Proposal for a COUNCIL DECISION on the signing and provisional application of the Economic Partnership Agreement (EPA) between the West African States, ECOWAS and the UEMOA, of the one part, and the European Union and its Member States, of the other part /* COM/2014/0576 final - 2014/0265 (NLE) */





EXPLANATORY MEMORANDUM 1. CONTEXT OF THE PROPOSAL The attached proposal for a Council Decision constitutes the legal instrument for the signing and provisional application of the Economic Partnership Agreement (EPA) between the West African States[1], the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (UEMOA), of the one part, and the European Union and its Member States, of the other part. The EPA with the whole West African region was negotiated in line with the objectives laid down in the EU-ACP Partnership Agreement signed in Cotonou on 23 June 2000 and revised in Luxembourg on 25 June 2005 and in Ouagadougou on 22 June 2010 (Cotonou Agreement), and in the negotiating directives concerning EPAs with the ACP States adopted by the Council on 12 June 2002. The negotiations were completed at the level of the Chief Negotiators on 6 February 2014 in Brussels. The Agreement was initialled on 30 June 2014 in Ouagadougou, Burkina Faso. As soon as the Agreement enters into force, it will replace the two existing interim EPAs in the region, namely the Stepping Stone Agreement with Côte d'Ivoire, which was initialled on 7 December 2007, signed on 26 November 2008 and approved by the European Parliament on 25 March 2009, and the Stepping Stone Agreement with Ghana, which was initialled on 13 December 2007. Cape Verde currently benefits from the special incentive arrangement for sustainable development and good governance in the scheme of generalised tariff preferences (GSP+), and Nigeria currently benefits from the scheme of generalised tariff preferences (GSP). The Agreement will take over from these schemes as soon as it enters into force. The other countries of the region currently benefit from the 'Everything But Arms' initiative, since they are classified among the Least Developed Countries (LDCs). The entry into force of the Agreement will ensure a harmonised trade regime between the European Union and the West African region, thereby supporting regional integration and the implementation of the ECOWAS Common External Tariff. 2. NATURE AND SCOPE OF THE AGREEMENT The EPA contains provisions on trade in goods, customs and trade facilitation, technical barriers to trade, sanitary and phytosanitary measures, and agriculture and fisheries. The provisions concerning cooperation for the implementation of the development dimension lay down the priority areas of action for the implementation of the EPA, which are set out in an EPA Development Programme (PAPED), the financing arrangements for which are specified in the Agreement. The Council declarations of 10 May 2010 and 17 March 2014 confirm the commitment of the European Union and its Member States to provide financial support for the development of West Africa. The Agreement contains commitments relating to regional integration, with the West African States undertaking to apply to each other the preferential treatment granted to the European Union under this Agreement. The Agreement also provides for negotiations to be continued at regional level on investment, services, intellectual property and innovation, current payments and capital movements, protection of personal data, competition, consumer protection, sustainable development and public procurement. The institutional provisions include the establishment of a Joint Council of the West Africa-European Union EPA, which is to be responsible for supervising the implementation of the EPA. This Council will comprise members of the Ministerial Monitoring Committee of the West Africa-European Union EPA and members of the Council of the European Union and of the Commission. It will be assisted by a Joint Implementation Committee of the EPA. A West Africa-European Union parliamentary committee will act as a forum for members of the European Parliament and of the regional parliaments of ECOWAS and the UEMOA. A Joint West Africa-European Union Consultative Committee will also assist the Joint Council of the EPA with a view to promoting dialogue and cooperation between representatives of civil society and the private sector. The EPA makes provision for its impact to be monitored comprehensively and to be examined every five years. 3. PROCEDURES Pending its entry into force, the EPA makes provision for a provisional application mechanism. This provisional application is necessary so that the countries that are parties to the Agreement but are not LDCs can enjoy free access to the European market, and the LDCs can use more favourable rules of origin, as soon as possible. The Commission has judged the results of the negotiations to be satisfactory and in accordance with the negotiating directives from the Council and requests the Council: – to authorise the signing, on behalf of the European Union, of the regional EPA with West Africa; – to approve the provisional application of the EPA pending its entry into force. 2014/0265 (NLE) Proposal for a COUNCIL DECISION on the signing and provisional application of the Economic Partnership Agreement (EPA) between the West African States, ECOWAS and the UEMOA, of the one part, and the European Union and its Member States, of the other part THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 207(3) and (4) and 208, in conjunction with Article 218(5), thereof, Having regard to the proposal from the European Commission[2], Whereas: (1) On 12 June 2002 the Council authorised the Commission to open negotiations for Economic Partnership Agreements with the ACP countries. (2) The negotiations have been concluded and the Economic Partnership Agreement between the West African States (the Republic of Benin, Burkina Faso, the Republic of Cape Verde, the Republic of Côte d'Ivoire, the Republic of Gambia, the Republic of Ghana, the Republic of Guinea, the Republic of Guinea-Bissau, the Republic of Liberia, the Islamic Republic of Mauritania, the Republic of Mali, the Republic of Niger, the Federal Republic of Nigeria, the Republic of Senegal, the Republic of Sierra Leone and the Togolese Republic), the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (UEMOA), of the one part, and the European Union and its Member States, of the other part, (hereinafter referred to as the 'EPA') was initialled on 30 June 2014. (3) Economic Partnership Agreements with ACP countries are necessary in order to implement the European Union's trade and development cooperation policy with the ACP countries. (4) Article 107(3) of the EPA provides for its provisional application pending its entry into force. (5) The EPA should be signed on behalf of the European Union and applied on a provisional basis subject to its conclusion at a later date. HAS ADOPTED THIS DECISION: Article 1 The signing of the Economic Partnership Agreement between the West African States, ECOWAS and the UEMOA, of the one part, and the European Union and its Member States, of the other part, is hereby approved on behalf of the European Union, subject to the decision of the Council on the conclusion of the said Agreement. The text of the Agreement is attached to this Decision. Article 2 The Council Secretariat-General shall establish the instrument of full powers to sign the Agreement on behalf of the European Union, subject to its conclusion, for the person(s) indicated by the negotiator. Article 3 As regards those elements falling within the competence of the Union, the Agreement shall be applied on a provisional basis as provided for in Article 107(3) thereof, pending completion of the procedures for conclusion. The Commission shall publish a notice providing information on the date of provisional application. Article 4 This Decision shall enter into force on the date of its adoption. Done at Brussels, For the Council The President LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS HAVING A BUDGETARY IMPACT EXCLUSIVELY LIMITED TO THE REVENUE SIDE 1. NAME OF THE PROPOSAL: COUNCIL DECISION on the signing and provisional application of the Economic Partnership Agreement between the West African States, ECOWAS and the UEMOA, of the one part, and the European Union and its Member States, of the other part. 2. BUDGET LINES Chapter and Article: Chapter 12, Article 120 Amount budgeted for the year 2014: € 16 185 600 000 3. FINANCIAL IMPACT ¨ Proposal has no financial implications x Proposal has no financial impact on expenditure but has a financial impact on revenue – the effect is as follows: (€ million to one decimal place) || || Budget line || Revenue[3] || 12 month period, starting dd/mm/yyyy || [Year n] Article 120 || Impact on own resources || || 4.3 Situation following action || [n + 1] || [n + 2] || [n + 3] || [n + 4] || [n + 5] Article 120 || 4.3 || 4.3 || 4.3 || 4.3 || 4.3 4. ANTI-FRAUD MEASURES In order to protect the European Union's Own Resources, the Agreement contains provisions aimed at ensuring the correct application by the partner country of the conditions laid down for application of the trade concessions under §3 "Financial Impact", in particular in the Protocol on Rules of Origin (Annex A to the Agreement) and the Protocol on Mutual Administrative Assistance in Customs Matters (Annex E to the Agreement). These provisions complement the customs legislation of the European Union applicable to all imported goods (in particular the European Union's Customs Code and Implementing Provisions) and that on Member States' responsibilities with respect to the control of Own Resources (in particular Council Regulation No 1150/2000). 5. OTHER REMARKS This estimate is based on the volume of imports in 2012. Accordingly, with the exception of a very limited number of products imported from countries which are not Least Developed Countries and which have not signed interim economic partnership agreements, almost all imports from West Africa already enter the European Union duty free. [1] Benin, Burkina Faso, Cape Verde, Côte d'Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mauritania, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo. [2] OJ C […], […], p. […]. [3] Regarding traditional own resources (agricultural duties, sugar levies, customs duties) the amounts indicated must be net amounts, i.e. gross amounts after deduction of 25 % of collection costs. ANNEX ECONOMIC PARTNERSHIP AGREEMENT (EPA) BETWEEN THE WEST AFRICAN STATES, ECOWAS AND THE UEMOA, OF THE ONE PART, AND THE EUROPEAN UNION AND ITS MEMBER STATES, OF THE OTHER PART Contents List of the Parties to the Agreement: Introduction PART I: ECONOMIC AND TRADE PARTNERSHIP FOR SUSTAINABLE DEVELOPMENT PART II: TRADE POLICY AND QUESTIONS CONCERNING TRADE Chapter 1: Customs duties Chapter 2: Trade defence instruments Chapter 3: Technical barriers to trade, sanitary and phytosanitary measures Chapter 4: Other non-tariff barriers Chapter 5: Facilitation of trade, customs cooperation and mutual administrative assistance Chapter 6: Agriculture, fisheries and food security PART III: COOPERATION FOR IMPLEMENTATION OF DEVELOPMENT AND ACHIEVEMENT OF THE OBJECTIVES OF THE EPA PART IV: DISPUTE AVOIDANCE AND SETTLEMENT Chapter 1: Objective, scope and Parties Chapter 2: Dispute avoidance: consultation and mediation Chapter 3: Dispute settlement procedures Chapter 4: General provisions PART V: GENERAL EXCEPTIONS PART VI: INSTITUTIONAL PROVISIONS PART VII: FINAL PROVISIONS ANNEXES The Republic of Benin, Burkina Faso, The Republic of Cape Verde, The Republic of Côte d'Ivoire, The Republic of Gambia, The Republic of Ghana, The Republic of Guinea, The Republic of Guinea-Bissau, The Republic of Liberia, The Islamic Republic of Mauritania, The Republic of Mali, The Republic of Niger. The Federal Republic of Nigeria, The Republic of Senegal, The Republic of Sierra Leone, The Togolese Republic, and THE ECONOMIC COMMUNITY OF WEST AFRICAN STATES (ECOWAS), and THE WEST AFRICAN ECONOMIC AND MONETARY UNION (UEMOA), of the one part, and 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 REPUBLIC OF CROATIA, THE ITALIAN REPUBLIC, THE REPUBLIC OF CYPRUS, THE REPUBLIC OF LATVIA, THE REPUBLIC OF LITHUANIA, THE GRAND DUCHY OF LUXEMBOURG, HUNGARY, THE REPUBLIC