WT/REG307/M/1  
 
29 November 2017 
(17-6539) Page: 1/3 
Committee on Regional Trade Agreements  
Eighty -seventh Session   
 
 
INTERIM ECONOMIC PAR TNERSHIP AGREEMENT B ETWEEN THE EUROPEAN UNION AND 
THE ESA  STATES (MADAGASCAR, MAURITIUS, SEYCHELLE S AND ZIMBABWE) (GOO DS) 
NOTE ON THE MEETING OF 9 NOVEMBER 2017 
Chairman: Ambassador Walid DOUDECH (Tunisia)  
1.1.  The 87th Session of the Committee on Regional Trade Agreements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgram  WTO/AIR/RTA/12/Rev.1 dated 30 October 2017 . 
1.2.  Under Agenda Item D.III of the Session, the CRTA considered the  Interim Economic 
Partnership Agreement betwee n the European Union and the ESA States (Madagascar, Mauritius, 
Seychelles, and Zimbabwe), goods, (hereinafter "the Agreement").  
1.3.  The Agreement had entered into force on a provisional basis on 14 May 2012. It had been  
notified to the WTO by the Parties on 9  February 2012 and 27  July 2012  under Article XXIV:7(a) of 
the GATT  1994 and the Understanding o n the Interpretation of Article XXIV of GATT 1994 as an 
Agreement establishing a free trade area (documents  WT/REG307/N/1 and 
WT/REG307/N/1/Add.1). The text of the Agreement was available, together with its Annexes, on 
the Parties' official websites.  The Factual Presentation on the goods aspect s (document 
WT/REG 307/1 dated 30 August  2017) and questions and replies on the Agreement (document 
WT/REG307/2 dated 30 October 2017) had been distributed. The Chairman also drew the attention 
to the responses received from Madagascar issued in room document RD/RTA/47. A revision to the 
question s and replies document would be issued after the meeting . 
1.4.  The representative of the European Union  welcomed  the consideration of the Economic 
Partnership Agreement between the EU and the four East ern and Southern African (ESA) States  
(Madagascar, Mauritius, the Seychelles and Zimbabwe) in the CRTA . He thanked the Secretariat 
for the preparation of the Factual Presentation and Madagascar, Mauritius, the Seychelles and 
Zimbabwe for their cooperation. He also thank ed Canada and the United States for their questions 
and the interest shown in the consideration of the Agreement.  
1.5.  The European Union and the African, Caribbean and Pacific (ACP) countries and regions had 
enjoyed a Strategic Partnership since the ACP -EU Partnership Agreement , signed in Cotonou on 
23 June 2000. The ACP -EU Partnership Agreement  was the most comp rehensive partnership 
agreement between developing countries and the EU. Since 2000, the Cotonou Agreement had 
been the framework for the EU's relations with 79 countries from Africa, the Caribbean and the 
Pacific. It had entered into force in April 2003 a nd had been revised in 2005 and 2010 in 
accordance with the revision clause to re -examine the agreement every five years. The agreement 
had economic, political and development dimensions and was characterised by equality of the 
partners, broad -based partic ipation ( i.e. States and non -state actors), dialogue and regional 
integration.  
1.6.  Under the umbrella of the Cotonou Agreement, the EU had signed several Economic 
Partnership Agreements (EPAs) with the ACP countries and regions aimed at promoting ACP -EU 
trade . The EPAs were "tailor -made" agreements to suit specific regional circumstances  and went 
beyond conventional free  trade agreements. The EPAs intend ed to support trade diversification by 
shifting ACP countries' reliance on commodities to higher -value produ cts and services . They  
focused on the development of ACP partners, taking into account their socio -economic WT/REG307/M/1  
 
