EU says it may have alternative ways of dealing with EAC states

The European Union says it may have alternative ways of dealing with the East African Community member states should they fail to meet the deadline of signing a joint trade agreement in January next year.

EU Head of Delegation Stefano Dejak told reporters on Wednesday that the three-month extension from October this year should give all the East African Community member states who have not signed to endorse the pact.

But should they fail, he said the European bloc will negotiate appropriate arrangements with the region.

“This was the case to October the 1st and thanks to our relations, we have found a way to address this and extend the period,” he said at his residence when asked if individual countries will have to negotiate separately if the agreement is not endorsed by the entire region.

“If that would turn out to be the case (in January), we would certainly look out how best to partner with the government of Kenya and other member states of the East African Community to do the best for both, I think, especially for Kenya but it is the same in other countries.”

The Economic Partnership Agreements (EPAs) is a set of agreements that allow African countries specific privileges to export to the European Union markets without being subjected to customs.

The agreement covers trade in goods and development cooperation and covers on agriculture, fisheries and economic and development cooperation.

RATFIED PACT

On Wednesday, Kenya through its embassy in Brussels, deposited its ratified pact at the Agreements Section of the European Union Council after Parliament endorsed it last week. The handing over ceremony was witnessed by Mme Alda Silveira Reis, Director of Director-General of Trade, Development, Horizontal Issues and Foreign Affairs Council amongst other senior EU Officials, according to a statement from the Foreign Affairs Ministry.

But the EU has been negotiated with blocs meaning that all the East African Community member states; Kenya, Uganda, Tanzania, Burundi and Uganda have to sign it. So far, only Kenya and Rwanda have signed on it, with Tanzania specifically arguing the agreement will kill local industries as it allow EU privileges to export its manufactured specified goods into the region unhindered.

“The fact that the East African Community has decided, back in 2002 and renewed in 2007, to act as one, within that framework, the process of signature and ratification has taken a course that we hope will reach a full number of signatures by January next year,” Mr Dejak said.

“But our strengthening relationship with the government of Kenya has been absolutely instrumental to make sure that what was foreseen as it was two years ago, the 1st of October as the cut-off date for the end of those market-access regulation, that guarantee 30 per cent of Kenyan exports that go to Europe and enjoy a favourable treatment was extended,” he said.

ENJOY BENEFITS

Of the five, only Kenya requires to sign the agreement to enjoy these benefits as it is a developing country. The rest are considered Least Developed and already enjoy a set of benefits while exporting to the EU.

But now it appears either the reclassification of the economy or the acceptance of negotiating as a bloc is haunting.

The agreement provides duty- and quota-free access for Kenyan and EAC products to the EU market. It also creates new regional opportunities through more flexible rules of origin and accumulation framework. It guarantees that the EU will not apply export subsidies on products destined for the EAC market.

“This flexibility is how we are partnering and working together. So we are looking forward of course within the European Union and strongly supporting the integration of the East African Community. We are looking forward that by January we will have all EAC member states on board. Meanwhile we commend and congratulate, really the extraordinary role of leadership that the government of Kenya and the leadership of His Excellency the President of Kenya, Uhuru Kenyatta have played in making sure that the Economic Partnership Agreement was signed and my applause to the parliament who have come out of their recess to approve unanimously this agreement.”