OF 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, THE KINGDOM OF SWEDEN, THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, and THE EUROPEAN UNION, of the other part, HAVING REGARD TO the Georgetown Agreement establishing the Group of African, Caribbean and Pacific States (ACP), the treaties establishing the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (UEMOA) of the one part, and the Treaty on European Union and the Treaty on the Functioning of the European Union, of the other part; HAVING REGARD TO the ACP-CE Partnership Agreement signed in Cotonou on 23 June 2000, as first amended in Luxembourg on 25 June 2005 and as amended for the second time in Ouagadougou on 22 June 2010, hereinafter the " Cotonou Agreement "; CONSIDERING the importance, on the one part, of the links between the European Union, its Member States and the West African region (WA) and, on the other part, the common values they share; CONSIDERING that the European Union, its Member States and the West African region wish to strengthen their close links and establish enduring relations based on partnership, development and solidarity; MINDFUL of the need to promote the economic and social progress of the people in a way that takes account of the need for sustainable development and environmental protection; CONSIDERING the importance attached by the Parties to the principles of the United Nations Charter, particularly the observance of human rights; CONSIDERING their commitment to the principles and rules governing international trade, in particular those contained in the Agreement establishing the World Trade Organisation (WTO); CONSIDERING the need to strengthen integration between the West African States and Euro-African relations; RECALLING that the purpose of the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (UEMOA) is to promote regional cooperation and integration with a view to the establishment of a West African economic union in order to raise the standard of living of the people, maintain and increase economic stability, strengthen relations between the Member States and contribute to the progress and development of the African continent; REAFFIRMING their commitment to working together towards the achievement of the ACP-EU partnership as defined in the Cotonou Agreement, namely the reduction and long-term eradication of poverty, sustainable development and the successful and harmonious integration of the ACP countries in the world economy; CONSIDERING that the Millennium Development Goals emanating from the Millennium Declaration adopted by the United Nations General Assembly in 2000, in particular the eradication of extreme poverty and hunger, as well as the development targets and principles agreed in the United Nations Conferences, provide for a clear vision and must underpin partnership between the West African region and the European Union and its Member States under this Agreement; TAKING ACCOUNT of the willingness of the European Union and its Member States to provide significant support for West Africa in its efforts to reform and adjust in terms of the economy and social development and their commitment to implement the Joint European Union-Africa strategy; TAKING ACCOUNT of the difference in the level of economic and social development between the West African region on the one part and the European Union and its Member States on the other part and the need to strengthen the process of integration and economic development of the West African region; TAKING ACCOUNT, in particular, of the fact that the West African region includes a large number of less developed countries (LDC) and that it is facing serious difficulties due to its special economic position and its specific needs with regard to development and the promotion of its trade and finances; UNDERLINING that the Economic Partnership Agreement (EPA) is based, in particular, on the progressive, asymmetrical liberalisation of trade in goods and services in favour of the West African States; REAFFIRMING that the EPA must be a development tool for promoting, in particular, sustainable development, increasing the production capacity and exports of the West African States and supporting the structural transformation of the West African economies and their diversification and competitiveness, leading to the development of trade, technology, the creation of jobs in the West African States and attracting investment to them; REAFFIRMING, moreover, that stability and enduring peace are crucial factors for the success of effective regional integration in West Africa, to which the EPA must contribute; EXPRESSING their determination to jointly achieve the aforementioned objectives while preserving the achievements of the Cotonou Agreement and therefore wishing to conclude a mutually beneficial agreement that is truly conducive to development HAVE AGREED AS FOLLOWS: PART I ECONOMIC AND TRADE PARTNERSHIP FOR SUSTAINABLE DEVELOPMENT Article 1 Objectives 1. The objectives of this Agreement are: a) To establish an economic and trade partnership to achieve rapid and sustained economic growth that creates employment, reduce and then eradicate poverty, raise living standards, achieve full employment, diversify economies and raise real income and output in a way that is compatible with the needs of the West African region while taking account of the Parties' different levels of economic development; b) To promote regional integration, economic cooperation and good economic governance in the West African region; c) To increase intra-regional trade and encourage the formation of a unified and efficient regional market in West Africa; d) To contribute to the harmonious and progressive integration of the West African region into the world economy, in accordance with its political choices, its priorities and its development strategies; e) To strengthen economic and trade relations between the Parties on a basis of solidarity and mutual interest in accordance with WTO obligations, in a way that takes account of the significant difference in competitiveness between the two regions. 2. For the purpose of achieving the objectives referred to in paragraph 1 of this Article, the Parties undertake to: a) Encourage an improvement in the supply capacity and competitiveness of the production sectors of the West African region; b) Strengthen the capacity of the West African region with regard to trade policy and the rules relating to trade; c) Contribute to the effective meeting of the commitments undertaken by the Parties in international fora concerning sustainable development, development financing, enhancement of the role of trade in development and raising the volume and effectiveness of aid; d) Establish and implement an effective, predictable and transparent regional regulatory framework in the West African region in order to promote investment, development of the West African private sector, Public-Private dialogue and partnership between the private sectors of West Africa and the European Union; e) Establish an effective, predictable and transparent framework for cooperation measures that will make it possible to promote the objectives of this Agreement, including the EPA Development Programme (PAPED) and provisions concerning its implementation; f) Effect the progressive and asymmetrical liberalisation of trade between them and strengthen cooperation in sectors relating to trade in goods and services. Article 2 Principles 1. The EPA is based on the principles and essential points of the Cotonou Agreement, as set out in Articles 2, 9, 19 and 35 of the said Agreement. The EPA is founded on the achievements of the Cotonou Agreement and previous EPA-EU conventions in the areas of financial cooperation, regional integration and economic and trade cooperation. 2. The EPA shall be implemented in a way that complements the achievements of the Cotonou Agreement and for it to be viable, the commitments of both Parties must be met, including those of the European Union regarding development finance cooperation and aid for trade. 3. The Parties shall honour their commitments with regard to development cooperation throughout the life of the EPA and undertake to set up the arrangements necessary to ensure consistency over time between EPA accompanying measures, as set out in the EPA Development Programme contained in Part III of this Agreement, and development cooperation. 4. The trade relations between the two regions shall be based on reciprocity and the difference in levels of development. The commitments undertaken in this regard under this Agreement shall comply with Article 34 of the Cotonou Agreement, which applies special and differential treatment to commitments between the two Parties. The Parties shall, in particular, ensure that account is taken of the vulnerability of the economies of the West African region and that the liberalisation process incorporates the principles of progressivity, flexibility and asymmetry in favour of the West African region. 5. While observing the trade commitments made under this Agreement, the Parties shall refrain from undermining the implementation of agricultural and food security, public health, education and any other economic and social policies adopted by the West African region under its sustainable development strategy. 6. For the EPA to be successful, it is necessary to establish a demanding partnership based on the mutual responsibility of the Parties for its implementation. The Parties therefore undertake to strive to ensure its viability. 7. The Parties reaffirm the commitment they made in the Doha Development Round to reduce and avoid measures likely to create distortions in trade and their support for ambitious results in this regard. 8. To ensure efficient implementation of the Agreement, the Parties shall set up joint institutions to establish a permanent management and monitoring/evaluation arrangement to make possible any adjustments that are necessary for achievement of the objectives of this Agreement. Article 3 Economic growth and 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 their commitments set out in Articles 1, 2, 9, 19, 21, 22, 23, 28 and 29 of the Cotonou Agreement, and especially the general commitment to economic development and reducing and eventually eradicating poverty in a way that is consistent with the objectives of sustainable development. 2. Under this Agreement, the Parties view the objective of sustainable development as a commitment to take full account of the human, cultural, economic, social, health and environmental interests of their respective people and their future generations. 3. In the fight against poverty the Parties reaffirm their commitments to draw up and implement programmes likely to strengthen the macro-economic framework, promote rapid and sustainable economic growth and create the infrastructures essential for the development of the intra-regional and international trade of the West African region. The Parties therefore support the institutional reforms intended to adapt the national and regional administrative authorities to the requirements of trade liberalisation and strengthen the capacity of the production sectors in the West African region. 4. The Parties support the efforts of the West African region with regard to the sustainable management of forests, fisheries and the emergence of modern agriculture. They shall therefore initiate and implement innovative forms of trade favourable to the preservation of natural resources. 5. The Parties shall work on strengthening the technical capacities and abilities of the operators in order to promote the creation of jobs and provide for adjustments to achieve the social goals of the EPA. Article 4 Regional integration 1. The Parties recognise that regional integration is an essential part of their partnership and a powerful tool for achieving the objectives of this Agreement and agree to give it their strong support. 