3. For the purpose of this Article, a failure to provide administrative cooperation shall mean, inter alia:
(a) a repeated failure to respect the obligations to verify the originating status of the product(s) concerned;
(b) a repeated refusal or undue delay in carrying out and/or communicating the results of subsequent verification of the proof of origin;
(c) a repeated refusal or undue delay in obtaining authorisation to conduct administrative cooperation missions to verify the authenticity of documents or accuracy of information relevant to the granting of the preferential treatment in question.
4. For the purpose of this Article a finding of irregularities or fraud may be made, inter alia, where there is a rapid increase, without satisfactory explanation, in imports of goods exceeding the usual level of production and export capacity of the other Party that is linked to objective information concerning irregularities or fraud.
5. The application of a temporary suspension shall be subject to the following conditions:
(a) the Party which has made a finding, on the basis of objective information, of a failure to provide administrative cooperation and/or of irregularities or fraud shall without undue delay notify the EPA Committee of its finding together with the objective information and enter into consultations within the EPA Committee, on the basis of all relevant information and objective findings, with a view to reaching a solution acceptable to both Parties.
(b) where the Parties have entered into consultations within the EPA Committee as above and have failed to agree on an acceptable solution within three months following the notification, the Party concerned may temporarily suspend the relevant preferential treatment of the product(s) concerned. A temporary suspension shall be notified to the EPA Committee without undue delay.
(c) temporary suspensions under this Article shall be limited to that necessary to protect the financial interests of the Party concerned. They shall not exceed a period of six months, which may be renewed. Temporary suspensions shall be notified immediately after their adoption to the EPA Committee. They shall be subject to periodic consultations within the EPA Committee in particular with a view to their termination as soon as the conditions for their application are no longer satisfied.
6. At the same time as the notification to the EPA Committee under paragraph 5(a) of this Article, the Party concerned should publish a notice to importers in its Official Journal. The notice to importers should indicate for the product concerned that there is a finding, on the basis of objective information, of a failure to provide administrative cooperation and/or of irregularities or fraud.
Article 22. Management of Administrative Errors
In case of error by the competent authorities in the proper management of the preferential system of export, and in particular in the application of the provisions of Protocol 1 concerning the definition of the concept of "originating products" and methods of administrative cooperation, where this error leads to consequences in terms of import duties, the Party facing such consequences may request the EPA Committee to examine the possibilities of adopting all appropriate measures with a view to resolving the situation.
Article 23. Custom Valuation
1. Article VII of GATT 1994 and the Agreement on the implementation of Article VII of GATT 1994 shall govern customs valuation rules applied to reciprocal trade between the Parties.
2. The Parties shall cooperate with a view to reaching a common approach to issues relating to customs valuation.
Chapter III. FISHERIES
Title I. General Provisions
Article 24.
1. The Parties recognise that fisheries constitute a key economic resource of the ESA region, contribute significantly to the economies of the Signatory ESA States and have great potential for future regional economic development and poverty reduction. They are also an important source of food and foreign exchange.
2. The Parties further recognise that fisheries resources are also of considerable interest to both the UK and the Signatory ESA States, and agree to cooperate for the sustainable development and management of the fisheries sector in their mutual interests taking into account the economic, environmental and social impacts.
3. The Parties agree that the appropriate strategy to promote the economic growth of the fisheries sector and to enhance its contribution to the ESA economy, while taking into consideration its long term sustainability, is through increasing value adding activities within the sector.
Article 25. Objectives
The objectives of cooperation in fisheries are to:
(a) promote sustainable development and management of fisheries;
(b) promote and develop regional and international trade based on best practices;
(c) create an enabling environment, including infrastructure and capacity building, for the ESA States to cope with the stringent market requirements for both industrial and small scale fisheries;
(d) support national and regional policies aimed at increasing productivity and competitiveness of the fisheries sector; and
(e) build links with other economic sectors.
Article 26. Scope
Cooperation in fisheries trade and development shall cover marine, inland fisheries and aquaculture.
