Title
INTERIM AGREEMENT ESTABLISHING AN ECONOMIC PARTNERSHIP AGREEMENT BETWEEN THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, OF THE ONE PART, AND THE REPUBLIC OF CAMEROON, OF THE OTHER PART
Preamble
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND (the "United Kingdom" or "the UK")
of the one part, and THE REPUBLIC OF CAMEROON ("Cameroon"), of the other part PREAMBLE
NOTING the experience under the Interim Agreement with a view to an Economic Partnership Agreement between the European Union and its Member States, of the one part, and the Central Africa Party of the other part ("EU-Central Africa EPA");
RECOGNISING THAT this Agreement builds on the experience of the Partnership Agreement between the Members of the African, Caribbean and Pacific ("ACP) Group of States, of the one part, and the European Community ("EC") and its Member States, of the other part, signed on 23 June 2000, revised on 25 June 2005, and further revised on 22 June 2010 ("the Cotonou Agreement");
HAVING REGARD to the Joint Statement of the Parties relating to the Objectives and Essential and Fundamental Elements of this Agreement;
CONVINCED that this Economic Partnership Agreement will create a new and more favourable climate for their relations in the areas of economic governance, trade and investments and create new opportunities for growth and development;
WHEREAS the liberalisation of trade, of establishment and of trade in services between the Parties must be based on the regional integration of the Central African States, have the objective of fostering their smooth and gradual integration into the global economy, with due regard for their political choices and their development priorities, and fulfil the conditions laid down in the World Trade Organization ("WTO") agreements;
WHEREAS the Parties shall not encourage foreign direct investment by making their domestic environmental, labour or occupational health and safety legislation and regulations less stringent or by relaxing their domestic labour legislation and regulations or regulations designed to protect and promote cultural diversity. The Parties therefore reaffirm their commitment to comply with these domestic laws or regulations or to propose to do so in order to encourage the establishment, acquisition, expansion or retention in their territory of an investment or of an investor,
HAVE DECIDED AS FOLLOWS:
Body
Title I. OBJECTIVES
Article 1. Interim Economic Partnership Agreement
This Agreement establishes an interim Economic Partnership Agreement ("EPA").
This Agreement comprises actual and enforceable commitments according to the provisions of this Agreement and also sets out further areas for negotiations with a view to incorporating additional elements.
Article 2. General Objectives and Scope
The general objectives of this Agreement are to:
(a) contribute to the reduction and eventual eradication of poverty by establishing a trade partnership consistent with the objectives of sustainable development, the Sustainable Development Goals ("SDGs") and the Objectives and Essential and Fundamental Elements of this Agreement, set out in Annex IV;
(b) promote an economy in Cameroon that is more competitive and diversified, and enjoys stronger growth as the basis for such a regional economy in Central Africa;
(c) foster economic cooperation and good governance in Cameroon, supporting these objectives and regional integration in the Central African region;
(d) promote the gradual integration of Cameroon into the global economy, in accordance with its political choices and its development priorities, contributing to such integration in the Central African region;
(e) improve the capacities of Cameroon in terms of trade policy and trade- related issues, as the basis for such improvement in the Central African region;
(f) establish and implement an effective, predictable and transparent regulatory framework for trade and investment in Cameroon, thus supporting the conditions for increasing investment and private-sector initiatives, and enhance capacity for the supply of products and services, competitiveness and economic growth in the Central African region;
(g) strengthen existing relations between the Parties on the basis of solidarity and mutual interest. To this end, in line with the WTO obligations, the Agreement will enhance commercial and economic relations, support a 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;
(h) promote private-sector development and employment growth.
