WT/REG381/M/1  
 
14 December 2020 
(20-9033) Page: 1/4 
Committee on Regional Trade Agreements  
Ninety -eighth  Session    
 
 
THE ECONOMIC PARTNERSHIP AGREEMENT  BETWEEN THE EUROPEAN UNION  AND SADC 
STATES (BOTSWANA, LESOTHO, MOZAMBIQUE, NAMIBIA, SOUTH AFRICA AND 
ESWATINI)  (GOODS ) 
NOTE ON THE MEETING OF  18 NOVEMBER  2020 
Chairm an: Ambassador H.E. Mr. Mārtiņš KREITUS (Latvia ) 
1.1.  The 9 8th Session of the Committee on Regional Trade Agreements (hereinafter  "CRTA " or the 
"Committee ") was convened in Airgram WTO/AIR/RTA/ 23/Rev.1  dated 6 November  2020. 
1.2.  Under Agenda Item C.II of the Session, the CRTA considered the Economic Partnership 
Agreement  between the European Union  and SADC States (Botswana, Lesotho, Mozambique, 
Namibia, South Africa and Eswatini) , goods  (hereinafter  "the Agreement").  The Chairman  stated that 
the Factua l Presentation had been prepared by the Secretariat on its own responsibility in full 
consultation with the Parties, in accordance with paragraph 7(b) of the Transparency Mechanism for 
Regional Trade Agreements (document WT/L/671).  
1.3.  The Chairman  indicated  that the Agreement had been first notified to the WTO by the Parties 
on 24  September 2009, but at that time the date of its entry into force was not yet known. In a 
follow -up notification - WT/REG274/N/1/Add.1 - dated 16 September 2014, the Parties had indicated 
that the Agreement had entered provisionally into force on 4 August 2014 . The Agreement had been 
notified under Article  XXIV:7(a) of the GATT  1994 as an agreement establishing a free trade area 
for trade in goods within the meaning of Article XXIV (8 ) (b) of the GATT 1994. The Parties also 
indicated that it would be implemented over a transition period. The text of the Agreement was 
available, together with its Annexes, on the Parties' official websites. The Factual Presentation on 
the goods aspects ( document WT/REG274/1 dated 16 June 2020) and questions and replies on this 
Agreement (document WT/REG274/2 dated 21 September 2020) h ad been distributed.  
1.4.  The delegation of Botswana  on behalf of SADC stated that it was an honour and privilege to 
convey th e statement on behalf of the SADC EPA Group. The SADC EPA Group was a subset of the 
Southern African Development Community (SADC) countries which ha d negotiated and signed an 
Economic Partnership Agreement (EPA) with the EU. These were:  
a. The Re public of Botswana;  
b. The Kingdom of Eswatini;  
c. The Kingdom of Lesotho;  
d. The Republic of Namibia;  
e. The Republic of South Africa; and  
f. The Republic of Mozambique.  
 
The first five countries were also Members of the Southern African Customs Union (SACU).   
1.5.  She also thanked the Secretariat and the Chairman for convening th e meeting, which provided 
an opportunity to d iscuss the EU -SADC EPA Factual  Presentation . The presentation provide d a good 
synopsis of the Agreement and reflect ed its intended  objectives. She also thanked SADC's partner, 
the European Commission, for their collaboration in preparing for the review.  
1.6.  Trade relations between the EU and the African, Caribbean and Pacific (ACP) countries date d 
as far back as the EU 's 1957 founding Tr eaty of Rome. This had been  initially embodied in two WT/REG381/M/1  
 
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  generations of the "Yaoundé Convention " which culminated into the Lomé Convention. These 
conventions had been  initiated to provide non -reciprocal preferential market access to products 
originating from ACP States into the EU market. This arrangement was however, not in conformity 
with one of the World Trade Organization's  critical rules on providing reciprocal trade between 
trading partners. In the late 1990s the whole structure of the relationship betwe en the EU and the 
ACP Group of countries had been  therefore challenged at the World Trade Organisation and it was 
clear that the old ACP -EU cooperation model had run its course. However, it should be noted that 
although South Africa became a member of the ACP Group on 24 April 1997, through its accession 
to the Fourth Lomé Convention, this non -reciprocal preferential market access was not applicable to 
South Africa.  
