Economic Partnership Agreements (EPAs) are trade and development agreements negotiated between the EU and African, Caribbean and Pacific (ACP) partners engaged in regional economic integration processes (Economic, 2018).

EU trade policy and ACP countries

The EU has in place, or is negotiating, Economic Partnership Agreements (EPAs) with countries in Africa, the Caribbean and the Pacific.

Find out more about the top 10 benefits of these partnerships for development.

1. The Economic Partnership Agreements between the EU and African, Caribbean and Pacific countries and regions aim at promoting ACP-EU trade – and ultimately contribute, through trade and investment, to sustainable development and poverty reduction.
2. Trade with ACP countries represent more than 5% of EU imports and exports. The EU is a major trading partner for ACP countries.
3. The EU is the main destination for agricultural and transformed goods from ACP partners – but commodities (e.g. oil) still form a large part of ACP-EU trade. The EPAs intend to support trade diversification by shifting ACP countries' reliance on commodities to higher-value products and services.
4. The majority of ACP countries are either implementing an EPA or have concluded EPA negotiations with the EU

Economic Partnership Agreements in a nutshell

Economic Partnership Agreements:

• are a process dating back to the signing of the Cotonou Agreement.
• are "tailor-made" to suit specific regional circumstances.
• are WTO-compatible agreements, but go beyond conventional free-trade agreements, focusing on ACP development, taking account of their socio-economic circumstances and including co-operation and assistance to help ACP countries benefit from the agreements.
• open up EU markets fully and immediately but allow ACP countries long transition periods to open up partially to EU imports while providing protection for sensitive sectors.
• provide scope for wide-ranging trade co-operation on areas such as sanitary norms and other standards.
• create joint institutions that monitor the implementation of the agreements and address trade issues in a cooperative way.
• last but certainly not least, are also designed to be drivers of change that will help kick-start reform and contribute to good economic governance. This will help ACP partners attract investment and boost their economic growth.

Read the EPA factsheet and the EPA brochure, and see what the benefits of EPAs are.

Where are we in negotiations?

Overview of EPAs – state of play

1. Regional EPA pages:
2. Central Africa
3. Eastern and Southern Africa
4. East African Community
5. Southern African Development Community
6. West Africa
7. Caribbean
8. Pacific (Economic Partnership, 2018). 

EU trade policy sets the direction for trade and investment in and out of the EU.

The Directorate-General for Trade in the European Commission helps to develop and implement EU trade and investment policy. Along with the EU's Trade Commissioner, Cecilia Malmström, we aim to shape a trade and investment environment that is good for people and for business.

The overall direction for an EU trade policy that helps revitalise Europe's economy is set out in the Communication “Trade for all – towards a more responsible trade and investment policy”. The EU aims to play a key role in keeping markets open worldwide and helping Europe to exit from the economic crisis.

EU trade policy is working to:

1. Create a global system for fair and open trade

The World Trade Organization has helped shape a system of global trade rules that keeps the global economy open for trade as well as reflects and respect the needs and concerns of developing countries.

The network of agreements and obligations overseen by the World Trade Organization, helps ensure that trade is open, predictable and fair.

EU trade policy works to maintain the global trading system and to ensure it adapts to a fast-changing world (EU and WTO, 2018).

2. Open up markets with key partner countries

We seek to create growth and jobs for Europeans by increasing their opportunities to trade with the world. This is particularly important in the context of current economic conditions.

One way of opening markets is to negotiate better access and conditions for trade and investment through free trade agreements.

The EU has concluded a number of Free Trade Agreements and is continuing negotiations with others. 

3. Make sure everyone plays by the rules

EU trade policy aims to open new markets for European exporters, workers and investors through lifting barriers to the markets of our trading partners. We work closely with countries outside Europe to:

• remove persistent problems for exporters;
• increase the opportunities for EU businesses to get equal access to procurement markets outside the EU;
• reduce counterfeiting and piracy of European goods;
• open up new opportunities for European investment.

Because international trade rules are designed to ensure that trade is fair, it is vital that they are respected. We represent and defend European interests in the court system of the World Trade Organization, helping ensure that WTO obligations are met.

