Writes Leo Odera Omolo
REPORTS emerging from the East African Community {EAC}, indicating it is close to signing an Economic Partnership agreement {EPA} with the European Union, may be a mirage.
Sources, close to the high level negotiations that took place in Brussels recently, indicate that although most of the contentious clauses have been agreed upon, hopes that the trade Ministers would meet the EU Trade Commissioner this month for the final leg have been dashed after the schedule meeting was pushed to May this year.
“THE European Commission has new office bearers. They are reported to have requested more time to familiarize themselves with the technical issues surrounding the EPA negotiations. This means we have to wait longer”, said a member of the team who requested anonymity. He added, “we are just going back to the drawing board.”
The spokesman explained that it was unlikely that the negotiations could be concluded this year, considering that most regional governments are also going into elections.
Fresh Produce Exporters Association of Kenya CEO Stephen Mbithi, who is a member of the EAC negotiation team, was recently quoted by the EASTAFRICAN as saying the parties have agreed on an EAC-EPA Development Matrix, and were discussing whether it could be annexed or made part of the agreement.
The EU opposes the agreement being legally binding. They argue that the EU has other channels through which it funds development in the EAC regions.
Mbithyi further stated that the most Favored Nations clause, too, needs to be redefined so that EAC is not forced out of the EU when it can get the same items from other regions, notably China at cheaper costs.
“We have no problems with a MFN clause as long as it allows us to buy from Europe only at competitive prices“, said Mbithi.
Former Tanzania President Benjamin William Mkapa had no kind words for EPA when he addressed the Pan African Media Conference organized by the Nation Media Group as part of its 50th anniversary celebrations a fortnight ago.
Mkapa says partnership was a stumbling block to the growth of the continent’s regional trading blocs which he said should be strengthened
“There are the institutions that will rid the continent of its dependence on donor aid. But our joining EPAs is practically embracing efforts against African quest for unity,” Mkapa said.
Mkapa had reasoned that the European Union had taken too long to get to its current status and that Africa cannot pretend that it can trade at par with the EU.
Kenya’s Permanent Secretary to the EAC, David Nalo, said that the unlikely event that a comprehensive agreement is not signed in June, “it would most likely come before December this year.”
He said the parties from both sides of the divide had agreed to continue trading under the interim Framework for Economic Partnership Agreement [FEPA} that expired in July last year.
Efforts to get a comment from the Ministry of Trade in Kenya were fruitless. An official said they did not wish to talk to the media. Yet the country negotiations are conducted under it.
Nalo, however, refuted recent media reports that Kenya had indicated an intention to go it alone, saying that the regional market was bigger for Kenya.
“Kenya is the largest exporter to both the EAC and the Common Market among East and Southern African states. Therefore, it is safer for us to negotiate as a bloc,” Nalo said, adding that the country’s largest exports to the EU, notably horticulture produce, had come under increasing threat from emerging suppliers such as Ethiopia, Uganda, Tanzania and northern Africa, creating the need to grow regional outlets that offer a larger market for a variety of products.
With the coming into force of the regional Customs Union and the Common Market, it is difficult for any country to be on its own. Mr. Nalo added, emphasizing that it is easier to bulldoze one country but a different ball game to deal with a block of many nations.
The negotiations, according to reports, have now moved from the negotiators table and will be handled by trade ministers from both regions – – EAC and EU for finalization.
The negotiators found some middle ground on development support – – a key demand of African states that has stalled the talks since 2007.
Europe has reportedly agreed to finance a priority development programme in East Africa, removing a major obstacle to the conclusion of the trade talks.
FOOTNOTE:
FEPA was established in 2008 when the Cotonou Agreement ended, and a bridge to ensure that trade between the Africa Caribbean and Pacific countries is not disrupted. The parties gave themselves up to July 31,2009 to sign a comprehensive Economic Partnership Agreement, but this deadline expired without any progress.
Since then anxiety has been mounting over what will happen if the EU revokes the arrangement. Last December, the EU gave the region an ultimatum to conclude the talks or it would revert to the less favorable Generalized System of Partnership of preferences.
Ends
leooderaomolo@yahoo.com