Meer documentenQuestions and answers on the EU-ESA enhanced Economic Partnership Agreement (EPA)
GENERAL
How large is the ESA4 market? How much trade does the EU conduct with ESA4?
The ESA4 States (Comoros, Madagascar, Mauritius, and Seychelles) represent a market of around 36 million people. They are a diverse group of countries in terms of size and level of economic development. Comoros and Madagascar are Least Developed Countries, while Mauritius is an upper-middle-income country and Seychelles a high-income country. The region's average real GDP growth rate (at market prices) is forecast at around 3.6% in 2026-2027, with the highest growth expected in Madagascar at over 4%.
In 2024, total trade in goods and services between the EU and ESA4 amounted to €9.7 billion, of which €5.2 billion consisted of EU imports and €4.5 billion of EU exports. Services accounted for 58% of the EU's total trade with ESA4, while goods represented 42%. In 2025, EU imports of goods from ESA4 comprised 27% agricultural products, 31% fishery products, and 42% industrial goods. EU exports of goods to ESA4 were led by machinery and equipment (31%), followed by agricultural products (23%) and chemicals (16%), as well as other manufactured and semi-manufactured goods. Trade with ESA4 States has grown steadily in recent years.
The EU is ESA4's largest trading partner in goods, accounting for 24% of the region's total trade, followed by China (11%) and the United Arab Emirates (10%). The EU is ESA4's largest source of imports, with a 20% share, ahead of China (13%) and the United Arab Emirates (12%). As an export destination, the EU ranks first with 34%, far ahead of the United States (12%) and India (9%).
The EU is also an important investor in the region. In 2024, the EU's foreign direct investment stock in ESA4 reached €20 billion, representing an increase of 21% compared with 2020.
Why did the EU and the ESA States negotiate an enhancement of the interim EPA?
The ESA States initiated negotiations in 2019 to enhance the interim EPA, with the objective of moving – in accordance with the rendez-vous clause of the current EPA – beyond an agreement focused primarily on trade in goods and development cooperation. The aim was to create a more comprehensive framework to better support structural economic transformation, promote local value addition, and address persistent challenges such as non-tariff barriers, regulatory fragmentation, and competitiveness gaps.
The EU supported this approach, recognising the value of a modernised agreement that can help secure supply chains, promote high standards, particularly in the areas of sustainability and governance, and strengthen economic and regulatory stability in a region with considerable economic potential.
In this context, the enhanced EPA represents a major step forward in modernising and reinforcing the EU-ESA partnership. As a “new generation” EPA, it goes beyond preferential market access for goods to cover key drivers of economic transformation, including trade in services, investment, sustainability, and economic governance.
Will other ESA countries be able to join the enhanced EPA in the future?
The enhanced EPA will remain open to accession by other ESA States whenever they are in a position to do so. The negotiations to enhance the currently implemented interim EPA have been concluded with the four ESA States (Comoros, Madagascar, Mauritius, and Seychelles) that were ready to finalise the process. Negotiations with Zimbabwe on remaining outstanding issues are ongoing, leaving open the possibility of its future accession to the Agreement.
Which elements does the enhanced EPA add to the interim EPA?
While the interim EPA already covers trade in goods, and economic and development cooperation, the enhanced EPA significantly broadens the scope of the Agreement. It adds reciprocal preferential market access for services and investment, digital trade, transparency in public procurement, competition policy, transparency in subsidies, state-owned enterprises, intellectual property (including geographical indications), trade and sustainable development, and further trade-related disciplines (including technical barriers to trade, sanitary and phytosanitary measures, customs and trade facilitation, and modernized rules of origin) to support goods trade.
Overall, the enhanced EPA provides a complete framework for trade and investment between the EU and the ESA States, supporting market access, regulatory cooperation, and sustainable development.
How will the ESA States benefit from this Agreement?
The enhanced EPA will bring important benefits to the ESA States by extending the partnership well beyond trade in goods and covering areas that are central to modern economies based on services and digitalisation.
In particular, the Agreement introduces disciplines on trade in services, investment liberalisation, and digital trade. This will create new opportunities in higher value-added sectors, enable firms to scale across borders and enhance the possibilities to participate in the digital economy. It also strengthens the framework for intellectual property rights, including geographical indications, which can help differentiate local products and support branding. In addition, the Agreement improves transparency in public procurement and includes rules on competition, state-owned enterprises, and subsidy transparency, all of which contribute to fairer competition and a more level playing field.
