Economic and Business New By Leo Odera Omolo
The East African Community negotiation with the European Union on the signing of an economic partnership agreement is currently facing financial problems.
The EAC-EU talks have since come cropper and stalled, hampering effort to meet the initial deadline of reaching n agreement by the end of next month {November 2010}.
An impeccable source at the EAC secretariat in Arusha has hinted that if funds are not available within a month to bring the EAC team back to the negotiation table, the prospect of signing of a new trading regime with the EU will be jeopardized.
The issue was rekindled last week by the EAC Secretary General Ambassador Juma V Mwapachu when he received Jim Clarke the head of EU delegation to in Tanzania and to the EAC.
Mwapachu said the EAC was ready and willing to revive the EPA negotiations with the EU but for financial constraints and general elections in four of its member states;
Clarke who is also the head of the EU delegation in Tanzania said the EU will offer financial support to the EAC /EPA team to go back to the negotiation table.
The EAC team comprises of experts from the five, member states of Kenya, Tanzania, Uganda, Rwanda and Burundi.
“We will offer as much money as the EAC/EPA needs to enable it team to come back to the negotiation table. The EU team will come to Arusha this week to narrow down on the deal,” said Clarke.
The EU diplomat sa8d that delay in signing the Framework Economic Partnership Agreement could undermine trade relations between the two blocs. But last moth the members of the East African Legislative Assembly warned the EAC member states not to sign the EPAs until all the contentious clauses arte resolved.
Top on the lists of sticking points is development assistance, the most favored nation status, levying of exports taxes, investment and also the terms of tradethta the EU is offering.
Most f experts and pundits in East Africa see thre framework agreement as being tilted in favor of Europe.
The EAC Council of Ministers chairman Dr.Diodorus Kamalaof Tanzania said MPS want EAC partner states to delay signing the pacts because of the sticking points.
Kamala cited one clause that prohibits EAC partner states from making new trading friends,
“Such clauses may lock us into a single trade tie without any alternative to diversify our target markets to other economic blocs such as the Common Market for Eastern and Southern African {Comesa} and the Southern African Development Community {SADC},Dr Kamala said.
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