1.7.  In a positive response to the challenges by the WTO Members, in 2000, the EU and the ACP 
Member States signed the Cotonou Agreement.  This Agreement mapped the way for negotiating the 
Economic Partnership Agreements (EPAs). In 2004 the EU initiated negotiations with ACP States for 
a-WTO compliant trade agreement, which had culminated in signed EPA s with, among other African 
States, eleven (11) SADC countries under different configurations : for example, Comoros, 
Madagascar, Mauritius, Seychelles and Zimbabwe signed an EPA with the EU under the Eastern and 
Southern African (ESA); while the SADC EPA G roup signed under the SADC -EPA configuration. 
Angola ha d submitted a request for accession to the Agreement  under its configuration.  
1.8.  The negotiations of the Agreement  had coincided with the review of the bilateral agreement 
between the EU and South Africa - the Trade, Development and Cooperation Agreement (TDCA).  As 
provided in Article 31 of the SACU Agreement of 2002, no SACU Member State shall negotiate and 
enter into new  preferential trade agreements or amend existing agreements without the consent of 
other Member States. South Africa had therefore formally joined the EU -SADC EPA negotiations in 
2006 with a view to lessen fragmentation in SACU in terms of trade relation s with partner countries. 
The Agreement  had been  signed in June 2016 ; four months later, provisional implementation had 
started for the EU and SACU States, while Mozambique subsequently acceded to the Agreement in 
February 2018. For South Africa the Agreemen t replaces the trade chapter of the TDCA.  
1.9.  The Agreement  had a focus on regional integration fostering regional value chains in the SADC 
EPA group of countries. It was a reciprocal trade agreement where both the EU and the SADC EPA 
group offer ed preferentia l market access to each other. However, the EU provide d greater 
preferential and duty -free access, while the SADC EPA group maintain ed protection of sensitive 
sectors. Under the Agreement , the EU guarantee d Botswana, Lesotho, Mozambique, Namibia, and 
Swazi land a 100% free access to its market and ha d fully or partially removed customs duties on 
98.7% of imports coming from South Africa. On the other hand, the Southern African Customs Union 
(SACU) remove d customs duties on 86% of imports from the EU and Moza mbique remove d 74%.  
1.10.   The Agreement provide d safeguard measures in favour of the SADC EPA States. The 
safeguard measures include d: multilateral safeguards; general bilateral safeguards; agricultural 
safeguards; good security safeguards; BELN transitional sa feguards (for Botswana, Eswatini, 
Lesotho and Namibia); and infant industry protection. Under th e Agreement, the EU ha d committed 
to eliminating agricultural export subsidies. The Agreement further provide d for developmental 
objectives. In addition, trade-related areas could benefit from funding by the EU for the benefit of 
the SADC EPA Group. The Agreement  also include d a bilateral protocol between the EU and South 
Africa on Trade in Wine and Spirits as well as protection of Geographical Indications of win e, spirits, 
beer and some agricultural products from South Africa and the EU. The Agreement also ha d a built -
in agenda for negotiations of trade in services as well as investment for those parties that agree.  