2. For the purposes referred to in paragraph 1, the European Union Party shall contribute, according to the provisions laid down in Part III, through technical and financial assistance to the efforts of the region with regard to integration, in particular the achievement of customs union and a common market, the implementation of macro-economic and trade surveillance and the preparation of regional rules for making the business environment more attractive in the West African region. PART II TRADE POLICY AND QUESTIONS CONCERNING TRADE CHAPTER 1 CUSTOMS DUTIES Article 5 Scope The provisions of this Chapter shall apply to trade in goods between the Parties. Article 6 Rules of origin 1. For the purposes of this Article, originating applies to goods that comply with the rules of origin set out in Annex A to the Protocol defining the concept of 'originating products' and the methods of administrative cooperation. 2. At the latest five years after the date of entry into force of this Agreement, the Parties shall draw up new rules of origin with the aim of simplifying the concepts and methods used to determine origin in the light of the development objectives of the West African region and the process of integration of the African Union. Within this framework, the Parties shall take account of technological development, the production processes and any other relevant factors that might necessitate changes to the Protocol on rules of origin. 3. Any amendment or revision of the rules of origin referred to in paragraph 1 shall be carried out by a decision of the Joint Council of the EPA. Article 7 Customs duties 1. Customs duties are taken to refer to the deductions of charges of any kind, including any kind of surcharge or supplement imposed in connection with the import or export of goods; the following are not included: a) taxes or other internal charges imposed in accordance with Article 35; b) anti-dumping, countervailing or safeguard measures applied in accordance with Chapter 2; c) fees or other charges imposed in accordance with Article 8 on fees and other charges. 2. For each product, the basic customs duty to which the successive reductions set out in the Agreement are to be applied shall be that effectively applicable on the day of entry into force of the Agreement. Article 8 Fees and other charges The fees and other charges referred to in Article 7 are subject to specific tariffs corresponding to the real value of the services provided and must not constitute indirect protection of national products or the taxation of imports or exports for fiscal purposes. Article 9 Status quo 1. No new customs duties on imports shall be introduced on products covered by the liberalisation between the Parties, nor shall those currently applied be increased from the date of entry into force of this Agreement. 2. Notwithstanding paragraph 1, and as part of the finalisation of the common external tariff of ECOWAS, the West African region may until 31 December 2014 revise its basic customs duties on goods originating in the European Union insofar as the general impact of these duties is no higher than that resulting from the duties specified in Annex C. The Joint Council of the EPA shall amend Annex C accordingly. Article 10 Elimination of customs duties on imports 1. Products originating in the West Africa Party shall be imported into the European Union free of customs duties as defined in Article 7, except in the case of the products indicated and under the conditions defined in Annex B. 2. The West African region shall progressively reduce and eliminate customs duties, as defined in Article 7, applicable to products originating in the European Union in accordance with the schedule shown in Annex C. Article 11 Autonomous resources of the regional Economic Communities of West Africa. Under this Agreement, the Parties agree that the autonomous financing arrangement of the West African Organisations responsible for regional integration (ECOWAS and UEMOA) shall be maintained until a new financing method has been set up. Article 12 Change in the tariff commitments of West Africa and common sectoral policies of the West African region 1. Without prejudice to Article 10 concerning the elimination of customs duties from the West African region, in view of its special development needs, in particular the need to support its common sectoral policies, the West Africa Party may decide, after agreement within the Joint Council of the EPA, to change the level of customs duties laid down in Annex C, which are applied to one or more goods originating in the European Union Party when they are imported into West Africa. For this purpose, the Joint Council of the EPA shall take a decision within six (6) months of the European Party being notified. 2. The Parties shall ensure that no such amendments result in incompatibility with Article XXIV of the General Agreement on Tariffs and Trade (GATT) 1994. 3. The amendments to the tariff commitments shall be maintained only for the period necessary to meet the special development needs of West Africa. Article 13 Export duties and taxes 1. No new duties or taxes on exports or charges with equivalent effect shall be introduced, nor shall those currently applied in trade between the Parties be increased from the date of entry into force of this Agreement. 2. The duties, taxes on exports or charges with equivalent effect shall be no greater than the same duties and taxes applied to similar goods exported to any other countries that are not party to this Agreement. 3. In exceptional circumstances, if the West Africa Party can justify specific needs for income, promotion for fledgling industry or environmental protection, it may, on a temporary basis and after consulting the European Union Party, introduce duties, taxes on exports or charges with equivalent effect on a limited number of additional goods or increase the impact of those that already exist. 4. The Parties agree to review the provisions of this Article in the framework of the Joint Council of the EPA in accordance with the revision clause of this Agreement, taking full account of their impact on the development and diversification of the economy of the West Africa Party. Article 14 Movement of goods 1. Goods originating in one of the Parties shall be subject to customs duties only once in the territory of the other Party. They may move freely in the territory of the other Party without being subject to additional customs duties. 2. For the purposes of application of the provisions of paragraph 1, the West African region shall be granted a transitional period of five (5) years starting from the date of entry into force of the Agreement in which to set up a free movement system. This period may be reviewed depending on the results of the transitional fiscal reforms to be effected by the West African region in cooperation with the European Union. For this purpose, the Parties shall evaluate the implementation of these reforms on a regular basis. 3. The Parties shall cooperate in order to facilitate the movement of goods and simplify customs procedures in line with the provisions of Chapter 5 concerning the facilitation of trade. Article 15 Classification of goods The classification of goods covered by this Agreement shall be as set out in each Party's respective tariff nomenclature in conformity with the Harmonised Commodity Description and Coding System (HS). Article 16 MFN clause 1. The Parties reaffirm their commitment with regard to the enabling clause. 2. The European Union Party shall grant the West Africa Party any more favourable tariff treatment that it grants to a third Party if the European Union Party becomes party to a preferential agreement with the third Party in question after the signing of this Agreement. 3. The West Africa Party shall grant the European Union Party any more favourable tariff that it grants after the signing of this Agreement to a trade partner other than the countries of Africa and the ACP States having both a share of world trade in excess of 1.5 per cent and an industrialisation rate, measured as the ratio of manufacturing value added to GDP, in excess of 10 per cent in the year preceding the entry into force of the preferential agreement referred to in this paragraph. If the preferential agreement is signed with a group of countries acting individually, collectively or through a free trade agreement, this threshold relating to the share of world trade shall be 2 per cent. For calculation purposes, the official data of the WTO shall be used for the main world exporters of goods (excluding trade within the European Union) and that of the United Nations Industrial Development Organisation (UNIDO) for manufacturing value added.. 4. If the West Africa Party obtains from the trade partner referred to in paragraph 3 substantially more favourable treatment than that offered by the European Union Party, the Parties shall consult each other and decide together on the implementation of the provisions in paragraph 3. 5. The Parties agree to resolve any dispute concerning the interpretation or application of this Article by entering into consultations in good faith with the aim of reaching an agreed solution. 6. The provisions of this Chapter cannot be interpreted as requiring the Parties to mutually grant each other preferential treatment that would be applicable owing to one of the Parties being signatory to a preferential agreement with a third Party on the date on which this Agreement enters into force. Article 17 Special provisions on administrative cooperation 1. The Parties agree that administrative cooperation is essential to the implementation and control of the preferential treatment granted in this Chapter and undertake to combat irregularities and fraud regarding customs and related fields. 2. Where one Party obtains proof, based on established information, of a failure to provide administrative cooperation and/or of irregularities or fraud, the Party may temporarily suspend the preferential treatment of the product(s) concerned in accordance with the provisions of this Article. 3. For the purposes of this Article, a lack of administrative cooperation shall include the following: a) repeated failure to comply with the obligation to verify the originating status of the product(s) concerned; b) repeated refusal to conduct a subsequent check of proof of origin and communicate the results, or undue delay in doing so; c) repeated refusal to grant authorisation for a cooperation mission to check the authenticity of documents or the accuracy of information of relevance to the preferential treatment in question, or undue delay in doing so. 4. The application of a temporary suspension shall be subject to the following conditions: a) A Party that obtains proof from established information of a lack of administrative cooperation and/or irregularities or fraud must notify the Joint Implementation Committee of the EPA without undue delay that it has obtained the proof and the established information, and must consult with the Joint Implementation Committee of the EPA to find a solution acceptable to both Parties, drawing on all relevant information and objective evidence. b) When the Parties have entered into consultation with the Joint Implementation Committee of the EPA, as provided for above, and have been unable to agree on an acceptable solution in the three (3) months following notification, the Party concerned can temporarily suspend the preferential treatment granted to the product(s) concerned. Temporary suspension must be reported without undue delay to the Joint Implementation Committee of the EPA c) Temporary suspensions under this Article shall be limited to what is necessary to protect the financial interests of the Party concerned. They shall not exceed a period of six (6) months, which may be renewed. Temporary suspensions shall be reported as soon as they have been adopted by the Joint Implementation Committee of the EPA They shall be subject to periodic consultations within the Joint Implementation Committee of the EPA, in particular with a view to repealing them once the conditions for application no longer exist. 