On June 10, 2026, the European Union and four Eastern and Southern Africa States: Comoros, Madagascar, Mauritius and Seychelles, concluded negotiations to deepen the existing EU-Eastern and Southern Africa Economic Partnership Agreement into a modern and comprehensive free trade agreement.
The agreement is the first of its kind between the EU and partners in Sub-Saharan Africa. The framework remains open to accession by other Eastern and Southern Africa States, with negotiations with Zimbabwe currently ongoing.
For EU businesses, the agreement is relevant not only because of the commercial opportunities it may unlock in the ESA4 markets, but also as a part of the EU’s broader effort to diversify market access, support supply chain resilience and accelerate its trade policy agenda.
Background: A Strategically Relevant Relationship
The commercial relationship between the EU and the four ESA countries is relatively modest in global terms, but strategically important.
- The four countries represent a market of around 36 million people.
- In 2024, total EU-ESA4 trade in goods and services amounted to EUR 9.7 billion, consisting of EUR 5.2 billion in EU imports and EUR 4.5 billion in EU exports.
- Services accounted for 58% of total EU-ESA4 flows, while goods represented 42%. The EU is the ESA4’s largest trading partner in goods, accounting for 34% of ESA4 exports.
- In 2024, EU foreign direct investment stock in the ESA4 countries reached EUR 20 billion, a 21% increase compared with 2020.
The interim EPA already covered market access for goods and development cooperation. The enhanced agreement adds a wider set of disciplines including services, investment, intellectual property, rules of origin, customs and trade facilitation.
Key business elements
The agreement introduces several practical improvements for businesses:
- Simplified customs procedures: Including improved access to information and consultation mechanisms
- Modernized Rules of Origin: Aligned with recent EU FTAs, including self-certification (on the EU side based on the REX system) and importer’s knowledge as a basis for preference claims
- Expanded coverage: To services, investment and digital trade
- Enhanced IP protection: For EU geographical indications and branded goods
- Sustainability and development cooperation: Covering labour rights, environmental and climate protection, gender equality and responsible business conduct.
Broader EU trade policy context
The EU-ESA4 agreement reflects the EU’s wider trade strategy to expand and modernize its trade network. It forms part of a wider strategy to diversify supply chains, unlock new market and strengthen economic security through trade agreements.
Next Steps
The negotiated texts are expected to be published shortly, followed by ratification procedures. The agreement will enter into force once approvals are completed and remains open to other ESA countries.
Key Takeaways
- The modernized EU-ESA4 agreement creates opportunities for Eu businesses in ESA4 markets.
- Importers and exporters should assess whether the agreement’s tariff treatment, origin qualification, documentation requirements or supply chain planning affect them.
- More broadly, the agreement reinforces the EU’s continued push to diversify external economic relationships and speed up market-opening initiatives.
- For EU businesses, the ESA4 agreement is unlikely to be transformational on its own, but it is another signal that trade policy is increasingly being used to support market access, supply chain resilience and economic security.
