WT/REG307/2/Rev.1  
20 December  2017 
(17-7128) Page: 1/4 
Committee on Regional Trade Agreements  Original:  English/French  
 
  
INTERIM ECONOMIC PARTNERSHIP AGREEMENT BETWEEN THE EUROPEAN UNION AND 
THE ESA  STATES (MADAGASCAR, MAURITIUS, SEYCHELLES AND ZIMBABWE) (GOODS)  
QUESTIONS AND REPLIES  
Revision  
 The following communication, dated 3 and 10 November  2017, is being circulated at the 
request of the delegations of the European Union and the ESA States (Madagascar, Mauritius, 
Seychelles and Zimbabwe).  
 
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Question from the delegation of C anada  
 
1.1.  Paragraph 2.1 indicates that Article 3 of Chapter 1 of the EU -ESA Economic 
Partnership Agreement aims "to establish an agreement consistent with GATT 
Article  XXIV and to establish the framework, scope and principles for further 
negotiations on the b asis of proposals already submitted and for potential negotiations 
on other issues as identified in the Cotonou Agreement and of interest to the Parties" . 
Considering that the Africa, the Caribbean and the Pacific, ACP -EU cooperation 
(the Cotonou Agreement ) has been revised to incorporate new challenges such as 
climate change (see Article 32A in the Ouagadougou Cotonou Agreement revised on 
22 June  2010):  
 Building on the Cotonou  Agreement, should Parties engage in further negotiations, 
would they consider including additional provisions on environment and climate change?  
 
Response from the Parties  
 
 The EU -ESA Agreement includes, in its Chapter 5 - Art. 53, a rendez -vous clause on  issues 
for future negotiations, including Agriculture, Development, Sanitary and Phyto -sanitary issues, 
Technical Barriers to Trade and Sustainable development . The parties could consider additional 
provisions on environment and climate change, based in p articular on their multilateral 
commitments such as the Paris agreement and on the EPA's principle to build on the "acquis of the 
Cotonou agreement" when Parties will engage in further negotiations with a view to reaching a 
comprehensive EPA (art 4.a).  
 
Response from the delegation of Madagascar  
 
 Madagascar is currently in the implementation phase  of the ESA-EU interim Economic 
Partnership Agreement ( EPA). Madagascar is one of the five ESA members  that have signed and 
are implementing  this Agreement . A transition phase is under  way until 2020, when the current 
Cotonou Agreement will come to an end and the comprehens ive EPA will be implemented.  
 
The interim EPA primarily concerns  trade , giving rise to reciprocal but asymmetrical 
exchanges . However, in order to benefit from the support and countervailing measures linked  to 
the implementation of the Agreement, the signatories, including Madagascar, must show good 
faith and goodwill by respecting certain  values and principles on which the  jointly agreed 
provisions  are based . WT/REG307/2/Rev.1  
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These values include  respecting the  rule of law and funda mental rights, consolidating  peace 
and political stability , and combat ing climate change . These aspect s of the Agreement require  just 
as much negotiation and discussion as the trade -related provisions . 
 
The European Unio n is currently working , in agreement  with the ACP countries , for a 
renegotiation of  the Cotonou Agreement in order to  bring it closer into line  with reality , and make 
it more binding  in certain respects , while retaining  some of its flexibility . The commitments of the 
parties to the Agreement, particularly those that relate to the environment , could therefore be 
redefined and clarified so as to optimize their  positive  impact.  
 
Additional r esponse from the delegat ion of Madagascar  
 
 Yes, especially in terms of  awareness -raising . Given the precarious state of the Ma lagasy  
environment and the negative impact of climate change on the economy in general, provision 
should be made for binding safeguard measures . 
 
