| EAC downplays Mkapa’s advice | Send to a friend |
| Wednesday, 24 March 2010 09:25 |
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The East African Community yesterday played down retired President Benjamin Mkapa’s caution on its ongoing negotiations with the European Union of an Economic Partnership Agreement (EPA), declaring its firm commitment to the talks.  However, a senior official in the EAC’s Directorate of Customs and Trade, Mr Gerald Ajumbo, told The Citizen that the retired leader was entitled to his views on the issue and the regional body saw nothing wrong with that.He said Mr Mkapa’s views would not affect the negotiations, adding that the initial deal might be signed in May, “if everything goes as planned”. Mr Ajumbo said that abandoning the negotiations, which have dragged on for years, could end up rocking other international commitments such as the trade rules under the World Trade Organisation (WTO). Speaking in Nairobi during the Pan African Media Conference last Thursday, Mr Mkapa warned the EAC partner states – Kenya, Uganda, Tanzania, Rwanda and Burundi – that EPA could turn out to be another “scramble for Africa” that would only weaken the regional economic bloc. The retired President said during the 50th anniversary celebrations of the Nation Media Group (NMG), the parent company of Mwananchi Communications Limited, that if lured into the EPA, the EAC should not expect to make any economic progress “because there is no fair trade between the developed and developing states”. Kigoma North Zitto Kabwe, who is a trade expert, also rejected Mr Mkapa’s assumption that the EAC would lose out. Only 30 per cent of the country’s revenue was derived from import duties, he noted. “We can only say that we will lose out to the EU if our economy will be static. However, the EAC’s economy will grow and some of the fears that we have will be easily recouped through that growth,” the opposition politician added. The delay in signing the agreement, Mr Kabwe said, was because the negotiators understood the EAC’s supply side constraints and were, therefore, seeking to improve them before the EPAs became legally binding. “It is the development chapter that has delayed the signing of the EPAs. The EAC wants the EU to fund the region’s infrastructure development so that it can have reliable energy and railway lines and good roads. The aim is to bring the EAC on a par with EU when the EPAs become legally-binding,” the MP said. For his part, Dr Semboja Haji, of the University of Dar es Salaam’s Economic Research Bureau (ERB), said retired President Mkapa’s assertion, “is impracticable in the existing environment”. The economist added: “In the philosophy, I support him though it is difficult to put the words into practice, considering that it is very difficult for the ACP countries to get away from their colonial masters. The best way to go about it is to probably see how we can improve the EPAs.” Though conceding the slow progress in the negotiations, Mr Ajumbo, who is the EAC’s trade specialist, said that being part of the globalised world there was no way the region could avoid the pact. “It’s all about market access and the stringent conditions attached to development funding by the EU to the developing countries,” he said, stressing that ACP/EU trade must be compatible with WTO rules. He attributed the delay in signing Framework EPA to the EU’s failure to assure the region of continued development funding. Mr Ajumbo said a ministerial meeting between the two sides would take place in May, during which the signing of Framework EPA (FEPA) by the EAC and EU would take place, should the two sides agree on the key issues. EPA is being negotiated by the European Commission on behalf of the EU, with the EAC being one of the regional economic communities (RECs) of the African, Caribbean and Pacific (ACP) countries in the pact. Mr Ajumbo’s remarks come about two-and-a-half months after the EAC scoffed at an EU threat that the region risked restrictions to European markets for the delay in reaching a consensus on EPA. The EU Head of Delegation to Tanzania, Mr Tim Clarke, warned recently that the delay in signing the FEPA would undermine trade relations between the two blocs. In November 2007, the EAC states signed interim EPAs with the EU covering reciprocal liberalisation of trade in goods, comprehensive EPAs on bilateral trade in services, investments and other trade-related issues. But Mr Clarke, in his hard-hitting statement, cautioned that more than two years after initialling Framework EPA with the EU, the latter was disappointed the EAC had not yet signed the agreement. “It is now time to follow through with the clear, forward-looking agreement of 2007, when negotiations on the Framework EPA were concluded and turn this new trade and development partnership into a reality,” he said. Add this page to your favorite Social Bookmarking websites           |
| Last Updated on Thursday, 25 March 2010 08:52 |
Comments
That should we reject developments on the ground of being colonized by the parties to the deal?
i think the EAC delegates should not get worried about eiher signing the deal or not but keen consideration should be kept on what is being signed on.The caution given by Mkapa is very important as the EAC officials are bound to safeguard the rights and business practices of the EAC citizens to reach the level which other trade blocs reached.the terms and conditions to be agreed upon shouldnt prejudice the general trade practices nor affect the pace of economic development of the EAC farmers and enterpreneurs.its my opinion that EAC shouldnt rush into decision of signing the EPA deal till neccessary survey has been done.
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