Title
INTERIM AGREEMENT
WITH A VIEW TO AN ECONOMIC PARTNERSHIP AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND ITS MEMBER STATES, OF THE ONE PART,
AND THE SADC EPA STATES, OF THE OTHER PART
Preamble
PREAMBLE
THE KINGDOM OF BELGIUM,
THE REPUBLIC OF BULGARIA,
THE CZECH REPUBLIC,
THE KINGDOM OF DENMARK,
THE FEDERAL REPUBLIC OF GERMANY,
THE REPUBLIC OF ESTONIA,
IRELAND,
THE HELLENIC REPUBLIC,
THE KINGDOM OF SPAIN,
THE FRENCH REPUBLIC,
THE ITALIAN REPUBLIC,
THE REPUBLIC OF CYPRUS,
CE/SADC/en 2
THE REPUBLIC OF LATVIA,
THE REPUBLIC OF LITHUANIA,
THE GRAND DUCHY OF LUXEMBOURG,
THE REPUBLIC OF HUNGARY,
MALTA,
THE KINGDOM OF THE NETHERLANDS, THE REPUBLIC OF AUSTRIA,
THE REPUBLIC OF POLAND,
THE PORTUGUESE REPUBLIC,
ROMANIA,
THE REPUBLIC OF SLOVENIA,
THE SLOVAK REPUBLIC,
THE REPUBLIC OF FINLAND,
CE/SADC/en 3
THE KINGDOM OF SWEDEN,
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, AND THE EUROPEAN COMMUNITY (EC),
(hereinafter jointly referred to as the "EC Party"),
Of the one part, and
THE REPUBLIC OF BOTSWANA,
THE KINGDOM OF LESOTHO,
THE REPUBLIC OF MOZAMBIQUE,
THE REPUBLIC OF NAMIBIA
THE KINGDOM OF SWAZILAND
(hereinafter referred to as the "SADC EPA States"),
Of the other part, (1)
A Joint Declaration on Angola and Tanzania is attached to the Agreement.
CONSIDERING the Parties' wish to further strengthen their trade links and establish close and lasting relations based on partnership and cooperation;
RECOGNISING the efforts by the SADC EPA States to ensure economic and social development for the people of the Southern African Development Community (SADC) region;
RECALLING the importance attached by the Parties to the principles and rules which govern the multilateral trading system and to the need to apply them in a transparent and non-discriminatory manner;
TAKING ACCOUNT of the Parties' rights and obligations in terms of their membership of the World Trade Organisation (the 'WTO'), and reaffirming the importance of the multilateral trading system.
RECOGNISING the special needs and interests of the SADC EPA States and the need to address their diverse levels of economic development, and geographic and socio-economic concerns;
BEARING IN MIND the Partnership Agreement between the Members of the African, Caribbean and Pacific Group of States of the one part, and the European Community and its Member States of the other part (hereinafter referred to as "the Cotonou Agreement"), signed on 23 June 2000;
BEARING IN MIND the Trade, Development and Cooperation Agreement (TDCA) between South Africa and the European Community and its Member States, signed on 11 October 1999;
CONFIRMING the Parties' support and encouragement for the process of trade liberalisation;
CONFIRMING the Parties' commitment to and support for economic development in the SADC EPA States to attain the Millennium Development Goals (MDG);
CONFIRMING the Parties' commitment to promote regional cooperation and economic integration in the SADC EPA States, and to encourage the liberalisation of trade between the Parties;
BEARING IN MIND the Parties' commitment to ensure that their mutual arrangements support the process of regional integration under the SADC Treaty;
DESIRING to create new employment opportunities, attract investment and improve living standards in the territories of the Parties while promoting sustainable development;
EMPHASISING the importance of agriculture and sustainable development in poverty alleviation in the SADC EPA States;
RECOGNISING the special circumstances of Botswana, Lesotho, Namibia and Swaziland in the Economic Partnership Agreement (EPA) and the need to take into account the effects on them of trade liberalisation under the TDCA;
RECOGNISING in this regard the particular case of the Southern African Customs Union (SACU) established under the 2002 Southern African Customs Union Agreement;
RECOGNISING the special circumstances and needs of the Least Developed Countries (LDCs) of the SADC EPA States through the use of special and differential treatment and asymmetry;
CONVINCED that this Agreement will further deepen and encourage economic and trade relations between the Parties;
RECOGNISING the importance of development finance cooperation for the implementation of this Agreement;
HAVE AGREED, in pursuit of the above, to conclude the present Agreement (hereinafter referred to as "this Agreement"):
Body
Part I. Trade Partnership for Sustainable Development
Chapter 1. General Provisions
Article 1. Objectives
The objectives of this Agreement are to:
(a) contribute 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) promote regional integration, economic cooperation and good governance thus establishing and implementing an effective, predictable and transparent regional regulatory framework for trade and investment between the Parties and among the SADC EPA States;
(c) promote the gradual integration of the SADC EPA States into the world economy, in conformity with their political choices and development priorities;