Article 3. Specific Objectives
The specific objectives of this Agreement are to:
(a) help reduce poverty, promote economic cooperation and good governance in Cameroon and increase Cameroon's production, export and supply capacities, as well as its ability to attract foreign investment and its capacities in terms of trade policy and trade-related issues, and thereby contribute to promoting regional integration;
(b) foster the smooth and gradual integration of Cameroon into the global economy, in accordance with its political choices and its development priorities, supporting such integration for the Central African region;
(c) strengthen existing relations between the Parties on the basis of solidarity and mutual interest;
(d) create an Agreement that is compatible with the rules of the WTO;
(e) establish a basis for negotiating and implementing an effective, predictable and transparent regulatory framework for trade, investment, competition, intellectual property, public procurement and sustainable development in the Central African region, thus supporting the conditions for increasing investment and private-sector initiatives, and enhance capacity for the supply of goods and services, competitiveness and economic growth in the region;
(f) provide a roadmap for negotiations on the areas referred to in paragraph (e) with a view to extending the scope of the Agreement.
Title II. PARTNERSHIP FOR DEVELOPMENT
Article 4. Framework for Capacity Building In Cameroon
The Parties affirm their commitment to promote capacity building and economic modernisation in Cameroon using the various instruments at their disposal, for example, by means of trade policy instruments and development cooperation as set out in Article 7.
Article 5. Priority Areas for Capacity Building and Modernisation
1. Cameroon, in partnership with the UK, shall promote a quantitative and qualitative increase in the goods and services it produces and exports, as the basis for promoting such an increase in the Central African region, particularly in the following areas:
(a) Development of basic infrastructure
- Transport
- Energy
- Telecommunications
(b) Agriculture and foodsafety
- Agricultural production
- Agro-industry
- Fisheries
- Stock farming
- Aquaculture and fish stocks
(c) Industry, diversification and competitiveness of economies
- Modernisation of businesses
- Industry
- Standards and certification (sanitary and phytosanitary ("SPS") measures, quality, zootechnical standards, etc.)
(d) Strengthening of regional trade
- Development of the regional common market
- Taxation and customs
(e) Improvement of the business environment
- Harmonisation of trade policies
2. In implementing this partnership, the Parties shall refer to Annex I to this Agreement.
3. In the implementation of this Agreement, the Parties affirm their commitment to promote the modernisation of the productive sectors in Cameroon affected by this Agreement, by means of development cooperation as set out in Article 7.
Article 6. Business Environment
The Parties consider that the business environment is an essential vehicle for economic development, and that the provisions of this Agreement are therefore geared towards achieving this common objective. Cameroon, which is also a signatory of the OHADA Treaty (Organisation for the Harmonisation of Business Law in Africa) (1), undertakes to apply and implement the provisions of this Treaty effectively and without discrimination.
Article 7. Development Finance Cooperation
1. UK financing pertaining to development cooperation between Cameroon and the UK supporting the implementation of this Agreement shall be within the framework for development cooperation as set out in Annex IV. In this context, supporting the implementation of this Agreement shall be one of the priorities.
2. The UK undertakes to support, by means of its development policies and instruments - including aid for trade - development activities for economic cooperation and for the implementation of this Agreement, in accordance with the principles of effectiveness and complementarity of aid. The UK may provide this support to the key areas listed in Article 5 and Annex I, or to other areas of assistance.
3. The Parties shall cooperate in order to facilitate the participation of other donors willing to support the efforts of Cameroon to achieve the objectives of this Agreement.
4. The Parties recognise the usefulness of specific financing mechanisms which support the implementation of this Agreement, and will support the efforts in this direction.
Article 8. Supporting the Implementation of Trade-related Rules
The Parties agree that the implementation of trade-related rules, for which the areas of cooperation are detailed in the individual Chapters of this Agreement, shall help to achieve the objectives of this Agreement. Cooperation in this area shall be in accordance with the arrangements set out in Article 7.
Article 9. Financing of the Partnership
1. The Parties agree to coordinate support which will help to finance effectively the priority measures intended to build productive capacity in Cameroon, as indicated in Article 5, and the measures referred to in Article 10.
2. In accordance with the principles of development effectiveness, the Parties shall cooperate to mobilise resources including from other donors relating specifically to the areas of cooperation in this Agreement and the activities listed in Annex L
3. The UK will provide funding through mechanisms such as the UK Prosperity Fund to support implementation of this Agreement.
Article 10. Cooperation on Fiscal Adjustment
1. The Parties recognise the challenges which the elimination or substantial reduction of the customs duties provided for in this Agreement may pose for Cameroon, and they agree to establish a dialogue and cooperation in this area.
