Proposal for a COUNCIL DECISION on the accession of Tuvalu to the Interim Partnership Agreement between the European Community, of the one part, and the Pacific States, of the other part
Date: 2023-12-11
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: Tuvalu, accession to an agreement, cooperation agreement (EU), economic cooperation, interim agreement (EU)

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   EUROPEAN COMMISSION  Brussels, 11.12.2023  COM(2023) 785 final 2023/0456 (NLE)  Proposal for a COUNCIL DECISION on the accession of Tuvalu to the Interim Partnership Agreement between the European Community, of the one part, and the Pacific States, of the other part  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The attached proposal for a Council Decision constitutes the legal instrument for the approval, 
on behalf of the European Union (EU), of the accession of Tuvalu to the interim Partnership 
Agreement between the European Union, of the one part, and the Pacific States, of the other 
part, pursuant to Article 218(6) TFEU. 

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

On 30 July 2009 the EU signed an interim EPA between the Union (the European Community 
at  the  time),  of  the  one  part,  and  the  Pacific  States,  of  the  other  part.  The  interim  EPA  has 
been provisionally applied by Papua New Guinea and the Republic of Fiji since 20 December 
2009 and 28 July 2014, respectively. 

Article 80 of the interim EPA provides for the possibility for other Pacific Islands to accede to 
the Agreement. Accordingly, the Independent State of Samoa and Solomon Islands acceded to 
the Agreement and are provisionally applying it since 31 December 2018 and 17 May 2020, 
respectively. 

On  31  March  2023,  Tuvalu  submitted  a  request  to  the  Commission,  together  with  a  market 
access  offer,  to  accede  to  the  interim  EPA.  The  Commission  assessed  the  offer  and,  after 
amendments,  found  it  to  be  acceptable.  Accordingly,  it  concluded  negotiations  on  behalf  of 
the Union on 28 April 2023. 

• 

Consistency with existing policy provisions in the policy area 

This  proposal  implements  the  Partnership  Agreement  between  the  members  of  the  African, 
Caribbean and Pacific Group of States, of the one part, and the European Community and its 
Member States, of the other part (“ACP-EU Partnership Agreement”, or Cotonou Agreement, 
to be replaced by the “EU-OACPS Agreement” (the post-Cotonou Agreement))1. 

The accession of Tuvalu to the interim EPA between the EU, Fiji, Papua New Guinea, Samoa 
and  Solomon  Islands2,  which  is  an  asymmetric  and  WTO-compatible  trade  agreement, 
reinforces the legal framework of the EU trade relations with partner countries and facilitates 
reciprocal  trade.  It  also  incorporates  Tuvalu  into  the  regime  of  joint  rules  and  institutions 
established by the interim EPA. 

Tuvalu  is  expected  to  graduate  from  the  Least  Developed  Countries  (LDC)  status  in  2024. 
Tuvalu will lose the EU's Everything-But-Arms (EBA) preferences three years thereafter, and 
its  exports  to  the  EU  will  be  covered  by  the  standard  form  of  the  Generalised  Scheme  of 
Preferences (GSP), which is however less generous than the EBA. To maintain full duty-free-
quota-free access to the EU market, Tuvalu would need to accede to the interim EPA between 
the EU and the Pacific States (Fiji, Papua New Guinea, Samoa and Solomon Islands). 

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2 

OJ L 287, 4.11.2010, p. 3 Agreement as amended by the Agreement signed in Luxembourg on 25 June 
2005 (OJ L 209, 11.8.2005, p. 27) and by the Agreement signed in Ouagadougou on 22 June 2010 (OJ 
L 287, 4.11.2010, p. 3). 
Council  Decision  of  13  July  2009  on  the  signature  and  provisional  application  of  the  Interim 
Partnership Agreement between the European Community, of the one part, and the Pacific States, of the 
other part (OJ L 272, 16.10.2009, p. 1). 

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Upon  accession,  and  pending  the  completion  of  related  internal  procedures  by  the  Pacific 
Parties to the Agreement (Fiji, Papua New Guinea, Samoa and Solomon Islands), the EU and 
Tuvalu shall provisionally apply the Agreement subject to notifying each other in writing of 
the completion of the procedures necessary for this purpose in accordance with Article 76(3) 
of the Agreement. 

• 

Consistency with other Union policies 

The  Economic  Partnership  Agreement  contains  provisions  on  Sustainable  Development 
(Article 3), whereby the Parties reaffirm that the objective of sustainable development shall be 
an  integral  part  of  the  provisions  of  this  Agreement,  consistent  with  the  overarching 
objectives  and  principles  set  out  in  Cotonou  Agreement,  and  especially  the  general 
commitment  to  reduce  and  eventually  eradicate  poverty  in  a  way  that  is  consistent  with  the 
objectives of sustainable development. 

