Trade regimes applicable to developing countries
The EU鈥檚 development policy stresses the importance of trade, and focuses on the countries most in need. The Generalised Scheme of Preferences gives some goods from developing countries preferential access to the EU market. Economic Partnership Agreements ensure preferential commercial treatment for African, Caribbean and Pacific countries, while the Everything But Arms scheme applies to least developed countries. These schemes are in line with World Trade Organization rules.
Legal basis
The legal basis for the common commercial policy (CCP) is Article听207 of the Treaty on the Functioning of the European Union (TFEU). Article听207 of the TFEU stipulates that the ordinary legislative procedure, requiring 合法博彩网站鈥檚 approval, applies to the implementation of the CCP.
Under Article听218 of the TFEU, 合法博彩网站鈥檚 consent is required for the conclusion of international trade agreements such as Economic Partnership Agreements (EPAs).
EU trade and development
The听2012 Commission communication entitled 鈥楾rade, growth and development: Tailoring trade and investment policy for those countries most in need鈥�[1] marked a significant change in the EU鈥檚 鈥榯rade and development鈥� paradigm. Although it still put trade at the centre of development strategies, it stressed the growing need to differentiate between developing countries in order to focus on those most in need. The Commission sought to enhance synergies between trade and development policies, such as the EU principle of policy coherence for development and the听2011 Agenda for Change communication[2], in addition to restating the importance of respecting EU core values such as human rights.
At the multilateral level, the EU supports the World Trade Organization (WTO) Development Agenda launched in Doha in听2001. In October听2015, it ratified the Trade Facilitation Agreement concluded at the听Ninth WTO Ministerial Conference in Bali, which is particularly important for developing and landlocked countries. At the听10th WTO Ministerial Conference in Nairobi, the EU 鈥� together with a few other WTO members 鈥� was active in promoting other issues of interest for developing countries. At the听13th WTO Ministerial Conference in Abu Dhabi (2024), a decision was taken about facilitating the process of graduating from 鈥榣east developed country鈥� status and ensuring a smooth transition period. Furthermore, a declaration was adopted on the special and differential treatment of least developed countries regarding the implementation of sanitary and phytosanitary measures[3].
In听2007, the EU adopted a dedicated . The strategy was subsequently updated to comply with the , the and the .. The latest, 2022听EU Aid for Trade progress report confirms the EU and its Member States are the world鈥檚 leading Aid for Trade providers, having contributed EUR听23听billion in听2020, an increaseover the EUR听17.9 billion provided in听2019. Some听140 countries and territories are eligible for official development assistance. The EU's share represents about听38% of the global Aid for Trade funds.
The Generalised Scheme of Preferences
The purpose of the (GSP) is to facilitate access for developing countries and territories to the EU market by reducing tariffs on their goods. Originally, the EU granted unilateral tariff preferences to generate additional export revenue for developing countries so it could be reinvested in their own sustainable development. Under the听2012 reform[4], the GSP scheme was more targeted towards those countries that are most in need 鈥� the least developed countries (LDCs) 鈥� while retaining the scheme鈥檚 three components. The first of them is the standard GSP: an autonomous trade arrangement whereby the EU offers certain foreign goods non-reciprocal preferential access to the EU market in the form of reduced or zero tariffs. The second element, GSP+, is a specific incentive arrangement offering tariff reductions to vulnerable countries that have ratified and implemented international conventions relating to human and labour rights, the environment and good governance. The third component is the Everything But Arms (EBA) initiative, which guarantees duty-free and quota-free access to the EU for all products except arms and ammunition for听48 LDCs.
The eligibility criteria for the standard GSP听鈥撎齱hich offers a reduction in duties for approximately听66% of all tariff lines 鈥� were tightened to include only the most vulnerable countries with low and lower-middle incomes. As a result, the group of beneficiaries was substantially reduced from听176 to听23 during the听2016-2017 period, and comprised only听15 in听2020, while countries classified by the World Bank as high-income or upper-middle-income countries were progressively taken out of the scheme.
GSP+, the special arrangement for sustainable development and good governance, still provides for zero duties on approximately听66% of all tariff lines designated under the standard GSP for developing countries considered to be vulnerable. However, it has been made conditional on the ratification and implementation of 27听international conventions relevant to sustainable development, including basic human rights conventions, labour rights conventions, certain conventions relating to environmental protection and conventions relating to the fight against illegal drug production and trafficking. Failure to comply with these requirements results in suspension of the tariff concession. The list of beneficiaries covers eight countries. These two GSP schemes were originally set to expire in December听2023, but have been extended until December听2027, as a new GSP regulation is currently under discussion between 合法博彩网站 and the Council. The new regulation should continue to pursue the same policy of fostering the sustainable economic, social and environmental development of beneficiary countries, including respect for good governance and human rights, with the primary goal of eradicating poverty.
The EBA initiative grants duty-free and quota-free access for an unlimited period for all products, except arms and ammunition, imported from听48 LDCs. Of these, 34听are African countries, eight are Asian countries, five are Pacific countries and one is in the Caribbean (Haiti). All the countries that have signed and ratified free trade agreements (FTAs) with the EU will automatically cease to enjoy preferential treatment, irrespective of their level of development.