Questions from the delegation of the United States  
 
1.2.  Paragraph 2.1 of the Factual Presentation states that the Agreement was signed by 
the Parties on 2 9 August  2009 and provisionally applied since 1 4 May 2012. Was any 
preferential tariff treatment provided – either by the EU to the ESA states or the ESA 
states to the EU – between the date of signature in 2009 and the date of provisional 
application in 2012 ? Please provide the date or dates that the European Union began to 
provide preferential tariff treatmen t to each of the ESA states under the interim 
Agreement, including those ESA states that have not yet signed the interim agreement . 
For each ESA state providing preferential tariff treatment to the EU, please provide the 
date or dates in which that prefere ntial tariff treatment began.  
Response from the Parties  
 
The ESA -EU interim EPA was concluded and initialled by six ESA countries, namely Comoros, 
Madagascar, Mauritius, Seychelles and Zimbabwe, by December  2007, and Zambia did so in 
September  2008. Pendin g signature and ratification of the agreement, the EPA provided in its 
Article 62(6) for a transitional arrangement1, advancing the EPA market access to these countries . 
In 2009, four of them, Madagascar, Mauritius, Seychelles and Zimbabwe, signed the agre ement 
and the agreement is provisionally applied since May 2012. Comoros and Zambia as LDCs benefit 
from duty free quota free system of the Everything But Arms (EBA) regime under the Generalised 
Scheme of Preferences . All the other ESA members that had not  taken the steps towards signing 
and ratifying an EPA are also LDCs, and therefore benefit from the EBA preferential regime . The 
dates in which each ESA state begun granting preferential tariff treatment to the EU is indicated in 
section 3.1.2 of the Factu al Presentation.  
 
Response from the delegation of Madagascar  
 
 Madagascar signed the interim EPA in December  2007. As of that date, and in accordance 
with the Agreement's principle of asymmetry , Madagascar has benefited from the preferential 
treatment laid down in the Agreement  for its exports to the European Union.  
 
Imports originating in the EU began to benefit from the terms of the Agreement in 2014.  
 
Additional response from the delegation of Madagascar  
 
 Madagascar initialled  the interim EPA with a 15-year schedule  of tariff liberalization  on 
11 December  2007. The accession was confirmed by the official signing of  the interim EPA on 
29 August  2009 in Mauritius . On 23 June 2011, the Malagasy authorities notified the EU Council 
and the COMESA Secretariat of the provisional application  of the Agreement . On 
8 November  2011, the Government confirmed its agreement  to submit a joint notification to the 
WTO with the EU . On 14 May 2012, the interim EPA entered into provisional application pursuant 
to Article 62 of the interim EPA.  
                                                
1 Council Regulation (EC) No 1528/2007 of 20  December  2007.  WT/REG307/2/Rev.1  
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1.3.  Paragraph 2.1 states that one of the goals of the Agreement is to support African 
regional integration, yet the African parties to this Interim EPA represe nt a subset of 
regional economic communities that aspire to have harmonized and even unified trade 
regimes . Could the parties explain how they believe this agreement accomplishes the 
stated goal of supporting African regional integration?  
Response from the  Parties  
 
 The ESA -EU interim EPA was initially negotiated by all the ESA members and aims at 
supporting the regional integration of this region . It aims at facilitating meeting the Rules of Origin 
requirement through provisions on cumulation with the broa der ACP constituency and with the 
regions within the ACP such as COMESA, SADC, etc. I t also aims at facilitating trade, including 
improvements of customs procedures, removal of non-tariff barriers and harmoniz ing standards, 
thus improving the business climate attracting foreign investments, and contributing to growth and 
jobs. This will eventually strengthen and corroborate the regional integration process even if not 
all members are part of the EPA.  
 
Currently, four ESA members are implementing the EPA . Comoros signed the agreement last 
July and informed the EU of its intention to complete its ratification process by the end of this 
year. Zambia and all other ESA members may also decide at a later stage when they are ready to 
join the agreement . The EU cannot impose the EPA on the ESA members that do not want it or do 
not feel ready to join, nor can it refuse to apply it to the ESA members wishing to implement it.  
 
The EPA helps promoting regional solutions, which are good for trade and development, by 
harnessing ACP regional integration initiatives already underway . Furthermore, Art. 12(2) allows 
for the Parties to review t he schedules of tariff liberaliz ation in Annex II with a view to harmoniz ing 
them taking into account regional integration processes.  
 
Response from the delegation of Madagascar  
 
 The Agreement signed with the European Union contribute s to strengthen ing regional 
integration in Africa because many African countries maintain trade  relations  with Europe . In the 
interests  of harmonization, it is always more beneficial  for the different  African countries to adopt 
the same policy towards one of their main partners . 
 