More broadly, the enhanced EPA provides a framework for a more predictable, competitive, and sustainable economic environment. This can support economic upgrading, stimulate intra-regional trade, and strengthen ESA4's position as a connected, resilient, and attractive destination for European and international investment.
In practical terms, the Agreement will reduce regulatory barriers, improve the interoperability of standards, and establish more harmonised rules. This will facilitate trade and support greater regional mobility, not only of goods, but also of services, capital, data and skills. In that, it can contribute to the development of more sustainable, efficient, and resilient regional value chains by creating better links between ESA4 economies with global markets.
The Agreement will also support the advancement of social and environmental objectives in the ESA States through a broad range of commitments and cooperation provisions in areas such as labour rights, environmental and climate protection, gender equality, and responsible business conduct, helping to ensure that economic integration goes hand in hand with sustainable and inclusive development.
Will the EU support the implementation of the Agreement, given the development needs of the ESA States?
The EU is committed to support the implementation of the enhanced EPA in a predictable and sustainable manner, including through a dedicated chapter on economic and development cooperation.
This chapter sets out how the EU and the ESA States will work together to ensure that the EPA delivers concrete, sustainable development benefits through the effective implementation of the agreement. It aims to promote sustained growth, stronger production and supply capacity, structural transformation and competitiveness, as well as diversification and value addition. It will at the same time support deeper regional and continental integration in Africa, including through the African Continental Free Trade Area. The scope of cooperation is broad and covers the key areas needed to ensure that trade and investment effectively contribute to sustainable development. This includes, among other things, support for a more conducive business environment and investment facilitation, industrial development and competitiveness, micro, small and medium-sized enterprises, sanitary and phytosanitary measures, customs and trade facilitation, and trade and sustainable development.
In practical terms, the EU can mobilise a range of instruments to support the implementation, including technical assistance, capacity building, programmes and projects as well as blending and guarantee instruments, in line with the EU's Global Gateway strategy.
TRADE DISCIPLINES
What will the Agreement mean for trade in goods?
Market access for goods was not negotiated as part of the enhancement process, as it is already covered by the interim EPA. Nevertheless, the current rules of origin have been modernised to further enhance trade.
Since its provisional application in May 2012, the interim EPA has provided duty-free, quota-free access for ESA4 exports to the EU market for all originating products, except arms and ammunition.
On the ESA4 side, the Agreement provides for gradual liberalisation of imports from the EU over transition periods. At the same time, the interim EPA allows the ESA States to exclude a share of tariff lines (up to 20%) from liberalisation, meaning that these products can continue to be subject to normal customs duties.
The liberalisation of market access for goods under the interim EPA has now largely been completed. Mauritius and Seychelles completed their tariff liberalisation on 1 January 2022, covering respectively 98% and 96% of tariff lines on a duty-free, quota-free basis. Madagascar completed its liberalisation on 1 January 2023, covering 86% of tariff lines. Comoros still needs to implement the final liberalisation measures.
As a result, EU companies are benefiting from improved access to ESA4 markets, including in important export sectors such as machinery and mechanical appliances, which accounted for 14% of total EU exports to ESA4 in 2025, electrical machinery and appliances (9%), as well as transport equipment, pharmaceutical products, and essential oils and resinoids (5% each).
What will the Agreement mean for trade in services?
The Agreement will make it easier and more predictable for EU firms to supply services in the ESA States, including in sectors such as professional and business services, maritime transport, telecommunication, and financial services. More broadly, it will reduce and eliminate discriminatory treatment and create new opportunities for both EU and ESA4 service suppliers and investors.
At the same time, the Agreement preserves the right of governments to regulate in the public interest. In particular, it guarantees the ability of EU Member States' authorities to maintain public services, and it does not require governments at national or local level to privatise or deregulate any public service.
What will the Agreement mean for investment?
The Agreement will improve conditions for investment between the EU and the ESA States by ensuring a more predictable and non-discriminatory framework for investors.
In particular, it will ensure that EU investors receive treatment no less favourable than that granted to investors from any third country in the ESA States, and, in most cases, treatment equivalent to that accorded to domestic investors. The same principles will also apply to ESA4 investors in the EU.
This means that investors on both sides will be able to establish companies and carry out their business activities in each other's territories under clearer and fairer conditions.
The Agreement does not include provisions on the protection of existing investments.
What will the Agreement mean for digital trade?