The interim EPA is a development-oriented trade agreement, which offers asymmetric market 
access to Tuvalu and allows it to shield sensitive sectors from liberalisation, while providing a 
large  number  of  safeguards  and  a  clause  for  infant  industry  protection.  It  further  contains 
provisions on the rules of origin that facilitate Tuvalu’s' exports into the EU. These provisions 
contribute  to  the  objective  of  Policy  Coherence  for  Development  and  are  consistent  with 
Article 208(2) TFEU. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  legal  basis  for  this  Council  decision  is  the  Treaty  on  the  Functioning  of  the  European 
Union,  in  particular  the  first  subparagraph  of  Article  207(4),  in  conjunction  with  Article 
218(6)(a)(v), thereof. 

• 

Subsidiarity (for non-exclusive competence) 

The common commercial policy, in accordance with Article 3 of the TFEU, is defined as an 
exclusive Union competence. 

• 

Proportionality 

This proposal is necessary in order to implement the Union’s international commitments, as 
set  out  in  the  ACP-EU  Partnership  Agreement,  in  particular  to  conclude  new  WTO 
compatible trading arrangements progressively removing barriers to trade between the Parties 
and enhancing cooperation in all areas relevant to trade. 

• 

Choice of the instrument 

There  exists  no  other  legal  instrument  that  could  be  used  in  order  to  achieve  the  objective 
expressed in this proposal. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

Not applicable. 

• 

Impact assessment 

A Sustainability Impact Assessment (SIA) of the EU-ACP Economic Partnership Agreements 
was  carried  out  between  2003  and  2007.  The  terms  of  reference  for  this  project  were 

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published  by  the  European  Commission  in  2002  under  a  competitive  call  for  tender.  As  a 
result  of  this  call  for  tender  a  five-year  framework  contract  was  awarded  to  PwC  France  in 
August  2002.  A  draft  version  of  the  SIA’s  final  report  was  presented  to  stakeholders  in 
Europe  during  the  EU  Civil  Society  Dialogue  meeting  organised  by  the  European 
Commission  on  23  March  2007  in  Brussels,  Belgium.  No  new  SIA  has  been  carried  out 
because this initiative concerns an accession to an existing Agreement that is already beeing 
applied by the other Pacific Island States whose structural  characteristics and economic and 
social situation are comparable to those of Tuvalu. 

• 

Regulatory fitness and simplification 

The  approval  of  the  accession  of  Tuvalu  to  the  interim  EPA  is  not  subject  to  REFIT 
procedures; it does not imply any costs for the Union SMEs; and it does not raise any issues 
from the viewpoint of the digital environment. 

• 

Fundamental rights 

The  proposal  does  not  have  consequences  for  the  protection  of  fundamental  rights  in  the 
Union. 

4. 

BUDGETARY IMPLICATIONS 

Tuvalu is expected to graduate from the Least Developed Countries category in 2024. It will 
continue to benefit from the EU’s 'Everything But Arms' preferences, which offers duty-free 
quota-free  access  to  EU  market  for  all  products  (except  arms  and  amunitions),  for  a 
transitional  period  of  three  years  thereafter.  There  will  be  no  budgetary  implications  as  the 
accession  to  the  Agreement  will  continue  Tuvalu’s  market  access  into  the  EU  on  the  same 
terms of preferences. 

5. 

• 

OTHER ELEMENTS 

Benefits of the accession for economic operators 

The interim EPA establishes the conditions for EU economic operators to take full advantage 
of the opportunities between our respective economies. Over the course of its implementation, 
the  interim  EPA  will  largely  relieve  EU  exporters  of  industrial  products  to  Tuvalu  from 
paying customs duties. It satisfies the criteria established in Article XXIV of the GATT 1994 
(to eliminate duties and other restrictive regulations of commerce with respect to substantially 
all trade between the parties). The offer meets WTO threshold, i.e. 80.2% of liberalisation (in 
tariff  lines),  corresponding  to  82.1%  in  volume  of  EU  exports  over  20  years.  Tuvalu  will 
benefit from maintaining its duty-free quota-free access into the EU market. 

The interim EPA also establishes a set of disciplines in the areas of sustainable development; 
Technical  Barriers  to  Trade  (TBT);  and  Sanitary  and  Phytosanitary  (SPS)  measures  among 
others.  Furthermore,  the  Parties  to  the  interim  EPA  participate  in  the  Trade  Committee 
established  under  the  Agreement.  The  possibility  of  the  EU  to  avail  itself  of  the  bilateral 
dispute  settlement  mechanism  foreseen  under  the  Agreement  contributes  to  the  objective  of 
securing  a  transparent,  non-discriminatory  and  predictable  environment  for  EU  operators  in 
the Pacific countries. 

• 

Implementation plans and monitoring, evaluation and reporting arrangements 

Tuvalu will take part in the Trade Committee, established in accordance with Article 68 of the 
interim  EPA,  which  shall  deal  with  all  matters  necessary  for  the  implementation  of  the 

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Agreement, including monitoring and review of implementation, providing coordination and 
consultation on TBT and SPS issues, identifying and reviewing priority sectors and products 
and  the  resulting  priority  areas  for  cooperation,  and  making  recommendations  for 
modifications  to  the  Agreement.  The  Trade  Committee  shall  be  composed  of  the 
representatives of the Parties. 

