Proposal for a Council Decision on the signature and provisional application of the Interim Economic Partnership Agreement between the European Community and its Member States, on the one part, and the SADC EPA States, on the other part
Date: 2008-09-18
Institutions: European Commission
Subjects: Botswana, Eswatini, Lesotho, Mozambique, Namibia, cooperation agreement (EU), economic cooperation, signature of an agreement

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 18.9.2008 
COM(2008) 562 final 

Proposal for a 

COUNCIL DECISION 

on the signature and provisional application of the Interim Economic Partnership 
Agreement between the European Community and its Member States, on the one part, 
and the SADC EPA States, on the other part 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

The  attached  proposal  constitutes  the  legal  instrument  for  the  signature  and  provisional 
application  of  an  Interim  Economic  Partnership  Agreement  (EPA)  between  the  European 
Community and its Member States, of the one part, and the SADC EPA States, of the other 
part: 

(i) Proposal for a Council Decision on the signature and provisional application of the Interim 
EPA. 

The SADC Interim EPA was negotiated in accordance with the objectives for EPAs set out in 
the  Cotonou  Agreement1  and  the  negotiating  directives  for  the  Economic  Partnership 
Agreements  with  ACP  States  adopted  by  Council  on  12  June  2002.  Negotiations  were 
concluded by the initialling of the EPA on 23 November 2007 before the expiry of the trade 
regime set out in Annex V of the Cotonou Agreement on 31 December 2007 and the World 
Trade Organisation (WTO) waiver covering that trade regime. 

As  a  result  all  five  SADC  EPA  States  (Botswana,  Lesotho,  Mozambique,  Namibia  and 
Swaziland)  were  included  in  the  list  of  countries  in  Annex  1  of  the  EPA  Market  Access 
Regulation  adopted  by  Council  on  20  December  20072  that  have  benefited  from  the 
Community  market  access  offer  made  in  the  context  of  EPAs  from  1  January  2008.  Their 
inclusion on this list will become permanent following ratification of the Interim EPA by all 
parties. This will ensure an harmonised trade regime with the EU providing improved market 
access  for  several  SADC  EPA  States,  including  Mozambique  and  Lesotho  which  are 
recognised as Least Developed Country by the United Nations. 

The SADC EPA is an Interim EPA the scope of which will be extended by the outcome of 
negotiations for full EPA reached in 2008. It includes all the measures necessary to establish a 
Free  Trade  Area  compatible  with  the  provisions  of  Article  XXIV  of  the  GATT  19943.  The 
Interim EPA also contains provisions on Customs and Trade Facilitation, Technical Barriers 
to Trade, Sanitary and Phytosanitary Measures, Current Payment and Capital Movements as 
well as development cooperation and institutional provisions.  

The  institutional  provisions  include  a  Joint  SADC  EPA-EC  Council  ("Joint  Council")  to 
supervise  the  implementation  of  the  Interim  EPA.  The  Joint  Council  shall  be  composed  of 
representatives  of  the  SADC  EPA  States  as  well  as  members  of  the  Council  and  of  the 
Commission. The Joint Council will be assisted by a SADC EPA-EC Trade and Development 
Committee. 

Pending  the  entry  into  force  of  the  Interim  EPA,  the  Agreement  foresees  the  provisional 
application of the Agreement. 

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: 

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The ACP-EC Partnership Agreement signed in Cotonou on 23 June 2000 as revised in Luxembourg on 
25 June 2005. 
Council Regulation 1528/2007. 
General Agreement on Tariffs and Trade (1994). 

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– 

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to authorise the signature, on behalf of the European Community, of the SADC 
Interim EPA; 

to approve the provisional application of the Interim EPA pending its entry into 
force. 

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Proposal for a 

COUNCIL DECISION 

on the signature and provisional application of the Interim Economic Partnership 
Agreement between the European Community and its Member States, on the one part, 
and the SADC EPA States, on the other part 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Articles 
133 and 181 in conjunction with the first subparagraph of Article 300(2) thereof, 

Having regard to the proposal from the Commission4, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

On  12  June  2002  the  Council  authorised  the  Commission  to  open  negotiations  of 
Economic Partnership Agreements with ACP countries. 

These  negotiations  for  an  Interim  Economic  Partnership  Agreement  have  been 
concluded and the EPA between the European Community and its Member States and 
the  SADC  EPA  States  (comprising  Botswana,  Lesotho,  Namibia,  Swaziland  and 
Mozambique)  (hereinafter  referred  to  as  the  'EPA')  was  initialled  on  23  November 
2007 and on 12 December 2007 for Namibia. 

Article  105(4)  of  the  EPA  provides  for  its  provisional  application  pending  its  entry 
into force. 

The EPA should be signed on behalf of the Community and applied on a provisional 
basis subject to its conclusion at a later date. 

HAS DECIDED AS FOLLOWS: 

Article 1 

The signing of the Interim Economic Partnership Agreement between the SADC EPA States 
and  the  European  Community  and  its  Member  States  is  hereby  approved  on  behalf  of  the 
Community, subject to the Council Decision concerning the conclusion of the said Economic 
Partnership Agreement. 

The text of the Agreement is attached to this Decision. 

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OJ C […], […], p. […] 

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The  President  of  the  Council  is  hereby  authorised  to  designate  the  person(s)  empowered  to 
sign the Agreement on behalf of the European Community subject to its conclusion.  

Article 2 

Article 3 

The Agreement shall be applied on a provisional basis as provided for in Article 105(4) of the 
Agreement,  pending  completion  of  the  procedures  for  conclusion.  The  Commission  shall 
publish a notice providing information on the date of provisional application.  

Done at Brussels, […] 

For the Council 
The President 
[…]

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS HAVING A 
BUDGETARY IMPACT EXCLUSIVELY LIMITED TO THE REVENUE SIDE 

1. 

NAME OF THE PROPOSAL: 

COUNCIL  DECISION  on  the  signature  and  provisional  application  of  the  Interim 
Economic Partnership Agreement between the European Community and its Member 
States, on the one part, and the SADC EPA States, on the other part 

2. 

BUDGET LINES: 

Chapter and Article: 12/120 

Amount budgeted for the year concerned: 16 431 900 000 (Budget 2008) 

3. 

FINANCIAL IMPACT  

(cid:59) 

(cid:133) 

Proposal has no financial implications 

Proposal has no financial impact on expenditure but has a financial impact on 
revenue – the effect is as follows: 

4. 

ANTI-FRAUD MEASURES 

In  order  to  protect  the  Communities'  financial  interests  against  fraud  and  other 
irregularities,  the  Commission  may  carry  out  on-the-spot  checks  and  inspections  in 
accordance  with  Article  29  of  the  Economic  Partnership  Agreement  between  the 
SADC  EPA  States  and  the  European  Community  and  its  Member  States.  Where 
necessary,  investigations  shall  be  conducted  by  the  European  Anti-Fraud  Office 
(OLAF)  and  these  shall  be  governed  by  Regulation  (EC)  No  1073/1999  of  the 
European  Parliament  and  of  the  Council.  The  Commission  will  conduct  regular 
document-based and on-the-spot checks. 

5. 

OTHER REMARKS 

All remaining customs tariffs on products originating in those ACP regions or states 
that  concluded  negotiations  on  Economic  Partnership  Agreements  or  agreements 
including  WTO  compatible  trade  arrangements  were  removed  by  the  adoption  of 
Council  Regulation  1528/2007.  There  is,  therefore,  no  additional  financial  impact 
associated with this proposal. 

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