoire. The Parties agree to cooperate in accordance with the provisions of Article 4, in particular through the facilitation of assistance measures in the following fields:
a) a significant contribution to absorbing net fiscal impact in full complementarity with fiscal reforms;
b) support for fiscal reform accompanying dialogue in this field.
Article 9. Cooperation In International Fora
The Parties shall endeavour to cooperate in all international fora where issues relevant to this partnership are discussed.
Title III. TRADE REGIME FOR GOODS
Chapter 1. Customs Duties and Non-tariff Measures
Article 10. Customs Duties
1) The term "customs duties" refers to the duties or charges of any kind imposed on or in connection with the importation or exportation of goods, as provided for in the WTO rules.
This provision shall not be interpreted as applying to internal duties or charges or duties or charges having equivalent effect at the moment of leaving the territory.
2) For each product, the basic customs duty to which the successive reductions apply shall be that specified in the tariff dismantling schedules of each Party.
Article 11. Fees and other Charges
The Parties reaffirm their commitment to complying with the provisions of Article VII of GATT 1994.
Article 12. Customs Duties on Products Originating In Côte D'Ivoire
Products originating in Côte d'Ivoire shall be imported into the UK free of customs duties, except for the products indicated, and under the conditions set out in Annex 1.
Article 13. Customs Duties on Products Originating In the UK
Customs duties on products originating in the UK and exported to Côte d'Ivoire shall be reduced or eliminated in accordance with the tariff dismantling schedule in Annex 2, subject to the following provisions:
a) If there have been any amendments to the tariff dismantling schedule as applicable under the EU-Côte d'Ivoire Stepping Stone EPA (1) immediately before the EU-Côte d'Ivoire Stepping Stone EPA ceased to apply to the United Kingdom, such amendments to the tariff dismantling schedule shall be incorporated into this Agreement, and Annex 2 shall be interpreted so as to apply those amendments accordingly; and
b) Without prejudice to paragraph (a), Côte d'Ivoire shall apply customs duties to products originating in the UK and imported into its territory that are no less favourable than those applicable to goods originating in the EU under the EU-Côte d'Ivoire Stepping Stone EPA immediately before the EU-Côte d' Ivoire Stepping Stone EPA ceased to apply to the United Kingdom so as to ensure that imports from the UK are treated no less favourably than products originating in the EU imported into its territory.
Article 14. Rules of Origin
Protocol 2 lays down the rules of origin for the application of the provisions of this Agreement. Within the meaning of this Chapter, "originating" status shall be conferred on goods meeting the rules of origin set out in Protocol 2 to this Agreement.
Article 15. Standstill
1) No new customs duties on imports shall be introduced in trade between the Parties, nor shall those currently applied in trade between the Parties be increased from the date of entry into force of this Agreement.
2) Notwithstanding paragraph 1, and as part of the finalisation of the common external tariff of the Economic Community Of West African States (ECOWAS), Côte d'Ivoire may until 31 December 2011 revise its basic customs duties on goods originating in the European Community insofar as the general impact of these duties is no higher than that resulting from the duties specified in Annex 2. The EPA Committee shall amend Annex 2 accordingly.
Article 16. Duties, Taxes and other Fees and Charges on Exports
1) No new customs duties on exports or charges with equivalent effect shall be introduced, nor shall those currently applied in trade between the Parties be increased from the date of entry into force of this Agreement.
2) In exceptional circumstances, if the Ivorian Party can justify specific needs for income, protection for infant industry or environmental protection, it may, on a temporary basis and after consulting the UK, introduce customs duties on exports or charges with equivalent effect on a limited number of traditional goods or increase the incidence of those which already exist.
3) The Parties agree to review the provisions of this Article in the framework of the EPA Committee at the latest three years after entry into force of this Agreement, taking full account of their impact on the development and diversification of the economy of the Ivoirian Party.