(d) improve the SADC EPA States' capacity in trade policy and trade related issues;
(e) support the conditions for increasing investment and private sector initiative, and enhance supply capacity, competitiveness and economic growth in the SADC EPA States;
(f) strengthen 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 the SADC Protocol on Trade 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. This Agreement is based on the Fundamental Principles as well as the Essential and Fundamental Elements of the Cotonou Agreement, as set out in Articles 2 and 9 of that Agreement. This Agreement shall build on the achievements of Cotonou and the previous ACP-EC Partnership Agreements in regional cooperation and integration as well as economic and trade cooperation.
2. The Cotonou Agreement and this Agreement shall be implemented in a complementary and Mutually reinforcing manner.
3. The Parties agree to cooperate to implement this Agreement in a manner that is consistent with the development policies and regional integration programmes in which the SADC EPA States are or may be involved.
4. The Parties agree to cooperate in order to fulfil their commitments and obligations and to facilitate the capacity of SADC EPA States to implement this Agreement.
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 reduce and eventually eradicate 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 this 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 populations 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 realisation of people-centred sustainable development.
Article 4. Regional Integration
1. The Parties recognise that regional integration is an integral element of 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 and related development policies and political agendas, based on the Southern African Customs Union Agreement signed on
21 October 2002, the Southern African Development Community Treaty signed on 17 August 1992 and the Constitutive Act of the African Union adopted on 11 July 2000. They aim at building and deepening their partnership on the basis of those processes and at implementing this Agreement in a mutually supportive manner with those instruments, taking into account the respective levels of development, needs, geographical realities and sustainable development strategies.
Article 5. Monitoring
1. The Parties undertake to continuously monitor the operation and impact of this Agreement through appropriate mechanisms and timing within their respective participative processes and institutions, as well as those set up under this Agreement, in order to ensure that the objectives of this Agreement are realised, that it is properly implemented and that the benefits for their people deriving from it, in particular the most vulnerable groups, are maximised.
2. The Parties also undertake to consult each other promptly over any issue concerning the implementation of this Agreement.
Article 6. Cooperation In International Fora
The Parties shall endeavour to cooperate in all international fora where issues relevant to this Agreement are discussed.
Chapter 2. Development Cooperation
Article 7. Development Cooperation Framework
The Parties commit themselves to cooperating in order to implement this Agreement and to support the SADC EPA States' trade and development strategies within the overall SADC regional integration process. The cooperation can take financial and non-financial forms.
Article 8. Development Finance Cooperation
1. The Parties recognise that development cooperation is a crucial element of their partnership and an essential factor for the realisation of the objectives of this Agreement as laid down in Article 1. Development finance cooperation for regional economic cooperation and integration, as provided for in the Cotonou Agreement, shall be carried out so as to support and promote the efforts of the SADC EPA States to achieve the objectives and to maximise the expected benefits of this Agreement. Areas of cooperation and technical assistance are set out, as appropriate, in Chapter 3 and in the other Chapters of this Agreement. Cooperation shall be implemented according to the modalities provided for in this Article, shall be kept under ongoing review and shall be revised as necessary according to the provisions of Article 108 of this Agreement.
2. The European Community (1) financing pertaining to development cooperation between the SADC EPA States 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 Interim Agreement with a view to an EPA, shall be a priority.
3. The Member States of the European Union collectively undertake to support, by means of their respective development policies and instruments, development cooperation activities for regional economic cooperation and integration and for the implementation of this Agreement in the SADC EPA States and at the regional level, in conformity with the complementarity and aid effectiveness principles.
