EAC ties future trade talks to funds for development
The Standard, Kenya
EAC ties future trade talks to funds for development
20 November 2008
By Benson Kathuri
Trade negotiations between the East African Community (EAC) and the European Union (EU) must include a development agenda, a senior trade official has said.
Trade ministry PS, Silas Njiru revealed that trade negotiators will pursue the agenda that would put pressure on the EU to provide more funds for development.
Currently, the EU channels most of its funding through the European Development Fund, but negotiators for proposed trade arrangement under the Economic Partnership Agreements (EPAs) argue the funds are insufficient.
"The Government will continue to pursue on-going negotiations with the EU particularly in the area of development agenda," said Njiru in speech read on his behalf by Simon Chacha, secretary, external trade during a workshop organised by the Export Promotion Council (EPC) on Thursday. He said a fruitful conclusion of the agenda would enable the country gain access to technical and financial assistance to help boost production of tradable goods.
EAC countries that signed an interim trade pact with the EU in December last year are expected to complete negotiations by July next year in order to continue enjoying quota and duty free market access for all goods except sugar and rice.
Training offer
Currently, the region is unable to exploit the huge trade potential due to supply side constraints like poor infrastructure and low level of value addition of agricultural products that form the bulk of exports to the world’s larges trading block.
"With such kind of support, the country will be able to realise the national goals of diversifying exports from commodity to high value added products for tea, coffee, and other natural ingredients," he said.
EPC chief executive officer Matanda Wabuyele asked exporters to keep track of changing market trends in order to remain competitive.
He said the changing market preferences would force exporters to focus on improving the quality of products. "Over the years, our exporters have continued to produce a wide range of goods and services but have continued to face some constraints, including inadequate skills and knowledge in export trade," he said.
He said that there was need to empower the small and medium enterprises through the development of exporting skills.
The Netherlands-based CBI has offered to train the exporters on a range of issues on processed fruits and preserved vegetables, edible nuts, coffee and tea, honey, spices and herbs, essential oils and oleoresins, vegetable oils, butters and fats and oil seed. The EU is the second largest export market after COMESA accounting for 26 per cent of the total exports.
