Proposal for a Council Decision concluding the interim agreement establishing a framework for an Economic Partnership Agreement between Eastern and Southern Africa States on the one part and the European Community and its Member States on the other part
Date: 2008-12-16
Institutions: European Commission
Subjects: Seychelles, Zambia, Zimbabwe, cooperation agreement, economic agreement

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 16.12.2008 
COM(2008) 861 final 

2008/0251 (AVC) 

Proposal for a 

COUNCIL DECISION 

concluding the interim agreement establishing a framework for an Economic 
Partnership Agreement between Eastern and Southern Africa States on the one part 
and the European Community and its Member States on the other part 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

The  attached  proposal  constitutes  the  legal  instrument  for  the  conclusion  of  an  interim 
agreement establishing a framework for an Economic Partnership Agreement (EPA) between 
Eastern and Southern Africa (ESA) States on the one part and the European Community and 
its Member States on the other part: 

(i)  Proposal  for  a  Council  Decision  concluding  the  interim  agreement  establishing  a 
framework for an EPA. 

As  announced  in  the  Communication  to  the  Council  and  the  European  Parliament  dated  23 
October  2007,  the  interim  agreement  establishing  a  framework  for  an  EPA  has  been 
negotiated to avoid disrupting trade with the Community on 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.  These  negotiations  were  concluded 
by  the  initialling  of  the  interim  agreement  establishing  a  framework  for  an  EPA  on  28 
November  2007  with  Seychelles,  Zambia  and  Zimbabwe,  on  4  December  2007  with 
Mauritius and on 11 December 2007 with Comoros and Madagascar. 

As  a  result,  five  of  these  six  ESA  States  (Comoros,  Madagascar,  Mauritius,  Seychelles, 
Zimbabwe)  were  included  in  the  list  of  countries  in  Annex  1  of  the  EPA  Market  Access 
Regulation  adopted  by  Council  on  20  December  20071  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  the  entry  into  force  of  the  interim 
agreement establishing a framework for an EPA. This will ensure a harmonised trade regime 
with  the  EU  providing  improved  market  access  for  all  initialling  ESA  States,  including  the 
two  countries  recognised  as  Least  Developed  Countries  by  the  United  Nations.  Given  that 
Zambia did not table a market access offer, it was not included in the Regulation. As a LDC, 
Zambia continues to benefit from the Everything But Arms (EBA) trade regime.  

The scope of the interim agreement establishing a framework for an EPA between ESA States 
and the Community and its Member States will be extended by the outcome of negotiations 
for a comprehensive EPA reached by December 2008. It includes currently all the measures 
necessary to establish a Free Trade Area compatible with the provisions of Article XXIV of 
the  GATT  19942.  This  Agreement  also  contains  provisions  on  rules  of  origin,  non-tariff 
measures,  trade  defence  measures,  dispute  avoidance  and  settlement,  as  well  as  fisheries, 
development and administrative and institutional provisions.  

The negotiation of a full EPA continues consistently with the directives for EPAs with ACP 
States adopted by Council on 12 June 2002. 

The  institutional  provisions  include  an  EPA  Committee  composed  of  representatives  of  the 
Parties to be responsible for the administration of all matters under the agreement.  

Pending the entry into force of the interim agreement establishing a framework for an EPA, 
the interim agreement foresees the provisional application of the Agreement. 

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Council Regulation 1528/2007 
General Agreement on Tariffs and Trade (1994) 

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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  conclude  the  interim  agreement  establishing  a  framework  for  an  EPA  between 
ESA States and the Community and its Member States on behalf of the Community. 

The European Parliament will be called upon to give its assent to the conclusion of the EPA. 

The Member States are also parties to the Agreement, which therefore needs to be ratified by 
them according to their internal procedures. 

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2008/0251 (AVC) 

Proposal for a 

COUNCIL DECISION 

concluding the interim agreement establishing a framework for an Economic 
Partnership Agreement between Eastern and Southern Africa States on the one part 
and the European Community and its Member 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 second subparagraph of Article 300(3) thereof, 

Having regard to the proposal from the Commission3, 

Having regard to the assent of the European Parliament4 

Whereas: 

(1) 

(2) 

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

Negotiations  for  an  interim  agreement  establishing  a  framework  for  an  Economic 
Partnership  Agreement  (hereinafter  referred  to  as  the  'interim  EPA')  have  been 
concluded  on  28  November  2007  with  Seychelles,  Zambia  and  Zimbabwe.  On  4 
December  2007,  the  interim  EPA  was  initialled  by  Mauritius  and  on  11  December 
2007 by Comoros and Madagascar. 

(3) 

The interim EPA has been provisionally applied since [..] pending its entry into force. 

(4) 

The interim EPA should be concluded on behalf of the European Community. 

HAS DECIDED AS FOLLOWS:  

Article 1 

The  interim  agreement  establishing  a  framework  for  an  Economic  Partnership  Agreement 
between  Eastern  and  Southern  Africa  States  and  the  European  Community  and  its  Member 
States is hereby concluded on behalf of the Community. 

The text of the interim EPA is attached to this Decision. 

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OJ C […], […], p. […] 
OJ C […], […], p. […] 

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Article 2 

The  President  of  the  Council  shall  give  the  notification  referred  to  in  Article  62(2)  of  the 
interim EPA on behalf of the Community.  

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  concluding  the  interim  agreement  establishing  a  framework 
for an Economic Partnership Agreement between Eastern and Southern Africa States 
on  the  one  part  and,  the  European  Community  and  its  Member  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  22  of  the  Agreement  between  the  ESA  States  and  the 
European Community and its Member States and article 7 of Protocol 2 attached to 
therein.  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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