Stock Exchange: Oblivious dialogue between Cameroon and the EU

One year after the entry into force of the Economic Partnership Agreement, Cameroon and the EU are struggling to agree on the implementation modalities.

When will products from the European Union start entering the Cameroonian territory without paying custom duties? It is impossible to answer this question today. A little over a year after the entry of the Economic Partnership Agreement (EPA) that links Cameroon and the European Union, both sides have still not been able to agree on the calendar for removal of these tariffs.

The first EPA Committee (a body responsible for the administration of the Agreement) held in Brussels, Belgium on May 11 and 12 stressed the disagreement. The communiqué issued at the end of the meeting did not conclude on a date.

But according to information from Sandra Gallina, Head of Unit in DG Trade of the European Commission, who co-chaired the meeting with the Cameroonian Minister of Economy, Planning and Regional Planning (Minepat), she clearly indicated to the Cameroonian side the EU's wish to see the gradual dismantling of the tariff barriers to begin immediately.

A month later, the answer: "For us, from the ratification, it takes two years to start the implementation of the Agreement. The start of implementation is 2016,” says Gilbert Didier Edoa, Minepat General Secretary, in an interview with Cameroon Tribune.

The main argument of Cameroon is Article 98, paragraph 2 of the EPA. Under this provision, 'this Agreement shall be secured on the first day of the month; after the month in which the last instrument of ratification, acceptance or approval shall have been notified to the depository of the Agreement." Having therefore notified the ratification of the EPA with the EU in July 2014, Cameroon believes that this date marks the beginning of its implementation.

And as provided in the agreement, the process of elimination of customs duties on products from Europe should take place after a transitional period of two years. For its part, the EU opposes Cameroon dismantling schedule provided in Article 21, paragraph 4. Under this timetable, the moratorium should last from 2008 to 2010 and the removal of customs duties should be from 2010 to 2023. Compared to the calendar, Cameroon will save more than 5 years behind in this process. This problem is due to the fact that the EPA which links Cameroon to the EU was written as if it would come into force on 1 January 2008. But this was not the case because of the time taken by Cameroon to ratify the agreement. It is as a result of the shift almost 6 years now that complicates its implementation.

Accompanying measures

Noticeable differences also regarding accompanying measures. These measures include capacity building and upgrading of enterprises and for offsetting net tax losses. Articles 10 and 12 of the EPA dealing with the development component have made appointments clauses. It includes trading after the entry into force of the Agreement.

The Minepat, Emmanuel Nganou Djoumessi, reiterated during the holding of the first EPA Committee. But the EU gave a deaf ear. All these issues should be at the center of the 2nd session of the EPA Committee. Just as the definition of rules of origin are essential to the implementation of the agreement. It is they that define the origin of a product. At the first session of the EPA Committee in Brussels, Cameroon has submitted to the European part of a draft protocol on the subject. It is sure to look at the opportunity.

According to Minepat SG, this second session of the EPA Committee should take place before the end of the year. Which already in 2015 bode that might Complete without the parties do agree on these issues. This annoys the European Union that considers that Cameroon does not play fair. In an interview in late April, Ambassador, Head of Delegation of the European Union (EU) in Cameroon, stated about it: "EU has implemented its commitments on Cameroonian exports prematurely since January 1, 2008. It considers that the commitment made in international agreements is a sine qua none of the proper functioning of trade and the confidence of investors and traders."

This delays the arrangement of things against Central Africa (CAR). According to the report of the 31st session of the regional negotiating committee, the sub-region wishes to conclude a regional agreement with the EU before the start of the abolition by the Cameroon customs duties on imports from the EU. And every day to win allows the AC to advance regional negotiations.

The goal is to save regional integration by replacing the bilateral EPAs by Cameroon of a regional agreement. The bilateral threat indeed EPA integration that the dismantling of trade barriers will break the Cameroon Customs Union Economic and Monetary Community of Central African States.