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# 52014PC0578

**Proposal for a COUNCIL DECISION on the conclusion 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/2014/0578 final - 2014/0267 (NLE) \*/**

  

EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

The attached proposal for a Council
Decision constitutes the legal instrument for the conclusion of the Economic
Partnership Agreement (EPA) between the West African States, 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

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:

–
Conclude the Agreement on behalf of the European
Union,

2014/0267 (NLE)

Proposal for a

COUNCIL DECISION

on the conclusion 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(6)(a), thereof,

Having regard to the proposal from the
European Commission[1],

Having regard to the consent of the
European Parliament,

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)       In accordance with Council
Decision No [..] of [..][2],
the Economic Partnership Agreement between the European Union and its Member
States, of the one part, and the West African States, ECOWAS and the UEMOA, of
the other part was signed on [..] subject to its conclusion at a later date.

(4)       The EPA has been
provisionally applied since [..] pending its entry into force.

(5)       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.

(6)       The Agreement should be
approved on behalf of the European Union,

HAS ADOPTED THIS DECISION:

Article 1

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 concluded.

The text of the Agreement is attached to
this Decision.

Article 2

The President of the Council, on behalf of
the Union, shall make the notification provided for in Article 107(2) of the
Agreement[3].

Article 3

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 conclusion 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[4] || 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]               OJ C […], […], p. […].

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

[3]               The date of entry into force of the Agreement will be
published in the Official Journal of the European Union by the General Secretariat
of the Council.

[4]               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 F

PROTOCOL ON THE EPA DEVELOPMENT PROGRAMME (PAPED)

PREAMBLE

THE PARTIES TO 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

BEARING IN MIND the objectives set out in
the EPA;

CONVINCED of the need to make the EPA
Development Programme (PAPED) one of the main instruments for ensuring the
development dimension of the EPA between West Africa and the European Union;

Taking
note of the conclusions of the Council of the European
Union of 10 May 2010 and 17 March 2014, which welcomed PAPED and
acknowledged the importance of mechanisms to help the West African region to
address adaptation and adjustment needs in the economic, social and taxation
fields, and estimates of the indicative funds available at those dates for
activities connected to PAPED under all its financial instruments;

WISHING to specify the arrangements for
implementing and supporting PAPED by way of agreement, by means of an annex
forming an integral part of the EPA and in accordance with its principles;

HAVE AGREED AS
FOLLOWS:

CHAPTER
I - OBJECTIVES AND PRINCIPLES

Article 1

Objectives

1.           The objective of this
Protocol is to specify the implementation arrangements for the EPA Development
Programme (PAPED) on the basis of the provisions of part III of the Agreement.
This implementation shall be carried out in a spirit of partnership, in the
context of support for the West African region's efforts to meet the objectives
defined in the Economic Partnership Agreement and the Cotonou Agreement.

2.           In accordance with the
provisions of Article 57 of the Agreement, the implementation of PAPED
shall promote:

a)      diversification and growth of
production capacities;

b)      development of intra-regional trade
and facilitation of access to international markets;

c)      improvement and reinforcement of
regional and national trade-related infrastructure;

d)      implementation of the necessary
adjustments and consideration of other trade-related needs;

e)      implementation and
monitoring/evaluation of the EPA by the West African region.

Article 2

Principles

1.           The Parties undertake to
apply this Protocol while taking into account internationally-agreed
commitments on the effectiveness of development aid, and the development
objectives, strategies and priorities of the West African region at both
national and regional level. In particular, the vulnerability of landlocked and
island countries and the specific needs of post-conflict countries shall be
taken into account.

2.           In the context of pursuit
of the objectives of the EPA and the application of this Protocol, the Parties
shall affirm and adhere to the following principles:

a)      alignment between stated needs and
funding;

b)      aid ownership and predictability in
the sense of the Paris Declaration on Aid Effectiveness and the Accra Agenda
for Action;

c)      sustainability of resources within the
meaning of Article 2(3) of the Agreement;

d)      effectiveness, consistency and
coordination of actions;

e)      subsidiarity between regional and
national level;

f)       multi-annual
programming of activities covered by PAPED.

CHAPTER
II - ARRANGEMENTS FOR THE IMPLEMENTATION OF PAPED

Article 3

Programming

1.           PAPED shall be implemented
on the indicative basis of a matrix of activities broken down into operational
plans specifying the priority activities of the West African region at national
and regional level, their estimated costs and their schedule for
implementation. The operational plans shall be established through a
participatory process and in consultation with the technical and financial
partners for each implementation period, on the basis of the PAPED framework
document.

2.           In application of Article 54
of the Agreement, the programming of European Union assistance shall be carried
out for the European Development Fund (EDF) in accordance with the provisions
of the Cotonou Agreement and national and regional indicative programmes. The
programming of assistance provided by the European Union Member States shall be
carried out in accordance with the provisions of their respective bilateral
cooperation instruments. For other instruments, programming shall be carried
out in accordance with their respective legal bases.

3.           The operational plans
shall be sufficiently flexible to ensure that the activities are kept
constantly in line with PAPED objectives and to take account of any changes
occurring in the circumstances of States and regional organisations. To that
end, the two Parties shall, inter alia, carry out a periodic review of these
plans.

4.           The Parties shall agree to
seek synergies and complementarities between PAPED activities and other
programmes to support trade during the drafting, implementation, monitoring and
evaluation phases, including in the implementation of the working arrangement.