The Agreement will facilitate digital trade by addressing unjustified barriers and by promoting an open, secure, and trustworthy online environment for businesses and consumers. It will help create more favourable conditions for cross-border digital trade by banning customs duties on electronic transmissions while providing legal certainty for economic operators.
In particular, the Agreement prohibits data localisation requirements, which can create unnecessary costs and obstacles for businesses. At the same time, it fully preserves the EU's policy space in the area of personal data protection.
How will the Agreement help businesses to access the public procurement market in the ESA States?
The enhanced EPA will make public procurement in the ESA States more transparent and predictable, thereby improving opportunities for EU businesses to participate in procurement procedures.
Under the agreement, the ESA States have committed to define rules for transparent and predictable public procurement systems, based on key principles of the WTO Agreement on Government Procurement. This will make it easier for EU bidders to understand the applicable rules and to participate in procurement procedures.
The ESA States have also agreed to publish high-value contract notices on an electronic portal. This will help EU companies identify potential business opportunities more easily and reduce the administrative costs associated with accessing procurement information.
In addition, information on the award of high-value contracts will also be published electronically. This will improve transparency and accountability in public spending in the ESA States and contribute to efforts to prevent and combat corruption.
What will the Agreement mean for intellectual property?
The Agreement will provide a solid and modern level of protection and enforcement of intellectual property rights in three ESA States (Madagascar, Mauritius, and Seychelles). It covers copyright, trademarks, designs, trade secrets, geographical indications, and plant variety rights, and is aligned with key international intellectual property treaties. It also reflects the development needs of ESA partners through targeted transitional arrangements and cooperation mechanisms. This will give EU and ESA businesses greater legal certainty when trading and investing.
EU trademark owners will benefit from clear rules on registration, protection, and enforcement, including safeguards against bad‑faith applications and protection against subsequent conflicting trademarks. This will give EU companies confidence when marketing branded goods in ESA markets.
The Agreement also provides strong protection for trade secrets and undisclosed information, ensuring that confidential business information and know‑how are safeguarded against unauthorised use. This is essential for EU companies transferring technology, entering partnerships, or investing in the region.
In terms of enforcement, the Agreement includes effective civil and administrative measures and remedies, such as injunctions, damages, corrective measures, and border enforcement tools. These mechanisms will help EU and ESA right holders to enforce their rights in practice and to combat counterfeiting and piracy.
On geographical indications (GIs), the Agreement establishes a clear and predictable system for the protection of EU GIs in Madagascar, Mauritius, and Seychelles and vice versa. It includes, among other things, rules on homonymous names and protection against misuse, evocation, and subsequent genericness, ensuring that designated GIs enjoy a high level of protection after a transitional period.
Comoros is carved out from the intellectual property chapter as it is a party to the regional Bangui Agreement on intellectual property.
What are the key provisions on rules of origin?
The Agreement's rules of origin determine which products can benefit from the preferential treatment provided under the EPA.
Products that are wholly obtained in either the EU or the ESA States (for example through agriculture, mining, or fishing) qualify as originating products. Products made using non-originating materials can also qualify, provided that they fulfil the relevant product-specific rules set out in the Agreement. It incorporates specific provisions, such as the single-transformation rule for clothing, to facilitate ESA exports to the EU.
A key feature of the system is bilateral cumulation. This means that EU producers may use materials originating in the ESA States as if they originated in the EU, and ESA4 producers may do the same with EU-originating materials.
AGRICULTURE
How will the Agreement benefit ESA4 farmers and food producers?
The enhanced EPA will further strengthen cooperation in agriculture by establishing an agricultural partnership that combines development cooperation, policy dialogue, and the promotion of investment. The objective is to support more sustainable agricultural production and processing, while also encouraging greater intra-regional and continental trade in agricultural products.
EU development cooperation will also support farming and rural employment through capacity-building measures. This includes, for example, promoting geographical indications that can add value to local production chains, and helping farmers meet sanitary, phytosanitary and other agricultural standards. Strengthening compliance with these standards will facilitate access to the EU market and help expand trade opportunities in the agricultural sector.
In addition, under the enhanced EPA, the EU will protect the two existing geographical indications from the ESA4 region: Mauritius Rum and Mauritius Unrefined Sugar. As more geographical indications are expected to be registered by ESA States in future, the Agreement also establishes a mechanism to add further geographical indications for protection.
The interim EPA already offers opportunities for ESA4 farmers and food producers, as the EU is the largest importer of agricultural products from African, Caribbean, and Pacific (ACP) countries. This is particularly relevant for ESA4, as agricultural and fisheries products accounted for more than half of ESA4's exports to the EU in 2025: agricultural products represented 27% of ESA4 goods exports to the EU, while fisheries products accounted for 31%.
