WT/REG381/2  
 
7 October 2020  
(20-6874) Page: 1/14 
Committee on Regional Trade Agreements  Original: English  
 
 
ECONOMIC PARTNERSHIP AGREEMENT BETWEEN  THE EUROPEAN UNION AND SADC 
STATES (GOODS ) 
QUESTIONS AND REPLIES  
 The following communication, dated 3 October  2020, is being circulated at the request of the 
delegations of  the European Union and SADC States (Botswana, Lesotho, Mozambique, Namibia, 
South Africa and Eswatini).  
 
 
_______________  
 
 
Questions from the delegation of Brazil  
 
Tariff rate quotas (3.1.4) and Rules of origin (3.2)  
 
1.1.  Regarding items 3.1.4 and 3.2, do the Parties intend to review the Tariff Rate Quotas 
and the Rules of Origin initially agreed? How have the Joint Council and the Trade and 
Development Committee of the Agreement addressed this issue so far?  
EU and SADC States reply  
 
 There have not been requests for reviews of the quotas and rule of origin. In general, TRQs 
and Rules of Origin, may be reviewed within the overall review of the Agreement which will be done 
in five years  from the s tart of the entry into force of the Agreement . This review may or may not 
result in proposals for modifications of the EPA. However, if and when an issue arises during 
implementation relating to any issue, they are referred to the Trade and Development Com mittee 
for resolution.  
 
Liberalization of trade and tariff lines  
 
1.2.  Regarding item 3.1.2, have the Parties agreed on provisions to transpose the 
concessions agreed upon HS 2012 to new editions of the Harmonized Systems? If they 
have, how do they plan on doing this?  
EU and SADC States reply  
 
 The EPA itself does not contain provisions on the transposition to new editions of the 
Harmonized Systems. The Parties transpose their concessions in line with their national legislation 
and in coordination with each other. For SACU the transposition of HS 2012 to HS 2017 has been 
done and trade is on the basis of HS 2017. Mozambique transition to 2017 is complete, but is yet to 
be published.  
 
Rules of origin  
 
1.3.  Regarding paragraph 3.24, has any arrangement or agreement on administrative 
cooperation been entered into by either the EU or the SADC EPA states on the one side 
and other ACP or OCT states on the other side? If the answer is affirmative, is diagonal 
cumulation currently being applied between them, or is it sched uled to start being applied 
soon?  WT/REG381/2  
 
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  EU and SADC States reply  
 
 The EU has concluded arrangements on administrative cooperation with the following ACP 
States and OCTs:  
 
• Caribbean: Antigua and Barbuda; the Commonwealth of the Bahamas; Barbados; Belize; 
the Com monwealth of Dominica; the Dominican Republic; Grenada; the Cooperative 
Republic of Guyana; Jamaica; Saint Christopher and Nevis; Saint Lucia; Saint Vincent and 
the Grenadines; the Republic of Suriname and the Republic of Trinidad and Tobago;  
Central Afric a Region: The Republic of Cameroon;  
• Eastern and Southern Africa Region: Republic of Madagascar; the Republic of Mauritius; 
the Republic of Seychelles and the Republic of Zimbabwe;  
• Pacific Region: The Independent State of Papua New Guinea and the Republic o f the Fiji 
Islands;  
• West Africa Region: The Republic of the Ivory Coast;  
• OCTs: Greenland; New Caledonia and Dependencies; French Polynesia; French Southern 
and Antarctic Territories; Wallis and Futuna Islands; Saint Barthelemy; Saint Pierre and 
Miquelon; A ruba; Bonaire; Curaçao; Saba; Sint Eustasius; Sint Marteen; Anguilla; 
Bermuda; Cayman Islands; Falkland Islands; South Georgia and South Sandwich Islands; 
Montserrat; Pitcairn; Saint Helena and its Dependencies; British Antarctic Territory; British 
Indian Ocean Territory; Turks and Caicos Islands and British Virgin Islands.  
Diagonal cumulation in the EU was applied since 1 October 2018. For more detail, see Notice 
2018/C 407/07 published in the C Series of the Official Journal of the EU on 12 November 2018.  
 
 The SADC EPA States are all signatories of the ACP Joint Undertaking on Administrative 
Cooperation together with other 8 ACP States (Republic of Guinea, Seychelles, Kenya, Madagascar, 
Mauritius, Zimbabwe, Cameroun and Papua New Guinea). Ho wever, they have not notified the 
European Commission on those arrangements and, therefore, they are not yet applying diagonal 
cumulation with those countries. Diagonal cumulation of SADC EPA States will be possible with those 
states once they fulfil the n otification requirements and indicate a date to start its application.  
 
