EAC Secretariat to study impact of EPAs’ on regional economy

The East African Community (EAC) Secretariat has commissioned a study on the impact of economic agreements made with the European Union (EU). The Economic Partnership Agreements (EPAs) are aimed at boosting regional trade through harmonised market between EAC member states and the EU. The study which covers several sectors including agriculture and services is being carried out in all the five EAC Partner States of Burundi, Kenya, Rwanda, Tanzania and Uganda. Angelique Umulisa, Rwanda’s EAC-EPAs Negotiation Team Leader said that the study findings will facilitate regional negotiators towards comprehensive agreements. She said, “Findings will be presented to stakeholders of different sectors for their comments and inputs.” “This will guide us (Rwanda negotiating team) in tabling the country’s status,” Umulisa who is also a Trade Policy Analyst in the Ministry of Trade and Industry explained. Early this month, the EAC negotiators met to discuss access of agricultural products in the EU market. Under the same development, a ’white document’ on trade in services meant to facilitate negotiations between EAC and EU under the EPAs was also finalised. The draft text detailed different approaches that will guarantee trade in services between both parties. Trade in services refers to the sale and delivery of an intangible product between a producer and consumer. It was then presented to regional consultants in Nairobi for considerations and inputs. The text was developed by the EAC-EPAs negotiators from member states. The final text will list liberalised or un-liberalised sectors in the region ready for trade depending on the approach. The study comes at a time when EAC is strategising to sign comprehensive agreements with the EU next year. This follows the EAC’s structure proposal for talks starting February 2008, in order to ensure that the process is as comprehensive as possible. The interim agreements were signed in November last year with a rationale of protecting the interests of the EAC region in trade arrangements with the EU, given that the duty quota free access to the EU was to end at the close of 2007. It was argued that it was not possible to conclude comprehensive EPAs that fully address the aspirations of all parties. They, therefore, resolved to work towards a framework agreement as a stepping stone towards comprehensive deals. Under the agreements, necessary regulations and procedures, including the adoption of transitional arrangements were put in place, in order to avoid any disruption in the flow of trade between the blocs. The market access offer consists of liberalisation of 81 percent of EAC imports from the EU over a transitional period of twenty five years. The parties further agreed that the EU would contribute towards the necessary resources to finance necessary adjustments and to give effect to an EPA as a development tool. However, the agreements have aroused a lot of criticisms worldwide claiming that the agreements were exploitative. They were said to be imposed on the developing countries against mounting opposition by various stakeholders, including the African Union (AU), developing countries Parliamentarians and other concerned groups which were ignored. But for fear of losing other economic bloc benefits, the EAC proposed that harmonisation of the Eastern and Southern Africa (ESA)/SADC-EPA negotiations should continue through the EAC/COMESA/SADC tripartite process. Ends

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EAC Secretariat to study impact of EPAs’ on regional economy