Seychelles: Support to the implementation of the EU Economic Partnership Agreement (EPA)

Project background

As a very small open economy dependent on tourism, fish exports and imports of most other commodities, products and specialised services, Seychelles is highly vulnerable to external shocks such as economic downturns in partner countries. The country's trade policy therefore focuses on reducing this vulnerability by diversifying the export basket and markets, promoting the export of value-added products, improving the trade and business climate to enhance competitiveness and sustainable growth, and integrating into the regional economy and the global trading system. To implement its trade liberalisation and diversification agenda, the government has signed the Economic Partnership Agreement (EPA) with the EU, the World Trade Organisation (WTO) and various regional integration agreements.

Objectives

Trade was to be enhanced through a competitive integration of Seychelles into the regional and international trading system.

Specific objectives

1. Improve the efficiency, ownership and capacity of key actors to manage and implement the current EPA, as well as other trade and regional integration agreements
2. Support the improvement of value chains in the manufacturing, agriculture and fisheries sectors and job creation through increase of added value, including through using environmentally friendly production techniques
3. Improve trade facilitation and trade and investment promotion

The purpose of the contract was to assist the government in implementing activities under the 11th EDF by providing direct support to the Trade Department within the Ministry of Finance, Trade, Investment and Economic Planning and other implementing authorities. The long-term technical assistance (TA) served to facilitate implementation of a number of short and medium-term activities.

Results achieved

• The capacity of key government institutions to manage and implement the EPA has been improved, including through better formulation of trade policy and trade negotiations.
• Private operators' capacities were improved in exploiting value chains and high value addition using environmentally friendly production techniques.
• Improved environment for private sector development

Activities and/or Results

• Provided long-term TA to the Regional Integration Unit to oversee the implementation of the EPA Strategy and projects identified for implementation 
• Developed a software tool on EPA and regional integration commitments and its accompanying user manual and user training 
• Provided capacity building and TA to review current legislation and policies to ensure conformity to EPA commitments and to make necessary gender-sensitive legislative changes  
• Organised and animated issue-specific workshops on obligations under the EPA for government officials (Sanitary and Phytosanitary Standards (SPS), Technical Barriers to Trade (TBT), Rules of Origin (ROO), etc.) 
• Trained Trade Division staff in trade negotiations, trade policy formulation, market analysis tools and statistical analysis and data exploitation  
• Organised workshops and training programmes for the private sector: on EPA content touching on gender-sensitive opportunities and obligations; and on the use of International Trade Centre market tools 
• Produced EPA cases (success stories) to disseminate information on the opportunities and benefits of EPA 
• Developed the effectiveness of existing blue economy development, including capacity building for blue-economy related governance 
• Developed, installed and operationalised the new tax system, including capacity building of Seychelles Revenue Commission (SRC) staff, addressing effective collection of taxes arising from increased trade initiatives as a result of the EPA 
• Developed, installed and operationalised customs software, including capacity building of SRC staff 
• Built capacity of National TBT Committee and National SPS committee to implement measures according to WTO agreements and international best practices 
• Built capacity of Trade Division staff to undertake ROO reforms 
• Provided training on efficient delivery of notification and enquiry point functions for trade and trade related issues 
• Provided TA and capacity building to undertake reforms and modernisation in laws and regulations governing intellectual property (IP) rights 
• Established an IP Office as a one-stop-shop for copyright and industrial property issues 
• Built capacity of staff manning the IP Office
• Identified initial funding for activities to be undertaken by the IP Office
• Drafted legislation following the review of the Fair Trading Commission Act
• Built capacity of staff of the Fair Trading Commission in the areas of consumer protection, competition, legal enforcement in other jurisdictions and drafting of guidelines and regulations
• Employed a Programme Development Officer at the National Consumer Forum
• Identified high value products with export potential
• Provided TA and capacity building on studies in agro-processing development
• Provided TA and capacity building on effectiveness of existing regulatory framework/incentive schemes for the private sector to develop a base-line of uptake in value chains activities
• Set up a monitoring programme on resources available locally with potential for export
• Equipped and trained the government department to provide quality assurance services to private sector including MSMEs
• Provided TA and capacity building on value chain management of products with export potential facilitate crop producers' association to promote value chains and beekeeping
• Put in place systems, training and capacity building actions for improved and more efficient treatment of by-products
• Developed the Seychelles brand for fish and fisheries products (aqua-culture and fisheries) through studies and surveys, in accordance with good practices as stipulated by the FAO
• Provided TA on packaging and labelling to improve exportability of local products under the Seychelles 'brand' for products other than from the fisheries sector
• Provided capacity building for government and private sector on aquaculture development, with the view of promoting environmentally sustainable and climate resilient aquaculture development
• Identified funding for infrastructure requirements for aquaculture
• Stimulated aquaculture research and innovation
• Reviewed sustainability strategies of the sectors
• Coordinated the development or use of existing global industry-based sustainability strategies/criteria and indicators, including capacity building
• Assessed the contribution of various sectors to carbon pollution and impact on the marine environment
• Developed/adapted existing global standards/resilience strategy guidance, indicators and criteria for climate smart low carbon building on existing private sector models
• Developed communication materials (web based and otherwise)
• Upgraded ASYCUDA World and create a Single Window System using ASYCUDA World, including training and development of Standard Operating Procedures
• Supported the development of the Authorised Economic Operators system and the Registered Exporter REX system
• Built capacity on trade promotion for the Trade Information and Promotion Centre
• Organised B2B fora to put foreign investors in contact with the local private sector via seminars
• Ensured structured dialogue with Seychelles Chamber of Commerce and Industry (SCCI)
• Built capacity of SCCI for the establishment of an MSME incubator through relevant TA and capacity building