Global economies rush to strengthen ties in EAC market
Business Daily | Wednesday, August 11 2010
Global economies rush to strengthen ties in EAC market
By ALLAN ODHIAMBO
The scramble for trade and investment pacts under the newly formed East African Community common market has heightened with leading global economies rushing to establish diplomatic footholds in the regional secretariat.
Since May, US, Japan, Turkey, Netherlands and Denmark envoys have presented their credentials to the EAC headquarters in Arusha, signalling a search for deeper partnerships that would enable them tap into new opportunities in the market with a combined GDP of $79 billion and 127 million people.
“The EAC common market presents bigger opportunities than individual countries. It also presents a gateway to the region,” Mr David Nalo, the permanent secretary at the EAC Affairs ministry told Business Daily.
The US opened the latest flurry of ambassadorial attachments with the posting of Mr Alfonso Lenhardt to the EAC docket on May 19th.
“We are proud to be the first nation to nominate an ambassador to the organisation. That act is an expression by my government of our confidence in the EAC’s ability to contribute significantly to bettering the lives of millions of East Africans,” the envoy said when he presented his papers.
Ministers from the two blocs in August last year established a joint work group to spearhead co-operation initiatives between them and as a follow up to the Trade and Investment Framework Agreement (Tifa) signed between the US and the EAC in July 2008 in Washington.
Tifa’s main role is to strengthen the US-EAC trade and investment relationship, expand and diversify bilateral trade, and improve the climate for business between the two blocs.
The framework further seeks to bolster partnerships in initiatives such as the African Growth and Opportunity Act (Agoa), the World Trade Organisation’s Doha Round of negotiations, trade facilitation issues, and trade skills building assistance.
“We consider regional economic integration to be a highly effective means of promoting prosperity through increased trade and investment,” Mr Lenhardt further said.
The move to strengthen ties with the EAC is viewed as part of a policy by US President Barack Obama’s government.
In July 2009, US Deputy Secretary of State for Management and Resources, Jacob Lew, toured the EAC headquarters and pledged his country’s commitment to forging stronger relations with the region.
East Africa is valued by the US as a fortress in its fight against terror, thanks to the existence of several terrorist cells linked to the notorious al-Qaeda group.
The war-torn Somalia, that neighbours Kenya, is believed to serve as a brooding ground for terror groups with increasing focus being on the al-Shabaab group that is currently carrying out an insurgence against the Transitional Federal Government.
Budding economic tiger, Turkey, took after the US posting Mr Mehmet Kadri Sander Gürbüz as its envoy to the EAC in June. Mr Gürbüz doubles up as Turkey’s ambassador to the United Republic of Tanzania.
“We think there’s a lot of potential between Turkey and East African countries,” Mr Gürbüz said when he presented his documents to EAC secretary-general Mr Juma Mwapachu and even proposed for a Free Trade Agreement (FTA) and a Tifa between the two blocs.
Kenya already has strong working relations with Turkey with the Cabinet having ratified a trade pact signed between the two nations in early 2009.
The agreement was signed by Turkish President Abdullah Gul and President Mwai Kibaki during a visit to Kenya as part of efforts to explore new economic and development partnerships, with statistics showing that as at 2008 the value of trade between the two countries had hit the Sh7 billion mark.
Under the existing bilateral trade agreement, Turkey exports a wide range of consumer goods to Kenya including hazelnut, minerals, chemical fertilisers, resins, polymer bags and textile. Kenya, on the other hand, mainly exports tea, hemp, and arts and crafts to Turkey, and also benefits from a wide range of technical cooperation projects under the Turkish International Co-operation Agency (Tica).
The Netherlands and Denmark also posted envoys to the EAC secretariat shortly after the US and Turkey.
Dr Ad Koekkoek serves as Netherland’s envoy to the EAC having handed in his papers in July and doubles up as the Dutch ambassador to the United Republic of Tanzania.
Mr Bjarne H. Sorensen on the other hand represents Denmark in Arusha.
The Dutch-EAC link is critical for horticultural produce and cut flower exporting nations such as Kenya.
The Netherlands hosts the biggest flower auctions in the world.
Japan has also since joined the scramble for EAC with the posting of Mr Hiroshi Nakagawa to Arusha on Monday.
He doubles up as the envoy to the United Republic of Tanzania.
The Asian nation is actively involved in the region through the Japan International Cooperation Agency (Jica).