Export duties and charges, and quantitative restrictions  
1.4.  Regarding paragraph 3.31, are there currently in force any temporary customs duties 
or taxes imposed under the exception of industrial development needs? If there are, when 
are they due to expire?  
EU and SADC States reply  
 
 Such duties are not in place.  
 
Technical barriers to trade  
1.5.  Regarding item 3.4.1.2, how will the EU assess what TBT measures might affect SADC 
EPA exports and thus trigger the early warning mechanism (para 3.43)? In what stage of 
the development of a new EU TBT measure will the early warning mechanism take place 
(e.g. prior to any notification to the TBT Committee)?  
EU and SADC States reply  
 
 The early warning mechanism is not yet in place. TBT issues can be discussed in the respective 
trade committees.  
 
 
 WT/REG381/2  
 
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  Sector -specific provisions of the Agreement  
1.6.  Regarding item 3.5, have the EU or SADC States already extended to one another 
most favourable treatment resulting from free trade agreements with third Parties in 
accordance with Article 28 of the EPA agreement?  
EU and SADC States reply  
 
 This has not hap pened yet.  
 
Global safeguards  
 
1.7.  Regarding item 3.4.2.1, will an eventual exclusion of SADC countries from the 
application of global safeguards by the EU be preceded by the exclusion of those countries 
from the injury analysis?  
EU and SADC States reply  
 
 Yes. In application of the relevant WTO rules and  jurisprudence, countries not under the scope 
of safeguard measures should indeed also be excluded from the injury analysis, based on the 
principle of parallelism.  
 
Bilateral saf eguards  
 
1.8.  Regarding item 3.4.2.2, what objective criteria will be used to demonstrate that a 
given surge in imports results from a Party's obligation under the FTA (para 3.50)?  
EU and SADC States reply  
 
This would depend on the specific circumstances of the  case, but in principle, a coincidence in 
time between the increase of imports and the entry into force of the preferences should give a good 
indication of a 'causal ' link.  
 
1.9.  Regarding item 3.4.2.2, what objective criteria and analysis methods will be used to 
demonstrate the existence or threat of "disturbances in the sector of the economy 
producing like or directly competitive products, particularly where these disturbances 
product major social problems, or difficulties which could result in serious de terioration 
in the economic situation of the importing Party or SACU" and "disturbances in the 
markets of like or directly competitive agricultural products in the territory of the 
importing Party or SACU" (para graph  3.50)?  
EU and SADC States reply  
 
 The o bjective criteria used to demonstrate serious injury, disturbances in a sector of the 
economy and disturbances in the market of agricultural products as well as the factors to be taken 
into account for these determinations are laid down in specific EU Regu lations applying the 
arrangements laid down in the relevant Partnership Agreements. In the case of SACU, the relevant 
regulation is Regulation (EU) 2016/1076 of 8 June 2016.  
 
 A competent authority in SACU will investigate surges of imports and its effects  on the 
domestic industry. In determining disturbance or serious injury, consideration is given to, inter alia,  
the following factors:   
 
a. The rate and volume of the increase in imports of the product concerned from the EU:  
i. In absolute terms; or  
ii. relative to the production and demand in SACU; and  
 
b. Whether SACU industry is experiencing:  
i. price suppression  WT/REG381/2  
 
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  ii. price depression  
iii. price undercutting/price disadvantage with regard to EU as well as other imports  
iv. a decline in imports  
v. a change in market share  
vi. any other relevant factors placed before the authority . 
 
 None of these factors listed above is necessarily decisive on its own.  
 
 The information requested must relate only to the affected SACU product that is like or directly 
competitive product to the prod uct under investigation.   
 
 Mozambique does not yet have any domestic legislation and regulations on the application of 
trade defence instruments, and as a WTO member, any application thereof will be in conformity with 
the respective WTO Agreements.  
 
1.10.   Is it possible that, in the future, consumer defense themes will be incorporated into 
the FTA?  
EU and SADC States reply  
 
 The objective of safeguards is to protect domestic industries from the negative effects of 
unforeseen surges of imports, therefore not rela ted to consumers ' protection. From a general point 
of view, parties to an Agreement are however free to explore or agree on other specific tools 
addressing specific circumstances.   
 
Questions from the delegation of Canada  
 
1.11.   How will the provisions of this Agreement relate to provisions currently under 
negotiation in the African Continental Free Trade Area (AfCFTA)?  
SADC States reply  
 
 At a broad level, the AfCFTA and the EU -SADC EPA share similar objectives such as improving 
competitiveness and increas ing industrial capacity of African economies, promoting African regional 
and sub -regional economic integration, promot ing investments in African economies, eradication of 
poverty, and promotion of economic development in general, etc.  
 
 In this respect, th e provisions currently under negotiation in the AfCFTA seek to position Africa 
as a major and sophisticated manufacturing hub, drawing on the diverse economic and resource 
endowments across the Continent. They intend to foster a conducive environment for i ncreased 
productive investments that will spur the Continent towards becoming globally integrated and 
competitive.  
 
