The genesis of the Economic Participation Agreements (EPA) can be traced back to the historic economic and trade relation between European countries and African, Caribbean and Pacific (ACP) states. This relationship has developed over years with the signature of the two Yaounde Conventions in 1963 and 1969, four Lome Conventions and since the year 2000, the Cotonou agreement which will expire in 2020. The Lome and its successor Cotonou provided one-way, non-reciprocal, preferential access to EU markets for most ACP exports as well as aid to finance development projects in ACP countries.
ACP countries benefited from duty-free access on the EU market for most products. Some agricultural products such as sugar, rum and bananas were covered by specific commodity protocols. To comply with international trade rules, the ACP and the EU agreed to conclude WTO compatible trading arrangements, removing progressively barriers to trade and enhancing cooperation in all areas relevant to trade through the Economic Partnership Agreement (EPAs).
The EPA also seeks to promote regional integration, economic cooperation and good economic governance. It encourages an improvement in the supply capacity and competitiveness. It also seeks to strengthen the capacity with regards to trade policy and the rules relating to trade.
For the purpose of EPAs, Africa was divided into five regions; Central Africa, East African Community (EAC), ECOWAS, Eastern and Southern Africa (ESA) and Southern African Development Community (SADC). Zimbabwe negotiated EPAs under the ESA-EU EPA regional configuration.
Six states in the ESA region (Comoros, Madagascar, Mauritius, Seychelles, Zambia and Zimbabwe) concluded an interim EPA with the EU at the end of 2007. Zambia and Comoros initialed. The agreement was signed by four countries (Madagascar, Mauritius, Seychelles and Zimbabwe) in August 2009 in Mauritius. Implementation started in May 2012 after ratification by the respective Parliaments of the four countries. The ESA countries were not able to provide a common regional market access offer and each country presented an individual offer based on its specificities.
Overview on the key experiences in the EPAs Implementation process
It requires strengthening of capacities. The level of preparedness is very low and Zimbabwe is lagging behind. Between 2011-2014 Zimbabwe lost about 4000 companies. From 2007 to 2017 more or high import than exports and Zimbabwe is having a negative balance. If it is duty free, why are our exports not increasing. We are not benefiting from the process if our house is not in order. The major question was therefore on our signature as we are not in the Top 10 imports and Top 10 exporters.
Experiences in the implementation
Lacks diversity in manufactures and exports due to poor competitiveness and high cost of exporting and arising from supply side constraints, the Zimbabwe economy continues to operate under pressure experiencing industrial capacity constraints and de-industrialization, high unemployment and growing informalization. Zimbabwe’s overall trade profile indicates that exports are declining and diversification is not taking place, with trends towards resource-based exports and retreat from technology.
It is critical to have CSOs monitoring the implementation of the EPA and experiences of other regions can also be used to craft robust monitoring mechanisms. At national level, SEATINI, ZIMCODD and NANGO are conduits that can be used to help monitor the EPAs whilst at the regional level the SAPSN, SADC CNGO and SATUCC are existing institutions that can be used. A communication and information dissemination tool should be created to reach out to a wider audience. This can include development and use of smart technology that include but not limited to use of smart phones and online information platforms.
Monitoring the implementation can be done through robust mechanisms that make it easier to follow up.
Indicators for each and every goal should be developed and outcomes are measured against such indicators.
The role of CSOs in the IEPA Implementation Process
Sustainable development and the role of the civil society is an integral component of trade agreements to attain multilateral economic and environmental standards. CSOs have a big role to play in the monitoring and implementation of the EPAs and making sure that the parties to the agreement are held responsible.
Playing a watchdog role and ensuring that there are checks and balance
Monitoring and measuring the results of EPA
Identifying challenges and push for solutions.
Informal economy
It includes about 90% SMEs, but as big as it is, it is sidelined.
Many people are in the informal economy not by choice but due to lack of opportunities in the economy, the bulk of the population is the working poor.
The informal becoming formal, lack of innovativeness in terms of donor dependency syndrome, EU determines what is on the agenda, lack of capacity (institutional) for information dissemination and documentation as the program is meant to benefit all the Zimbabweans. Lack of research and technological capacity are also some of the challenges discussed.
The second group discussed about the platform or institutional arrangement that is required to ensure high level and effective participation of CSOs in monitoring the EPAs implementation. The strategies they came up with were; awareness as there is a need for a sensitization exercise, capacity building in terms of the media and invest in quality research. There is need for accountability meetings, monitoring with a steering committee, clear stipulation for duties and roles, there is a need for a localized version of MOUs and TORs.