As Tanzania deliberates on the signing of the Economic Partnership Agreement (EPA) between the East African Community (EAC) and European Union (EU), scholars have cautioned against the deal, which they have described as bad.

University of Dar es Salaam’s Prof Palamagamba Kabudi, Dr Ng’waza Kamatta and Dr John Jingu told Members of Parliament during an awareness seminar in Dodoma over the weekend that signing and ratification of the deal will jeopardize the country’s industrialisation vision. Kenya and Rwanda have since September signed the pact but their signatures remain ineffective until all EAC member states sign it as a block.

EAC Heads of State led by President John Magufuli agreed in September to delay the bloc’s commitment on the deal to January next year to allow more deliberations. The deadline for EPA signing was October 1, 2016 and the bloc had called on the European Union not to penalise Kenya with huge tariffs on exports for missing the deadline as member of the bloc.

The EAC and the EU have gone back and forth since 2007 on EPA, which is expected to give a reciprocal duty-free access to the EU. At stake is Kenya’s horticultural exports which may be subjected to taxes to access the lucrative European Union market.

The EU accounts for 31 per cent of Kenya’s export market, especially for cut flowers, tea, fresh vegetables and coffee. The passing of extended deadline means the expiry of the current arrangement under which the EAC currently enjoys preferential trade benefits from Europe which will hit hard on Kenya’s billion dollar horticulture economy.

Apart from Kenya, which is regarded as a developing economy, other EAC partners will continue enjoying the benefits under the Everything but Arms (EBA) arrangement that Europe allows ‘least’ developed countries.

It is important to note that Europe is now in crisis and yet we are persuaded to sign a legally binding international instrument whose overall impact may be disastrous on our future. It is feared that the trade agreement has been carefully drafted to benefit the EU at EAC expense as the region will be compelled to liberalise its market for European products by 82.6 per cent on progressive basis over a period of 25 years.

With Members of Parliament expected to discuss the agreement in Dodoma this week, it is imperative to note that Tanzanians are nurturing an industrial economy as envisioned in the vision 2025.

That is the future we want, and we will do what it takes to make it a reality. Therefore, we think, signing and ratifying the deal will be like taking a massive gamble on our envisioned future.

Source: All Africa

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.