Article 27. Principles
1. The principles of cooperation in fisheries include:
1. (a) support for the development and strengthening of regional integration; provision of special and differential treatment;
2. (b) the need to take into account the best available scientific information for resource assessment and management;
3. (c) a functioning monitoring system of the environmental, economic and social impacts in the Parties;
4. (d) conformity with existing national laws and relevant inter-national instruments including the United Nations Convention on the Law Of the Sea (UNCLOS),
5. (e) regional and sub-regional agreements; and
6. (f) preservation and priority of particular needs of the artisanal/ subsistence fishery.
2. These guiding principles should contribute to sustainable and responsible development of the living inland and marine resources, aquaculture, and to optimising the benefits of this sector for present and future generations, through increased investment, capacity building and improved market access.
Article 28. Preferential Access
The Parties shall cooperate to ensure that financial and other support will be provided to improve the competitiveness and production capacity of the processing factories, the diversification of the fishing industry and the improvement of port facilities.
Title II. Marine Fisheries
Article 29. Scope
The scope of this Title is the utilisation, conservation and management of marine fisheries resources to optimise the benefits from fisheries for the ESA region through investment capacity building and improved market access.
Article 30. Objectives
The objectives of cooperation are to:
(a) strengthen cooperation in order to ensure the sustainable exploitation and management of fisheries resources as a strong basis for regional integration, given the straddling and migratory species which are shared among island and coastal States and as no individual ESA State has the capacity to ensure sustainability of the resource;
(b) ensure a more equitable share of the benefits derived from the fisheries sector;
(c) ensure effective monitoring control and surveillance (MCS) necessary for combating illegal, unreported and unregulated ([UU) fishing; and
(d) promote effective exploitation, conservation and management of the living marine resources in the exclusive economic zone (EEZ) and waters in which ESA States have jurisdiction based on international instruments, including UNCLOS, for the mutual social and economic benefit of the ESA States and the UK.
Article 31. Areas of Cooperation
1. To achieve the objectives of cooperation in marine fisheries within the described principles, cooperation will include fisheries management and conservation issues, vessel management and post-harvest arrangements and financial and trade measures and development of fisheries and fishery products and marine aquaculture.
2. The UK will contribute to the mobilisation of the resources for the implementation of the identified areas of cooperation at national and regional levels, which will also include support for regional capacity building. Furthermore, the UK shall contribute to the measures as described in the section concerning financial and trade measures, and on infrastructure development specific for fisheries and marine aquaculture.
(a) Fisheries Management and Conservation Issues
1. The precautionary approach shall be applied in determining levels of sustainable catch, fishing capacity and other management strategies to avoid or reverse undesirable outcomes such as over-capacity and over-fishing, as well as undesirable impacts on the ecosystems and artisanal fisheries.
2. Each ESA State may take appropriate measures, including seasonal and gear restrictions in order to further protect its territorial waters and ensure the sustainability of the artisanal and coastal fishery.
3. The Parties will promote the membership of all the concerned ESA States to the Indian Ocean Tuna Commission (IOTC) and other relevant fisheries organisations. These coun-tries, with the UK, should coordinate action to ensure the management and conservation of all fish species, including tuna and tuna-like resources and facilitate relevant scientific research.
4. Where there is insufficient scientific evidence for the competent national management authority to determine limits and target levels of sustainable catch in an ESA EEZ, both Parties in consultation with the competent national authority and together with IOTC and where relevant, other regional fisheries organisations, shall support such scientific analysis.
5. The Parties agree to take appropriate measures where an increase in effort results in catch levels above the target sustainable level established by the competent national authority.
6. In order to conserve and manage straddling stocks and highly migratory fish stocks, the UK and the ESA States shall ensure compliance by vessels flying their flags with relevant national, regional and sub-regional fisheries management measures and related national laws and regulations.
