Review of issues in EU-Lesotho relations
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CTA. 2003. Review of issues in EU-Lesotho relations. Agritrade, May 2003. CTA, Wageningen, The Netherlands.
Permanent link to this item: http://hdl.handle.net/10568/52656
This ERO paper looks at the current profile of Lesotho's exports to the EU,...
This ERO paper looks at the current profile of Lesotho's exports to the EU, highlighting how, unlike in other BLNS economies, issues in Lesotho's access to the EU market will largely need to be addressed through the development of the rules of origin to be applied under the EBA initiative. It does, however, also look at the likely impact of CAP reform on the attractiveness of EU agricultural markets. It then goes on to consider the challenge of reciprocity facing Lesotho under the EU-South Africa TDCA and asks what measures can be established to help Lesotho respond to the challenge. It reviews the fiscal implications of the EU-South Africa TDCA for Lesotho, showing that a 12.9% reduction in government revenues is likely. The paper ends by reviewing the possible scope for safeguard provisions in areas of importance to Lesotho. Comment: With a firm time-frame for the introduction of free trade with the EU now established for the countries of the Southern African Customs Union, and with the BLNS countries facing a free-trade area with the EU by 2012, the experience of these countries will provide important insights into the kind of issues which other ACP countries will face over the period from 2008 to 2020. In the case of Lesotho it also highlights the issues which least developed ACP countries now face. Any solutions the BLNS can find to the problems created by moves towards free trade with the EU will offer important precedents for other ACP countries.