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  circumstances. They also include d co-operation and development assistance to help ACP countries 
benefit from the agreements.  
1.7.  The EU -ESA EPA Interim  Agreement  had been  signed on 29 August 2009 and its provisional 
application had started on 14 May 2012. The Agreement had been effective in increasing trade 
between the Parties. Since its implementation , for example,  Madagascar's  exports  had increased 
by 65% in the period 2012 -2016. After the application of the EPA in 2012 , Madagascar had seen a 
rise in its exports to the EU of almost 15% per year. In 2015, textiles and apparel were its main 
export s worth more than €300 million and had accounted for almost  one third of its total exports 
to the EU. The Seychelles'  exports had followed the same trend and had increased by almost one 
third in the period 2012 -2016.  
1.8.  The Agreement offered ESA States  expanded and strengthened access to the European 
market, thus pro viding greater stability to exports from those countries to the EU. Furthermore, 
the Parties  reaffirm ed their commitment to the A greement as a mechanism for dialogue and 
partnership, as well as a tool to foster development and reinforce regional integratio n.  
1.9.  Overall, the Agreement provided  for substantial coverage , meaning that duties and 
quantitative restrictions were eliminated on substantially all the trade . However, t he final outcome 
reflected  the different levels of economic development between the Pa rties. The EU had eliminated 
its tariffs on all products of HS Chapters 1 -97 at the start of implementation of the A greement. By 
the end of the implementation period in 2022 , the ESA States would  fully liberalise 92% of their 
tariff lines  on average .  
1.10.   In addition to the provisions on trade in goods, market access and trade defence, the 
Agreement included  comprehensive chapters on rules of origin, fisheries as well as dispute 
settlement mechanisms.  As regards r ules of origin, the Agreemen t contained  flexible and simple 
rules of origin making it easier for ESA States  to export goods produced with inputs from another 
ACP country.  With respect to fisheries, the Parties recognise d that fisheries constitute d a key 
economic resource in the ESA region and held great potential for future regional economic 
development. Against that background, the Parties envisage d specific areas of cooperation, such 
as the conservation and management of marine fisheries resources and trade measures and 
development of fisheries and fishery products and marine aquaculture.  
1.11.   The chapter on development cooperation aim ed at reinforcing  ESA institutional and 
productive capacities  and support ing necessary  adjustment processes. The ESA States  could 
benefit from EU development aid for project s aimed at improving their infrastructure, 
administration and public services and, in particular, their customs.   
1.12.   The Parties were currently focused on ensuring the effective implementation of the 
Agreement so that businesses could enjoy and fully utilise the trade opportunities offered. Recently 
the Parties had agreed to consider setting up an appropriate mechanism for monitoring the 
implementation of the EPA. The Parties had also agreed to discuss the scope and objectives of 
deepening  the existing partner ship, for example by adding services, investment and other 
trade -related areas beyond goods which, depending on the P arties' interests and priorities, could 
further improve the business environment and contribute to the diversification of the ESA 
economies .  
1.13.   Looking ahead, the Agreement would expand to a new Party as the Comoros had signed the 
Agreement on 28 July 2017. The Comoros would start the implementation of the Agreement after 
the ratification  was completed . The EU look ed forward to a fruitful discussion and would endeavour 
to answer Members' additional questions and comments.  
1.14.   The representative of Mauritius , on behalf of the four Eastern and Southern African 
Countries (Madagascar, Mauritius, Seychelles and Zimbabwe) , than ked the Secretariat for the 
preparation of the Factual Presentation on the Interim E conomic Partnership Agreement . He also 
thanked the EU delegation for its support and the delegations of Canada and the United States for 
their questions.  
1.15.   The Interim Econom ic Partnership Agreement was an important agreement for the ESA 
States  in view of the fact that the EU was and remained  one of the most important export markets WT/REG307/M/1  
 
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  for the four ESA States.  The ESA States had been  trading with the EU under the provisions of th e 
Lomé Conventions for 25 years , from 1975 to 2000 , and consequently  under the trade provisions 
of the Cotonou Agreement until December 2007. The long -standing partnership with the EU had 
been instrumental to the economic and social development of the four ESA Signatory States.  The 
signing of the Interim EPA was crucial to safeguard preferential access to the European market. 
The Agreement, which was fully com patible with WTO rules, provided  legal security and 
predictability for trade and was, therefore , expected to create better trading condition s. Moreover, 
the rules that determine d the origin of several key products to qualify for preferential access to the 
EU market had been improved.   
1.16.   The ESA countries were engaged in  the implementation of the Interi m EPA. The EPA 
Committee had met six times since 2012 and several issues had been  addressed including non -
tariff barriers encountered by the ESA States as well as ways and means to step up the 
competitiveness of their domestic industries through  appropriat e technical assistance.   
1.17.   The Agreement , as it stood at the moment , was limited in scope. It was in that context that 
the Parties had agreed to deepen and widen it on the basis of a rendezvous  clause . Moreover , the 
Parties were exploring  other issues that were relevant to their development such as value chains, 
innovation, industrial development and cooperation to achieve sustainable development goals.  A 
dedicated meeting was scheduled in January 2018 to validate those areas of discussions.  He 
looked forwar d to a fruitful discussion with Members.  
1.18.   The representative of Canada  thanked the P arties for the presentations and the Secretariat 
for the preparation of the Factual Presentation. Canada had no further questions.  
1.19.   The representative of the United States  thanked the P arties for the hard work in putting the 
report together and in answering the questions. He also thanked the Secretariat  for the 
preparation of the Factual Presentation . The Agreement was interesting and it was useful to reflect 
on it. He appreci ated the additional context provided that day . The United States had asked 
questions before the meeting and appreciate d the thorough answers received. He had no 
additional comments or follow up questions at that time. 
1.20.   The Chairman  said that consideration of the Goods Aspects of the Interim Economic 
Partnership Agreement between the European Union and the ESA States (Madagascar, Mauritius, 
Seychelles, and Zimbabwe)  had allowed the Committee to clarify a number of questions and it 
could now con clude oral discussion of the RTA in accordance with paragraph 11 of the 
Transparency Mechanism. If any delegations wished to ask follow -up questions they were invited 
to forward submissions in writing to the Secretariat by 16 November 2017 and Parties were  asked 
to submit replies in writing by no later than 30 November 2017. In accordance with paragraph  13 
of the Transparency Mechanism all written submissions, as well as minutes of the meeting would 
be circulated promptly, in all WTO  official languages, and  would be made available on the WTO 
website.  
1.21.   The Committee took note of the comments made.  
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