Services, investment to be covered by new trade deal with EU
The East African | 18 December 2006
Services, investment to be covered by new trade deal with EU
By ABDULSAMAD ALI
Special Correspondent
The service sector will be included in the Economic Partnership Agreement (EPA) between the European Union and the East and Southern African (ESA) countries as the parties enter the final stages of agreeing on a deal.
The EU head of delegation to Kenya, Eric van der Linden, last week told The EastAfrican that the two parties have agreed in principle to include the sector.
“The ESA region has recognised the importance of the service sector in economic development. In countries like Kenya, this sectorrepresents a large percentage of the gross domestic product,” he said. “Accordingly, the region is due to discuss trade in services internally, fix a regional position, and then discuss it bilaterally with the European Commission,” he said.
Kenya is also keen to include provisions on investments in the EPA, said Mr Linden, adding that no country has ever developed without attracting investment.
The ongoing negotiations that are held weekly on an informal basis. The next formal meeting is planned for February 2007 in Brussels.
The two sides are optimistic that they will sign the EPA before end of next year, said Mr Linden, shrugging off fears that the date was too near.
The EPA is expected to come into effect on January 1, 2008.
Mr Linden said it was unfortunate that “often the nature of such negotiations is such that many details need to be agreed upon towards the end of the process.”
The two sides are making good progress, he said, adding that at the end of September they engaged in text-based negotiations in Mombasa. It was agreed in principle that the EPAs should have a substantial development component but could not have a separate financial protocol. “Both sides agreed therefore to make joint efforts to mobilise additional financing,” he said.