5. At the same time as the notification of the Joint Implementation Committee of the EPA specified in paragraph 4(a) of this Article, the Party concerned shall publish a notice for importers in its Official Journal. This notice for importers shall indicate that, for the product concerned, and on the basis of established information, proof has been obtained of a lack of administrative cooperation and/or irregularities or fraud. Article 18 Management of administrative errors In case of error by the competent authorities in the management of preferential systems for exports, and in particular in the application of the Protocol defining the concept of "originating products" and methods of administrative cooperation set out in Annex A, where this error leads to consequences in terms of import duties, the Party facing such consequences may request the Joint Implementation Committee of the EPA to examine and adopt all appropriate measures with a view to resolving the situation. CHAPTER 2 TRADE DEFENCE INSTRUMENTS Article 19 Objectives 1. The objectives of this Chapter are to lay down the conditions in which the two Parties may take trade defence measures while at the same time working on the development of trade in goods between them, by way of derogation from the provisions of Articles 9,10 and 34 of this Agreement. 2. The Parties shall ensure that the measures taken under the provisions of this Chapter are no more than is necessary to prevent or rectify the situations described there. Article 20 Anti-dumping and countervailing duties 1. None of the provisions of this Agreement shall prevent the European Union or the States of the West Africa Party from individually or collectively taking anti-dumping or countervailing measures under the relevant WTO Agreements, in particular the WTO Agreement on Implementation of Article VI of the GATT and the WTO Agreement on Subsidies and Countervailing Measures. 2. For the purposes of applying this Article, origin shall be determined according to the non-preferential rules of origin of the Parties on the basis of the WTO Agreement on Rules of Origin. 3. The special situation of the States of the West African region as developing countries shall be taken into account when the application of anti-dumping or countervailing measures is considered. Before imposing definitive anti-dumping or countervailing measures, the Parties shall consider the possibility of constructive solutions, such as those provided for in the relevant WTO Agreements. The investigating authorities, may, in particular, carry out appropriate consultations for this purpose. 4. The anti-dumping duties or countervailing measures shall remain in force only for the time and extent necessary to offset dumping or harmful subsidies. 5. No product originating from one Party, when imported into the territory of the other Party, shall be subject both to anti-dumping and countervailing duties in order to rectify the same situation resulting from dumping or export subsidies. The Parties guarantee that anti-dumping or countervailing measures cannot be applied simultaneously to the same product at both national level, on the one hand, and regional or sub-regional level, on the other. 6. The Parties agree to each set up a single legal review body, including an appeal level. The judgments of this single body must enter into effect in the territory of all the States in which the disputed measure is applicable. 7. The provisions of this Article shall be applicable to all investigations initiated after this Agreement enters into force. 8. The provisions of this Article shall not be subject to the dispute settlement provisions of this Agreement. Article 21 Multilateral safeguard measures 1. Subject to the provisions of this Article, this Agreement shall not prevent either of the Parties from adopting exceptional measures for a limited period in accordance with Article XIX of the General Agreement on Tariffs and Trade (GATT) of 1994, the Agreement on Safeguards or Article 5 of the WTO Agreement on Agriculture. 2. For the purposes of applying this Article, origin shall be determined according to non-preferential rules of origin of the Parties on the basis of the WTO Agreement on Rules of Origin. 3. Without prejudice to the provisions of paragraph 1, and in the light of the overall development objectives of this Agreement and the small size of the economies of the West African States, the European Union Party shall exclude imports from the West African States Party from any measures taken pursuant to Article XIX of the GATT of 1994, the WTO Agreement on Safeguards and Article 5 of the WTO Agreement on Agriculture. 4. The provisions of paragraph 3 shall apply for a period of five (5) years, beginning with the date of entry into force of this Agreement. At the latest one hundred and twenty (120) days before the end of this period, the Joint Council of the EPA shall re-examine the implementation of these provisions in light of the development needs of the States of the West African region in order to determine whether their period of application should be extended. 5. The provisions of this Article shall not be subject to the dispute settlement provisions of this Agreement. Article 22 Bilateral safeguard measures 1. Subject to the provisions of this Article, either of the Parties may take safeguard measures for a limited period that derogate from the provisions of Articles 9 and 10. 2. The safeguard measures referred to in paragraph 1 may be taken where a product originating in one Party is imported into the territory of the other Party in such increased quantities and under such conditions as to cause or threaten to cause: a) serious injury to the domestic industry of like or directly competitive products in the territory of the importing Party; b) disruptions in a sector of the economy, particularly where these disruptions produce major social problems or difficulties that could bring about serious deterioration in the economic situation of the importing Party; or c) disruption in the markets of like or directly competitive agricultural products[1] or in the mechanisms regulating those markets. 3. The safeguard measures referred to in this Article shall not exceed what is strictly necessary to prevent or remedy serious injury or disruptions as defined in paragraphs 2, 4 and 5. These safeguard measures of the importing Party may consist only of one or more of the following: a) the suspension of any further reduction in the customs duty on imports applicable for the product concerned, as provided for by this Agreement; b) an increase in the customs duty on the product concerned up to a level that does not exceed the customs duty applied to other WTO Members; and c) the introduction of tariff quotas on the product concerned. 4. Notwithstanding paragraphs 1 to 3 of this Article, when a product originating in one or more States of the West Africa Party is imported in such increased quantities and under such conditions as to cause or threaten to cause one of the situations described above in paragraphs 2(a), (b) and (c) in one or more outermost regions of the European Union Party, the European Union Party may take surveillance or safeguard measures, limited to the region(s) concerned in accordance with the procedures defined in paragraphs 6 to 11 of this Article. 5. Notwithstanding paragraphs 1 to 3 of this Article, when a product originating in one or more States of the European Union Party is imported in such increased quantities and under such conditions as to cause or threaten to cause one of the situations described above in paragraphs 2(a), (b) and (c) in one or more States of the West African region Party, the State or States in question may take surveillance or safeguard measures, limited to the territory of the State or States concerned in accordance with the procedures defined in paragraphs 6 to 11 of this Article. 6. The safeguard measures referred to in this Article shall be maintained only for the period necessary to prevent or resolve serious damage or disruptions such as those described in paragraphs 2, 4 and 5 above. 7. The safeguard measures referred to in this Article shall be applied for a period not exceeding four (4) years. Where the circumstances warranting the imposition of safeguard measures continue to exist, such measures may be extended for a further period of four (4) years. 8. The safeguard measures referred to in this Article that exceed one (1) year shall have a clear timetable for being phased out by the end of the set period, at the latest. 9. Except in exceptional circumstances subject to the approval of the Joint Implementation Committee of the EPA, no safeguard measures referred to in this Article shall be applied to a product that has previously been subject to such a measure for a period of at least one (1) year from the date of expiry of this measure. 10. For the implementation of the above paragraphs the following provisions shall apply: a) when a Party considers that one of the circumstances referred to in paragraphs 2, 4 and 5 exists, it shall immediately refer the matter to the Joint Implementation Committee of the EPA. b) the Joint Implementation Committee of the EPA can make any recommendation necessary to remedy the circumstances that have arisen. Where the Joint Implementation Committee of the EPA has not made recommendations to remedy the circumstances, or where a satisfactory solution has not been found in the thirty (30) days following notification to this Committee, the importing Party may adopt appropriate measures to remedy the circumstances, in accordance with this Article. c) before taking one of the measures provided for in this Article or, in the cases referred to in paragraph 11 of this Article, as soon as possible, the Party concerned shall communicate to the Joint Implementation Committee of the EPA all information that can be used for a full examination of the situation with a view to finding an acceptable solution for both Parties. d) when selecting safeguard measures, priority must be given to those that help to efficiently and rapidly solve the problem, while causing the least possible disruption to the smooth functioning of this Agreement. e) All safeguard measures taken in accordance with this Article shall be reported immediately to the Joint Implementation Committee of the EPA and shall be the subject of periodic consultations within that body, particularly with a view to establishing a timetable for their abolition as soon as circumstances permit. 11. Where exceptional circumstances require immediate action, the importing Party concerned, whether the European Union Party or the West Africa Party, as the case may be, may take the measures provided for in paragraphs 3, 4 and/ 5 on a provisional basis, without meeting the requirements of paragraph 10. Such action may be taken for a maximum period of one hundred and eighty(180) days where the measures are taken by the European Union Party and two hundred and forty (240) days when the measures are taken by the West Africa Party, or when the measures of the European Union Party are limited to one or more of its outermost regions. The duration of such provisional measures shall be counted as a part of the initial period or of any extension defined in paragraphs 7 and 8 of this Article. When taking these provisional measures, the interests of all stakeholders must be taken into account. The importing Party concerned shall inform the other Party and immediately refer the matter to the Joint Implementation Committee of the EPA for examination. 12. If an importing Party subjects imports of a product to an administrative procedure having as its purpose the rapid provision of information on the trend of trade flows liable to give rise to the problems referred to in this Article, it shall inform the Joint Implementation Committee of the EPA of this without delay. 13. The WTO Agreements shall not be invoked to prevent a Party from adopting safeguard measures under the provisions of this Article. Article 23 Fledgling industries clause 1. The West Africa Party may temporarily suspend the reduction in the rate of customs duty or raise the rate of customs duty to a level not exceeding that of the duty applied to the other Members of the WTO if a product originating in the European Union, following a reduction in the rate of customs duty, is imported into its territory in quantities increased to such an amount and under such conditions that it poses a threat to the establishment of a fledgling industry or causes or threatens to cause disruption in a fledgling industry producing similar or directly competing products. 