2. In the light of the dismantling schedule set out in Article 21 and approved by the Parties to this Agreement, the Parties agree to establish an in-depth dialogue on the fiscal adjustment measures to be taken which could restore budget balance in the long term.
3. Further to paragraphs 1 and 2 of this Article, the Parties agree to cooperate, within the framework of Article 7, and undertake to implement technical and financial assistance measures which may be provided through multilateral organisations and international financial institutions in the following areas:
(a) contribution to absorbing the net fiscal impact in full complementarity with the fiscal reforms;
(b) support for fiscal reform together with dialogue in this area. 4, The Parties undertake to agree, within the EPA Committee as defined in Article 92, and as soon as possible, on the methodology for estimating net fiscal impact. In this same context the Parties shall subsequently agree on the complementary measures and studies to be undertaken.
Article 11. Cooperation In International Fora
The Parties shall endeavour to cooperate in all international fora where issues of interest to this partnership are discussed.
Article 12. Review of the Partnership for Development
The Parties agree to review in greater detail the partnership for development established by this Title, including the details of its implementation.
Title III. TRADE REGIME FOR GOODS
Chapter 1. Customs Duties and Non-tariff Measures
Article 13. Rules of Origin
1. For the purposes of this Chapter, "originating" shall apply to goods that conform with the rules of origin set out in Interim Protocol 2A and Interim Protocol 2B to this Agreement.
2. The EPA Committee, in view of the interim nature of Interim Protocol 2A and Interim Protocol 2B, shall establish a common reciprocal regime governing the rules of origin in due course, which shall be annexed to this Agreement by the EPA Committee. That new "Protocol 2" shall replace the two Interim Protocols and shall enter into force on a date to be agreed by the EPA Committee and to be published in the official journal or website of both Parties.
3. The Parties shall review the provisions in force governing the rules of origin, with a view to simplifying the concepts and methods used for the purpose of determining origin in the light of Central Africa's development goals. As part of this review, the Parties shall take into account technological development, production processes and all other factors including reforms under way in relation to rules of origin which could require amendments to the negotiated reciprocal regime. Any amendment or replacement shall be effected by decision of the EPA Committee.
Article 14. Customs Duties
"Customs Duties" shall mean duties or charges of any kind, including any form of surcharge or supplement, imposed on or in connection with the import or export of goods. These do not include:
(a) charges equivalent to taxes or other internal charges imposed in accordance with Article 23, below, on national treatment;
(b) anti-dumping, countervailing or safeguard measures applied in accordance with the provisions of Chapter 2 on trade defence instruments;
(c) fees or other charges imposed in accordance with Article 18.
Article 15. Elimination of Customs Duties on Exports
1. No new customs duties on exports shall be introduced in trade between the Parties, nor shall such duties be increased beyond those that applied on entry into force of this Agreement, provided those duties were permitted under the EU-Central Africa iEPA.
2. However, in the event of a serious public finance problem or the need for greater environmental protection, Cameroon may, after consultation with the UK, introduce customs duties on exports for a limited number of additional goods.
3. The EPA Committee shall undertake a regular evaluation in order to examine the impact and relevance of customs duties on exports applied under this Article.
Article 16. Movement of Products
1. This Article applies only In the event of an accession.
2. Products originating in the UK or in the Central African Party shall be assessed duties only once in the territory of the other Party.
3. For products originating in the UK, the customs duty to be paid in accordance with this Agreement shall be levied on behalf of the Central African Contracting State, as defined in Article 95, whose territory constitutes the place of consumption.
4. The Central Africa Party shall take all necessary measures to ensure the effective implementation of the provisions of this Article and to promote the free movement of goods in the territories of the Central African Contracting States as defined in Article 95. The two Parties agree to cooperate in relation to this matter as per Articles 7 and 8. This cooperation shall be adapted according to the type of mechanism ultimately chosen by the Central African Party.
5. The Parties agree to cooperate with a view to facilitating the movement of goods and simplifying customs procedures as provided for under Chapter 3 of Title III.
Article 17. Classification of Products
The classification of products covered by this Agreement shall be that set out in each Party's respective tariff nomenclature in conformity with the Harmonised Commodity Description and Coding System ("HS").