Trade in services and investment  
 
1.12.   Paragraph 3.85 of the factual presentation states: "The Parties agree to cooperate 
in investment in accord ance with their cooperation priorities, and may in future consider 
negotiating an agreement on investment in economic sectors other than services"  
a. Does this suggest a clear delimitation between services and investment whereby 
an investment agreement would neither cover Mode 3 services (as per GATS 
definition) nor capital investments into enterprises providing services?  
b. Would Mode 3 services (as per GATS definition) be covered by the type of 
negotiation referenced in paragraph 3.81 (regarding the extension o f the scope 
of the agreement to cover services) instead?  
EU and SADC States repl y 
 
 The question of the exact scope of any future agreement on investment or the deepening of 
the existing agreement by adding new provisions will be decided jointly by the Parties. It is WT/REG381/2  
 
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  premature at this stage to predict the outcome of such a discussion. How ever, the principles guiding 
the negotiations will have to be in conformity with the requirements of Article V of the General 
Agreement on Trade in Services (GATS).  
 
Questions from the delegation of China  
 
Import duties and charges, and quantitative restri ctions  
 
General provisions  
 
1.13.   Paragraphs 3.5 and 3.6 of the report refer to an MFN clause under Article 28, which 
indicate s that when any Part y to this Agreement enter s into a more favourable trade 
arrangement  with a Third Party , the rights and obligations o f the  Parties under this 
Agreement may change. Has the change of rights and obligations under such circumstance 
even happened? If so, how such changes are implemented?  
EU and SADC States reply  
 
 There has not been any changes to the rights and obligations of the Parties to this Agreement.  
 
Tariff rate quotas  
 
1.14.   Paragraphs 3.17 to 3.20 of the report refer to the tariff rate quotas maintained by 
the EU under the Agreement, whether or not does Brexit affect the allocation of the TRQ?  
EU and SADC States reply  
 
 Brexit does not affect the TRQs.  
 
1.15.   Could the Parties provide more information on h ow this Agreement interact s or 
coordinates  with the African Continental Free Trade Area ("AfCFTA" ) after the latte r 
enter s into force? Will the implementation of the AfCFTA affect or modify the provisions 
of this EPA?  
EU and SADC States reply  
 
 At a broad level, the AfCFTA and the EU -SADC EPA share similar objectives such as improving 
competitiveness and increasing in dustrial capacity of African economies, promoting African regional 
and sub -regional economic integration, promot ing investments in African economies, eradication of 
poverty, and promotion of economic development in general, etc.  
 
 The implementation of the AfCFTA will not affect or modify the provisions of the EPA.  
 
Questions from the delegation of Mexico  
 
Competition  
 
1.16.   Paragraph 4.33: To what extent has the signing of the Economic Partnership 
Agreement required the SADC to update i ts Declaration on Cooperation in Competition 
and Consumer Policies?  
 Has the signing of the Agreement encouraged SADC member States that do not have 
national competition laws to seek to enact legislation in this area?  
 
SADC States reply  
 
 The 2009 SADC Declaration on Cooperation in Competition and Consumer Policies has not 
been updated.  
 
 Enactment of national competition laws has always been a priority for SADC Member States, 
hence the signing of the EPA has not had any bearing on enactment of national competition laws.   WT/REG381/2  
 
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  Cooperation  
 
1.17.   Paragraph 4.35 : Which are the main barriers to entry in the SADC States for the 
provision of infrastructure aimed at developing a competitive business environment in the 
area of information and communication technology?  
SADC EPA States reply 
 
 The discussions on this area of cooperation  have not started yet . 
 
Questions from the delegation of Switzerland  
 
Tariff rate quotas  
 
1.18.   Paragraph 3.19 : TRQs SACU grants to the EU : 
a. What is the status of the establishment of a TRQ management system at SACU 
level?  
SADC States reply  
 
 SACU is currently using an interim arrangement pending the finalisation of the SACU TRQ 
Permanent Management System. The System has yet to be finalised.  
 
b. How (what quantities) are  the TRQs apportioned amongst SACU States based on 
historical trade?  
SADC States reply  
 