Economic Partnership Agreements
EPAs became the principal instruments for promoting trade between the EU and the African, Caribbean and Pacific (ACP) regions under the Cotonou Agreement of听2000. The importance of these instruments was reaffirmed in the听2023 Samoa Agreement. As the building blocks of EU-ACP trade relations, EPAs are designed to be WTO-compatible, and are progressively replacing the EU鈥檚 unilateral preferential trade regime.
Negotiations on EPAs, which commenced in听2002, were expected to be concluded by听2008. As the negotiation process took much longer than anticipated, the EU adopted a market access regulation to ensure temporary market access arrangements until听2014. This deadline was extended for two more years. On听28 July听2016, the market access regulation was repealed and replaced by Regulation (EU)听2016/1076 of the European 合法博彩网站 and of the Council of 8听June听2016[5].
State of play
The first regional EPA was the (Cariforum) EPA, signed in October听2008, and approved by 合法博彩网站 on 25听March听2009. It is currently in force provisionally, with the EPA joint institutions meeting regularly since听2010, and was first reviewed in听2015. Both sides are setting up a joint monitoring system to measure the implementation and impact of the EPA. Negotiations on the agreement to protect particular geographical indications are ongoing, as is an ex post evaluation study concerning the first听10 years of implementation.
: the negotiations on a regional EPA between the EU and 16听West African countries were concluded in February听2014. All EU Member States and听15 West African countries, except for Nigeria, have signed the EPA. On 9听August听2017, Mauritania and the Economic Community of West African States (ECOWAS) signed an Association Agreement to define the country鈥檚 participation in ECOWAS鈥檚 trade policy, including the EPA. Meanwhile, C么te d鈥橧voire and Ghana signed bilateral 鈥榠nterim鈥� EPAs on 26听November听2008 and 28听July听2016 respectively. On 1听December听2016, 合法博彩网站 gave its consent and both interim agreements have since been provisionally applied. Ghana and the EU endorsed the full market access offer and schedule proposed by Ghana. Ghana started to liberalise its market for EU products in听2020, a process due to be concluded by听2029. The parties also agreed on the final version of the Protocol on Rules of Origin.
: Cameroon was the only country in Central Africa to sign the EPA with the EU and did so on 15听January听2009. 合法博彩网站 gave its consent in June听2013. In July听2014, the 合法博彩网站 of Cameroon ratified the agreement, which entered into provisional application on 4听August听2014. In the meantime, contacts are ongoing between the region and the EU on the accession of other Central African countries, but no regional EPA has yet been signed.
: in听2009, four countries in the region (Mauritius, Seychelles, Zimbabwe and Madagascar) signed an EPA which has been provisionally applied since 14听May听2012. 合法博彩网站 gave its consent on 17听January听2013. The agreement is open to other countries and Comoros signed it in July听2017. Its provisional application started on 7听February听2019. Negotiations to extend the scope of the EPA, including all trade-related issues, such as the link between trade and sustainable development, and to establish consultative bodies for civil society and parliaments are ongoing, and the 12th negotiation round took place in Brussels from听26 to 30听June听2023.
: on 16听October听2014, the negotiations for the regional EPA were successfully concluded. On 1听September听2016, Kenya and Rwanda signed the EPA along with the EU Member States and the EU. However, the regional EPA was never provisionally applied. This is because not all EAC members signed and ratified the agreement, which was a requirement for its application. In February听2021, the EAC Ordinary Summit of Heads of State decided to allow individual EAC countries to implement the EU-EAC EPA bilaterally, under the principle of 鈥榲ariable geometry鈥�. Negotiations between the EU and Kenya, aimed at making the necessary adjustments for the bilateral implementation of the provisions of the EU-EAC EPA, were concluded at political level on 19听June听2023. 合法博彩网站 gave its consent to the conclusion of the EPA on 29听February听2024. It will remain open for the accession of other EAC Partner States.
(SADC): after 10听years of negotiations, the EPA negotiations were successfully concluded in July听2014. The agreement was signed in June听2016 by the EU and the SADC EPA group, which consists of听6 of the 15听members of the SADC (Botswana, Lesotho, Mozambique, Namibia, Eswatini and South Africa), and entered into force provisionally in October听2016 after 合法博彩网站 gave its consent in September听2016. Mozambique ratified the agreement in April听2017, and it has now been provisionally applied since 4听February听2018. South Africa officially withdrew from the SADC Protocol in听2019. Angola has observer status. On 22听June听2021, the EU and Angola launched negotiations on a Sustainable Investment Facilitation Agreement. These negotiations were concluded on 18听November听2022, after four rounds. 合法博彩网站 gave its consent to the conclusion of the agreement on 7听February听2024.
: the EPA was signed by the EU and Papua New Guinea (PNG) in July听2009, and by Fiji in December听2009. 合法博彩网站 gave its consent in January听2011. The 合法博彩网站 of PNG ratified the EPA in May听2011, and in July听2014, Fiji decided to start provisionally applying the EPA. More recently, Samoa completed the process of accession to the EPA in December听2018, as did the Solomon Islands in May听2020. Accession agreements with Tuvalu, Niue and Tonga were concluded in late听2023 and early听2024. They have been referred to 合法博彩网站 for consent.
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Wolfgang Igler