• 

Explanatory documents (for directives) 

Not applicable. 

• 

Detailed explanation of the specific provisions of the proposal 

Articles 1 and 2 of the proposal contain provisions on the approval, on behalf of the Union, of 
the  accession  of  Tuvalu  to  the  interim  EPA  and  on  notifications  in  order  to  express  the 
consent of the European Union to accession and the provisional application of the Agreement 
in accordance with Article 76(3) thereof. 

Article  3  specifies  that  the  approval  of  the  accession  must  not  be  construed  as  conferring 
rights  or  imposing  obligations  which  can  be  directly  invoked  before  the  Union  or  Member 
State courts or tribunals. 

Article 4 establishes the date of the entry into force of the Decision. 

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2023/0456 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the accession of Tuvalu to the Interim Partnership Agreement between the European 
Community, of the one part, and the Pacific 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 the 
first  subparagraph  of  Article  207(4),  in  conjunction  with  point  (a)(v)  of  the  second 
subparagraph of Article 218(6) thereof, 

Having regard to the proposal from the European Commission, 
Having regard to the consent of the European Parliament1, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

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3 

On  12  June  2002,  the  Council  authorised  the  Commission  to  open  negotiations  for 
Economic Partnership Agreements with the African, Caribbean and Pacific Group of 
States2. 

The  Interim  Partnership  Agreement  between  the  European  Community,  of  the  one 
part, and the  Pacific States,  of the other part3 (the ‘Interim Partnership Agreement’), 
which establishes a framework for an Economic Partnership Agreement, was signed in 
London on 30 July  2009. The Interim Partnership Agreement has  been provisionally 
applied by Papua New Guinea and the Republic of the Fiji since 20 December 2009, 
28 July 2014, respectively. 

Article 80 of the Agreement lays down the provisions regarding the accession of other 
Pacific  Islands  States.  Accordingly,  the  Independent  State  of  Samoa  and  Solomon 
Islands have acceded to the Agreement and have been provisionally applying it since 
31 December 2018 and 17 May 2020, respectively. 

On 31 March 2023, Tuvalu submitted a request for accession together with a market 
access offer to the Union. 

The  Commission  has  assessed  Tuvalu’s  offer  and,  after  amendments,  found  it 
acceptable.  Accordingly,  the  Commission  concluded  negotiations  with  Tuvalu  on  
27 April 2023. 

In  accordance  with  Article  76(3)  of  the  Agreement,  the  Union  and  Tuvalu  are  to 
provisionally apply the Agreement 10 days after notifying each other in writing of the 
completion of the procedures necessary for this purpose. 

The European Parliament gave its consent on [date].   
Council Directives for the negotiations of Economic Partnership Agreements with ACP countries and 
regions (9930/02 (DG E II) HH/sg). 
Council  Decision  2009/729/EC  of  13  July  2009  on  the  signature  and  provisional  application  of  the 
Interim  Partnership  Agreement  between  the  European  Community,  of  the  one  part,  and  the  Pacific 
States, of the other part (OJ L 272, 16.10.2009, p. 1). 

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(7) 

The accession of Tuvalu to the Interim Partnership Agreement should be approved on 
behalf  of  the  Union,  subject  to  Tuvalu’s  deposit  of  the  act  of  accession  pursuant  to 
Article 80(2) thereof, 

HAS ADOPTED THIS DECISION: 

Article 1 

1. 

2. 

The accession of Tuvalu to the Interim Partnership Agreement between the European 
Community,  of  the  one  part,  and  the  Pacific  States,  of  the  other  part  (the  ‘Interim 
Partnership  Agreement’),  is  hereby  approved  on  behalf  of  the  Union,  subject  to 
Tuvalu’s deposit of the act of accession pursuant to Article 80(2) thereof.  

The  President  of  the  Commission  shall,  on  behalf  of  the  Union,  notify  the  other 
Contracting Parties to the Interim Partnership Agreement and Tuvalu of the approval, 
by the Union, of the accession of Tuvalu to the Interim Partnership Agreement.  

3. 

The text of the market access offer of Tuvalu is attached to this Decision. 

Article 2 

1. 

2. 

For  the  purposes  of  provisionally  applying  the  Interim  Partnership  Agreement 
between the Union and Tuvalu, the President of the Commission shall, on behalf of 
the Union, give the notification referred to in Article 76(3) of the Interim Partnership 
Agreement. 

The Union and Tuvalu shall provisionally apply the Interim Partnership Agreement 
10  days  after  they  have  notified  each  other  in  writing  of  the  completion  of  the 
procedures necessary for that purpose in accordance with paragraph 1. 

The  approval  of  the  accession  of  Tuvalu  to  the  Interim  Partnership  Agreement  shall  not  be 
construed as conferring rights or imposing obligations which can be directly invoked before 
Union or Member State courts or tribunals. 

Article 3 

This Decision shall enter into force on the day of its adoption. 

Done at Brussels, 

Article 4 

For the Council 
The President 

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