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What is the Economic Partnership Agreement between the EU and Namibia?
Namibia, a sparsely populated country in southern Africa, has been a longtime trading partner of the European Union (EU), which is its second largest export market after South Africa. In 2019, Namibia`s exports to the EU (mainly diamonds, fish, and beef) amounted to more than 1.5 billion euros, while its imports from the EU (mostly machinery, vehicles, and chemicals) totaled more than 1.3 billion euros. To further enhance and regulate this bilateral trade, the EU and Namibia signed an Economic Partnership Agreement (EPA) in 2016, which came into provisional application in 2018.
The EPA is a type of trade agreement that aims to promote sustainable development, regional integration, and poverty reduction in African, Caribbean, and Pacific (ACP) countries by facilitating their access to the EU`s market and offering them technical assistance and financial support. The EPA between the EU and Namibia is the first of its kind in the southern Africa region and the fourth in Africa, after those with Côte d`Ivoire, Ghana, and Botswana.
The main features of the EPA between the EU and Namibia are:
— Mutual liberalization of trade in goods: Namibia and the EU gradually eliminate or reduce tariffs and quotas on most of their imports and exports, according to a harmonized schedule that spans over several years. This means that Namibian products can enter the EU duty-free and quota-free, and vice versa, subject to certain rules of origin, health, and safety. For example, Namibian fish exports face tariffs of up to 20% in some EU countries, but these will be eliminated over ten years under the EPA.
— Cooperation on services and investment: The EPA includes provisions on the liberalization, regulation, and protection of services and investment, such as banking, transport, telecommunications, and energy. It also sets up a Joint Committee and a Trade and Development Committee to monitor and review the implementation of the EPA and to address any disputes or issues that may arise. Moreover, the EPA foresees the possibility of extending its scope to cover other areas of cooperation, such as intellectual property, environment, and labor.
— Development assistance and capacity building: The EPA provides for a financial envelope of 20 million euros, which aims to support Namibia`s efforts to implement the EPA and to enhance its competitiveness and exports. This includes funding for technical assistance, infrastructure, private sector development, and regional integration. Additionally, the EPA offers opportunities for Namibian businesses and entrepreneurs to participate in EU programs and initiatives, such as Horizon 2020, COSME, and Erasmus+.
The benefits and challenges of the EPA between the EU and Namibia are subject to debate and evaluation. On the one hand, the EPA can increase Namibia`s export earnings, diversify its markets, and attract more foreign investment, which can contribute to its economic growth and development. On the other hand, the EPA may also expose Namibia to more competition from EU imports, especially in sensitive sectors, such as agriculture, where small-scale farmers may face difficulties in adapting to the new trading conditions. Moreover, the EPA may affect Namibia`s policy space and sovereignty, as it requires Namibia to align its trade policies with the EU`s and to comply with some EU standards and regulations.
Therefore, the EPA between the EU and Namibia should be seen as a dynamic and evolving partnership that requires constant dialogue, consultation, and participation from all stakeholders. It should also be viewed in the context of Namibia`s broader development agenda, which includes reducing poverty, inequality, and unemployment, and achieving sustainable industrialization and regional integration. As such, the EPA can be a tool for Namibia to leverage its potential and overcome its challenges, provided that it is implemented in a transparent, inclusive, and responsible manner.
