Statement by Mr. Hakim Ben Hammouda
Director, Trade, Finance and Economic Development Division of the ECA

Review of Economic Partnerships Agreements Negotiations
Nairobi, Kenya
12 February 2007

Introduction

On behalf of Mr. Abdoulie Janneh, UN Under Secretary General and Executive Secretary of the ECA, let me welcome you to this experts meeting on the review of EPAs negotiations. Let me begin by thanking Kenya and the Minister for Trade and Industry, Hon. Mukhisa Kituyi, together with his team led by the Permanent Secretary. The ECA recognises the dynamic role Kenya is playing in the international negotiations. I would also like to express special thanks to each of you for choosing to be here. We at the ECA recognise that there are competing demands on your time. Your presence in this meeting therefore underscores your commitment to Africa and its people. As ECA, we hope that given the importance the EPAs negotiations have in influencing the development prospects of the continent in the years ahead, this meeting will be an important input towards ensuring a positive outcome for Africa from these negotiations.

Brief Political Context

It is important for us to recall that the ties between Africa and Europe go back many years. But it is the more recent strong trade and development ties that the two regions have built over the last four to five decades after the independence of the African states that are the foundation of the EPAs negotiations principles. Given the relationship that has developed between the two regions, both Africa and Europe need each other and the EPAs could and should be one block in the configuration of the strategic relationship between them. However, in framing the final outcome of these negotiations, it is important that we are alive to the fact that the EPAs negotiations are between two unequal friendly partners. It is our expectation that the wisdom that should continue to guide the EPAs negotiations should be that friends recognise the strengths and weaknesses of each other. The abilities between partners must be realistically assessed and the responsibilities in the EPAs should be determined proportionately by these abilities.

Mr. Chairman;

Ladies and Gentlemen:

Reflection on our dialogue so far

We have had several discussions from our previous meeting, where we have endeavoured to deepen our understanding of the implications of the EPAs to Africa. In September 2005, we met in Mombasa, Kenya where we took stock of the various impact analysis studies. At that time, as it is today, there was a prominent question of whether EPAs will serve as development tools.

We then met again in September 2006 in Cairo where we addressed the question of adjustment challenges in more details. It was emphasised the need for EPAs to integrate substantial flexibilities in favour of African countries, to avoid Africa carrying a disproportionate share of the adjustment burden. We also highlighted the role of intra-African trade in Africa's development. Subsequently we agreed that for as long as deepening regional integration remains a key principle of the EPAs negotiations, the adjustment challenges posed by reciprocity and weak supply side elements of the production structures have to be addressed. We also emphasised jointly that African countries need assistance to build and modernise their production structures given their infrastructure needs and urgency of competitiveness building programmes required to deepen integration. Lastly, our meeting in Cairo also paid special emphasis to creating coherence between the EPAs and the national and regional development strategies.

Mr. Chairman;

Ladies and Gentlemen:

State of the Negotiations

So, where are we in the EPAs negotiations, ten months to the formal deadline? It is helpful to put in perspective the historical background to the negotiations taking place today. The Cotonou Agreement in its endeavour to succeed the previous successive Lome Conventions sought to provide a negotiations framework that was acceptable to both the ACP and the EU. Therefore, as we ask ourselves in this meeting where we are on the EPAs negotiations, we must have clearly in our mind the spirit of the Cotonou Agreement. Upon which we must ask whether the negotiations process so far is on-track towards the realisation of this spirit.

From the perspectives of the ECA, the Cotonou Agreement spirit, which the EPAs negotiations should safeguard, is that of ensuring that they serve as development tools. Many studies by the ECA at the country, sub-regional and continental levels have indicated what form the EPAs should take for them to pass the development-tools criteria. Work by other African and international institutions have collaborated the ECA's results and the findings of those African countries that have carried out their own impact-analysis studies. The clear message from these studies is that the EPAs negotiations would be seen to be living within the Cotonou spirit if they have a clear balance between trade and development aspects. The adjustment challenges they will pose to African economies will require meaningful development support beyond the traditional European Development Funds.

Mr. Chairman;

Ladies and Gentlemen:

What we hope to achieve from Nairobi

As we meet here for the next two days, the question that we must ask ourselves is how far have the negotiations achieved the balance between trade and development. But as we seek answers to this question, we should remember that a lot of technical and political capital has been invested in the negotiations, which are still on going. But it should also be an opportune moment to reflect on whether the direction they have taken will lead us to the desired outcome, of securing EPAs that will be instruments of development. Certainly, there are extreme positions that are held by some of the actors in these negotiations. But if we take the view that we are still in a negotiations process, we will be in a position to come out of this meeting with clear recommendations on how the Cotonou spirit could be safeguarded and realised.

Mr. Chairman;

Ladies and Gentlemen:

As we discuss the results of the review report before us, we should be clear on what Africa needs to do in order to conclude the negotiations successfully. At the same time, we should be innovative in the suggestions we make on how to respond to the EU, given its various stances on some of the issues. The Cotonou Agreement provides a broad framework through which Africa's concerns in the negotiations can be addressed. In the spirit of a true partnership, we should engage the EU so that it is clear that for the EPAs to be development instruments, it could mean moving beyond the simple observance of the multilateral rules. As many studies have shown, the multilateral system and the rules governing it have not been favourable to development focused trade agreements. For this reason, in making recommendations on how EPAs negotiations could be guided towards a positive outcome for Africa, we must remember that the face-value interpretation of the rules could lead the negotiations to tip the balance in favour of trade aspects. In this case, the reality of unequal partners should be sufficient incentive for the EU to address the development concerns of the weaker partner.

Conclusion

I would like to conclude by expressing ECA's gratitude to the Government and the people of Kenya, for the country's continued partnership with the ECA. In addition, special tribute to our collaborating partners—the African Union, UNDP, ACP Secretariat—who have walked with us in this journey of making sure that African countries individually and jointly deepen their understanding and discussions in trade policy and negotiations issues. A very particular mention is due to the partners who have been providing support to the African Trade Policy Centre, including the Canadian and the Royal Danish Governments. And the report that you will be considering would not have been possible without the facilitation of the ACP Secretariat to the ATPC with financial support of the International Organisation of the Francophone.

I wish us a fruitful meeting and discussions and hope that we will leave Nairobi satisfied that we have clear recommendations on how to move forward in the EPAs negotiations.

Thank you.