2020 TRQ allocations for SACU  
 
Products  Annual 
Quota 
(Ton nes) Botswana  Eswatini  Lesotho  Namibia  South Africa  
Tonnes % Tonnes % Tonnes  % Tonnes % Tonnes % 
Pork 1500 60 4% 25 2% 25 2% 140 9% 1,25 83% 
Pig fat  200 18 9% 15 8% 3 2% 24 12% 140 70% 
Butter  500 43 9% 17 3% 10 2% 80 16% 350 70% 
Cheese  8000*  720 9% 400 5% 240 3% 1040 13% 5600 70% 
Wheat  30000  13300  4% 1025 0% 10 3% 24180  8% 251495  84% 
Barley  10000  10 0% 5 0% 15 0% 1000 10% 8970 90% 
Cereal  
Based Food 
Preparations  2300 296 13% 265 12% 43 2% 86 4% 1610 70% 
Ice Cream  150 17 11% 6 4% 4 3% 18 12% 105 70% 
Mortadella  
Bologna  100 2 2% 3 3% 2 2% 23 23% 70 70% 
* cheese quota increases annually by 150 tons. 
 
c. On 1 September each year, any unused TRQ allocation is made available to each 
SACU member according to a predefined share. How does this mechanism work? 
And what are the predefined shares?  
SADC States reply  
 
 On 1 September each year, an assessment of the TRQ utilisation for the year is made. Any 
unused quotas that had been allocated to Member States is then reallocated. South Africa is 
reallocated 80% of the unused quotas for Pig fat, Butter, Cheese, Cereal Ba sed Food Preparations, 
Ice Cream and Mortadella Bologna and 83% for Wheat and Pork and 90% for Barley. The balance WT/REG381/2  
 
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  of the quotas is then equally reallocated to Botswana, Eswatini, Lesotho and Namibia. However, 
there is room for deviation from the proportio ns on the basis of demand.  
 
1.19.   Table A2.2 Tariff rate quotas provided by SACU to the EU: Under the TRQ for cheese 
it is indicated that the quantity increases annually by 150MT, until what quantity?  
EU and -SADC States repl y 
 
 The Agreement does not indicate a cap or end date. However, the Agreement provides for a 
holistic review (Article 116 of the Agreement).  
 
1.20.   Table A2.2 Tariff rate quotas provided by SACU to the EU: How is the TRQ quantity 
for wheat and meslin divided amongst the SACU States, ackno wledging that the products 
imported under this TRQ and destined for final consumption in South Africa shall only be 
allowed to enter from 1 February to 31 October and products imported under this TRQ and 
destined for final consumption in Namibia shall only  be allowed to enter from 1 March to 
30 November?  
EU and SADC States Reply  
 
 The allocations are not affected by the period but on the basis of agreed proportions as 
indicated above.  
 
Sanitary and phytosanitary measures  / Technical barriers to trade  
 
1.21.   Paragraph 3.37 SPS: The factual presentation states that amongst the Agreement 's 
objectives on SPS provisions one is to cooperate to strengthen regional integration and in 
regard to cooperation between SADC EPA States on matters concerning SPS measures on 
agreed priority products and sectors listed in Annex VI, whilst giving due consideration 
to regional integration.  
 Are the SADC States or some of them already harmonized with regard to SPS 
measures? In which countries is this the case? If not, does this c ooperation foresee 
ultimately the harmonization of the legislations between the SADC States, and in which 
timeframe?  
 
SADC  States  Reply   
 
SADC -EPA emphasizes  cooperation  with regard  to national  and regional activities. 
Furthermore, the Agreement provides f or development cooperation  to support  compliance  with 
SPS regulations,  as in other  areas,  is based on needs -driven capacity building. Currently, SPS 
in the SADC States are not harmonized, implementation is based on international standards, 
guidelines and recommendations developed by relevant international organizations. SADC 
emphasizes  its commitment  to a regional  approach  to dealing  with SPS issues  through Annex  VIII 
to the Protocol  on Trade  concerning  SPS Measures.  While  harmonization remains  a possibility,  
there  is no timeframe  set for the harmonization  of the legislations between  the SADC  States.  
 
1.22.   Paragraphs 3.39 SPS and 3.43 TBT: Under the Agreement the Parties agree to 
establish an early warning system to ensure that SADC EPA States  are informed in 
advance of new EU SPS and TBT measures that may affect SADC EPA exports to the EU.  
 Could you further elaborate how this mechanism of early warning will function?  
 
EU and SADC States reply  
 
The early warning system is still being developed.  
 
1.23.   Paragraph 3.46 TBT: The Agreement foresees the cooperation between the Parties 
to the Agreement in several priority areas, in particular the development and adoption by 
the SADC EPA States of harmonized technical regulations, standards, metrology, 
accreditation and conformity  assessments procedures based on international standards.  WT/REG381/2  
 
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   In which sectors or areas are the SADC countries already harmonized in this regard?  
 
SADC States reply  
 
 With harmoni zation understood in this context to refer to adoption/adaption of internation al 
standards developed by the appropriate and recognised international bodies, SADC countries have 
harmonised standards on a wide range of products and in all the listed areas. This cooperation is 
further given practical effect within the SADC Protocol on Trade, with various work programmes 
ongoing within these auspices.  
 
