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DRAFT REPORT (2023/2065(INI))

On the implementation of the EU-Southern African Development Community (SADC) Economic Partnership Agreement (EPA)

INTA-PR-749066

Committee on International Trade · Rapporteur: Joachim Schuster

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This draft report by the Committee on International Trade reviews how the EU-Southern African Development Community (SADC) Economic Partnership Agreement (EPA) has been implemented since it was provisionally applied in 2016. It describes the agreement, which covers trade in goods with Botswana, Lesotho, Mozambique, Namibia, South Africa and Eswatini, and notes Angola has applied to join. The report welcomes the first review process and the growth in EU-SADC trade, but finds the EPA has not significantly deepened regional value chains or reduced poverty. It calls on the Commission and the SADC EPA States to cooperate more on digital trade, rules of origin, food safety, capacity building, climate, investment and raw materials. It also asks the EU to work towards extending the COVID-19 vaccine patent waiver to therapeutics and diagnostics.

Committee position. The rapporteur proposes that Parliament welcome the first review process, acknowledge slow progress in monitoring, and call for stronger EU-SADC cooperation on trade barriers, rules of origin, capacity building, climate, investment and raw materials, while noting the EPA has not significantly deepened regional value chains or reduced poverty.

Key points

  1. The EU-SADC EPA was concluded on 10 June 2016 between the EU and Botswana, Lesotho, Mozambique, Namibia, South Africa and Eswatini, and has been provisionally applied since 10 October 2016.
  2. The agreement covers trade in goods, with asymmetric access for SADC EPA States, safeguards for sensitive products, and a chapter on trade and sustainable development.
  3. Angola, which will lose Everything but Arms preferences when it graduates from least developed country status in February 2024, applied to join the EPA in February 2020 and was authorised to start accession negotiations in July 2022.
  4. The report welcomes the first review process launched in November 2021 and acknowledges that the joint monitoring report is advancing slower than anticipated due to capacity constraints in SADC EPA States.
  5. It welcomes the expansion of EU-SADC trade and the trade surplus achieved by SADC EPA States, but notes most of their exports to the EU are unprocessed agricultural products and raw materials.
  6. It notes regional integration is hampered by long border waiting times, high border costs and inadequate cross-border connectivity, and calls for more cooperation on digital trade and certification.
  7. It notes no agreement has been reached on diagonal cumulation and stresses that flexible rules of origin are essential for regional integration and must promote the African Continental Free Trade Area.
  8. It notes trade irritants on sanitary and phytosanitary measures, especially for poultry and citrus fruits, and calls for early cooperative action through EPA forums.
  9. It calls on the Commission and Member States to step up technical assistance and to expand communication and cooperation with SADC EPA States.
  10. It concludes the EPA has not significantly deepened regional value chains or substantially contributed to food sovereignty and poverty reduction in SADC EPA States.
  11. It urges the Commission and SADC EPA States to intensify cooperation on early warning systems, resilient food systems, decarbonisation and green finance and investment.
  12. It calls for stronger cooperation on a diversified and sustainable supply of key raw materials, better recycling and responsible mining practices, and for the EU to work towards extending the COVID-19 vaccine patent waiver to therapeutics and diagnostics.

Who is affected

  • SADC EPA States (Botswana, Lesotho, Mozambique, Namibia, South Africa, Eswatini): the report assesses their implementation and calls for more support.
  • Angola: the report notes its application to join the EPA and its loss of Everything but Arms preferences in February 2024.
  • The European Commission and EU Member States: asked to increase technical assistance, investment and cooperation with SADC EPA States.
  • EU businesses and investors: the report calls for a transparent legal and fiscal framework to attract foreign direct investment.

Figures and deadlines

  • 10 June 2016: date the EU-SADC EPA was concluded.
  • 10 October 2016: date provisional application of the EPA started.
  • 4 February 2018: date Mozambique started provisional application.
  • February 2024: date Angola is set to graduate from least developed country status.
  • February 2020: date Angola submitted its application to join the EPA.
  • July 2022: date the Joint Council approved Angola's request to initiate accession negotiations.
  • November 2021: date the first review process was launched.
  • April 2024: planned date to finalise the external evaluation study.