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Summaries of EU Legislation

Economic Partnership Agreement between the EU and the Southern African Development Community countries

SUMMARY OF:

Decision (EU) 2016/1623 on the signing and provisional application of the Economic Partnership Agreement between the European Union and its Member States, of the one part, and the SADC EPA states, of the other part

Economic Partnership Agreement between the European Union and its Member States, of the one part, and the SADC EPA states, of the other part

WHAT IS THE AIM OF THE DECISION AND OF THE AGREEMENT?

They aim to encourage development by establishing free trade relations between the European Union (EU) and the six countries concerned.

KEY POINTS

The Southern African Development Community (SADC) consists of:

  • Botswana
  • Lesotho
  • Mozambique
  • Namibia
  • South Africa and
  • Eswatini (formerly Swaziland).

Pro-development orientation

  • The agreement is an asymmetrical one. The EU guarantees Botswana, Lesotho, Mozambique, Namibia, and Swaziland duty-free1 and quota-free2 access to the EU market. It also grants South Africa enhanced market access beyond the previous agreement.
  • The agreement does not require the SADC countries to match the market access granted to them by the EU. The SADC may maintain tariffs on certain products to protect them from international competition.
  • Economic Partnership Agreement (EPA) countries can increase import duties if imports from the EU increase so much or so quickly that they threaten to disrupt domestic production.
  • The EU cannot use agricultural export subsidies.
  • The agreement promotes economic diversification by reducing import duties on intermediate products, such as seeds, fertilisers and machinery, with the aim of making such products more accessible to African entrepreneurs.

Geographical indications

  • EU producers of traditional products with a worldwide reputation, e.g. wines and food products, have the exclusive right to use their traditional names in South Africa.
  • Several South African geographical indications are protected on the EU market, such as different types of wine and rooibos tea.

Sustainable development

  • All parties are required to uphold social and environmental standards.
  • The agreement establishes a consultation procedure for environmental or labour issues and defines a comprehensive list of areas for cooperation between the partners to foster sustainable development.

Exceptions (derogations) to rules of origin

Commission Implementing Regulation (EU) 2017/882 on the derogation from the rules of origin laid down in Protocol 1 to the SADC–EU EPA concerning prepared or preserved Albacore tuna of HS heading 1604, manufactured from non-originating Albacore tuna of HS Headings 0302 or 0303, granted to Namibia within an annual quota of 800 metric tonnes.

FROM WHEN DO THE DECISION AND THE AGREEMENT APPLY?

Pending the entry into force of the agreement between the EU and all the SADC, the agreement applies provisionally as from between the EU and Botswana, Lesotho, Namibia, South Africa and Eswatini as indicated in the notice (see related documents below) and as from between the EU and Mozambique (see relevant notices under related documents below).

The provisional application excludes Article12(4), dealing with the support of the EU Member States to development cooperation in the SADC EPA which was already applicable.

Decision (EU) 2016/1623 has applied since .

BACKGROUND

For more information, see:

KEY TERMS

  1. Duty-free. Exempt from the payment of duty.
  2. Quota-free. Without any limit on the quantities of goods imported or exported.

MAIN DOCUMENTS

Council Decision (EU) 2016/1623 of on the signing, on behalf of the European Union and provisional application of the Economic Partnership Agreement between the European Union and its Member States, of the one part, and the SADC EPA States, of the other part (OJ L 250, , pp. 1–2).

Economic Partnership Agreement between the European Union and its Member States, of the one part, and the SADC EPA States, of the other part (OJ L 250, , pp. 3–2120).

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