Kenya will later this month know whether its bid to build a customs union with its neighbours still holds.

East African Heads of State will meet in Arusha on February 28, where one of the items on the agenda will be the signing of the Economic Partnership Agreements (EPAs).

Trade Principal secretary Chris Kiptoo told People Daily in a telephone interview that EAC countries are supposed to sign the EPAs as a bloc so that they can enjoy quota and duty-free market access.

However, he said, Kenya has no issue to raise during the summit on the EPAs as it has already signed and ratified the trade pact with EU.

“As required under the principles of the EPAs Kenya has signed and ratified the trade protocol, only awaiting the other partners to follow suit. But all the EAC countries are individually supposed to sign and ratify the trade deal and collectively sign the document with the EU,” said the PS.

The deadline for the EAC member states to sign the trade agreement as a bloc was set for October 1, 2016 but there has been resistance from some countries. The EU parliament, on request by Kenya, agreed to extend the deadline to February 2.

The deadline is over and only two countries have signed.  Kenya has signed and ratified while Rwanda has only signed.

Tanzania has refused to sign, claiming the agreement would have serious consequences for its revenues and the growth of its industries. Uganda has expressed a commitment to append its signature while Burundi—which has been sanctioned by the EU following political upheaval—says it will not sign the trade deal until the sanctions are withdrawn.

Tanzania demands renegotiation of the some of the EPAs clauses such as the European Development Fund and seeks clarification on losses to be incurred after the liberalisation of trade.

Kenya is the only country categorised as developing within the bloc while the other four are classified as least developed nations.

Trade analysts warn that Kenya will lose the most and be slapped with a wave of taxes on produce entering EU market as the other EAC states will continue getting duty and quota-free access under EU’s Everything but Arms initiative. EU is Kenya’s biggest export destination, taking up cut flowers, French beans, fruit, fish, textiles, coffee and tea.

Kiptoo said the status of the other countries will be known during the Arusha summit whether they will sign or not. In the event they do not sign, the EAC summit has to agree on the next course of action and communicate the same to the EU parliament for further action.

If the summit agrees that Kenya be allowed to continue implementing the trade deal as the others organise how to sign, Kiptoo said the implementation will have limitations owing to the bloc being a customs union territory.

Source: Media Max

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