Article 17. More Favourable Treatment Resulting from Free-trade Agreements
1) For the fields covered by this Chapter, the UK shall grant the Ivorian Party any more favourable treatment applicable as a result of the UK becoming party to a free-trade agreement with third parties after signing this Agreement.
2) For the fields covered by this Chapter, the Ivorian Party shall grant the UK any more favourable treatment applicable as a result of Côte d'Ivoire entering into a free-trade agreement with a major trade partner after signing this Agreement.
3) If the Ivoirian Party obtains from a major trade partner substantially more favourable treatment than that offered by the UK, the Parties shall consult each other and decide together on the implementation of the provisions in paragraph 2.
4) The provisions of this Chapter cannot be interpreted as requiring the Parties to reciprocally grant each other preferential treatment which would be applicable owing to one of the Parties being signatory to a free-trade agreement with a third party on the date on which this Agreement enters into force.
5) In this Article, "free-trade agreement" refers to an agreement which substantially liberalises trade and substantially eliminates discrimination between the Parties through the repeal of existing discriminatory measures and/or the prohibition of new discriminatory measures and measures which are more discriminatory in nature, either on the entry into force of this Agreement or on the basis of a reasonable timetable.
6) In this Article, "major trade partner" refers to any developed country, or any country with a share in world trade greater than 1 per cent in the year preceding the entry into force of the free-trade agreement mentioned in paragraph 2, or any group of countries acting individually, collectively or through a free-trade agreement with a share in world trade greater than 1.5 per cent in the year preceding the entry into force of the free-trade agreement mentioned in paragraph 2 (2).
Article 18. Prohibition of Quantitative Restrictions
Notwithstanding the provisions of Articles 23, 24 and 25, on the entry into force of this Agreement, all prohibitions or restrictions on importation or exportation affecting trade between the Parties shall be eliminated, with the exception of the customs duties, taxes, fees and other charges referred to in Article 11, irrespective of whether they are implemented through quotas, import or export licensing or other measures. No new measures shall be introduced.
Article 19. National Treatment of Internal Taxation and Regulation
1) Products imported from the other Party shall not be directly or indirectly subject to internal taxation or other internal charges of any type surpassing those which are directly or indirectly applicable to similar domestic products. Furthermore, both Parties shall refrain from applying any other form of taxation or other internal charges with the aim of providing protection for domestic production.
2) Products imported from the other Party shall benefit from treatment which is no less favourable than the treatment given to similar domestic products in respect of all laws, regulations and requirements applicable to their sale, offering for sale, purchase, transportation, distribution or use on the national market. The provisions of this paragraph shall not prevent the application of tariffs for differentiated internal transportation based exclusively on the fuel-efficient use of transport and not on the origin of the product.
3) Notwithstanding the provisions on the rules of origin, each Party shall refrain from establishing or maintaining any internal regulations relating to the mixing, processing or use of products according to specified quantities or proportions which would require, directly or indirectly, that any specified amount or proportion of the product subject to the regulation in question be supplied from internal sources. Furthermore, each Party shall refrain from applying any other form of domestic quantitative regulation with the aim of providing protection for domestic production.
4) The provisions of this Article shall not apply to the laws, regulations, procedures or practices relating to public procurement.
5) The provisions of this Article shall be without prejudice to Chapter 2 concerning trade-defence instruments.
6) For matters relating to the payment of subsidies to national producers, the Parties shall refer to the WTO.
Article 20. Food Security
Where the implementation of this Agreement leads to difficulties regarding the availability of, or access to, foodstuffs necessary to ensure food security, and where this situation gives rise to or is likely to give rise to major difficulties for Côte d'Ivoire, the latter may take appropriate measures in accordance with the procedures laid down in Article 25.
Article 21. Special Provisions on Administrative Cooperation
1) The Parties agree that administrative cooperation is essential to the implementation and control of the preferential treatment granted in this Chapter and underline their commitment to combating irregularities and fraud as regards customs and related fields.
