Economic Partnership Agreement (EPA)

For 25 years since 1975, the trade, development and co-operation relationship between the European Union (EU) and the Africa, Caribbean and Pacific (ACP) group of countries was governed by the Lomé Conventions (Lomé I, II, III and IV). At the end of the Lomé IV, ACP countries and the EU agreed to a new cooperation framework agreement, the ACP-EU Partnership Agreement or the Cotonou Partnership Agreement (CPA) signed on 23rd June 2000. The conclusion of the CPA involves an agreement under its Economic and Trade Cooperation component for the two parties to negotiate a new trading arrangement compatible with the relevant rules of the World Trade Organisation (WTO) by 31st December 2007. This new trading arrangement was termed the – Economic Partnership Agreement (EPA). Since the negotiations were progressing at a slow pace, an interim arrangement was proposed to prevent a disruption in the trade of ACP non-LDCs as of 1st January 2008, and to extend the time for the negotiation of the EPA.

Seychelles signed the Interim Economic Partnership Agreement (IEPA) with the EU on 29th August 2009 in Mauritius, along with three other countries Mauritius, Madagascar, and Zimbabwe. Negotiations are currently ongoing on the full and comprehensive EPA.

The IEPA entails that Seychelles will eliminate tariffs on 97.52% of its total imports from the EU (in value terms) over a period of 10 years starting in 2013. In return, exports originating from Seychelles will be granted duty free access to the EU market. The IEPA also guarantees areas of cooperation where development can be supported. These are in: Fisheries, Agriculture, Trade Promotion, Infrastructure and Private Sector Development.