EAC seeks trade in services with EU
East African Business Week | Saturday, 28 February 2009
EAC seeks trade in services with EU
Written by EABW CORRESPONDENT
NAIROBI, KENYA — Business leaders from East Africa have commenced discussions on how best the five member states of East Africa can export services to European markets under the current Economic Partnership Agreement (EPA) negotiations.
At a meeting in Nairobi last week, the East African Business Council (EABC) and the International Lawyers and Economists Against Poverty (ILEAP) brought together businesses involved in provision of services to identify opportunities, constraints and come up with solutions on how the private sector can make the most out of the current trade negotiations.
Although East African Community (EAC) partner states signed interim EPAs covering subjects such reciprocal liberalization of trade in goods, comprehensive EPAs covering other subjects such as bilateral trade in services, investment and other trade-related issues are expected to be completed in 2009.
Trade in services is a dynamic area of international trade, offering significant opportunities both in terms of increased exports and imports, aimed together at enhancing competitiveness, stimulating economic development and reducing poverty.
The service sector in developing countries has recently posted significant growth with most East African countries posting double-digit growth. Telecommunications, transport, construction and financial services are some of the service sectors that have posted considerable growth.
Some of the areas that the region can leverage on include nursing services, and business process outsourcing (BPO).
However, service reforms and negotiations remain understandably contentious due to their potential to expose vulnerable stakeholders, including private sector operators, to a variety of risks. "Companies involved in trade in services are faced with the challenge of identifying services export opportunities abroad and competitively accessing those markets," Charles Mbogori of EABC said.