5.           In the context of the
procedures referred to in Article 54 of the Agreement, the Parties shall
agree on the indicative funding plans relating to the operational plans
following a dialogue involving the other technical and financial partners, the
conclusions of which shall be jointly agreed and signed by the West Africa and
the European Union Parties.

6.           The
West Africa Party shall undertake to ensure consistency between the
implementation of PAPED of the one part, and its economic and sectoral
development policies and strategies and budget planning instruments of the
other part.

CHAPTER
III - FUNDING ARRANGEMENTS

Article 4

Sources of funding

1.           The
arrangements for funding from the European Union and its Member States are described in Article 54 of the Agreement.

2.           The
West Africa Party shall contribute, including financially, to the
implementation of PAPED.

3.           In
the context of the cooperation referred to in Article 54(4) of the
Agreement, the European Union and its Member States shall provide support in
seeking the necessary additional funding, in particular by facilitating the
involvement of other donors.

Article 5

Amount of funding

1.           In
the framework of Articles 3 and 4 of this Protocol and part III of the
Agreement, the Parties shall undertake to mobilise resources to fund
multi-annual operational plans.

2.           The
indicative amount of funding to be provided by the European Union Party for
each multi-annual plan shall be notified to the West Africa Party at the
beginning of the period, subject to the duration of the programming cycles of
the cooperation instruments employed to that effect, in accordance with Article 3(5)
of this Protocol.

3.           Before
the end of each period of implementation of the operational plans, the Parties
shall evaluate the state of implementation of the programmes, the extent to
which the commitments have been achieved, and the level of disbursements. This
joint evaluation shall serve as the basis for the operational plans for the
next period.

4.           The
Joint Council of the West Africa-European Union EPA shall consider any matter
relating to developmental aspects of the Agreement and make appropriate
recommendations for its effective implementation.

Article 6

Eligibility for funding

The bodies and organisations eligible for
funding set up under PAPED, subject to the provisions of the specific
cooperation instruments mobilised to that effect, shall include, but shall not
be limited to, the following, namely:

a)           West African States and their subdivisions;

b)           Regional integration
organisations (ECOWAS, UEMOA) and their specialised structures;

c)           Other inter-governmental
organisations to which one or more West African States belong, including
organisations containing West African non-member states, which have been
approved by the West African States or by both regional organisations;

d)           Joint bodies set up by the West
African States and the European Union to achieve certain specific objectives;

e)           National and/or regional public
or semi-public agencies, financial institutions and development banks of the
West African States; Companies, firms and other private sector bodies of the
West African States or West African region;

f)            West African financial
intermediaries which grant, promote and finance private investment in the West
African States;

g)           Non-state actors of the West
African States.

Article 7

EPA
regional fund

1.           In
accordance with the provisions of Article 61 of the Agreement, the West
Africa Party, in consultation with the technical and financial partners, shall
establish an EPA regional fund in order to mobilise, channel and coordinate the
resources of the European Union, West Africa and other donors in connection
with PAPED. The EPA regional fund's areas of intervention are those covered by
PAPED.

2.           Notwithstanding
the provisions of paragraph 1 of this Article, the Parties may agree on any
other mechanism or arrangement to finance PAPED. Where appropriate, the Parties
shall establish procedures in line with the Paris Declaration on Aid
Effectiveness in order to ensure the simplified, effective and timely
implementation of assistance.

CHAPTER IV

WORKING ARRANGEMENT

Article 8

Working arrangement

1.           Taking
account of its commitments on aid effectiveness, and in the context of its
support for PAPED, the European Union Party shall put in place its own working
arrangement, consistent with the institutional set-up of the EPA, aimed at
ensuring, inter alia, the following functions:

a)      coordination of European support, in
accordance with the European Union Code of Conduct on Division of Labour in
Development Policy;

b)      monitoring of the assistance provided;

c)      dialogue with stakeholders on the
implementation of PAPED and the relevant economic and sectoral development
policies and strategies;

d)      mobilisation of resources, in accordance
with Article 54 of the Agreement;

e)      balance and alignment of needs,
support and funding sources.

2.           The
West Africa Party shall put in place its own working arrangement, consistent
with the institutional set-up of the EPA, aimed at ensuring that PAPED
activities are implemented in synergy with the regional integration agenda, in
particular the implementation of regional policies by the States and the
application of the regional regulatory framework and its monitoring.

CHAPTER V - FINAL PROVISIONS

Article 9

Evaluation

1.           The
Parties shall ensure that PAPED is evaluated at agreed intervals. The strategic
framework of PAPED, its matrix of activities and its operational plans are the
basic elements for this evaluation.

2.           In
the framework of the Competitiveness Observatory provided for in Article 61
of the Agreement, the Parties shall jointly define the output and result
indicators, in particular regarding the effects and impact of the EPA and PAPED
in the West African region on, inter alia, competitiveness and
diversification of production, investments, regional trade, trade with the
European Union and the rest of the world, particularly exports of processed
products and services from the West Africa Party, employment and, more
generally, the economic and social development of the West African States.

3.           Under
the provisions of part III of the Agreement, the Parties shall use the jointly
defined indicators to seek synergy between the pace of implementation of the
commitments made by the West Africa Party on the one hand, and the progress in
implementing PAPED activities and programmes on the other.

Article 10

Review of the Protocol

Amendments and
revisions to this Protocol shall be subject to the same rules and procedures as
those provided for in Article 111 of the Agreement.

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