Sustainable Development  
 
1.24.   Paragraph 4.30 Sustainable development: The provisions of the chapter are not 
subject to the dispute settlement provisions of the Agreement except Article 7 in wh ich 
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 general 
commitment of the Cotonou Agreement to reducing and eventually eradicating pov erty in 
a manner consistent with sustainable development. In meeting this objective they commit 
to the Agreement fully taking into account the human, cultural, economic, social, health 
and environmental best interests of their respective populations and fu ture generations 
and that decision making methods embrace the fundamental principles of ownership, 
participation and dialogue.  
 How could an application of the dispute settlement provisions on Article 7 be 
envisaged concretely?  
 
EU and SADC States reply 
 
 In accordance with Article 6(3), Part III (Dispute avoidance and settlement) shall apply to 
disputes concerning the application or interpretation of Article 7 (Sustainable development).  
 
 Therefore, in the event of a dispute arising between the Par ties and concerning the application 
or interpretation of Article 7 (Sustainable development), the Parties may proceed with those disputes 
in line with the procedures set out in Part III. Thus, as a first step, the parties shall endeavour to 
resolve the dis pute by entering into consultations in good faith with the aim of reaching an amicable 
solution (Article 77 Consultations) and if the consultations fail to produce a mutually agreed solution, 
to seek recourse to a mediator (Article 78 Mediation), and as a subsequent step, if the parties fail 
to resolve the dispute by recourse to consultations or mediation, the complaining party may request 
the establishment of an arbitration panel (Article 79 Initiation of the arbitration procedure). The 
arbitral ruling is binding on the parties (Article 83 Compliance with the arbitral ruling).  
 
 The concrete application of the dispute settlement provisions on Article 7 do not require a 
particular or specific approach.  
 
Accession and Withdrawal  
 
1.25.   Title 4.4 Accession and Withd rawal: the text only mentions the accession of a third 
State or organization to the Agreement and the accession of third Parties to the EU.  
 How is the withdrawal of a Member State from the EU or of a Member State from 
SADC reflected in the agreement? Would it lead to re -negotiation of concessions? Further, 
seeing the possibility of accession of third states to the Agreement, is it also possible for 
SADC States to withdraw individually from the Agreement?  
 
EU and SADC States reply  
 
 The Agreement does not contain specific provisions setting out procedures for or consequences 
of the withdrawal by an individual EU Member State or by an individual SADC EPA State. Neither 
does the agreement preclude such withdrawals.  
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   With regard to the EU Member  States, they are parties to the EU -SADC EPA in their capacity 
as EU Member States. If an individual Member State withdraws from the EU, the EU -SADC EPA will 
no longer apply to the withdrawing Member State.  
 
Questions from the delegation of Thailand  
 
Rules of origin  
 
1.26.   What kind of certification system under the Agreement used in order to prove the 
origin of goods and gain the preferential treatment? (i.e. E -form self -certification or self -
declaration)  
EU and SADC States reply  
 
 Products origi nating in either Party can claim preferential tariff treatment when imported into 
the other Party upon presentation of:  
 
a. A movement certificate EUR.1; or  
b. An 'origin declaration ' (self-certification) made out by i) an approved exporters within the 
meaning o f Article 25 of Protocol 1 on rules of origin to the EU -SADC or by ii) any exporter 
for any consignment of one or more packages containing originating products whose total 
value does not exceed EUR 6.000  
c. Originating products i) sent as small packages from private persons to private persons up 
to a total value of EUR 500; or ii) forming part of travellers ' personal luggage up to a total 
value of EUR 1.200, benefit from the preferential tariff treatment without being necessary 
to submit any proof of origin, p rovided such products are not imported by way of trade 
and have been declared as meeting the requirements of Protocol 1 on rules of origin.  
1.27.   As stated that "non -originating materials which are imported by the EU at MFN duty 
free rates shall be considered or iginating in SADC EPA States when incorporated into a 
product there and do not require sufficient working or processing" and "At the request of 
a SADC EPA state, cumulation may also be provided to materials originating in countries 
and territories that ben efit from the EU's duty free and quota free treatment 
arrangement", how to verify the Rules of Origins status in order to prevent the 
circumvention from other countries and which countries are covered by the said 
treatments?  
EU and SADC States reply  
 
 In both cases, certification of compliance of rules of origins is made through the issuance and 
submission of a valid movement certificate EUR.1.  
  
 Verification of the implementation of the rules of origin is ensured through Article 20 of 
Protocol 1 which defines the procedure for the issue of a movement certificate EUR.1 ( ex-ante 
verification of EUR.1) and through administrative cooperation defined in Title V of the Protocol 1 
covering the ex-post verification of movement certificates EUR.1 and origi n declarations, in 
particular, Articles 28 and 39. In addition, when applying the cumulation provided for in Protocol 1, 
exporters must fulfil the provisions of Article 30 on the information procedure for cumulation 
purposes. This Article sets the document ary evidence exporters shall provide to pro ve originating 
status of the materials object of cumulation.  
 
