EU criticises EAC over pact
The Citizen (Dar es Salaam) 2010-02-04
EU criticises EAC over pact
By Damas Kanyabwoya
The European Union has accused East Africa Community partner states of flouting World Trade Organisation rules by refusing to sign a framework Economic Partnership Agreement with the EU.
Speaking in the sidelines of the EU-EAC policy dialogue meeting in Arusha yesterday, the head of delegation of the European Union in Tanzania, Mr Timothy Clarke, urged the EAC to sign EPA accords in order to enjoy legal free access to European markets.
Mr Clarke said reluctance of EAC countries to sign EPA agreement "cannot be sustained" considering the fact that more than two years have passed since EPA negotiations between EAC and EU were concluded.
"The situation, as it stands now, is untenable. EAC countries despite not signing the EPA, have been enjoying free access to EU markets in the same way with other ACP countries that took legally binding commitments by signing EPA.
This is inconsistent and in fact the current situation is contrary to both EU law and World Trade Organisation rules," he noted.
There is an EAC ministerial meeting taking place today in Arusha, and Mr Clarke has urged the bloc to take the opportunity to put the much desired signature on EPA documents.
He warned that further delay in the signature, is also a missed opportunity for the EAC to further integrate into the world economy and sends mixed signals at a time when EAC is pushing for broader regional integration.
"I would encourage EAC trade ministers’ meeting in Arusha [today], to give a clear signal that they are willing to sign the EPA as initialled in 2007 and be the last EPA region to obtain legal security for the agreed market access to the EU," he said.
Burundi, Rwanda, Tanzania, Kenya and Uganda have been negotiating as an EAC region and the Economic Partnership Agreement (EPA) with the European Union, and they initialled a "framework" or interim EPA that mainly deals with trade in goods on November 28, 2007.
To avoid any disruption in trade while a more ambitious, regional comprehensive agreement was under discussion encompassing other key sectors such services, investment and intellectual property rights, the EU unilaterally granted total access to its markets starting from January 1, 2008. Access to the EU market is predicted upon the framework EPA being signed and applied by both parties.
Civil society organisations, however, have warned EAC states against rushing to sign the interim EPA agreement as it will "seriously undermine East Africa’s development due to competition between EU farmers and manufacturers and EAC ones. This could also lead to loss of revenue to EAC governments.
The CSOs, Kenya Civil Society Alliance, Tanzania Trade Coalition and Uganda Food Rights Alliance, said recently it was wrong for EAC to sign an EPA agreement with the EU, while both intra-EAC regional integration process as well as a wider trade liberalisation process with Sadc, Comesa and ESA, was yet to be concluded.
"Such a deal between the EU and EAC has consequences for both Comesa, ESA and Sadc in terms of agreement of an EAC sensitive list and liberalisation schedule that could be completely different from wider African economic blocks," civic society organisations said in a statement.