2) When a Party obtains proof from objective information of a lack of administrative cooperation and/or irregularities or fraud, this Party may temporarily suspend the preferential treatment granted to the product(s) concerned in accordance with this Article.
3) For the purposes of this Article, a lack of administrative cooperation shall include the following:
a) repeated failure to comply with the obligation to verify the originating status of the product(s) concerned;
b) repeated refusal to conduct a subsequent check of proof of origin and communicate the results, or undue delay in doing so;
c) repeated refusal to grant authorisation for a cooperation mission to check the authenticity of documents or the accuracy of information of relevance to the preferential treatment in question, or undue delay in doing so.
4) The application of a temporary suspension shall be subject to the following conditions:
a) A Party which obtains proof from objective information of a lack of administrative cooperation and/or irregularities or fraud must notify the EPA Committee without undue delay that it has obtained the proof and the objective information, and must consult with the EPA Committee to find a solution acceptable to both Parties, drawing on all relevant information and objective evidence;
b) When the Parties have entered into consultation with the EPA Committee, as provided for above, and have been unable to agree on an acceptable solution in the three months following notification, the Party concerned can temporarily suspend the preferential treatment granted to the product(s) concerned. The EPA Committee must be notified of the temporary suspension without undue delay;
c) Temporary suspensions under this Article shall be limited to those necessary to protect the financial interests of the Party concerned. They shall not exceed a renewable period of six months. The EPA Committee shall be notified of temporary suspensions immediately after their adoption. They shall be subject to periodic consultations within the EPA Committee, in particular with a view to repealing them once the conditions for application no longer exist.
5) At the same time as the notification to the EPA Committee specified in subparagraph 4(a), the Party concerned shall publish a notice for importers in its Official Journal. This notice for importers shall indicate that, for the product concerned, and on the basis of objective information, proof has been obtained of a lack of administrative cooperation and/or irregularities or fraud.
Article 22. Management of Administrative Errors
In the event of an error on the part of the competent authorities in the management of the preferential export systems, and in particular in the application of the provisions concerning the definition of the term "originating products" and the administrative cooperation methods, where this error has consequences on imports and exports, the Party suffering these consequences can ask the EPA Committee to examine the possibilities of adopting all appropriate measures in the aim of remedying the situation.
Chapter 2. Trade Defence Instruments
Article 23. Anti-dumping and Countervailing Measures
1) Subject to the provisions of this Article, this Agreement does not prevent the UK or Côte d'Ivoire from adopting anti-dumping or countervailing measures in accordance with the relevant WTO agreements. For the purposes of this Article, origin shall be determined in accordance with the non-preferential rules of origin of the Parties.
2) Before imposing definitive anti-dumping or countervailing measures on goods, the Parties shall consider the possibility of constructive solutions, such as those provided for in the relevant WTO agreements. In particular, they may hold appropriate consultations to this end.
3) The UK shall notify Côte d'Ivoire of the receipt of a sufficiently-documented complaint before opening an inquiry.
4) The provisions of this Article shall be applicable to all investigations initiated after this Agreement enters into force.
5) The provisions of this Article shall not be subject to the dispute settlement provisions of this Agreement.
Article 24. Multilateral Safeguard Measures
1) Subject to the provisions of this Article, this Agreement does not prevent Côte d'Ivoire and the UK from adopting measures in accordance with Article XIX of GATT 1994, the WTO Agreement on Safeguards or Article 5 of the WTO Agreement on Agriculture. For the purposes of this Article, origin is determined in accordance with the non-preferential rules of origin of the Parties.
2) Notwithstanding paragraph 1, in the light of the general development objectives of this Agreement and the small scale of the Côte d'Ivoire economy, the UK shall exclude imports from Côte d'Ivoire from all measures taken pursuant to Article XIX of GATT 1994, the Agreement on Safeguards and Article 5 of the WTO Agreement on Agriculture.
