News
Mozambique joins the Economic Partnership Agreement between the EU and Southern African states
The Economic Partnership Agreement (EPA) between the European Union and the Southern African Development Community (SADC) became the first regional EPA in Africa to be fully operational after its implementation by Mozambique.
Mozambique was the last piece of the SADC-EPA jigsaw to fall into place. The other five countries – Botswana, Lesotho, Namibia, South-Africa, and Swaziland – have been implementing the agreement since October 2016. Implementing the EPA means that Mozambique will not have to pay customs duties on its exports to the EU.
The EU is the largest export market for Africa. Exports to the EU represent 22% of SADC EPA countries' exports. The EU-SADC EPA provides opportunities for SADC countries to create jobs, attract more investment, industrialise, integrate into global value chains. On the EU side, European businesses are increasingly investing in the region. For its part, Mozambique will progressively, over the course of several years, reduce or eliminate customs duties for many of EU exports.
Trade between the EU and Mozambique is currently about €2 billion annually. Mozambican exports to the EU include aluminium and raw cane sugar. For more information see the SADC-EU EPA Resources page.
Background
On 15 July 2014 the EPA negotiations were successfully concluded in South Africa. The agreement was signed by the EU and the SADC EPA group on 10 June 2016 and the European Parliament gave its consent on 14 September 2016.
Pending ratification by all EU Member States, the agreement came provisionally into force as of 10 October 2016. Mozambique ratified the agreement on 28 April 2017.
The first meeting of the joint Trade and Development Committee (TDC) took place on 16-17 February 2017. A second meeting of the TDC took place on 21 October 2017. The third one is scheduled for 22-23 February 2018.
Following provisional application, the Parties are addressing implementation issues including the twin questions of EPA monitoring and civil-society involvement and putting in place the institutional framework for the Agreement.