2. a) If the West Africa Party considers that the circumstances defined in paragraph 1 exist, it shall immediately refer them to the Joint Implementation Committee of the EPA for examination. b) The Joint Implementation Committee of the EPA can make any recommendation necessary to remedy the circumstances that have arisen. Where the Joint Implementation Committee of the EPA has not made recommendations to remedy the circumstances, or where a satisfactory solution has not been found in the thirty (30) days following notification to this Committee, the West Africa Party may adopt appropriate measures to remedy the circumstances, in accordance with this Article. c) Before taking one of the measures provided for in this Article, the West Africa Party shall communicate to the Joint Implementation Committee of the EPA all information that can be used for a full examination of the situation with a view to finding an acceptable solution for both Parties. d) When selecting the measures taken under this Article, priority must be given to those that disrupt the smooth operation of this Agreement as little as possible. e) Any measure taken under this Article shall be immediately reported to the Joint Implementation Committee of the EPA, within which it shall be the subject of periodic consultations. f) Under critical circumstances, where a delay would cause a loss that it would be difficult to make good, the West Africa Party may take the measures provided for in paragraph 1 on a provisional basis without meeting the requirements of paragraphs a) to e). Such action may be taken for a maximum period of two hundred (200) days. The duration of such provisional measures shall be counted as a part of the period defined in paragraph 3 of this Article. The West Africa party concerned shall inform the European Union Party and immediately refer the matter to the Joint Implementation Committee of the EPA for examination. 3. These measures may be applied for a period of up to eight (8) years. The application of the measures may be extended by a decision of the Joint Council of the EPA. Article 24 Cooperation 1. The Parties recognise the importance of cooperation with regard to trade defence instruments for ensuring fairness and transparency in the trade between them. 2. The Parties agree to cooperate, including by facilitating assistance measures, according to the provisions laid down in Part III, in the following areas in particular: a) the development of regulations and institutions to ensure trade defence; b) the development of capacity, in particular of the competent administrative authorities of the States of the West Africa Party, to improve understanding and use of the trade defence instruments provided for in this Agreement. CHAPTER 3 TECHNICAL BARRIERS TO TRADE, SANITARY AND PHYTOSANITARY MEASURES Article 25 Objectives 1. The objectives of this Chapter are to facilitate trade in goods between the Parties while increasing the capacity of the Parties to identify, prevent and eliminate unnecessary obstacles to trade as a result of technical regulations, standards and conformity assessment procedures applied by either Party while increasing the capacity of the Parties to protect plants, animals and public health. 2. When applying the provisions of this Chapter, each Party shall ensure that imported products originating in the territory of the other Party shall be treated in a way that is non-discriminatory in comparison with the treatment given to similar products of domestic origin and similar products originating in third countries. 3. Under the provisions of paragraphs 2 and 3 of Article 2 of the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement), each Party shall also ensure that the sanitary and phytosanitary measures taken to preserve human health or safety or the lives or health of animals and to protect plants and the environment shall not have the purpose or effect of creating unnecessary barriers to trade in goods between the two Parties. These measures shall therefore not restrict trade more than is strictly necessary. Article 26 Scope and definitions 1. The provisions of this Chapter shall apply to technical regulations and standards, to the conformity assessment procedures set out in the WTO Agreement on Technical Barriers to Trade (TBT) and to the WTO sanitary and phytosanitary measures (hereinafter referred to as SPS measures) in so far as they affect trade between the Parties. 2. For the purposes of this Chapter and unless otherwise indicated, the definitions used in the TBT and SPS Agreements of the WTO, the relevant standards and instruments adopted by the Codex Alimentarius Commission, the International Plant Protection Convention (IPPC) and the World Organisation for Animal Health (OIE) shall apply, including any reference to the products in this Chapter. Article 27 Competent authorities 1. The authorities of the two Parties responsible for the implementation of the measures set out in this Chapter are referred to in Appendix II to Annex D to this Agreement. 2. In accordance with Article 31, the Parties shall keep each other informed in good time of any significant changes in the competent authorities shown in Appendix II to Annex D. The Joint Implementation Committee of the EPA shall adopt any amendment necessary of Appendix II to Annex D to this Agreement. Article 28 Mutual obligations 1. The Parties reaffirm their rights and obligations under the relevant WTO Agreements, in particular the SPS and TBT Agreements. The Parties also reaffirm their rights and obligations arising from the relevant standards and instruments adopted by the International Plant Protection Convention (IPPC), the Codex Alimentarius Commission and the World Organisation for Animal Health (OIE). The States that are not members of the WTO also confirm their commitment to applying the obligations provided for in the SPS and TBT Agreements in all areas concerning trade relations between the Parties. 2. The Parties reaffirm their commitment to improving public health in their respective territories, in particular by strengthening their capacities to identify non-compliant products. 3. When trading with one another, the Parties shall refrain from exporting or reexporting products that no not observe the requirements in force in the legislation of the exporting Party. However, the export or reexport of products subject to SPS measures shall be permitted if provision is expressly made for this by the authorities of the importing Party. The export of other products shall be permitted unless this is prohibited by the legislation of the importing Party. 4. These commitments, rights and obligations underpin the activity of the Parties in relation to this Chapter. Article 29 Equivalence 1. The Parties shall accept the sanitary and phytosanitary measures of the other Party as equivalent, even if such measures differ from their own or those that are used by third countries marketing the same product, if the exporting Party objectively proves to the importing Party that the appropriate level of sanitary or phytosanitary protection applied in the territory of the importing Party is achieved through the domestic measures in question. For this purpose, reasonable access shall be given, upon request, to the importing Party for inspection, testing and other relevant procedures. 2. The Parties shall consult one another, on request and by mutual agreement, in order to reach, where applicable, bilateral and multilateral agreements on recognition of the equivalence of specified sanitary or phytosanitary measures. Article 30 Determination of sanitary and phytosanitary areas In relation to importing conditions, the Parties may, on a case-by-case basis, propose and identify areas with an established sanitary and phytosanitary status, with reference to Article 6 of the SPS Agreement. The Parties shall, in particular, ensure that their sanitary or phytosanitary measures are adapted to the sanitary and phytosanitary characteristics of the areas - whether all of a country, part of a country, or all or parts of several countries - from which the product originated and for which the product is destined. Article 31 Transparency of trade conditions and exchange of information 1. To ensure conformity with their regulations, the Parties shall mutually inform one another of any change in their legal and administrative requirements concerning the products, in accordance with the notification procedures of the SPS and TBT Agreements. 2. If necessary, the Parties agree to inform each other in writing of the measures taken to prohibit the importing of goods with the aim of addressing a given problem concerning health (public, animal or plant), risk prevention or the environment as soon as possible, in accordance with the recommendations set out in the SPS Agreement. 3. The Parties agree to exchange information with the aim of cooperating to ensure that their products comply with the technical regulations and standards subject to which they may access each other's markets. 4. If necessary, the Parties shall also directly exchange information on other areas that the Parties agree to be of potential importance for their trade relations, including food security issues, the sudden appearance of animal or plant diseases, scientific opinions and other noteworthy events relating to product safety. 5. If necessary, the Parties agree to exchange information on the epidemiological surveillance of animal diseases. As regards phytosanitary protection, the Parties shall inform each other of the appearance of parasites presenting a known and immediate danger for the other Party, at the other Party's request. 6. The Parties agree to cooperate with a view to rapidly alerting each other when new regional rules might have an impact on mutual trade, in line with the notification procedures of the SPS and TBT Agreements. Article 32 Regional integration 1. In order to facilitate trade between them, the Parties undertake to harmonise the rules, measures and conditions relating to imports at regional level, as far as this is possible. 2. Where import conditions already exist at the time of this Agreement's entry into force, and pending the introduction of harmonised import conditions, the existing import conditions shall be implemented by the States of the West African region and the European Union on the basis that a product originating in one of the Parties, legally placed on the market of a State of the other Party, may also be legally placed on the market of any other State of the other Party without any further restriction or administrative requirement. 3. Regarding the measures arising from this Chapter, the West African States shall ensure that the treatment they give to products originating in West Africa is no less favourable than the treatment they give to similar products originating in the European Union entering the West African region. Article 33 Cooperation 1. The Parties recognise the importance of cooperating in the areas of technical regulations, sanitary and phytosanitary measures, conformity assessment and traceability in order to achieve the objectives of this Chapter. 2. The Parties agree to cooperate in order to raise the quality and competitiveness of priority products for the States of the West African region shown in Appendix I to Annex D to this Agreement and access to the market of the European Union, including through financial assistance measures, in accordance with the provisions contained in Part III, in the following areas in particular: a) The establishment of an appropriate framework for the exchange of information and sharing of expertise between the Parties; b) Cooperation with international standardisation, metrology and accreditation bodies, including facilitating participation by representatives of the West Africa Party in the meetings of such bodies; c) The adoption of technical standards and regulations, conformity assessment procedures and sanitary and phytosanitary measures that are harmonised at regional level on the basis of the relevant international standards; d) The strengthening of the capacities of public and private operators, including information and training, with a view to complying with the phytosanitary standards, regulations and measures of the European Union, and to participating in international standardisation bodies; e) The development of national capacities to comply with standards and assess product compliance and traceability and to gain access to the market of the European Union. CHAPTER 4 OTHER NON-TARIFF BARRIERS Article 34 Prohibition of quantitative restrictions On the entry into force of this Agreement, all prohibitions or restrictions on imports or exports affecting trade between the two Parties shall be eliminated, with the exception of the customs duties and taxes and the fees and other charges referred to in Articles 7 and 8 of this Agreement on customs duties, irrespective of whether they are implemented through quotas, import or export licensing or other measures. No new measures shall be introduced. The provisions of this Article are without prejudice to the provisions concerning trade defence instruments referred to in Chapter 2 and the provisions relating to the balance of payments referred to in Article 89 of this Agreement. Article 35 National treatment of internal taxation and regulation 1. Imported products originating in one Party shall not be subject, either directly or indirectly, to internal taxes or other internal charges of any kind in excess of those applied, directly or indirectly, to similar products of the other Party. The Parties shall refrain from applying any other form of taxation or other internal charges with the aim of providing protection for their national output. 