Article 18. Fees and other Charges
1. Fees and other charges referred to in Article 14(c) shall be limited in amount to the approximate cost of services rendered and shall not constitute indirect protection for domestic products or taxation of imports or exports for fiscal purposes. They shall be subject to specific tariffs corresponding to the approximate cost of services rendered and shall not be calculated on an ad valorem basis. The fees and other charges shall not be imposed for consular formalities, such as consular certificates and invoices (an exhaustive list to be drawn up by the EPA Committee).
2. In the event of an accession, the Central Africa Party shall, in order to promote regional integration and ensure clarity for economic operators, maintain standardised provisions relating to the area covered by this Article.
Article 19. More Favourable Treatment on the Basis of Economic Integration Agreements
1. With regard to the areas covered by this Chapter, the UK shall grant Cameroon any more favourable treatment which could result from the UK becoming party to an economic integration agreement with third parties after this Agreement has been signed.
2. Withregard to the areas covered by this Chapter, Cameroon shall grant the UK any more favourable treatment which could result from Cameroon becoming party to an economic integration agreement with a major trading partner after this Agreement has been signed.
3. If Cameroon has received substantially more favourable treatment from a major trading partner than that provided by the UK in an economic integration agreement concluded by Cameroon with that same partner, the Parties shall enter into consultations and decide together on the implementation of paragraph 2.
4. For the purposes of this Article, "economic integration agreement" shall mean an agreement which substantially liberalises trade and abolishes or eliminates discrimination between the parties by eliminating existing discriminatory measures and/or prohibiting new or more discriminatory measures, either upon entry into force of the agreement or on the basis of a reasonable time-frame.
5. For the purposes of this Article, "major trading partner" shall signify any developed country or any country accounting for more than 1 % of world trade in the year before the entry into force of the economic integration agreement referred to in paragraph 2, or any group of countries acting individually, collectively or through an economic integration agreement accounting collectively for more than 1.5 % of world trade in the year before the entry into force of the economic integration agreement referred to in paragraph 2 (2).
6. The provisions of this Chapter shall not be so construed as to oblige the Parties to extend reciprocally any preferential treatment applicable as a result of one of the Parties being party to a regional economic integration agreement with a third party on the date of signature of this Agreement.
Article 20. Customs Duties on Products Originating In Cameroon
1. Products originating from Cameroon shall be imported into the UK free of customs duties, with the exception of the products indicated, and under the conditions set out in Annex II.
2. No new customs duties shall be introduced in trade between the Parties, nor shall those already applied beincreased.
Article 21. Customs Duties on Products Originating In the UK
1. For each product, the basic customs duty shall be that specified in Annex III.
2. No new customs duties shall be introduced in trade between the Parties, nor shall those specified in Annex III be increased.
3. Customs duties on imports of products considered as originating in the UK and listed in Annex II under categories "1", "2" and "3" shall be definitively eliminated as per the table in paragraph 5 below, subject to paragraph 4.
4. If, before the EU-Central Africa iEPA ceases to apply to the UK, the parties to that Agreement agree (formally, informally or by conduct) or apply more favourable tariff treatment to imports of EU goods, that more favourable treatment shall apply to imports of UK goods and the EPA Committee shall amend paragraph 5 to reflect this.
5. The tariff reduction percentages set out in the table below shall be applied to the tariffs laid down in paragraph 1.
Products Groups
| Years | 1 | 2 | 3 | 5 |
| 01/01/2021 | 100% | 60% | 10% | 0% |
| 04/08/2021 | 100% | 75% | 20% | 0% |
| 01/01/2022 | 100% | 90% | 30% | 0% |
| 01/01/2022 | 100% | 100% | 40% | 0% |
| 01/01/2024 | 100% | 100% | 50% | 0% |
| 01/01/2025 | 100% | 100% | 60% | 0% |
| 01/01/2026 | 100% | 100% | 70% | 0% |
| 01/01/2027 | 100% | 100% | 80% | 0% |
| 01/01/2028 | 100% | 100% | 90% | 0% |
| 01/01/2029 | 100% | 100% | 100% | 0% |
6. Imports of products originating in the UK and listed in Annex II under category "5" shall comprise products for which customs duties are determined in accordance with the provisions of paragraph 1 above; customs duties in this category shall be neither reduced nor eliminated.