In addition, since the provisional application of the interim EPA, ESA4 agricultural and food producers have benefitted from preferential access to one of the world's largest markets duty-free and quota-free.
At the same time, the Agreement preserves policy space for the ESA States to protect sensitive agricultural sectors. As with other ACP partners, ESA4 countries may exclude certain sensitive agricultural products from tariff liberalisation, retain the possibility to apply safeguards in the event of an unforeseen, sharp and sudden surge in imports from the EU, and take food security measures where necessary.
How will EU farmers and food producers benefit? How will the Agreement protect EU distinctive regional products (geographical indications)?
The enhanced EPA will bring benefits by strengthening the protection of EU geographical indications in the region. Following a transitional period, 135 EU geographical indications will be protected in Madagascar, Mauritius, and Seychelles. These include well-known products such as Comté, Irish Whiskey, Estonian vodka, Žatecký chmel, Rioja, Halloumi, Feta, Schwarzwälder Schinken, Szegedi szalámi / Szegedi téliszalámi, and Aceto Balsamico di Modena. The Agreement also establishes a mechanism allowing both Parties to add further geographical indications in the future.
In addition, the Agreement includes provisions on sanitary and phytosanitary measures, covering areas such as import conditions and procedures, alignment with EU legislation, adaptation to regional conditions, transparency, exchange of information, as well as policies relating to animal welfare and the fight against antimicrobial resistance.
EU farmers and food producers already benefit from the gradual liberalisation of imports from the EU by the ESA States under the interim EPA. As a result, zero tariffs now apply across several or all ESA markets in various important export sectors, including meat and meat preparations, vegetables and vegetable preparations, cereals and cereal preparations, and dairy products.
This is reflected in the composition of EU exports to the region. In 2025, agricultural products accounted for 23% of the EU's total goods exports to ESA4, which reached €1.9 billion. Agriculture is therefore the EU's second-largest export category to ESA4, after machinery and equipment, which represented 31% of total goods exports.
How will the Agreement protect European standards, including food safety standards?
As with all EU trade agreements, the enhanced EPA will not change European standards, including those applying to food, agricultural, and fishery products. EU standards are not negotiable.
The Agreement does not affect or weaken EU legislation on food safety or animal and plant health. The EU will continue to apply its existing rules and maintain its high level of protection in these areas. This includes the EU's right to set and enforce maximum residue levels for pesticides, veterinary medicines, and contaminants.
The Agreement also reaffirms the EU's right to regulate in the interest of public health and confirms the application of the precautionary principle. This means that the EU may take measures to protect human, animal or plant health where there is a perceived risk, even if the scientific evidence is not yet conclusive.
All imported food products must continue to comply fully with EU standards. The same rules apply to all products placed on the EU market, whether they are produced within the EU or imported from abroad. Compliance is ensured through the EU's robust system of controls and checks.
SUSTAINABILITY
How will the Agreement promote sustainability?
The Agreement contains a robust, comprehensive, and enforceable chapter on Trade and Sustainable Development (TSD), reflecting a high level of ambition. It includes strong and binding commitments in key areas such as international labour standards, gender equality, environmental and climate protection, and responsible business conduct. The Agreement also protects both Parties' right to regulate and prohibits either Party from weakening or failing to enforce its domestic labour or environmental laws in order to encourage trade or investment. These commitments are legally binding and enforceable. In addition, the Agreement includes an ambitious cooperation agenda designed to support the effective implementation of the Trade and Sustainable Development chapter.
How will the Agreement uphold workers' rights in both the EU and the ESA States?
The EU and the ESA States have agreed that the Agreement must support existing workers' rights and must not result in their weakening or dilution. To that end, the Agreement prohibits either Party from encouraging trade or investment by weakening labour laws, granting derogations or waivers from such laws, or failing to enforce them effectively.
The Agreement also commits both sides to respect the core labour rights as defined by the International Labour Organisation (ILO). These include freedom of association and the effective recognition of the right to collective bargaining, the elimination of all forms of forced or compulsory labour, the effective abolition of child labour, the elimination of discrimination in respect of employment and occupation, and a safe and healthy working environment.
In addition, the TSD chapter requires the effective implementation of all ILO conventions ratified by each Party and includes a commitment to make continued efforts towards ratifying the fundamental ILO conventions that have not yet been ratified.