2. Imported products originating in one Party shall benefit from treatment that is no less favourable than the treatment given to similar products of the other Party in respect of all laws, regulations and requirements applicable to their sale, offering for sale, purchase, transportation, distribution or use on the national market. The provisions of this paragraph shall not prevent the application of differential internal transportation charges that are based exclusively on the economic operation of the means of transport and not on the origin of the product. 3. Neither Party shall establish or maintain any internal regulation relating to the mixture, processing or use of products in specified amounts or proportions that directly or indirectly requires any specified amount or proportion of any product that is the subject of the regulation to be supplied from domestic sources. Furthermore, each Party shall refrain from applying any other form of internal quantitative regulation with the aim of providing protection for its output. 4. The provisions of this Article shall not prevent the payment of subsidies intended exclusively for national producers, including payments to national producers derived from the proceeds of internal taxes or charges applied in compliance with the provisions of this Article and subsidies effected through governmental purchases of national products. 5. The provisions of this Article shall not apply to the laws, regulations, procedures or practices relating to public procurement. 6. The provisions of this Article shall be without prejudice to the provisions of this Agreement concerning trade defence measures. CHAPTER 5 FACILITATION OF TRADE, CUSTOMS COOPERATION AND MUTUAL ADMINISTRATIVE ASSISTANCE Article 36 Objectives 1. The Parties recognise the importance of customs cooperation and of facilitating trade in the evolving context of world trade. The Parties agree to increase cooperation in this area with a view to ensuring that the relevant legislation and procedures, as well as the administrative capacity of the relevant administrative authorities, fulfil the objectives of effective control and promotion of the facilitation of trade, and contribute to the development and regional integration of the EPA signatory countries. 2. The Parties recognise that legitimate public policy objectives, including those relating to security and fraud prevention , shall not be compromised in any way. 3. The Parties undertake to ensure the free movement of the goods covered by this Agreement in their respective territories. Article 37 Customs cooperation and mutual administrative assistance 1. In order to ensure compliance with the provisions of this Chapter, and to respond effectively to the objectives set out in Article 36, the Parties shall: a) exchange information concerning customs legislation and procedures; b) develop joint initiatives relating to import, export and transit procedures and initiatives to offer an efficient service to the business community; c) cooperate on the automation of customs procedures and other trade procedures and on the establishment of common data exchange standards; d) adopt wherever possible common positions in relation to customs in international organisations such as the WTO, the World Customs Organisation (WCO), the United Nations (UN) and the United Nations Conference on Trade and Development (UNCTAD); e) cooperate on the planning and implementation of technical assistance, in particular in the area of customs reforms and to facilitating trade in accordance with the provisions of the Agreement; and f) encourage cooperation between all the administrative authorities, organisations and other institutions concerned, both within the country and between countries. 2. Notwithstanding paragraph 1, the administrative authorities of the Parties shall provide mutual administrative assistance for customs matters, in accordance with the provisions of the Protocol on Mutual Administrative Assistance in Customs Matters in Annex E. Article 38 Customs legislation and procedures 1. The Parties shall do everything in their power to ensure that their respective trade and customs laws, provisions and procedures are based on: a) the international instruments and standards in force in customs and trade areas, including the essential elements of the International Convention on the Simplification and Harmonisation of Customs Procedures (revised Kyoto Convention), the World Customs Organisation (WCO) Framework of Standards to Secure and Facilitate Global Trade, the WCO Customs Data Model and the International Convention on the Harmonised Commodity Description and Coding System (HS); b) the use of a single administrative document or electronic equivalent in order to make import and export customs declarations; c) regulations to avoid unnecessary and discriminatory measures for economic operations, protect against fraud and provide additional facilities for operators displaying a high level of compliance with customs legislation; d) the use of modern customs techniques, including risk assessment, simplified procedures for the entry and release of goods, post release controls and enterprise audit methods; e) the progressive development of systems, including those based upon Information Technology, to facilitate the electronic exchange of data between economic operators, customs administrations and other related agencies; f) a system of binding customs information, in particular regarding tariff classification and rules of origin in conformity with the rules provided for in the legislation of each Party, in so far as the customs services have all the information they consider necessary; g) rules relating to penalties for infringements of customs regulations or procedural requirements that are proportionate and non-discriminatory and the application of which will not give rise to undue delay; h) transparent, non-discriminatory and proportionate rules in respect of the licensing of customs agents. The Parties recognise the interest in the future elimination of any obligation to use the services of customs agents. The Parties shall broach this question within the Special Customs and Facilitation of Trade Committee; i) observance of the provisions of the WTO Agreement on Preshipment Inspection. The Parties recognise the interest in the future elimination of all requirements for the performance of compulsory inspections prior to the dispatch of goods or on reaching their destination. The Parties shall broach this question within the Special Customs and Facilitation of Trade Committee. 2. In order to improve working methods and ensure respect for the principles of non-discrimination, transparency and efficiency, the Parties shall: a) take the measures necessary to reduce, simplify and standardise the data and documents required by customs and other related bodies; b) simplify customs requirements and formalities wherever possible, in respect of the rapid release and clearance of goods; c) ensure effective, prompt, non-discriminatory and accessible procedures for applicants to secure a right of appeal against customs administrative actions and other decisions affecting imports, exports or goods in transit. d) ensure the maintenance of ethical standards through the application of measures reflecting the principles of the relevant international conventions and instruments in this area, in particular the revised Arusha Declaration of 2003. Article 39 Facilitation of transit movements 1. The Parties shall ensure the free transit of goods through their territory on the most suitable transit route. Any restrictions, controls or requirements in this regard must be justified by a legitimate public policy objective, and must be non-discriminatory, proportionate and applied in a uniform manner. 2. Without prejudice to legitimate customs checks, the Parties shall treat goods in transit from the territory of the other Party no less favourably than goods from the domestic market, exports, imports and their movement. 3. The Parties shall establish transit customs regimes to allow the movement of goods with no obligation to pay customs duties or other charges, subject to the provision of appropriate guarantees. 4. The Parties shall endeavour to promote and implement regional transit arrangements with the aim of reducing barriers to trade. 5. The Parties shall use international standards and instruments arising from the transit of goods. 6. The Parties shall ensure the cooperation and coordination of all the relevant authorities in their territories in order to facilitate transit traffic and promote cross-border cooperation. Article 40 Relations with the business community The Parties agree: a) to ensure that all the legislation, procedures, fees and charges can be published by appropriate means and where possible by electronic means; b) to encourage cooperation between the operators and the relevant administrative authorities through the use of non-arbitrary, publicly accessible procedures such as the Protocols of Agreement based on those promulgated by the WCO; c) to ensure that their respective customs and related regimes and the requirements and procedures associated with them continue to meet the needs of the business community, are in line with best practices and remain as unrestrictive as possible for trade; d) on the need for consultation with trade representatives in due time and on a regular basis regarding legislative proposals and procedures relating to customs and trade issues. To this end, appropriate and regular mechanisms for consultation between the administrative authorities and the business community shall be established by each Party; e) that a sufficient period of time must pass between the publication and the entry into force of any new or amended laws, procedures, rights or charges; The Parties shall publish administrative information concerning in particular agency requirements, entry procedures, working hours and operational procedures of the customs authorities in ports and at border posts, and also on information contact points; Article 41 Customs value The WTO Agreement on Implementation of Article VII of GATT 1994 shall govern the application of the customs value to trade between the Parties. The Parties shall cooperate with a view to taking a common approach to issues relating to customs value. Article 42 Regional integration in the West African region 1. The Parties agree to push forward customs reforms, in particular the harmonisation of procedures and regulation in order to facilitate trade in the West African region. 2. For the above purposes, the Parties shall organise close cooperation of all the bodies concerned by applying the relevant international customs rules. Article 43 Cooperation 1. The Parties recognise the importance of cooperation on customs and trade facilitation for the implementation of this Agreement. 