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SHORT-TERM CONSULTANCY FOR A COST-BENEFIT ANALYSIS ON VANUATU’S POSSIBLE ACCESSION TO THE PACP-EU INTERIM ECONOMIC PARTNERSHIP AGREEMENT (I-EPA)

BACKGROUND
Trade is the fulcrum of Vanuatu’s economy, with the combined value of exports and imports aggregating around 106% of its GDP, up from 93% in 2011. Vanuatu’s primary exports are tourism, cattle/livestock, and logs, while its main trading partners include Australia, Fiji and New Zealand. Additionally, Foreign Direct Investment (FDI) is deemed significant, with the main subsectors being tourism, telecommunications, food, and wood processing.
The recent Vanuatu Trade Policy Framework (2019- 2025) highlighted kava as the leading export commodity contributing to a share of 52% with 2.5 billion vatus in 2018. The main destinations of kava exports are the USA with 31% share, Fiji with 24%, Kiribati with 23% and New Caledonia with 16%.
The Ministry of Trade, Commerce, Industry and Tourism is responsible for coordinating the implementation of Vanuatu’s trade policy and the Ministry of Foreign Affairs, International
Cooperation & External Trade is responsible for bilateral, regional, and multilateral trade and investment negotiations. Vanuatu’s Trade Policy Framework (2019 - 2025) has the objectives of, inter alia, mainstreaming trade into Vanuatu’s National Development Strategy and enhancing development through increased exports of goods and services.
There are other complementing Strategies and Policy Frameworks, such as Vision 2030, which aim to achieve stability, sustainability, and prosperity for Vanuatu by 2030 through, inter alia, increasing trade and investment opportunities and reducing barriers, increasing access to markets for exports, requiring all new trade agreement to demonstrate tangible benefits in Vanuatu’s national interest including economic diversification.
In terms of trade agreements, Vanuatu acceded to the World Trade Organisation (WTO) on 24 August 2012 and has a Permanent Mission in Geneva to enhance its effective participation in the WTO and the United Nations Office in Geneva (UNOG). Furthermore, Vanuatu grants at least MFN treatment to all of its trading partners and is a party to Regional Trade Agreements such as the Melanesian Spearhead Group Free Trade Agreement (MSGFTA, PACER-Plus and PICTA, in addition to bilateral Preferential Trade Agreements with other countries and territories.
Vanuatu also benefits from some non-reciprocal Preferential Trade Arrangements, including the Generalised System of Preferences (GSP) offered by some WTO members such as the EU and the US. Australia and New Zealand provide duty-free and quota-free (DFQF) access to Vanuatu exports under the SPARTECA. Vanuatu is also a signatory of the PACER Plus Agreement.
Until the expiry of its transition period of graduating from a Least Developed (LDC) to a Developing Country status on 1 January 2025, Vanuatu will continue to be accorded DFQF by the European Union (EU) under the Everything But Arms (EBA) initiative. However, after this expiry date, it will automatically fall back to the less favourable EU’s Generalised System of Preferences (GSP) with other eligible developing countries worldwide.
It is against this, and like all other graduated PACPs, Vanuatu is considering acceding to the PACP-EU Interim Economic Partnership Agreement (I-EPA) to safeguard its future preferential market access arrangement with the EU. The current EBA to the EU market still depicts underutilisation of preferential market access due to possible factors related to supply-side constraints, In this context, the Government of Vanuatu seeks to analyse the opportunities and challenges under the I-EPA market access trade instrument.
OBJECTIVE/ RATIONALE
Through this short-term consultancy, the Government seeks to undertake a Cost-Benefit Analysis to inform and facilitate the possible accession process and implementation of the I-EPA. The consultant will also identify the differences between the EU-GSP and the I-EPA, conduct a Cost-Benefit Analysis, and identify how Vanuatu would benefit through the I-EPA text considering the current exclusion of the Trade in Service and Development Cooperation components.

HOW TO APPLY

Submissions should be entitled:
REQUEST FOR Tender – Cost Benefit Analysis for Vanuatu's I-EPA Accession

Method of Submissions:
Submissions must be forwarded in PDF format following the instructions at www.tenders.net/forumsec
Note: Tenders must be submitted with clear labelling of the technical offer and the financial offer. The Technical Offer documents must be saved and submitted clearly labelled “A. Response Template”. All bidders are required to fill the Bidder’s Declaration Form
The electronically submitted documents should be converted to the PDF format.
Deadline for Submissions:
Submissions need to reach the Secretariat by 4pm, Wednesday 20 July 2022.
Late or incomplete tenders will not be considered.
Questions and Answers
All queries or request for information must be submitted via the Question and Answer Forum at www.tenders.net/forumsec . Tenderers may submit questions in writing to the mentioned Question and Answer Forum before the stated “deadline for requesting clarifications” 3pm, Wednesday 20 July 2022. The Secretariat has no obligation to provide clarification after this date.
Note: The Secretariat will not be responsible for non-receipt/non-delivery of the Bid documents due to any reason whatsoever.

Any complaints regarding the Secretariat’s tender must be directed to the following email: Tender.Complaints@forumsec.org. This email address will forward your complaint to a person that is independent and removed from the tender process. Complaints must be well founded and should not be used as a mechanism for notifying displeasure with the outcome of a tender award. Further information on making a complaint can be found on the Policies & Information page at http://tenders.forumsec.org.
In the event that further information is required by the Secretariat in relation to the tender for consultancy, the Secretariat reserves the right to seek the required information without the need for calling for resubmission of proposals.