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CALL FOR APPLICATIONS (Open tender)
SHORT-TERM CONSULTANCY FOR COST-BENEFIT ANALYSIS OF THE FEDERATED STATES OF MICRONESIA’S ACCESSION TO THE EU-PACIFIC ECONOMIC PARTNERSHIP AGREEMENT (IEPA)

Background
The Pacific-ACP States (PACPS) refers to the fourteen member states of the Pacific Islands Forum plus Timor Leste, which are parties to the Georgetown Agreement establishing the Group of African Caribbean and Pacific (ACP) States in 1975. The ACP consists of 79 countries, with over 1.5 billion people. The PACPS comprises the following states: Cook Islands, Federated States of Micronesia, Fiji, Kiribati, Marshall Islands, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Timor Leste, Tonga, Tuvalu, and Vanuatu.
Trade and development arrangements between the EU and the African, Caribbean, and Pacific countries are designed to facilitate the ACP's integration into the global economy through gradual trade liberalization and improved trade-related cooperation. They are set within the framework of the EU-ACP Partnership Agreement (known as the Cotonou agreement) that governs relations between the EU and the ACP countries. They open up EU markets fully and immediately, whereas ACP partners open only partially to EU imports, over transitioning periods.
The IEPA is a development-oriented free-trade agreement that provides duty-free, quota-free access for the four EPA Pacific countries' exports to the EU. In its current form, it only covers reciprocal trade liberalization of trade in goods. Papua New Guinea (PNG) and Fiji have been (provisionally) applying the IEPA since 2009 and 2014, respectively. Their exports to the EU represent the majority of the exports from the fourteen countries in the Pacific region. Samoa and the Solomon Islands have been applying the IEPA since 2018 and 2020 respectively. The level of tariff liberalization to EU imports for each of the four Pacific EPA partners depends on their level of development and their sensitive sectors:
• PNG has liberalised 88% of EU imports since 2008.
• Fiji will liberalise 87% of EU exports over 15 years.
• Samoa will liberalise 80% of EU exports over 20 years.
• Solomon Islands will liberalise 83% of EU exports over 18 years.
Niue and Tuvalu are currently in the process of formal accession to the IEPA. In 2018, Tonga informed the European Commission that it wished to join the EPA. Timor Leste submitted its formal communication in 2020 and most recently, FSM also formally conveyed its interest to accede to the IEPA to the European Commission in January 2024.
The IEPA's main objective is to promote sustainable development and reduce poverty and hardships in the Pacific countries. The following play an important role in this:
● duty-free, quota-free market access to the EU is very important for Pacific countries' export potential
● removing tariffs on intermediary goods and machinery from the EU means cheaper inputs for Pacific countries and support for both industrial development and the countries' integration into global value chains.
● under the IEPA, Pacific countries can protect their agriculture, emerging and infant industries by exempting tariffs on certain products; using safeguard measures to block a sudden surge in imports if needed; and taking additional measures to protect food security.
● In addition, several EU development cooperation programs in Pacific countries are linked to the IEPA. They aim to facilitate tax and customs reforms, improve the business environment, and improve Pacific countries' competitiveness.
The EU-Pacific Comprehensive EPA negotiations were suspended in 2016 with the withdrawal of Papua New Guinea and lackluster progress in the overall negotiations, particularly in the key area of sustainable fisheries management. During the seventh and eighth meetings of the IEPA Trade Committee, the PACP parties expressed their interest to widen the scope of the IEPA to include the services component as a recommended way forward.
In February 2023, FSM, through a national consultative process with the SPIRIT project team at the Pacific Islands Forum Secretariat, advised of its interest to accede to the IEPA and has sought the SPIRIT project's assistance to support the accession process through relevant technical support interventions. In January 2024, FSM's position was formally communicated to the European Commission through the European Union Delegation to the Pacific triggering the next steps in progressing this activity from planning to implementation, commencing in [June].
On May 15, 2024 an initial meeting was held between FSM government officials and the European Commission to discuss the steps toward FSM’s accession to the IEPA. The meeting agreed to use FSM’s market access offers of 2012 submitted during the regional negotiations as the basis for further discussion and the EC offered its assistance to update the offers from the Harmonised Commodity Description Codes (HS) from 2007 to 2022.