 Materials subject to MFN duty does not require a specific originating status, as MFN duties 
apply to all materials of the concerned HS code irrespecti ve of the origin.  
 
 With regards to the materials that originate in countries and territories that benefit from the 
EU's duty free and quota free treatment, the countries concerned are those that benefit from a Free 
Trade Agreement with the EU. However, to  activate this option, SADC EPA States should specifically 
request cumulation with a given EU 's FTA partner and the EU shall accept the request in accordance 
with its internal procedures. So far, none of the SADC EPA States has submitted any request, 
there fore, this option is currently not available for SADC EPA States.  WT/REG381/2  
 
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  Agricultural safeguards  
 
1.28.   The Goods Agreement allows member States to apply agricultural safeguards for 
agricultural products listed in Annex IV of the Agreement. Could members provide furthe r 
details on products that implemented agricultural safeguards and the duration of 
implementation?  
EU and SADC States reply  
 
 No agricultural safeguard has been applied so far.  
 
Trade in services and investment  
 
1.29.   Regarding paragraph 3.81: with respect to service liberalization, could you please 
clarify what are targeted services sectors of each side?  
EU and SADC States reply  
 
 At this stage we do not wish to comment as the question concerns ongoing negotiations.  
 
1.30.   Regarding paragraph 3.81: as it  mentions that Article 41 (General Provisions) under 
Chapter  4 Trade in Services of the Cotonou Agreement also included Special and 
Differential Treatment given to the Group of African, Caribbean and Pacific States (ACP) 
suppliers of services, in what aspe cts would the principle of Special and Differential 
Treatment be applied?  
EU and SADC States reply  
 
 At this stage, we do not wish to comment as the question concerns ongoing negotiations.  
 
1.31.   Regarding paragraphs 3.84 and 3.85: "the outcome of services nego tiations that 
would be incompatible with the future development of SADC regional services and 
investment framework", what are possible incompatible elements that SADC may 
foresee?  
EU and SADC States repl y 
 
 At this stage, we do not wish to comment as the question concerns ongoing negotiations . 
 
Questions from the delegation of the United States  
 
Characteristics of the agreement  
 
Background information  
 
1.32.   According to Paragraph 2.3 of the factual presentation, the Agreement shall apply 
to the respective territories of the EU and SADC EPA States. Can you provide information 
on the SADC EPA States' negotiations of an FTA with the United Kingdom (since its 
departure from the EU earlier this year)? Will the SADC EPA States seek to rebalance 
concessions in the  EU-SADC EPA given that the UK represented a significant market within 
the EU at the time it was negotiated?  
EU and SADC States reply  
 
 SACU, Mozambique and UK signed an Economic Partnership Agreement in October 2019 which 
was on the basis of rolling over and ensuring continuation of the EU -SADC EPA market access. The 
tariff concessions vis-à-vis EU and SADC EPA States were not adjusted.  
 
1.33.   Paragraph 2.4 of the factual presentation notes that one of the stated objectives of 
the agreement is to promote regional integration, yet the EPA only includes six of the 
fifteen members of the Southern Africa Development Community, a group that aspires t o WT/REG381/2  
 
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  create a customs union.  How does the EPA promote the regional integration aspirations 
of the 15 country SADC group?  
EU and SADC States reply  
 
 The Agreement provides for the possibility for the SADC EPA States to apply diagonal 
cumulation with the other members of the SADC for exports to the EU.  
 
Liberalization of trade and tariff lines  
 
1.34.   Paragraph 3.9 of the factual presentation states that the level of liberalization for 
the SADC EPA States other than South Africa "was, in 2019, equivalent to that provi ded 
under the EU's Everything But Arms programme which is available for least developed 
country beneficiaries. "Given that fact, for the LDC countries among the SADC EPA States, 
what advantages were there in joining the EPA?  
EU and SADC States reply  
 
 The EBA was a unilateral offer, extended to LDCs and was not a subject of negotiation. And 
as a unilateral offer, it could be withdrawn anytime. As a partnership Agreement all Parties to the 
EU-SADC EPA have a say in how the Agreement (was negotiated) and is implemented. Furthermore, 
LDC benefitting from the EBA stand to lose their concessions should they graduate out of the LDC 
Status, thus the EU -SADC EPA provides a more sustainable and predicable market access for them . 
 