1.11.   To facilitate trade, the Parties had undertake n to reinforce cooperation in the area of customs. 
The Parties promote d harmonisation of customs legislation and procedures, and cooperation 
between the Customs Administrations of the signatories in all matters pertaining to customs. The 
Parties also  agreed to strengthen cooperation and exchange of information on sanitary and 
phytosanitary measures (SPS) in agriculture including foo d security, development of regional value 
chains and integration to promote animal health and plant health. The Parties committed to 
alignment to international standards with regards to technical barriers to trade and sanitary and 
phytosanitary measures. The Parties ha d also exchanged information such as Contact Points for 
officers accountable for the implementation of the Agreement in areas of customs cooperation; 
sanitary and phytosanitary  measures ; technical regulations, standard s bodies, and conformity 
assessment.  WT/REG381/M/1  
 
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  1.12.   The inaugural Joint Council on 18th February 2019 had considered the status of 
implementation and established implementation structures. In terms of trade, the EU was the largest 
trading partner as a block for the SADC EPA Group, with South Af rica accounting for the largest and 
most diversified part of EU imports into and exports out of the region. Some of the products exported 
to the EU from the region include d: fruits, platinum, vehicles, other manufactured goods, wine, 
diamonds, beef, sugar,  and aluminium, among others. On the other hand, the EU export ed a wide 
range of goods to the SADC EPA countries, including vehicles, machinery, electrical equipment, 
pharmaceuticals and processed food.  In concluding she thanked Mem bers of the WTO for the interest 
shown in th e Agreement as demonstrated by the questions  posed and for the EU's contributions to 
the responses. She stood ready to provide any additional clarification required to Members at the 
meeting or if required in writing at a later stage.  The representative of Namibia  aligned himself  with 
the statement of Botswana. The Agreement provided improved market access, particularly on 
agricultural products through the enhancement of market access for smaller countries through the 
elimination of non -tariff barriers. It provided opportunit ies for economic cooperation and 
governance. As well as sup porting conditions for private sector invest ment through the enhancement 
of supply capacity and economic growth it also provide d an avenue for trade fac ilitation through the 
instruments of customs cooperation through customs authorities.  The Factual Presentation of the 
Secretariat was a true reflection of the EU and SADC relationship as provided for in the Agreement. 
He thanked the Chairman and the Members who had expressed their interest in the Agr eement.  
1.13.   The representative of the delegation of the European Union  thanked the delegation of 
Botswana and welcome d the Committee's consideration of the Economic Partnership Agreement 
between the EU and the SADC EPA States, comprising Botswana, Eswatini, Lesotho, Mozambique, 
Namibia and South Africa. He thanked the Secretariat for the preparation of the Factual Presentation 
and to the SADC EPA States for their cooperation in th e exercise. He also thank ed Members for their 
questions and the interest showed in the consideration of this Agreement.  He presented informal 
slides on the Agreement to the Committee.  
1.14.   The European Union and the Af rican, Caribbean and Pacific (ACP) countries and regions ha d 
enjoyed a Strategic Partnership since the ACP -EU Partnership Agreement was signed in Cotonou on 
23 June 2000. Th e agreement, called the 'Cotonou Agreement ', had been  the most comprehensive 
partne rship agreement between developing countries and the EU. It ha d been the framework for the 
EU's relations with 79 countries from Africa, the Caribbean and the Pacific (ACP). The Agreement 
had economic, political and development dimensions and was character ised by equality of the 
partners, broad -based participation (States and non -State actors), dialogue and regional integration.  
1.15.   The EU was committed to supporting the ACP) countries ' integration into the world 's trading 
system to expand their trade and also  to enable the m to benefit from the global economy. For this 
reason, under the umbrella of the Cotonou Agreement,  the EU ha d signed several Economic 
Partnership Agreements (EPAs) with the ACP countries and regions aiming at promoting ACP -EU 
trade, in line with WTO rules. The EPAs were "tailor -made" agreements to suit specific regional 
circumstances and intend ed to support trade diversification while taking into account different socio -
economic circumstances.  
1.16.   The Agreement was signed in June 2016 and ha d been applied provisionally between all 
Parties except Mozambique since October 2016. For Mozambique the Agreement ha d been applied 
provisionally since February 2018.  The EPA Agreement cover ed trade in goods and also trade -related 
issues, such as customs a nd trade facilitation, technical barriers to trade, sanitary and phytosanitary 
measures, trade and sustainable development and development support.  