The CBA should include a review of FSM’s 2012 Market Access Offers and also take into account FSM’s development priorities, as well as provide recommendations to address potential challenges the nation is likely to face as a result of its accession to the IEPA.
In the Pacific Regional Integration Support Programme (PRISE) of the 11th European Development Fund (11th EDF), component 1.3 on Strengthening Pacific Intra-Regional and International Trade (SPIRIT) is being implemented by the Pacific Islands Forum Secretariat (PIFS) as the Pillar Assessed Entity (PAE).
The Specific Objective of SPIRIT is to strengthen Pacific Intra-Regional and International Trade, and this will be achieved through a coherent, multi-track engagement process at the national, sub-regional and regional levels.
Purpose
The purpose of this contract is to undertake a CBA through extensive consultations with relevant stakeholders on FSM’s possible iEPA accession. The CBA will be used to guide and inform FSM’s leadership and relevant trade stakeholders on FSM’s accession to the Agreement.
Scope of Work
The Consultant will deliver the following:
• Key Result Area 1 (KRA1): Prepare and submit an Inception Report of a maximum of 12 pages within four business days after the inception meeting based on the clarifications provided, including a detailed Action Plan for implementing the Contract. The Action Plan in the signed contract shall not be substantively amended during this meeting.
• Key Result Area 2(KRA2): Prepare and submit a draft report which should include concise findings and recommendations of the desktop review to facilitate FSM accession to the iEPA. The draft report should include a SWOT analysis, using economic modelling on the potential impacts on tariff revenues, fisheries sector, emerging sectors poised to benefit or be disadvantaged (trade in goods and services), employment opportunities and other factors based on FSM’s draft Market Access Offer.
• Key Result Area 3(KRA3): Submit fact-finding report (that would feed into the final CBA report), including a final version of the MAO and details on sensitization on iEPA with FSM national stakeholders.
• Key Result Area 4 (KRA4): Preparation and submission of detailed draft report on the Cost Benefit Analysis (CBA) following feedback from consultations and review of Market Access Offer that includes recommendations to overcome challenges that FSM may potentially face when acceding to the iEPA and develop a comprehensive Implementation Plan for FSM’s accession to the iEPA.
• Key Result Area 5 (KRA5): Submission and endorsement of Final Report on the Cost Benefit Analysis incorporating feedback from the validation workshop.
Academic Qualifications
The Consultant shall be an Expert in International Trade and Development with at least eight (8) years of experience and should possess the following qualifications and experience:
a) Minimum of a Degree in International Trade, Trade Policy, Economics, Business Studies, International Relations or a closely related field;
b) At least seven (7) years of working experience in the field of international trade, trade policy, business or international trade law and/or economics on external trade matters at a senior or policy level;
c) In-depth expert knowledge of the World Trade Organisation (WTO) Agreement and ongoing issues related to the free trade agreements;
d) Sound knowledge and understanding of Economic Partnership Agreements between the EU and the ACP Group of States in whichever configuration;
e) Experience in the interpretation and legal and/or economic modelling of trade agreements and identification of issues related to the specific interests of developing countries, specifically small island countries;
f) Experience in trade negotiations and trade policy analysis will be an asset;

g) Knowledge of the history and background of the EU PACP negotiations of the suspended Comprehensive Economic Partnership Agreement will be an asset;
h) Independent and free from conflicts of interest in the responsibilities they take on.

HOW TO APPLY

Submissions should be entitled:
[OPEN TENDER] – [SHORT-TERM CONSULTANCY FOR COST-BENEFIT ANALYSIS OF THE FEDERATED STATES OF MICRONESIA’S ACCESSION TO THE EU-PACIFIC ECONOMIC PARTNERSHIP AGREEMENT (IEPA)]
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. Technical Offer”. Financial Offer documents must be saved and submitted clearly labelled “B. Financial Offer”.
The electronically submitted documents should be converted to the PDF format.
Deadline for Submissions:
Submissions need to reach the Secretariat by 4.00pm on Monday, 9th of September,2024
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” on Monday 2nd of September, 2024. 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.