The Agreement further includes robust commitments on decent work, including on working conditions related to wages, earnings and working hours, as well as on labour inspection and social dialogue, in line with relevant ILO standards.
How will the Agreement contribute to gender equality?
The Agreement includes a dedicated article on trade and gender equality within the TSD chapter and will address, for example, the following aspects:
- Commitment to effectively implement the relevant United Nations and International Labour Organisation conventions relating to gender equality and women's rights, including the Convention on the Elimination of All Forms of Discrimination against Women.
- Priority areas for sharing information and joint initiatives, such as policies and actions aimed at maximising the positive impact of women's participation in trade.
More generally, the EU and ESA4 agreed to implement the enhanced EPA in a manner that enhances gender equality, to improve the capacity of women (including workers, businesswomen, and entrepreneurs) to benefit from the opportunities of the Agreement, and to facilitate equal rights, treatment, and opportunities between women and men.
How will the Agreement contribute to the fight against climate change?
The Agreement includes clear and binding commitments on climate action. Under the TSD chapter, the EU and the ESA States commit to effectively implement the United Nations Framework Convention on Climate Change and the Paris Agreement. If either Party fails to comply with its obligations under the TSD chapter, or acts in a manner that materially defeats the Paris Agreement, the other Party may impose trade remedies.
What about the Agreement's impact on the environment?
The EU and the ESA States have agreed that the Agreement must support existing international environmental standards and must not lead to the lowering or dilution of environmental protections on either side. The Agreement also fully preserves each Party's right to regulate in order to protect the environment.
Both sides commit to effectively implement multilateral environmental agreements they have ratified, including, for example, the Paris Agreement, the Convention on Biological Diversity, and the Convention on International Trade in Endangered Species of Wild Fauna and Flora.
The TSD chapter also includes more specific provisions relating to the fight against climate change and the transition to a sustainable low-carbon economy. In addition, it identifies potential areas in which trade and environmental agendas can mutually reinforce one another, including the sustainable management of natural resources, wildlife protection, biodiversity, forestry, fisheries, aquaculture and ocean governance. The cooperation commitments are also intended to encourage the transition towards a circular and resource-efficient economy, as well as the development of deforestation-free supply chains.
Will the sustainability commitments be enforceable?
The commitments on trade and sustainable development are legally binding and enforceable under the Agreement. They are subject to the Agreement's general dispute settlement mechanism, which includes an independent and transparent review by a panel of experts. This approach is designed to address concerns through dialogue and cooperation.
Where a Party is found to be in breach of its TSD obligations, it must promptly indicate how it intends to implement the panel's findings and do so within a specified period. Compliance with this process will be subject to further panel review, if one Party so requests.
In addition, the Agreement provides for the possibility of trade remedies as a measure of last resort in cases of serious violations of core TSD commitments, notably the International Labour Organisation's fundamental principles and rights at work, and the Paris Climate Agreement.
How will the EU support ESA4, in particular its Least Developed Countries (LDC) members, in effectively implementing TSD commitments, including the Paris Agreement and complying with binding environmental and ILO commitments?
The EU will support the implementation of the Agreement, including its TSD commitments, through the broad cooperation framework set out in the chapter on Economic and Development Cooperation.
This cooperation covers the key areas needed to ensure that trade and investment contribute to sustainable development. It includes, among other things, support for improving the business environment and facilitating investment, industrial development and competitiveness, micro, small and medium-sized enterprises, sanitary and phytosanitary measures, trade and sustainable development, environment, and trade and gender.
More specifically, this support will help ESA4 partners, including LDC members, implement key multilateral commitments. These include the Paris Agreement and other environmental agreements, ILO instruments on decent work, the WTO Sanitary and Phytosanitary Measures (SPS) Agreement, the Convention on Biological Diversity and the Nagoya Protocol, as well as the United Nations Convention on the Law of the Sea and the Agreement on marine biodiversity of areas beyond national jurisdiction.
In this way, economic and development cooperation under the EPA will help ensure that implementation of the Agreement is consistent with high environmental, social and governance standards.
Will civil society be involved in the implementation of the Agreement?
In the framework of the Domestic Advisory Groups (DAGs) and the Joint Forum, a balanced representation of independent economic, social and environmental stakeholders will be able to voice their views and provide input to discussions on how the enhanced EPA is being implemented, including the provisions on trade and sustainable development.
For more information
Joint Statement on the EU-ESA4 EPA deepening negociations
EU and Southern Africa trade relations
