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PUBLISHED ON September 9th, 2016

Endorse EU pact to benefit East Africa

The signing of a trade pact with the European Union for free market access for East Africa’s horticultural crops about a decade ago significantly improved foreign earnings for the region.
Under the Economic Partnership Agreement (EPA), East Africa was granted a duty-free quota market access by the EU in efforts aimed at balancing the skewed terms of trade.
The agreement is coming to an end this month and a new one is due by October 1.
In the trade agreement, EU treats East Africa as a single trade entity and offers it a common package.
However, East Africa is now pulling in different directions. Kenya and Rwanda have signed and committed themselves to the extension of the pact, but the others have not.
This is why Deputy President William Ruto yesterday reached out to the other EAC heads of state, during a meeting in Arusha, to sign the deal.
In particular, Tanzania has been reluctant to sign, arguing that it was interrogating its impact on its industrial production.
Perhaps there are other underlying concerns. Burundi is unhappy because of a trade embargo by the EU over its recent controversial elections.
Clearly, the hesitation over signing the partnership exemplifies the challenges of regional economic blocs, where at times countries focus on individual, rather than the union’s greater interest.
Yet there is much value in hunting as a pack in pursuit of common interests.
Among other advantages, this enables a region to attract more investment and puts it in better stead to negotiate more beneficial deals, which would otherwise not be possible at individual country level.
Horticulture export is one of the major foreign revenue earners for Kenya and the region, with EU being the most lucrative market.
The essence of regional cooperation is pursuing of broad common objectives rather than inward-looking considerations.
The EPA has benefited the region and although some EAC members may have reservations, they should sign the deal to achieve a broader goal, which is continued access to the EU market.

Source: Daily Nation

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.

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