b) Vessel Management and Post-Harvest Arrangements
1. Vessel Management and post-harvest arrangements emerging from IOTC and any other relevant regional fisheries organisations will be observed. ESA States and the UK shall set out minimum terms and conditions with respect to MCS of UK fishing vessels operating in the waters of ESA States, which should include the following:
(i) a Vessel Monitoring System (VMS) will be set up for all ESA States, and all ESA States will use a compatible VMS. Those ESA States which do not have a VMS will be assisted by the UK to set up a compatible VMS;
(ii) in addition to a compulsory compatible VMS system, all ESA States, in conjunction with the UK, will develop other mechanisms to ensure effective MCS and the UK will support ESA States to put such an agreed system in place and assist in implementation;
(iii) the Parties shall have the right to place observers, whether in national or international waters, with the procedures concerning the deployment of observers being well stipulated. Observers are to be paid by the national governments but all costs on board are to be met by the ship-owner. The UK will support the costs of training observers;
(iv) common systems of reporting of fishing will be developed and be used throughout the region, with minimum terms set for reporting;
(v) all vessels that land or tranship their catches within the ESA State shall do it in ports or outer-port areas. No transhipment shall be allowed at sea, except on particular conditions foreseen by the relevant Regional Fisheries Management Organisations (RFMO). Both Parties shall cooperate to modernise landing or transhipment infrastructure in ports of ESA States, including development capacity of fish products;
(vi) all vessels should endeavour to use the facilities of the ESA States and undertake to make use of local supplies;
(vii) discards reporting shall be compulsory. Priority should be given to avoid discards through the use of selective fishing methods in line with the principles of the IOTC and relevant regional fisheries organisations. As far as possible, by-catch shall be brought ashore.
2. The Parties agree to cooperate in developing and imple- menting national/regional training programmes for ESA nationals in order to facilitate their effective participation in the fishing industry. If the UK negotiates bilateral fisheries agreements, employment of ESA nationals shall be encouraged. The International Labour Organisation (ILO) Declaration on fundamental principles and rights at work shall apply as of right to seamen signed on UK vessels.
3. Both Parties shall undertake coordinated efforts to improve the means for preventing, deterring, and eliminating TUU fishing and to this end take appropriate measures. Fishing vessels involved in IUU fishing should be prosecuted and should not be allowed to fish again in ESA waters, unless prior authorisation has been obtained from both the flag State and the concerned ESA States as well as, where relevant, the concerned RFMO.
(c) Financial and Trade Measures and Development issues
The Parties undertake to cooperate in promoting the setting up of joint ventures in fishing operations, fish processing and port services; to enhance production capacity; to improve competitiveness of fishing and related industries and services, to down- stream processing, development and improvement of port facilities, and to diversify the fishery to include non-tuna species which are under-exploited or not exploited.
Title III. Inland Fisheries and Aquaculture Development
Article 32. Scope
The scope of this Title shall cover inland fisheries, coastal and aquaculture development in the ESA region with respect to capacity building, technology transfer, Sanitary and Phytosanitary (SPS) standards, investment, and investment finance, environmental protection as well as legal and regulatory frameworks.
Article 33. Objectives
The objectives of cooperation in inland fisheries and aquaculture development will be to promote sustainable exploitation of inland fisheries resources, enhance aquaculture production, remove supply side constraints, improve fish and fish product quality to meet SPS standards in the UK market, improveaccess to the UK market, address intra-regional trade barriers, attract capital inflows and investment into the sector, build capacity and enhance access to financial support for the private investors for inland fisheries and aquaculture development.
Article 34. Areas of Cooperation
1. The areas of cooperation shall include UK contributions to the following:
(a) capacity building and export market development through:
(i) building capacity in industrial and artisanal production, processing and product diversification that strengthen the competitiveness of the region's inland fisheries and aquaculture. This could, for example, be achieved by the creation of Research and development (R&D) centres including the development of aquaculture for commercial fishing farms;
(ii) building capacity for managing export market chains, including the introduction and management of certification schemes for specific product lines; and imple- mentation of market promotion, value addition and reduction in post-harvest losses in fishery products;
(iii) increasing capacity in the region through, for example, improving competent authorities, traders' associations and fishermen's associations in order to participate in fisheries trade with the UK and training programs in product development and branding.
(b) Infrastructure
(i) developing and improving infrastructure for inland fisheries and aquaculture;
(ii) facilitating access to funding for infrastructure, including all types of equipment.
(c) Technology
(i) contributing to the development of technical capabilities, including value adding technology promotion, for example, through fisheries technology transfer from the UK to the ESA countries;
(ii) enhancing fisheries management capacity in the region, for example through research and data collection systems and contribution towards appropriate technologies on harvesting and post-harvest management.
