ABSTRACT
Swaziland) were the most likely to be significantly affected by any loss of preferences. Preferential access to the EU has been important in establishing their market, so the loss of preferences would reduce their market share. However, simply maintaining preferences will do little to stimulate exports; ACP countries expect preference enhancement. A number of features could be incorporated into EPAs to enhance preferences (adapted from Milner et al., 2009):
a Significant easing of Rules of Origin (RoO) requirements to permit increased levels of value-added processing recognizing ACP needs to import inputs. Strict RoO undermine the value of preferences and increase the costs of utilizing preferences. Rules based on change of tariff heading are more favourable to ACP and less complex than those based on local value added or technical tests. Preference schemes would be more beneficial if RoO requirements and entitlements are transparent and fixed for up to ten years.
