MAKING THE MOST OF THE EU ESA IEPA IMPLEMENTATION.
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1 MAKING THE MOST OF THE EU ESA IEPA IMPLEMENTATION.
2 INTERIM EPA - RETURN TO GROWTH AGENDA IN ESA FOR MOST COMESA COUNTRIES AND MORE RECENTLY ECONOMIC GROWTH IS GENERALLY RESOURCE AND REFORMS DRIVEN MINING EU IS A GUARANTEED IMPORTER OF SOME KEY MINERALS. SERV ICES SECTOR- FULL EPA ISSUE AGRICULTURE MANUFACTURING CLOTHING & TEXTILES -SINGLE TRANSFORMATION
3 I EPA- RETURN TO GROWTH AGENDA EU MARKET ACCESS FOR; non-ldcs & LDCs ALL ESA non-ldcs signed IEPAs FREE MARKET ACCESS INTO EU EXCEPT FOR ARMS. EU ACCOUNTS FOR 30% COMESA EXPORTS DEVELOPMENT COOPERATION. COLLECTIVELY THE 27 REMAIN MAJOR SOURCE OF DEV SUPPORT TO COMESA MANAGED ECONOMIC AND TRADE REFORMS ACCESS TO TECHNOLOGY and INVESTMENTS
4 EU Dependency on Selected Raw Materials Imports ( ) Raw EU Import First Second Material Dependency Rhodium 100% RSA/ZIM 79% Russia 11% Platinum 100% RSA/ZIM 77% Russia 11% Cobalt 100% DRC 41% Zambia 11% Chromium 46% RSA 41% India 17% Vanadium 100% RSA/ZIM 36% China 36% Manganese 91% China 21% Gabon 20% Tandalum 100% Austra 48% Brazil 16% Gold 87% RSA/ZIM 12% China 11%
5 INTERIM EPA IMPORT REGIME RECIPROCAL IMPORT LIBERALISATION BUT ASSYMETRICAL. 80% OF TRADE OPENING & 20% EXCLUDED LONGER TIMEFRAMES PREPARATORY PERIOD GRADUAL LIBERALKISATION 4 LIBERALISATION SCHEDULES LINKED TO COMESA CET FOR ALL COUNTRIES CAPITAL GOODS AND RAW MATERIALS 0% CET INTERMEDIATE PRODUCTS -10% CET FINISHED PRODUCTS -25% CET EXCLUSION LIST MFN RATE APPLICABLE
6 ESA Tariff Liberalisation Schedules Country Liberalisation Schedules (percentage of imports facing zero tariffs) After 5 years After 10 years After 15 years After 25 years SEYCHELLES 62.0% 77.0% 97.5% MAURITIUS 24.5% 53.6% 95.6% ZIMBABWE 45% 80% ZAMBIA 40% 80% BLNS 86.0% 87% 88% EAC 64.0% 80.0% 82.0%
7 SHARE OF MADAGASCAR IMPORTS FOR LIBERALISATION CET CATEGORIES FINAL PRODUCTS INTERMEDIATE PRODUCTS RAW MAT EXCLUSION
8 SHARE OF MAURITIUS IMPORTS FOR LIBERALISATION SHARES EXCLUSIONS RAW MAT FINAL PRODUCTS INTERMEDIATE
9 SHARE OF SEYCHELLES IMPORTS FOR LIBERALISATION SHARES EXCLUSION RAW MAT FINAL GOODS INTERMEDIATE
10 Share of Zim imp from EU shares final products -20% intermediate products - 15% raw material and capital goods -45% Sensitive products -20%
11 ESA Goods Excluded from Tariff Liberalisation Schedules Goods Excluded SEYCHELLES meat, fisheries, beverages, tobacco, leather articles, glass and ceramics and vehicles. MAURITIUS products of animal origin, cereals, beverages paper, plastics and rubber, textiles and clothing, footwear, glass and ceramics, consumer electronics and vehicles. ZIMBABWE live animals and meat, edible products of animal origin, fats, edible preparations and beverages, chemicals, plastics and rubber articles of leather and fur skins, iron & steel and consumer electronic incl vehicles, textile clothing ZAMBIA Agricultural products, textile clothing, beverages, chemicals and vehicles. MADAGASCA R meat, fish, products of animal origin, vegetables, cereals, beverages, plastics and rubber, articles of leather and furskins, paper and metals. EAC agricultural products, wines and spirits, chemicals, plastics, wood based paper, textiles and clothing, footwear, glassware. The main criterion of these exclusions is the desire to protect infant industry.
12 Summary of ZIM Tariff Phase Down Schedule ( ) TARIFF LINES COVERED AND LIBER PATTERN TARIF LINES COVERED DATE START OF LIBERALISATI O CURRENT MFN RATES CET RATE AS STARTING POINT REDUCTION PATTERN EXCLUSIONS FINAL PRODUCTS INTERMEDIAT E PRODUCTS RAW MAT AND CAPITAL GOODS % +$P/KG NA %+ 5-60%+ 0-60%+ NA 25% 10% 0 NA YRLY BY 12.5% EVERY 3 YRS BY 25% 100% AT ONCE IN 2013
13 EXAMPLE OF ZIM LIB SCHEDULE FOR INTERMEDIATE PRODUCTS Applied Mfn duty 6 years Prepa ratory Perio d % years reduction period 50 % % % HS200 2 Product Description CET Rate Pig fat, free of lean meat, and poultry fat, not rendered or otherwise extracted, fresh, chilled, frozen, salted, 0 in brine, dried Hams, shoulders and cuts thereof of swine, salted, in brine, dried or smoked, with bone Bellies "streaky" and cuts thereof of swine, salted, in brine, dried or smoked
14 EXAMPLE OF ZIM LIB SCHEDULE FOR FINAL PRODUCTS 6 Appl ied mfn duty years Prepa rator y perio d HS2 002 Product Description CET Rate 2013 HS2 002 Product Description Flours, meals and pellets of 0305 fish, fit for human 10 consumption Fish livers and roes, dried, 20 smoked, salted or in brine Fish fillets, dried, salted or 30 in brine, not smoked % 25% % years for reduction % % 75% 5% 0%
15 Full EPA negotiations Contentious issues Agreed and Locked in issues new flexibilities What remains contentious Progress in Outstanding issues Trade in services Trade related issues- Future agenda Secure trade and economic relations Current focus is on implementation of IEPA and conclusion of full EPA based on what has been agreed. Reality check
16 THANK YOU
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