4. The Parties recognise that adequate resources will be required for the implementation of this Agreement and the fullest realisation of its benefits. In this respect the Parties shall cooperate to enable SADC EPA States to access other financial instruments as well as to facilitate other donors willing to further support the efforts of the SADC EPA States in achieving the objectives of this Agreement.
5. The Parties agree that a regional development financing mechanism such as an EPA fund would provide a useful instrument for efficiently channelling development financial resources and for implementing EPA accompanying measures. The EC Party agrees to support the efforts of the region to set up such a mechanism. The EC Party will contribute to the fund following a satisfactory audit.
Chapter 3. Areas of Cooperation
Article 9. Objectives
For the purpose of implementing this Agreement and taking into account the development policies of the SADC EPA States, the Parties agree that the following are priority areas for trade and economic cooperation.
Article 10. Cooperation In Trade In Goods
The aim of cooperation in this area shall be to enhance trade in goods and the SADC EPA States' capacity to trade, including the phasing out of tariffs and customs duties, properly implementing rules of origin, trade defence instruments, non-tariff measures including sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBT), and promoting customs cooperation and trade facilitation.
Article 11. Cooperation In Supply-side Competitiveness
The aim of cooperation under this Article shall be to increase the competitiveness of the SADC EPA States and remove supply side constraints at national, institutional and, in particular, at company level. This cooperation includes, amongst others, fields such as production, technology development and innovation, marketing, financing, distribution, transport, diversification of economic base, as well as development of the private sector, improvement of the trade and business environment and support to small and medium enterprises in the fields of agriculture, fisheries, industry and services.
Article 12. Cooperation In Business Enhancing Infrastructure
The aim of cooperation under this Article shall be the development of a competitive business enhancing environment in areas such as information and communication technology (ICT), transport and energy.
Article 13. Cooperation In Trade In Services
The Parties agree to cooperate to develop and enhance trade in services as provided for in Title IV Article 67 of this Agreement.
Article 14. Cooperation In Trade Related Issues
The Parties agree to cooperate to develop and enhance trade related issues as provided for in Title IV Article 67 of this Agreement.
Article 15. Cooperation In Trade Data
The aim of cooperation under this Article shall be to improve the capacity of the SADC EPA States in the area of trade data capture, analysis and dissemination.
Article 16. Cooperation for Epa Institutional Capacity Building
The aim of cooperation under this Article shall be to support institutional structures for EPA implementation management, capacity building for trade negotiations and for trade policy.
Article 17. Cooperation on Fiscal Adjustment
1. The Parties recognise that the phasing out or reduction of customs duties laid down in this Agreement may affect the fiscal revenues of the SADC EPA States and agree to cooperate on this matter.
2. The Parties agree to cooperate in accordance with the provisions of Article 8 in particular:
(a) on support to fiscal reforms; and
(b) on support measures complementary to fiscal reforms for the mitigation of the net fiscal impact of this Agreement that will be determined in accordance with a jointly agreed mechanism.
Article 18. Types of Interventions
Development cooperation under this Agreement may include, but is not limited to the following EPA related interventions:
1. policy development;
2. legislation and regulatory framework development;
3. institutional/organisational development;
4. capacity building and training; (1)
5. technical advisory services;
6. administrative services;
7. support in SPS and TBT areas; and
8. operational support including equipment, materials and related works.
For the purpose of this Article, "capacity building" may include in particular training, institutional development, organisational development (structures and procedures), operational support and inter-institutional communication and cooperation procedures.
Part II.
Chapter 4. General Provisions
Part 1. Trade In Goods
Article 19. Free Trade Area
1. This Agreement establishes a free trade area (FTA) between the Parties, in conformity with the General Agreement on Tariffs and Trade (hereinafter referred to as "GATT 1994"), and in particular Article XXIV thereof.
2. The FTA shall respect the principle of asymmetry, commensurate to the specific needs and capacity constraints of the SADC EPA States, in terms of levels and timing for commitments under this Agreement.
3. The FTA will apply to trade between, of the one part, the European Community and, of the other part, the SADC EPA States.
Article 20. Scope
This Chapter shall apply to products:
1. falling within Chapters 01 to 97, with the exception of Chapter 93, set out in each Party's respective tariff nomenclature in conformity with the rules of classification applicable to the Harmonised Commodity Description and Coding System (HS); and