Implementation of the EU-Southern African Development Community (SADC) Economic Partnership Agreement (EPA)
TA-9-2024-0121 · P9_TA(2024)0121 · PE749.066
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Parliament's resolution reviews how the EU-Southern African Development Community (SADC) Economic Partnership Agreement (EPA) is being implemented. It welcomes the first review, calls for stronger civil society involvement and asks the Commission to assess the EPA's impact on sustainable development, regional integration and diversification.¶¶¶ It notes that EU-SADC trade has expanded and SADC EPA States have a trade surplus, but that diversification, manufacturing and regional value chains remain weak. It calls for cooperation on infrastructure, customs, rules of origin and sanitary and phytosanitary issues.¶¶¶ It asks the EU and member states to step up technical and financial assistance, support green finance and investment, and apply the agreed global minimum corporate tax rate of 15 %. It calls for action on gender equality, climate change, food sovereignty and water management.¶¶¶ It welcomes Angola's request to join the EPA and the EU-Angola Sustainable Investment Facilitation Agreement (SIFA), and calls for cooperation on critical raw materials and for the EU to refrain from banning developing countries' export taxes on raw materials.¶¶¶ It calls for progress in the World Trade Organization (WTO) on extending the TRIPS decision to therapeutics and diagnostics, and welcomes EU-South Africa work on vaccine production infrastructure.¶¶
Key points
- Welcomes the first EPA review launched in November 2021 and asks the Commission to analyse the EPA's impact on Sustainable Development Goals (SDGs), informal and local economies, regional integration, diversification and climate change.¶
- Regrets limited civil society involvement in EPA implementation and calls for active participation of civil society organisations, women's groups and students' organisations in monitoring and evaluation.¶
- Notes slow progress on the joint monitoring report, acknowledges capacity constraints of SADC EPA States, and calls for a Domestic Advisory Group and flexible transitional arrangements for trade and sustainable development requirements.¶¶
- Expects the EPA to be adapted or expanded after the review, welcomes Angola's decarbonisation efforts and fiscal capacity building under the EU-Angola SIFA.¶¶¶
- Welcomes expanded EU-SADC trade and a SADC trade surplus, but notes that employment, regional cooperation and diversification effects have not reached their potential; stresses the importance of regional value chains and asymmetric trade liberalisation.¶¶¶
- Calls for cooperation on infrastructure, digital trade and certification, harmonisation of customs and transport rules, formalisation of cross-border work arrangements and protection of workers' rights.¶¶¶
- Welcomes the activation of regional cumulation with Southern African Customs Union (SACU) countries and stresses that rules of origin must support the African Continental Free Trade Area (AfCFTA).¶
- Calls for early cooperative resolution of sanitary and phytosanitary trade irritants, especially for poultry and citrus fruits, and for thorough monitoring of health risks.¶
- Notes governance and fiscal and institutional capacity as the greatest challenges, and calls on the Commission and member states to expand technical and financial assistance to SADC EPA States.¶¶¶
- Concludes that the EPA has not significantly deepened regional value chains, and calls for support for diversification, digital infrastructure, service sectors and local added value.¶¶¶
- Calls for effective application of the 15 % global minimum corporate tax rate, respect for WTO special and differential treatment, and joint efforts on decarbonisation, climate adaptation and early warning systems.¶¶¶
- Calls for gender equality measures, green finance and investment, support for small and medium-sized enterprises (SMEs), and cooperation on critical raw materials and renewable hydrogen with Namibia.¶¶¶
Who is affected
- SADC EPA States: face calls to harmonise customs rules, engage civil society and comply with trade and sustainable development commitments.¶¶
- The Commission: asked to expand technical assistance, coordinate export credit agencies and promote gender and climate action.¶¶¶
- EU member states: called to step up technical assistance and advocate increased international climate financing.¶
- Angola: welcomed in its request to join the EPA and supported in capacity building and sustainable investment.¶¶¶
- Women and young people in the SADC region: targeted for improved access to finance, resources and economic participation.¶
Figures and deadlines
- 6 % of sub-Saharan Africa's yearly GDP lost on average due to gender inequality¶
- 0,75 % reduction in a country's human development index from a one percent increase in gender inequality
- USD 2,5 trillion annual financing gap for developing countries to achieve the SDGs by 2030¶
- 80 % of EU trade with SADC EPA States accounted for by South Africa¶
- 17 % of South Africa's total foreign trade is with other African countries
- 23 % of SADC States' total trade is intra-SADC
- 15 % global minimum corporate tax rate for multinational enterprises¶
- around USD 150 billion in additional global tax revenues annually from the minimum tax rate