Factsheet: The EU-ESA4 Enhanced Economic Partnership Agreement (EPA)

On 10 June 2026, the European Union and four Eastern and Southern Africa States (ESA4) – Comoros, Madagascar, Mauritius, and Seychelles – concluded negotiations on an enhanced Economic Partnership Agreement (EPA). The enhanced EPA builds on the existing interim EPA. 

The agreement will be the EU’s first modern and comprehensive free trade agreement with partners in Sub-Saharan Africa. 

It will: 

• strengthen economic ties with the Eastern and Southern Africa region and reinforce Europe’s position in Sub-Saharan Africa;
• boost trade and investment on both sides, supporting economic growth and job creation;
• diversify supply chains and make them more resilient;
• promote sustainable and inclusive development;
• deepen economic and development cooperation, and;
• remain open to accession by other ESA countries, thereby fostering regional economic integration. 

• Countries: Comoros, Madagascar, Mauritius, and Seychelles
• Population: Around 36 million
• Economic profile: Two Least Developed Countries (Comoros and Madagascar), one upper-middle-income country (Mauritius), and one high-income country (Seychelles)
• Growth outlook: Average real GDP growth rate of around 3.6% in 2026-2027
• EU-ESA4 trade: €9.7 billion in goods and services in 2024 (EU imports: €5.2 billion & EU exports: €4.5 billion)
• Trade structure: 58% services & 42% goods
• EU role: largest trading partner in goods (24% of ESA4’s total goods trade) and largest trading partner in services (33% of ESA4’s total services trade) 

• Improves legal certainty and conditions for companies supplying services in each other’s markets.
• Provides greater predictability for investors and ensures fair and non-discriminatory treatment.
• Expands the choice of products and services available to consumers and helps to lower prices through increased competition.
• Facilitates digital trade, including through a binding prohibition of unjustified data localisation requirements and applying a permanent ban on customs duties on electronic transmissions.
• Improves transparency of public procurement markets, thereby making it easier for companies on both sides to participate in procurement procedures.
• Introduces rules on competition, transparency in subsidies, and state-owned enterprises, thereby contributing to fairer competition and a more level playing field.
• Promotes transparency and the use of international standards to facilitate market access, while fully preserving each Party’s right to maintain the level of protection it considers appropriate.
• Strengthens the protection and enforcement of intellectual property rights, including geographical indications, thereby supporting innovation, creativity and competitiveness. 

The deal will help advance social and environmental objectives through robust and enforceable provisions on Trade and Sustainable Development, setting out a comprehensive framework which: 

• commits both sides to respect the core labour rights as defined by the International Labour Organisation (ILO) and promote the improvement of workers’ conditions;
• includes a dedicated article on trade and gender equality to empower women in trade;
• commits the Parties to combat climate change and effectively implement the Paris Climate Agreement;
• promotes cooperation on the sustainable management of natural resources, wildlife protection, biodiversity, forestry, fisheries, and aquaculture, and;
• offers a balanced representation of independent economic, social and environmental stakeholders to advise the Parties on the implementation of the enhanced EPA. 

It 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.  

The agreement includes an ambitious cooperation agenda designed to support the effective implementation of the Trade and Sustainable Development Chapter. 

The agreement's implementation will be supported by economic and development cooperation to strengthen trade and investment frameworks, drive structural economic transformation, and support regional and continental integration. 

The scope of cooperation is broad and covers the key areas needed to ensure that trade and investment effectively contribute to sustainable development, such as 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;
• trade and sustainable development;
• fisheries and aquaculture, and;
• agricultural development.