1.17.   The EU was the main trading partner of the SADC EPA States, accounting for 20% of their 
exports and 22% of t heir imports in 2019. The EU's export s to the SADC EPA States had a value of 
24.6 billion Euros and the EU's imports were worth 23.1 billion Euros. Since the start of the 
provisional application of the Agreement , total trade between the EU and the SADC EPA  States ha d 
been increasing. Exports from the SADC EPA States to the EU ha d increased 19% from 2015 to 
2019. 
1.18.   The c omposition of bilateral  trade flows  showed it mainly c oncern ed industrial products: those 
account ed for 91.3% of EU exports to the SADC EPA  States and for 85.9% of EU imports from the 
SADC EPA States. The number one export product from the EU to the SADC EPA States was "car 
parts" and account ed for 7.6% of EU exports to the region. The number one export product from 
the SADC EPA States to the EU  was "cars and other vehicles " which account ed for 19.8% of their WT/REG381/M/1  
 
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  total exports to the EU . Car exports from the EU had tripled in a period of 4 years  and had grown in 
value  from 1.8 to 5 billion Euros. Sixty -six per cent of cars produced in the SADC region were 
exported to the EU.  However, it was important to note that the industrial nature of EU trade with 
the SADC EPA States  was mainly due to South Africa. The export base of most countries in the 
region was still little diversified although there ha d been signs of improvement since the start of the 
provisional application of the Agreement . The trade in goods chapter provide d for reciprocal, but 
asymmetric market opening by both Parties. The EU grant ed duty-free quota -free treatment to all 
SADC EPA St ates except South Africa,  which received such treatment with respect to 96% of its 
exports to the EU and was grant ed partial liberalisation for an additional 2.7% of those exports. 
Under the Agreement , the Southern African Customs Union (SACU) grant ed duty-free and quota -
free treatment to 84.9% of products exported by the EU to the region. An additional 12.9% of EU 
exports benefit ted from partial liberalisation (reduced tariffs or tariff -rate quotas). As a least 
developed country, Mozambique had liberalise d a smaller percentage of exports from the EU.  
1.19.   He also wished to highlight p rovisions on development cooperation  in the Agreement , which 
identif ied trade -related areas that could benefit from EU funding. Several EU development 
cooperation programmes in the  SADC region were directly relevant to the Agreement's  
implementation . The Parties were currently focussing on ensuring the effective implementation of 
the Agreement so that consumers and businesses c ould fully reap the benefits o f trade and 
development opportunities. Since the start of the provisional application of the Agreement there ha d 
been several meetings of the Joint Committee of the Agreement  that ha d for instance ensured that 
all tariff cuts ha d been fully implemented and that the institutional framework, including the dispute 
settlement rules, were fully operational . Preparatory steps were being taken  to review  the 
Agreement 's rules on diagonal cumulation that would facilitate the creation of regional value chains 
within t he SADC region. The EU -SADC EPA 's Joint Council was also considering a request received 
this year from Angola to accede to the Agreement .  
1.20.   P He conclude d by stating that the EU was grateful for the interest shown in relation to this 
Agreement and looked forward to a fruitful discussion and w ould endeavour to answer all Members' 
questions.  
1.21.   The representative of Canada thanked the Parties for their transparency and the Secretariat 
for preparing the Factual Presentation.  
1.22.   The Chairman  noted that the considerat ion of the Goods Aspect s of the Economic Partnership 
Agreement between the European Union and SADC States (Botswana, Lesotho, Mozambique, 
Namibia, South Africa and Eswatini) had allowed the Committee to clarify a number of questions 
and thus conclude d oral discussion of th e RTA in accordance with paragraph 11 of the Transparency 
Mechanism. If any delegations wish ed to ask follow -up questions they were invited to forward 
submissions in writing to the Secretariat by 25 November 2020 and Parties were asked to submit 
replies in writing by no later than 9 December 2020. In accordance with paragraph 13 of the 
Transparency Mechanism all written submissions, as well as minutes of this meeting would be 
circulated promptly, in all WTO official languages,  and made available on the WTO website.  
1.23.   The Committee took note  of the comments made.  
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