2. In accordance with paragraph 6, Annex D to the Decision of the WTO General Council of 1 August 2004 and, subject to the provisions contained in Part III, the Parties agree to set up appropriate technical and financial programmes of assistance to make it possible to implement the provisions of this Chapter, in particular concerning: a) the development of appropriate, simplified legislative and regulatory provisions; b) information and awareness-raising aimed at operators, including training for the staff concerned;; c) building up capacities, modernisation and connectivity between customs authorities and related services. Article 44 Transitional measures 1. The Parties recognize the need for transitional measures to ensure the smooth implementation of the provisions of this Chapter. 2. Without prejudice to its commitments under the WTO, the West Africa Party shall be granted a transitional period of five (5) years starting from the entry into force of this Agreement in which to comply with the obligations provided for in Article 38(1)(b) and (d). This period may be reviewed depending on the results of the reforms to be effected by the West African region in cooperation with the European Union. Article 45 Special Committee on Customs and Trade Facilitation 1. The Parties shall establish a Special Committee on Customs and Trade Facilitation, which shall be made up of representatives of the Parties. 2. The functions of the Special Committee on Customs and Trade Facilitation shall be as follows: a) to ensure that the implementation and management of this Chapter, the Protocol on rules of origin and the Protocol on mutual administrative assistance are monitored; b) to act as a consultation and discussion forum for all matters relating to customs, in particular customs regimes and customs clearance procedures, rules of origin, customs value, tariff classification, customs cooperation and mutual administrative assistance; c) to develop cooperation for the drawing- up, implementation and monitoring of customs regimes and customs clearance procedures, rules of origin and mutual administrative assistance. 3. The Special Committee on Customs and Trade Facilitation shall meet once a year, on a date and with an agenda to be agreed in advance by the Parties. The Parties may decide to call ad hoc meetings of the Committee if necessary. 4. The Special Committee on Customs and Trade Facilitation shall be chaired alternatively by each Party. 5. The Special Committee on Customs and Trade Facilitation shall report to the Joint Implementation Committee of the EPA. CHAPTER 6 AGRICULTURE, FISHERIES AND FOOD SECURITY Article 46 Objectives 1. The Parties recognise that in the West African region, the agriculture, including livestock farming, and fisheries sectors account for a significant proportion of GDP, play a key role in the fight against food insecurity and provide an income and employment for most of the working population. 2. This Agreement, through its economic and trade effects, and actions in connection with the West Africa EPA Development Programme, should help to increase productivity, competitiveness and diversity of output in the agriculture and fisheries sectors. It should also facilitate the development of the processing sector and increase trade in agricultural, food and fisheries products between the Parties in a way that is consistent with the sustainable development of natural resources. 3. The Parties recognise the as yet unexploited potential of the West African region and the need to support the implementation of its national and regional policies in connection with the cooperation policies implemented by both Parties in line with the provisions contained in Part III of this Agreement. 4. The Parties recognise that fisheries, biological and maritime resources are of great interest to the European Union and the West African region and that the real risk of stock exhaustion, in particular as a result of industrial fishing, make it necessary for them to promote the sustainable management of fish and aquatic resources. 5. The Parties also recognise that the fisheries and marine ecosystems of the West African States are complex, biologically diverse and fragile and that the way in which they are exploited must take account of this through conservation and the sustainable and efficient management of fisheries and the associated ecosystems on the basis of scientific advice and the precautionary principle defined by the Code of Conduct of the Food and Agriculture Organisation (FAO) of the United Nations for responsible fisheries practices. 6. The Parties also recognise the economic and social importance of activities relating to fisheries and the utilisation of the living marine resources of the West African States and the need to maximise their contribution to food security, employment, reducing poverty, increasing income and the social stability of fishing communities. 7. The Parties recognise that securing the food security of the population and raising the means of subsistence in a rural environment are essential for reducing poverty and must be viewed in the wider context of sustainable development and the Millennium Development Goals. They therefore agree to work together to avoid any breakdown in the agricultural and food products markets in West Africa. 8. The European Union undertakes to help the countries of West Africa to develop an effective Monitoring/Control/Surveillance (MCS) system for fisheries as part of its policies, including fisheries policy. 9. The Parties also agree on the importance for the region of establishing policies that will make it possible to increase the benefits from fisheries to the people of the West African region. 10. For the purpose of achieving the objectives referred to in this Article, the Parties take full account of the diversity of characteristics and economic, social and environmental needs and the development strategies of the West Africa Party. Article 47 Food security When the implementation of this Agreement results or seems likely to result in difficulties for the West Africa Party or a State of the West African region in obtaining or gaining access to the products necessary for ensuring food security, the West Africa Party or the State in the West African region may take appropriate measures in line with the procedures described in Article 22. Article 48 Cooperation in the areas of agriculture and food security 1. Cooperation with regard to agriculture and food security is covered by Articles 53 and 69 of the Cotonou Agreement. The Parties agree that the provisions of the Cotonou Agreement relating to this Chapter and Agreement shall be implemented in a complementary manner through mutual reinforcement. 2. To enable the countries of the West African region to ensure the food security of their people and promote viable and sustainable agriculture, both Parties shall examine all the cooperation measures in accordance with the provisions of Part III, with a view, in particular, to: a) promoting the performance of irrigation and water management programmes; b) promoting technological progress, innovation and diversification in the agricultural sector; c) popularising the use of agricultural inputs that are environmentally friendly; d) developing research with a view to the production of improved seeds and their use by farming communities; e) developing an integrated agricultural and livestock farming system; f) improving the storage and preservation of agricultural products; g) reinforcing the role of the State as a supporter and adviser of private operators; h) strengthening the agricultural sectors; i) managing tracks and roads serving rural communities to enhance the collection and movement of agricultural products; (j) contributing to improving warning systems to prevent crises; (k) contributing to the development of regional exchanges for greater centralisation of information regarding the regional availability of food products; (l) promoting contract farming with partners from the European Union to supply organic products, for example; (m) identifying new opportunities for the development and export of products for which there is a strong international demand; (n) promoting land law reforms to increase the legal certainty of farmers and in so doing promote the development of efficient agriculture and raise credit to encourage private investment in the agricultural sector. 3. The Parties agree that special situations of food scarcity might necessitate the performance of specific ad hoc food aid programmes to help countries facing these situations. However, such programmes should not in any way pose a threat to the food security policies in force in the States receiving such aid. 4. To limit any harmful effects of the import of food aid into the West African region, both Parties undertake to favour triangular food aid arrangements that promote trading in local agricultural products. 5. The Parties emphasise the importance of the agricultural sector in the economy and for food security in West Africa and, in particular, the sensitive nature of the sectors that depend on international markets. Each Party shall ensure transparency in its domestic support policies and measures. The European Union shall therefore send, by any appropriate means, regular reports to West Africa on such measures, including, in particular, the legal basis, the forms of measures and the associated sums. The Parties may exchange information concerning any agricultural policy measure at the request of either of the Parties. 6. The European Union Party undertakes to refrain from the use of export subsidies for agricultural products exported to West Africa. 7. With a view to implementing cooperation with regard to agriculture and food security, the Parties shall set up an arrangement for continuous dialogue concerning the areas referred to in this Article. The terms of this dialogue shall be specified by mutual agreement between the Parties. Article 49 Fisheries cooperation 1. With a view to developing and promoting cooperation with regard to fisheries, in accordance with the provisions contained in Part III, the Parties undertake to: a) collaborate with a view to sustainable development of the fish resources of the West African region and apply the precautionary principle when determining the sustainable level of catches and defining the conditions for access to fish resources that must be observed to avoid overexploitation of stocks and any negative impact on the environment and the ecosystem; b) promote the improvement of the supply capacity and competitiveness of fishery products. The European Union therefore undertakes to help the Member States of the region to meet the needs arising from the application of sanitary and phytosanitary (SPS) measures and to develop the regional market for fishery products; c) promote investment and access to funding to increase the productivity of fishery enterprises in the region; d) collaborate with a view to the sustainable management of small-scale fisheries and the preparation and implementation of a policy for the development of aquaculture in West Africa; e) draw up and propose minimum measures to be observed by vessels, in order to improve the monitoring, control and surveillance of their activities; f) coordinate efforts to enhance the means for preventing, discouraging and eliminating Illegal, Unreported and Unregulated Fishing (IUUF) and for taking appropriate measures for this purpose. In this regard, the Parties undertake to take any necessary measures to end illegal fishing and prevent its continuation, without prejudice to any other action they consider appropriate; g) establish a vessel monitoring system (VMS) for all of West Africa, with all the West African States using a compatible VMS; h) in addition to an obligatory compatible VMS, all of West Africa, together with the European Union Party, undertakes to develop other arrangements to ensure effective control and surveillance policies; i) lighten traceability and certification procedures and conditions for fishery products exported from the region to the market of the European Union; (j) improve and reinforce fishery control, surveillance and monitoring mechanisms and arrangements in order to combat illegal, unregulated and unreported fishing, including the adoption of minimum measures to be observed by vessels to permit the monitoring, control and surveillance of their activities; (k) authorise the taking of appropriate protection measures based on scientific recommendations and after having consulted the various interested parties, including the European Union, if there is a danger of the sustainable management of fish and aquatic resources of the region being compromised; (l) strengthen scientific research into the state of fish resources in the West African region; (m) improve and reinforce the information system and the system for processing fishery statistics, concerning migratory species in particular; (n) strengthen cooperation in all areas of common interest with regard to fisheries. Article 50 Regional integration 1. The Parties recognise that greater integration of the agricultural and food markets and sectors of the West African States through the progressive elimination of the remaining barriers and the adoption of an appropriate regulatory framework will help to deepen the process of regional integration and achieve the objectives referred to in this Chapter. 