3) The provisions of paragraph 2 shall apply for a period of five years, beginning on 3 September 2016. At the latest 120 days before the end of this period, the EPA Committee shall re-examine the implementation of these provisions in the light of the development needs of Côte d'Ivoire, in order to determine whether their period of application should be extended.
4) The provisions of paragraph 1 shall not be subject to the dispute settlement provisions of this Agreement.
Article 25. Bilateral Safeguard Measures
1) After examining the alternative solutions, a Party may take safeguard measures of limited duration which derogate from the provisions of Articles 12 and 13, under the conditions of, and in accordance with, the procedures laid down by this Article.
2) The safeguard measures referred to in paragraph 1 may be taken where a product originating in one Party is imported into the territory of the other Party in such increased quantities and under such conditions as to cause or threaten to cause:
a) serious injury to the domestic industry of similar or directly competitive products in the territory of the importing Party;
b) disruptions in a sector of the economy, particularly where these disruptions produce major social problems or difficulties which could bring about serious deterioration in the economic situation of the importing Party; or
c) disruptions in the markets for similar or directly competitive agricultural products (3) or of the mechanisms regulating these markets in the territory of the importing Party.
3) The safeguard measures referred to in this Article shall not exceed that which is strictly necessary to prevent or remedy serious injury or disruptions as defined in paragraphs 2 and 4. These safeguard measures of the importing Party may consist only of one or more of the following:
a) the suspension of any further reduction in the customs duty on imports applicable for the product concerned, as provided for by this Agreement;
b) an increase in the customs duty on the product concerned up to a level which does not exceed the customs duty applied to other WTO Members, and
c) the introduction of tariff quotas on the product concerned.
4) (a) When a product originating in the UK is imported in such increased quantities and under such conditions as to cause or threaten to cause one of the situations described in subparagraphs 2(a), (b) and (c), Côte d'Ivoire may take surveillance or safeguard measures limited to its territory in accordance with the procedures defined in paragraphs 5 to 8;
(b) Notwithstanding paragraphs 1 and 2, Côte d'Ivoire may take safeguard measures as provided for in paragraph 3 when a product originating in the UK is imported in such increased quantities and under such conditions as to cause or threaten to cause disturbances to an infant industry producing similar or directly competitive products.
Such provision shall be applicable only for a period of ten years beginning on 3 September 2016. However, this period may be extended subject to an agreement between the Parties when, despite the development potential of the industry and the efforts actually made, this objective has not been achieved owing in particular to the world economic situation or to serious problems affecting Céte d'Tvoire.
The measures must be taken in compliance with the provisions of paragraphs 5 to 8.
5) (a) The safeguard measures referred to in this Article shall be maintained only for the period necessary to prevent or resolve serious damage or disruptions such as those described in paragraphs 2 and 4;
(b) The safeguard measures referred to in this Article shall be applied for a period not exceeding two years. Where the circumstances warranting the imposition of safeguard measures continue to exist, such measures may be extended for a further period of no more than two years. Where Céte d'Ivoire applies a safeguard measure, this measure may nevertheless be applied for a period of no more than four years and, when the circumstances justifying the imposition of safeguard measures continue to exist, be extended for a further four-year period;
c) The safeguard measures referred to in this Article which exceed one year shall be accompanied by clear evidence of a progressive move towards eliminating the causes of the damage and disruptions and the measures at the latest by the end of the established period;
d) Except in exceptional circumstances subject to the assessment of the EPA Committee, no safeguard measures referred to in this Article shall be applied to a product which has previously been subject to such a measure for a period of at least one year from the date of expiry of this measure.
6) The following provisions shall apply for implementation of paragraphs 1 to 5:
a) When a Party considers that one of the circumstances referred to in paragraphs 2 and/or 4 exists, it shall immediately refer the matter to the EPA Committee;