Kelechi Onyemaobi
4 January 2009
opinion
The EU - Nigeria trade regime is back in the press. It is not a surprise: the European Union is Nigeria's second trade partner and West Africa first trade partner, and the West Africa region is the first Africa Caribbean and Pacific trade partner for the EU.
The GSP is a special arrangement established under the scheme of Generalised System of Preferences. The GSP + offers additional trade preferences to the standard GSP scheme to vulnerable countries that ratify and effectively implement a broad number of international Conventions in the fields of human rights, core labour standards, sustainable development and good governance.
The EU has established a clear set of eligibility criteria in its GSP Regulation (EC) No 732/2008, which sets the rules of the game. What countries can apply?
Vulnerable countries: those not classified by the World Bank as high income countries and whose GSP exports to the EU show both relatively high product concentration and a relatively low volume in comparison to total GSP imports from all beneficiaries. Eligible countries must have ratified and effectively implemented 27 international conventions Eligible countries must have submitted a commitment to accept and comply fully with the monitoring and review mechanism envisaged in the relevant conventions and related instruments.
For the GSP+ scheme for 2009-2011, the applications were received before the deadline of 31 October 2008. Nigeria also sent its application before this date.
The European Commission examined the applications against the eligibility criteria set in the GSP Regulation and mentioned above. For objectivity purposes, the European Commission referred to the secretariat of the international Conventions to gather information. Where necessary, the European Commission requested further information from applicant countries.
Contrary to what it has been said, the European Commission's aim is to apply the rules of the game in the most objective way possible. There is no room for political interference. Because the European Commission wants to ensure that all countries, coming from different regions in the world and very different economic and political backgrounds, are treated in the most fair and transparent manner. Any flexibility shown towards one country that does not meet any criteria, would compromise the governance process.
As a result of this examination, the Commission established the following list of beneficiary countries which fulfilled the relevant eligibility criteria: Armenia, Azerbaijan, Bolivia, Colombia, Costa Rica, Ecuador, El Salvador, Georgia, Guatemala, Honduras, Mongolia, Nicaragua, Paraguay, Peru, Sri Lanka and Venezuela.
Accordingly, GSP+ preferences have been granted to those countries effective from 1 January 2009 to 31 December 2011. The GSP+ list 2009-2011 covers 13 current GSP+ beneficiaries (with the exception of Panama, whose application was submitted after the deadline of 31 October 2008 and therefore failed to qualify) and 3 new countries Armenia, Azerbaijan and Paraguay.
No. Pakistan and Gabon were also not granted the GSP+ preferences for not meeting all the criteria required. For Nigeria, this review confirmed that, in spite of the important efforts to move ahead the sustainable development and good governance agenda, as of 31 October 2008 Nigeria has not yet ratified the United Nations Convention on the Prevention and Punishment of the Crime of Genocide. This is one of the core human rights Conventions required. Nigeria also did not provide sufficient information concerning relevant domestic legislation and measures to implement all the conventions effectively. Based on this, the Commission was obliged to conclude that Nigeria does not currently meet the GSP+ eligibility criteria.
Nigeria made an important effort to assemble and table the information required to submit its application. Nigeria will have another opportunity to apply for the GSP+ by April 30, 2010. The new GSP Regulation 732/2008 envisages that countries that were unable to meet the criteria, can join mid-way after regularizing the outstanding issues. The European Commission continues to support Nigeria's governance agenda and more particularly the implementation of these international Conventions.
No. While the GSP+ is an autonomous preference granted by the EU, the Economic Partnership Agreement (EPA) is a contractual agreement between the parties. As a result, both parties design the content of the agreement to best suit their interests and development agenda. The Economic Partnership Agreements represent the best market access offer, 100% full duty free quota free access to the EU market in the context of a free trade area between regions, and superior to the GSP + notably for key products for the West African region including agricultural and fishery products. In the past, Africa, Pacific and Caribbean countries didn't need to apply for GSP +, as they benefited from the more favourable Cotonou Agreement trade regime, until end 2007 when it expired.
Five years since the beginning of the EPA negotiations between the West African region (ECOWAS and Mauritania), the EU has repeatedly reaffirmed its strong commitment to conclude an EPA with West Africa that boosts regional integration, economic governance, investment and the development of the region, and which serves the economic interests of the private sector by improving competitiveness while continuing protection of the most sensitive sectors in compliance with WTO rules. In this sense, the EU welcomes the decision taken at the West Africa Head of States summit on 19 December in Abuja to accelerate the negotiations of the EPA and to ensure the signing of a comprehensive agreement by June 2009.
The EU also strongly rejects any accusation that the decision on GSP+ has been taken to force Nigeria to conclude an EPA. This is false. The decision on Nigeria's application for GSP+ is based solely upon the criteria (vulnerability, ratification and effective implementation of the 27 conventions, and the commitment to made to comply with the monitoring and review - see above) as laid down in the EU regulation. The EU's intention is not to force any country, let alone Nigeria, into signing the agreement. The EU is engaged in an equal partnership with Africa. What partner would one day engage in an equal partnership and the next day "emasculate or subdue" its partner? The decision on whether to sign ANY agreement including the EPA lies solely with the Nigerian authorities and the EC respects this decision entirely.
The only EU orchestrated plan is development. Development through every tool available: political dialogue, cooperation and trade. For the EU, development is the central thread running through the EPA. In fact, only last week, the EC organised the longest and most detailed Regional Preparatory Task Force so far, to exchange with ECOWAS and European Union Member States, precisely on ECOWAS EPA Development Programme. The EC Delegation in Abuja will be happy to continue exchanging with NANTS and sharing accurate information.
Onyemaobi is Press Officer, Delegation of the European Commission to Nigeria, Abuja
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