7. In the event of serious difficulties in respect of imports of a given product, the schedule for tariff reduction and dismantling may be reviewed by the EPA Committee by common accord with a view to possibly extending the period of reduction or elimination. During a review of this kind, the calendar period for which the review has been requested may not be extended, for the product concerned, beyond the maximum transitional period for the reduction or elimination of tariffs provided for this same product. If the EPA Committee has not made a decision within 30 days of an application to review the timetable, Cameroon may suspend the timetable provisionally for a period which may not exceed one year.
Article 22. Prohibition of Quantitative Restrictions
Upon entry into force of this Agreement, all prohibitions or restrictions on imports or exports affecting trade between the two Parties shall be eliminated, apart from the customs duties, taxes, fees and other charges referred to under Article 18 of this Chapter, whether made effective through quotas, import or export licenses or other measures. No new measures may be introduced. The provisions of this Article shall apply without prejudice to the provisions of Chapter 2 of this Agreement on trade defence instruments.
Article 23. National Treatment on Internal Regulations and Taxation
1. Imported products originating in the territory of the other Party shall not be subject, either directly or indirectly, to internal taxes or other internal charges of any kind in excess of those applied, directly or indirectly, to like national products. Moreover, the Parties shall not otherwise apply internal taxes or other internal charges so as to afford protection to national production.
2. Imported products originating in the territory of the other Party shall be accorded treatment no less favourable than that accorded to like national products in respect of all laws, regulations and requirements affecting their internal sale, offering for sale, purchase, transportation, distribution or use. The provisions of this paragraph shall not prevent the application of differential internal transportation charges which are based exclusively on the economic operation of the means of transport and not on the origin of the product.
3. Neither Party shall establish or maintain any internal regulation relating to the mixture, processing or use of products in specified amounts or proportions which requires, directly or indirectly, that any specified amount or proportion of any product which is the subject of the regulation must be supplied from national sources. Moreover, neither Party shall otherwise apply internal quantitative regulations so as to afford protection to national production.
4. No internal quantitative regulation relating to the mixture, processing or use of products in specified amounts or proportions shall be applied in such a manner as to allocate any such amount or proportion among external sources of supply.
5. In accordance with Article III.8(b) of the General Agreement on Tariffs and Trade of 1994 ("GATT 1994"), the provisions of this Article shall not prevent the payment of subsidies exclusively to national producers, including payments derived from the proceeds of internal taxes or charges applied consistently with the provisions of this Article and subsidies effected through governmental purchases of national products.
6. The provisions of this Article shall not apply to laws, regulations, procedures or practices governing public procurement.
7. The provisions of this Article shall apply without prejudice to the provisions of Chapter 2 of this Agreement on trade defence instruments.
Article 24. Agricultural Export Subsidies
1. No Party may introduce new export subsidies or increase any existing subsidy of this nature on agricultural products destined for the territory of the other Party. With regard to existing subsidies, this paragraph shall not prohibit increases due to variations in the world prices of the products in question.
2. For any group of products, as defined in paragraph 3, which receive an export refund under UK legislation for the same basic product for which Cameroon has undertaken to eliminate its tariffs, the UK undertakes to dismantle all existing subsidies (if any) for exports of this group of products - corresponding to the same basic product - to the territory of Cameroon.
3. This Article shall apply to products covered by Annex I of the WTO Agreement on Agriculture.
4. This Article shall be without prejudice to the application by Cameroon of Article 9.4 of the WTO Agreement on Agriculture and Article 27 of WTO Agreement on Subsidies and Countervailing Measures.
Article 25. Food Security
Should the implementation of this Agreement lead to problems with the availability of, or access to, the foodstuffs necessary to ensure food security, and where this situation gives rise or is likely to give rise to major difficulties for Cameroon (or, following an accession, another Central African Contracting State), Cameroon or such State may take appropriate measures in accordance with the procedures laid down in Article 31.