(d) Legal and regulatory
(i) supporting the development of inland fisheries and aquaculture regulations and monitoring control and surveillance systems;
(ii) supporting ESA States in developing appropriate legal and regulatory instruments on intellectual property rights IPR) and building capacity for their implementation in international trade;
(iii) eco-labelling and intellectual property protection.
(e) Investment and finance
(i) promoting joint ventures and other forms of mixed investments between stakeholders in ESA States and the UK, for example for the setting up of modalities for identifying investors for joint venture operations in inland fisheries and aquaculture;
(ii) contributing to providing access to credit facilities for the development of small to medium scale enterprises as well as industrial scale inland fisheries.
(f) Socio-economic and poverty alleviation measures
(i) contributing to the promotion of small and medium scale fisheries, processors, and fish traders by building the capacity of ESA States to participate in trade with the UK;
(ii) encouraging participation of marginal groups in the fishing industry, for example, through the promotion of gender equality in fisheries by developing the capacity of women engaged in fisheries, as well as other disadvantaged groups with the potential to engage in fisheries for sustainable social economic development.
2 Both Parties shall contribute to measures to ensure that fish trade supports environmental conservation and safeguards against stocks depletion, and to the maintenance of biodiversity and the cautious introduction of exotic species for aquaculture (to be introduced only in managed/closed spaces in consultation with all concerned neighbouring countries).
Chapter IV. ECONOMIC AND DEVELOPMENT COOPERATION
Title I. General Provisions
Article 35. General Provisions
1. The Parties agree to address the developmental needs of the ESA States in order to promote sustained growth in the ESA region, increase production and supply capacity of the States concerned, foster structural transformation and competitiveness of their economies and their diversification and value addition and support regional integration.
2. The Parties commit themselves to cooperating in order to facilitate the implementation of this Agreement and to support regional integration and development strategies. The Parties agree that cooperation will be based on the ESA Development Cooperation Strategy and the jointly agreed Development Matrix. The matrix is attached as Annex IV to this Agreement. The ESA Development Cooperation Strategy and the Development Matrix will be regularly reviewed subject to the provisions of Chapter VI on Dispute Avoidance, Settlement, Institutional, General and Final Provisions. This cooperation will be measured against jointly agreed development benchmarks to be developed and adopted and annexed to this Agreement. The cooperation shall be in the form of financial and non-financial support to the ESA region.
3. In this regard, the financing pertaining to development cooperation between the ESA Region and the UK for the implementation of this Agreement shall be carried out within the framework for development cooperation as reaffirmed in Annex V. In this context, taking into account the new challenges deriving from enhanced regional integration and competition on the global markets, the Parties agree that supporting the implementation of the EPA shall be one of the priorities.
4. Both Parties shall cooperate to mobilise resources including from other donors, in particular Aid for Trade commitments, relating specifically to EPA support requirements and adjustment costs. The programmes/projects proposed for financing will be worked out jointly based on a detailed costed development matrix.
5. Sufficient resources should be mobilised on a predictable, timely and sustainable basis including through grants and concessional loans based on the Development Matrix. The UK shall contribute to these efforts under its international commitment on Official Development Aid. The Parties agree to monitor and coordinate the use of these resources.
6. Consistent with the Paris Declaration on Aid Effectiveness, the Parties agree to use and support as appropriate nationally and/or regionally owned delivery mechanisms, funds or facilities for channelling and coordinating resources for implementing the EPA. The Parties, in that regard, support the establishment of an EPA Fund to channel EPA related resources. In any case the UK shall support implementation of this Agreement through appropriate and effective UK funding mechanisms in consultation with ESA partners. The Parties also agree that all forms of aid delivery pertaining to their cooperation under this Agreement shall be guided by the Paris Declaration on Aid Effectiveness.
7. The Parties agree that EPA monitoring, on the basis of agreed indicators, will need to address all aspects of the EPA, including achievements at the national level and at the level of regional integration and development strategies, as well as the effectiveness of the institutional arrangements and their achievements in meeting Aid effectiveness objectives, including ensuring predictability of the resources.
Article 36. Objectives
1. Economic and development cooperation shall aim at enhancing the competitiveness of ESA economies, building up supply capacity and enabling Signatory ESA States in implementing the EPA smoothly.