Rules of origin  
 
1.35.   Paragraph 3.24 of the factual presentation indicates that cumulation of origin 
among SADC EPA States may only be applied if, among other things, those states have 
entered into an arrangement which ensures compliance with prescribed origin 
procedures, such as the use of appr opriate proofs of origin. Have the SACU Secretariat 
and the Ministry of Industry and Trade of Mozambique provided the European Commission 
with the details of such arrangements or agreements? If so, are there specific examples 
of exports from the SADC EPA S tates that are the product of such cumulation?  
EU and SADC States reply  
 
 No, SADC EPA States have not yet provided with details of such arrangements.  However, there 
is a Joint Undertaking but the specifics on how to use it have not been finalised.  
 
1.36.   Paragr aph 3.25 of the factual presentation states, "Non -originating materials which 
are imported by the EU at MFN duty free rates, shall be considered originating in SADC 
EPA States when incorporated into a product there and do not require sufficient working 
or processing under Article  9(1)." Do you have any information about the types of goods 
typically covered by this provision? Have any trends emerged since the implementation 
of the EPA?  
EU and SADC States reply  
 
 The materials in question are a representation  of products across the tariff book and the 
materials that can be imported duty free into the EU can be accessed on the TARIC data base 
(https://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp?Lang=en).  
 
 We have not observed any specific e merging trends.   
 
1.37.   Protocol 1, "Concerning the definition of the concept of 'originating products' and 
methods of administrative cooperation": The EPA contains interesting opportunities for 
cumulation with non -EPA Parties. For example, Article 4.2 allows fo r cumulation with 
other ACP EPA states. Can you provide more information about the extent to which these 
third -party cumulation provisions have been utilized? Do you have any statistics on the 
volume of such trade, specific ACP states involved, or goods pr oduced?  
 WT/REG381/2  
 
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  EU and SADC States reply  
 
 Currently, only EU exporters can apply cumulation with other ACP EPA States to export to 
SADC EPA States. However, we do not have any information nor statistics on the use of this 
possibility by EU exporters.  
 
 SADC EPA  States cannot apply this diagonal cumulation, since they have not yet fulfilled all 
the requirements to activate this possibility.  
 
1.38.   Article 38 of the Agreement covers "Verification of Proofs of Origin." How many 
verifications have been performed since ent ry into force? Can you provide statistics 
related to the reason for the verification and the findings reached? Have there been any 
instances where the importing country disagreed with the findings of the customs 
authority of the exporting country?  
EU and S ADC States reply  
 
Verifications Requests by the SADC EPA states  
Country  Number  of 
Requests  Reasons  Resolution  Disagreemen
ts 
Botswana  0 - - - 
Eswatini  0 - - - 
Lesotho  0 - - - 
Mozambique  0 - - - 
Namibia  0 - -  
South Africa  46 Authenticity of proof of origin & 
confirmation of origin criteria  All originating  None.  
 
Verifications Requests by EU  
Country  Number of 
Requests  Reasons  Resolution  Disagreements  
Botswana  0 -  - - 
Eswatini  9  All originating  None 
Lesotho  2 First time exporter & 
Confirmation of stamps  All originating  - 
Mozambique  0 - - - 
Namibia  50 Incomplete application forms & 
wrong stamps  All originating  None 
South Africa  224 Authenticity of proof of origin & 
confirmation of origin criteria  All originating  None.  
 
Technical barriers to trade  
 
1.39.   Paragraph 3.43 of the factual presentation: Please explain why Article 55 only 
reaffirms the WTO TBT Agreement transparency obligations for technical regulations and 
standards and not for conformity assessment procedures.  
EU and SADC States reply  
 
 In Article 51 the Parties affirm their commitment to the rights and obligations provided for in 
the WTO TBT Agreement. This includes also transparency obligations for conformity assessment 
proced ures.  
 
Import duties and charges, and quantitative restrictions  
General provisions  
1.40.   Paragraph 3.6 of the factual presentation states that: "If the SADC EPA States 
individually or collectively become party to a preferential trade agreement with any major 
trading economy after the signature of the Agreement, which grants the major trading 
economy a more favourable treatment than that the SADC EPA States extend to the EU, 
and upon request by the EU, the SADC EPA States will extend the same more favourable 
treatment to the EU. In a corresponding footnote, a major trading economy is described 
in the Article 28 as "any developed country or any country accounting for a share of world WT/REG381/2  
 
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  merchandise exports above 1% in the year before the entry into force of the agreem ent 
[with a third party] or any group of countries acting individually, collectively or through 
an economic integration agreement accounting collectively for a share of world 
merchandise exports above 1.5% in the year before the entry into force of the agr eement 
[with the third party].  
a. Please provide a complete list of "any developed country or any country 
accounting for a share of world merchandise exports above 1% in the year before 
the entry into force of the agreement [with a third party]," hypothetically 
assuming that the year befor e entry into force was 2019.  
EU and SADC States reply  
 
 The data for 201 9 should be available from official WTO and other official international sources 
(e.g. World Bank, IMF, OECD, etc).  
 
b. Please clarify if this MFN clause covers all tariff lines.  
EU an d SADC States reply  
 
 The MFN clause does not exclude any tariff line.  
 
