AFX News Limited | 11.16.07

EU makes interim trade deal with East Africa

BRUSSELS (Thomson Financial) — The European Union has made an interim trade deal with east African countries, which will replace preferential tariff agreements which are due to expire this year, Kenya announced according to Agence France-Presse.

’The much feared disruption of trade... after December 31 has been put to rest,’ David Nalo, a top trade ministry official, said.

’The deal, which is in form of an Interim Framework Agreement on the EPA (Economic Partnership Agreements) covers market access, development and fisheries,’ said Nalo, who led a Kenyan delegation to Brussels.

Under the agreement, east African states Kenya, Uganda, Tanzania, Burundi and Rwanda will have duty free and quota free access to the EU for all products except sugar and rice from Jan 1.

The EU threatened to impose tariffs on goods from Africa, the Caribbean and Pacific nations if there was no agreement by Dec 31, raising fears of widespread losses and collapse of local sectors.

The interim deal opens up east African markets to European products as long as they do not affect ’sensitive agricultural and industrial products’ in the region.