Furthermore , the funds for assisting the  LDCs in the  framework of their  partnership with the 
European Union promote regional integration, enabling  the beneficiary countries to develop local 
production and thus  increase  their access to regional markets.  
 
Additional response from the delegation of Madagascar  
 
 The A greement is chiefly  based on a n asymmetrical free -trade relationship  under a 
non-reciprocal preferential regime . The market opening  for EU member S tates is 100%, while the 
market opening  for Madagascar ( ESA) is 80% with the application of a 15 -year schedule of tariff 
liberalization.  
 
1.4.  Per paragraphs 3.3 through 3.5, under the Interim EPA would the EU be exempt 
from an African Union peacekeeping levy were one to be applied by the ESA states ? Do 
the ESA states currently charge any levies that the EU is exempt from paying ? If so, 
please provide a full list of such levies by country.  
Response from the European Union  
 
 The EU is not exempted under the EPA of any levy that the ESA members would apply . To 
the EU's knowledge, none of the signatory ESA countries of the EPA applie s such a levy.  
 
Response from the delegation of Madagascar  
 
 Madagascar has no peacekeeping levy , so no such charge is applied to the European Union.  
 WT/REG307/2/Rev.1  
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  1.5.  Related to paragraph 3.4, what is the EU's rationale for the MFN clause in the 
interim EPA that it is entitled to any tariff concession subsequently granted to any major 
trading economy?  Please provide a complete list of all countries that would, at the time 
of this review, be considered a "major trading economy."  
Response from the Parties  
 
 The EU liberal izes 100 % of its market for the ESA signatory countries of an EPA, whereas 
the development status of the ESA EPA countries is taken into account by giving them the 
possibility to shield their most sensitive products from liberali zation, within the limits o f 
Article  XXIV GATT . If these countries decided, however, to liberalise these products for other major 
trading economies, the EU would naturally expect to be treated equally . This is not applicable to 
agreements with ACP countries or regions.  
 
The term "ma jor trading economy" means any developed country, or any country accounting 
for a share of world merchandise exports above 1 % or any group of countries acting individually, 
collectively or through an economic integration agreement accounting collectively f or a share of 
world merchandise exports above 1.5 %. The countries that can be considered as "major trading 
economy" can therefore vary over time.  
 
1.6.  Paragraph 4.15 of the Secretariat document notes that, "The Agreement is to 
remain in force until the compreh ensive EPA enters into force ." W hat occurs if the 
comprehensive EPA never enters into force with respect to certain of the African 
partners?  Does the interim EPA have a termination date?  What domestic approval 
procedures are required by the EU and its part ners for an interim EPA to enter into 
force?  
Response from the Parties  
 
 The interim EPA concluded with the ESA partners does not include trade related issues which 
would make it a comprehensive agreement . This is the reason why the interim EPA text refers  to 
the comprehensive EPA and includes a rendezvous clause (art 53) to continue negotiations on 
these issues . However, the currently implemented EPA is a self -standing international agreement 
that can enter into force irrespective of the discussions on the  comprehensive EPA . Furthermore, 
the interim EPA does not include any termination date.  
 
The EU and its ESA partner states need to follow their applicable constitutional or internal 
rules and procedures in order to sign, ratify or approve the agreement . The Agreement is currently 
provisionally applied by the EU and four ESA Members (Madagascar, Mauritius, Seychelles and 
Zimbabwe) in accordance with its Article 62(4).  
 
In accordance with the EU rules and procedures, all the ESA signatory countries need to 
ratify the agreement before it proceeds to its ratification by all EU member states . The agreement 
will then enter into force the first day of the first month following the deposit of the last instrument 
of ratification, acceptance or approval.  
****  
As a general comment, the EU would like to note that several documents presenting the 
main characteristics of the EPAs as well as their benefits have been published on the EU web  page:  
http://ec.europa.eu/trade/policy/countries -and-regions/development/economic -partnerships  
 
Response from the delegation of Madagascar  
 
 The (15-year) schedule began to be applied in 2014 and will cease to be applied in 2022 
(end of duties); the termination of  this agreement will depend on government  policy . 
 
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