1.41.   While the factual presentation makes no explicit reference to the AfCFTA, that 
agreement has the following requirement: "A State Party shall afford to other State 
Parties to negotiate  preferences granted to Third Parties prior to entry into force of this 
agreement and such preferences shall be on a reciprocal basis."  How has that requirement 
been taken into account by the SADC EPA States?  
SADC States Repl y 
 
This situation/scenario has not arisen yet, owing to tariff negotiations under the AfCFTA having 
not commenced. Such requests shall, if they happen, be handled on a case -by-case basis taking into 
account all relevant factors linked to the nature of the request.  
 
1.42.   Article 3.40 of the Agreement states that the Parties of the SADC EPA intend to 
"cooperate to facilitate regional harmonization of measures". How do the Parties plan to 
maintain measures that also facilitate trade with partners outside of the SADC EPA?  
SADC States reply  
 
 The EPA is intended to promote both intra - and extra - regional trade including through 
increasing opportunities for participation in global value chains (GVCs ). GVCs offer new ways for 
developing countries to engage in the global economy  and SADC 's industrialization strategy aims to 
move SADC countries up the value chain so that they add value, create jobs and reap more profits 
rather than just export unprocessed commodities.  
 
 The EPA directly supports the participation of SADC countrie s in GVCs, including through 
flexible rules of origin and "cumulation of origin ", which enable SADC countries to benefit from duty 
free export of products to the EU even when some components have been sourced from other SADC, 
ACP or EU states.  
 
1.43.   Article 3. 80 of the Agreement states that the Parties intend to establish an 
agricultural partnership to facilitate an exchange of views on agriculture, including food 
security, development, regional value chains and integration.  Could the Parties provide 
additional  details regarding this partnership?  
EU and SADC States reply  
 
 Article 68 of the Agreement calls on Parties to cooperate on agriculture through the 
Agricultural Partnership Committee established in the Article. Parties cooperate by way of exchange 
of views on agriculture, inter alia, food security, development, regional value chains and integration WT/REG381/2  
 
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  and sharing information on each other 's agricultural policies and initiatives.  The Committee was 
launched in February 2018 and has had its 2nd meeting recently in February 2020.  
 
Trade in services and investment  
 
1.44.   According to paragraph 3.81 of the factual presentation, negotiations on trade in 
services "hav e already been started by Botswana, Lesotho, Mozambique and Eswatini 
(participating SADC EPA States) on the one hand and the EU on the other, and will 
continue." What have been the main impediments to reaching an agreement at the time 
that the rest of the Agreement was concluded? What is the relationship between those 
negotiations and the services negotiations being conducted under the African Continental 
Free Trade Area (AfCFTA)?  
EU and SADC States reply  
 
 At the time of the SADC negotiations, the Parties agreed to focus the scope of the Agreement 
on Trade in Goods, reflecting the economic reality between the Parties. As discussions on the two 
Agreements are ongoing, we do not consider it appropriate to comment on the substance of those 
discussions . 
 
Relati onship with other agreements concluded by the Parties  
 
1.45.   Table 4.1: For the EU, please provide a complete list accounting for each of the 
interim goods agreements in force in Africa since the expiration of the Cotonou waiver.   
Response fr om the delegation of the European Union  
 
 The website of the EU contains a regularly updated  overview of the Economic 
Partnership  Agreements that the EU has signed with African countries: 
https://trade.ec.europa.eu/doclib/docs/2009/september/tradoc_144912.pdf  
 
1.46.   Table A1.2b: This table shows that Mozambique has only agreed to eliminate 42% 
of non -agricultura l duties and 18% of agricultural duties under the agreement. Please 
explain why Mozambique was permitted to undertake such low levels of tariff elimination 
under the agreement. Please explain how Mozambique's low level of tariff elimination 
satisfies the A rticle XXIV requirement to eliminate duties "substantially all the trade."  
EU and SADC States reply  
 
 The EU -SADC EPA contains separate schedules of concessions to the EU from SACU and 
Mozambique since the former is a customs union. Each schedule of commit ment is negotiated 
separately and reflects the fact that the EPA is a development -oriented agreement that is asymmetric 
in nature.  
  
 The schedule of commitments from Mozambique to the EU foresees that 86.1 % of tariff lines 
will be duty free, in compariso n to 55% of the tariff lines that have a duty -free MFN  tariff. The EU 
provides full duty -free quota -free treatment to Mozambique. The arithmetic average percentage of 
liberali zed tariff lines is therefore 93.1%.  
 
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