2. Economic and development cooperation shall aim at the structural transformation of ESA economies by establishing a strong, competitive and diversified economic base in the ESA States through enhancing production, distribution, transport, marketing, developing trade capacity of ESA States as well as capacity to attract investment, strengthening the ESA Statesâ trade and investment policies and regulations and deepening regional integration.
Article 37. Scope
1. The Parties shall set out the development objectives related to the EPA that are specific to the ESA region and needed for the success of regional integration within the areas and sectors highlighted in this Article.
2. The areas that will be addressed by the cooperation are:
(a) regional cooperation and integration to ensure trans-regional coordination in all sectors;
(b) trade policy and regulations in order to assist the ESA States in participating more effectively in trade negotiations, in implementing international trade related conventions, trade related legislation and regulatory reforms amongst others;
(c) trade development, which covers namely business devel- opment and activities aimed at improving information management systems, partnerships, linkages, joint ventures and exchange of information and experiences, access to credit and investment finance, trade promotion and market development, institutional support as well as support to trade in services, including financial services;
(d) trade related infrastructure, including transport, energy and water;
(e) building productive capacities in relevant sectors of ESA economies;
(f) research and development, innovation and technology transfer;
(g) trade related adjustment costs, which include restructuring and social costs arising from the reduction of production by firms in import competing sectors and the loss of fiscal revenues dues to the tariff reductions;
(h) gender mainstreaming;
(i) empowerment of local communities, which includes social and cultural development; and
(j) mainstreaming of environmental issues into trade and development.
3. The cooperation shall, in particular, cover the following sectors:
(a) Private Sector Development, particularly Industrial Development, micro- enterprises, small and medium-sized enterprises (MSME), Mining and Minerals as well as Tourism.
(b) Infrastructure Development, namely in the Transport, Energy, Information and Communication Technology (ICT) sectors.
(c) Natural Resources and Environment, including Water Resources and Biodiversity.
(d) Agriculture.
(e) Fisheries.
(f) Services including Tourism; and
(g) Trade related issues, namely Investment, Competition, Intellectual Property Rights, Standards, Trade Facilitation and Statistics.
Title II. Private Sector Development
Article 38. Scope and Objectives
1. The Parties recognise the importance of cooperation to develop the ESA region's private sector as the main engine of wealth creation in view to set up an appropriate enabling environment which is conducive to investment and growth. UK support and cooperation shall take account of the economic structure of the ESA States and their priorities in strengthening productive capacities and value addition, and the application of Production, Marketing, Distribution, and Transportation (PMDT) functions to improve supply capacities and competitiveness.
2. The scope of cooperation of private sector development will cover, inter alia, investment, industrial development and competitiveness enhancement, micro-enterprises, small and medium sized enterprises development, mining and minerals and tourism development as well as other productive sectors which are directly and indirectly covered by this Agreement.
Article 39. Investment
1. The Parties recognise the importance of investment. The objectives in this area are to:
(a) create an environment for sustainable and equitable economic development of ESA through investment, including foreign direct investment (green field or portfolio), technology transfer, capacity building and institutional support from the UK;
(b) provide deeper cooperation with institutions and intermediary organisations dealing with investment promotion in the UK and ESA through, inter alia, business dialogue, cooperation and partnership;
(c) support, through appropriate instruments, the promotion and encouragement of investment in the ESA region, including establishing a framework for funding and assistance to support economic development programmes in ESA;
(d) strengthen and build the capacity of private development institutions such as investment promotion agencies, chambers of commerce, associations and indigenous development organisations in individual ESA States and the region as a whole so as to enable the emergence of a dynamic and vibrant private sector; and
(e) develop a legal framework that promotes investment by both Parties, with a view to promoting and protecting investment and work towards harmonised and simplified procedures and administrative practices.
Areas of cooperation
2. Subject to the provisions of Article 35 the Parties agree to cooperate, including by facilitating support, in the following areas:
(a) support to policies and strategies for investment to help creating and maintaining a predictable and secure investment climate;
(b) support policy reforms and advocacy, human resource development, institutional capacity-building or other forms of institutional support to strengthen the capacities of the private financial and non-financial intermediaries, investment facilitation and promotion and competitiveness enhancement activities;