We are also responsible for making sure that the imports that enter the EU are traded at fair prices and that they do not cause unfair damage to European companies and their workers (EU and WTO, 2018).

We are committed to actively helping people around the world trade their way out of poverty. Europe has opened its markets to all imports from the world's poorest countries, and works actively to help developing countries build the capacity to take advantage of trade.

We also use our trade policy to reinforce other important international goals:

• supporting the fight to protect our environment and reverse global warming;
• striving to improve working conditions for workers in developing countries; and
• ensuring the highest standards of health and safety for the products we buy and sell.

According to the EU treaties, membership of the European Union is open to "any European State which respects the values referred to in Article 2 and is committed to promoting them" (TEU Article 49). Those Article 2 values are "respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities." This is based on the 1993 "Copenhagen criteria" agreed as it became clear many former Eastern Bloc countries would apply to join.

“Membership requires that candidate country has achieved stability of institutions guaranteeing democracy, the rule of law, human rights, respect for and protection of minorities, the existence of a functioning market economy as well as the capacity to cope with competitive pressure and market forces within the Union. Membership presupposes the candidate's ability to take on the obligations of membership including adherence to the aims of political, economic and monetary union.       ”

In December 1995, the Madrid European Council revised the membership criteria to include conditions for member country integration through the appropriate adjustment of its administrative structures: since it is important that European Community legislation be reflected in national legislation, it is critical that the revised national legislation be implemented effectively through appropriate administrative and judicial structures.

Finally, and technically outside the Copenhagen criteria, comes the further requirement that all prospective members must enact legislation to bring their laws into line with the body of European law built up over the history of the Union, known as the acquis communautaire (Sustainable, 2018).

Process

Today the accession process follows a series of formal steps, from a pre-accession agreement to the ratification of the final accession treaty. These steps are primarily presided over by the European Commission (Enlargement Commissioner and DG Enlargement), but the actual negotiations are technically conducted between the Union's Member States and the candidate country.

Before a country applies for membership it typically signs an association agreement to help prepare the country for candidacy and eventual membership. Most countries do not meet the criteria to even begin negotiations before they apply, so they need many years to prepare for the process. An association agreement helps prepare for this first step.

In the case of the Western Balkans, a special process, the Stabilisation and Association Process exists to deal with the special circumstances there.

When a country formally applies for membership, the Council asks the Commission to prepare an opinion on the country's readiness to begin negotiations. The Council can then either accept or reject the Commission's opinion (The Council has only once rejected the Commission's opinion when the latter advised against opening negotiations with Greece).

If the Council agrees to open negotiations the screening process, then begins. The Commission and candidate country examine its laws and those of the EU and determine what differences exist. The Council then recommends opening negotiations on "chapters" of law that it feels there is sufficient common ground to have constructive negotiations. Negotiations are typically a matter of the candidate country convincing the EU that its laws and administrative capacity are sufficient to execute European law, which can be implemented as seen fit by the member states. Often this will involve time-lines before the Acquis Communautaire (European regulations, directives & standards) has to be fully implemented.

Population and GDP per capita of individual EU member states compared with those of non-member states in Europe.

A chapter is said to be closed when both sides have agreed it has been implemented sufficiently, however it can still be re-opened if the Commission feels that the candidate has fallen out of compliance.

To assess progress achieved by countries in preparing for accession to the European Union, the European Commission submits regular reports (yearly) to the European Council. These serve as a basis for the Council to make decisions on negotiations or their extension to other candidates.

Once the negotiations are complete a treaty of accession will be signed, which must then be ratified by all of the member states of the Union, as well as the institutions of the Union, and the candidate country. Once this has been completed it will join the Union on the date specified in the treaty.

The entire process, from application for membership to membership has typically taken about a decade, although some countries, notably Sweden, Finland, and Austria have been faster, taking only a few years. The process from application for association agreement through accession has taken far longer, as much as several decades (Turkey for example first applied for association in the 1950s and has yet to conclude accession negotiations).