2. According to the provisions contained in Part III of the West Africa EPA Development Programme, they shall work on the preparation and implementation of regional policies for the agricultural and fisheries sectors and increase the efficiency of the regional markets in those sectors. Article 51 Exchange of information and consultation on matters relating to agriculture and fisheries 1. The Parties agree to exchange experience, information and best practices and to consult one another concerning any area covered by the objectives of this Chapter and relevant to trade between the Parties. 2. The Parties agree that such a dialogue will be especially useful in the following areas in particular: a) exchange of information on agricultural production, consumption and trade and on the respective market developments for agricultural and fish products; b) exchange of information on agriculture, rural development and fisheries policies, laws and regulations; c) discussion of policy and institutional changes needed to transform the agricultural and fisheries sectors as well as the formulation and implementation of regional policies on agriculture, food, rural development and fisheries in pursuit of regional integration; d) exchange of views on new technologies and quality control measures; e) exchange of views for a better understanding and monitoring of private standards in force in the European Union. PART III COOPERATION FOR IMPLEMENTATION OF DEVELOPMENT AND ACHIEVEMENT OF THE OBJECTIVES OF THE EPA Article 52 Objectives 1. The Parties undertake, under this Agreement, to strengthen their cooperation and make a joint commitment to implement the EPA and achieve its objectives. The European Union Party undertakes to support the West Africa Party to implement an EPA that is conducive to development. 2. The joint commitment by the Parties is part of the vision for the development of the West African region and shall contribute to the achievement of the priorities laid down in Part I of this Agreement. The Parties therefore agree that improving access to the market of the European Union is not a sufficient condition for bringing about the profitable insertion of the West African region into world trade. They therefore undertake to take effective measures that should contribute to the establishment in the West African region of a solid, competitive and diversified economic base, the deepening of its economic integration and its adaptation to the new context created by this Agreement in order to benefit from the economic partnership. Article 53 Principles 1. The Parties agree to implement cooperation intended to back up, through technical and financial support, the efforts of West Africa to meet the commitments made under this Agreement. The cooperation is also intended to help the West African region to lift the constraints that are undermining efforts to diversify and increase its output, in order to increase intra-regional trade and benefit from the opening up of the European market. They undertake to implement the EPA Development Programme (PAPED) in order to ensure the achievement of the objectives of the Agreement. To this end, the provisions of the Cotonou Agreement concerning economic and regional cooperation and integration shall be implemented with a view to maximising the benefits of this Agreement. 2. The Parties undertake to ensure consistency between development cooperation and the international commitments of the Parties with regard to sustainable development and regional development strategies. 3. The new trade system established by this Agreement and the commitments made with regard to development cooperation shall complement one another and both together contribute to the development aspect of the Agreement. Under Article 2(4) of this Agreement, the new trade system shall be based on reciprocity, take account of the difference in the level of development and introduce special and differential treatment and progressive asymmetric liberalisation for West Africa. 4. The Parties also agree that the provisions of this Part cannot be interpreted as preventing the West Africa Party from pursuing its growth and development objectives, implementing its policies and achieving its regional integration. Article 54 Financing arrangements 1. The European Union undertakes to support the actions and projects linked to the development aspect of the Agreement. European Union funding[2] regarding development cooperation between West Africa and the European Union to support the implementation of this Agreement shall be provided through: a) appropriate rules and procedures provided for by the Cotonou Agreement, in particular the programming procedures of the European Development Fund; b) relevant instruments financed by the General Budget of the European Union; c) other financial arrangements to be created in the event of the expiry of the Cotonou Agreement. 2. The Member States of the European Union collectively undertake to support, by means of their respective development policies and instruments, including in connection with aid for trade, development activities for regional economic cooperation and for the implementation of this Agreement, at both national and regional levels, in accordance with the principles of effectiveness, coordination and complementarity of aid. 3. The European Union and its Member States undertake to finance the development aspect of the Agreement for a period at least corresponding to the time it takes West Africa to liberalise trade under this Agreement, in accordance with the financial instruments, the legal provisions of the Parties and the principles laid down in Article 2 of this Agreement. 4. The European Union and its Member States undertake to assist West Africa in raising additional funding for the development aspect of the Agreement from other donors. Article 55 EPA Development Programme To support the autonomous efforts of the region to ensure its development, the Parties shall make the financial and technical arrangements necessary for implementation of the EPA Development Programme (PAPED) and achievement of its objectives, in accordance with the provisions of Article 54 above, in order to give concrete form to the development aspect of this Agreement. Article 56 The PAPED objectives 1. The EPA Development Programme is part of a long-term vision for the achievement of the development objectives of the Agreement. Its overall objective is to build a regional economy that is competitive, harmoniously integrated with the world economy and stimulates growth and sustainable development. Consistency shall be established between the PAPED and the aid for trade programme for the West African region and regional strategies for the regional economic and sectoral development of this region. 2. The specific objective to be attained by the EPA Development Programme is to enable the West African region to fully benefit from the opportunities offered by the EPA and to meet the adjustment costs and face the challenges associated with implementation of the Agreement. 3. To this end, the programme must contribute to: a) the achievement of rapid, sustained economic growth that creates jobs and contributes to sustainable development and reducing poverty in the West African region; b) increasing the diversity and competitiveness of the economies of the West African region; c) increasing the population's output and income; d) deepening the process of regional integration and increasing intra-regional trade; e) increasing the market shares of the West African region on the European market through such measures as improving access to the said market; f) promoting investment in West Africa, partnership between the private sectors of the European Union and West Africa and improving the business environment in the West African region. Article 57 The goals of PAPED The areas for action covered by the EPA Development Programme are based on five goals: a) diversifying and increasing production capacities; b) developing intra-regional trade and facilitating access to international markets; c) improving and reinforcing national and regional infrastructures linked to trade; d) making essential adjustments and taking account of other needs linked to trade; e) implementation and monitoring/evaluation of the EPA by the West African region. Article 58 PAPED implementation arrangements 1. The EPA Development Programme is subject to a Protocol that is an integral part of the Agreement and is contained in Annex F. The arrangements for the implementation of this programme shall be defined in the Protocol. 2. The PAPED shall be implemented through a matrix of activities combined with a financial assessment, a schedule and indicators for monitoring implementation. The matrix of activities shall be covered by a financial commitment by the European Union and its Member States to implement it, in accordance with the provisions of Article 54 above. 3. The PAPED shall be subject to assessment at intervals agreed between the Parties. The PAPED shall be revised regularly on the basis of the results of its implementation and the impact of the Agreement. To this end, an arrangement based on jointly defined indicators shall make it possible to continuously monitor implementation of the programme and assess its impact. 4. As part of the joint assessment referred to in paragraph 3, the Parties shall look for synergies between the rate of implementation of the commitments made by the West African region and the progress made in carrying out the activities and programmes of the PAPED, in particular the raising of funding for it, and in increasing the region's competitiveness and production capacities. In accordance with the provisions of this Agreement, in particular Article 54, the Parties shall take measures to reinforce these synergies in the Joint Council of the EPA. . . Article 59 Support for implementation of the rules The Parties agree that the implementation of trade rules, including the areas of cooperation detailed in the various chapters of this Agreement, is fundamental to achieving the objectives of this Agreement. Cooperation in this field shall be organised in accordance with the arrangements specified in Article 54. Article 60 Taxation adjustment 1. The Parties recognise the challenges that the elimination or substantial reduction of customs duties provided for in this Agreement can pose for the West African region and they agree to establish dialogue and cooperation in this field. 2. In light of the tariff dismantling schedule adopted by the Parties as part of this Agreement, the Parties agree to establish in-depth dialogue on fiscal adjustment reforms and measures in order to reduce the budget deficit and ultimately ensure a balanced budget for the countries of the West African region. 3. West Africa undertakes to establish tax reforms as part of the change in taxation resulting from liberalisation. The European Union undertakes to help West Africa to implement these reforms. In view of these reforms, the European Union undertakes to provide funding to cover the fiscal impact agreed by the Parties for the period of tariff dismantling. Article 61 Instruments 1. As part of the implementation of the provisions of Part III of this Agreement, the Parties agree to establish the following instruments: a) the Competitiveness Observatory; b) the Regional EPA Fund. 2. The Compet