It is learnt that 18 African, Caribbean and Pacific countries have been warned they could lose their preferential access to the 27-member EU bloc if they fail to sign and ratify Economic Partnership Agreements (EPAs) with the European Union within the next two years.

Brussels set out its plans to withdraw the current Market Access Regulation at the end of last month - and said the 18 out of 36 countries that have not yet concluded or implemented an EPA now have until 1 January 2014 to do so. But it also said the change is likely to have just a minimal impact on market access for goods from these countries.

The Market Access Regulation, which grants duty-free and quota-free access to the EU for 36 African, Caribbean, and Pacific countries, was intended as a "bridging solution" following the expiry of the ACP-EU Cotonou Agreement. But four years down the line, the Commission says the countries concerned have had enough time to take steps towards ratifying EPAs with the EU. "The Regulation was conceived as a temporary solution and not a permanent facility," it notes.

Eighteen countries - 14 in the Caribbean, along with Madagascar, Mauritius, Seychelles and Papua New Guinea - have taken the necessary steps towards ratification of initialled agreements, and will continue to use the facility. The other 18 countries now have a choice to go ahead and establish a partnership with the EU - either through ratification of existing EPAs or by concluding new regional agreements with the EU - or not. If they decide to opt out of EPAs, 9 countries (Burundi, the Comoros, Haiti, Lesotho, Mozambique, Rwanda, Tanzania, Uganda, Zambia) are Least Developed Countries (LDCs) and can benefit from duty- and quota-free access to the EU under the Everything But Arms scheme.

Seven are low-income or lower middle-income countries (Cameroon, Fiji, Ghana, Ivory Coast, Kenya, Swaziland, Zimbabwe) that could benefit from the Generalised System of Preferences regime, a less advantageous unilateral scheme in place for all developing countries.

The timing of the changes to the Market Access Regulation will match the introduction of the new Generalised System of Preferences. The last two countries, Botswana and Namibia, are currently upper middle-income countries and, if this status is confirmed in three consecutive years, would not qualify for preferential access under the proposed revision to the Generalised System of Preferences.

The announcement marks the first time the EU has put a clear deadline to the talks. But it is at pains to point out that the move is not unexpected. It also says the current situation is unfair towards those countries that have taken the necessary steps to sign a trade pact with the EU, and also towards other developing countries which do not get free access. "This is neither a new policy nor a fundamental change of approach," a statement said.

Originally Published in The Stitch Times, November-2011