Region demands fresh trade talks with EU

Kampala

Members of Parliament have advised the East African Community to have fresh negotiations of the Economic Partnership Agreement saying the deal does not facilitate for economic development of locals.

Economic Partnership Agreements (EPA) are a scheme to create a free trade area between the European Commission of the European Union and the Group of African, Caribbean and Pacific (ACP) countries.

Under the initial agreements signed in Uganda in 2007, the EU gave the EAC a 100 per cent duty and quota-free market access.

In the partnership, EAC is also required to start a gradual reduction of tariffs on EU products.

The reduction will be implemented over 25 years culminating into 82 per cent of EU goods entering EAC member countries duty-free by 2035. The signing of the final EPAs was scheduled for end of July this year.
However, stakeholders say the EU’s move is a new form of “neo colonialism” aimed at securing market for products originating from European multilateral firms that does not benefit the locals in the region.

“We are living in a market led economy. EU wants to find jobs and food for their children. For the last 40 years, the price of raw materials from Africa has been going down while the price for their (EU) finished products has been increasing. The partnership does not benefit the local people in the EAC,” the Daughters of the Afrikan Revolution former Chairperson, Ms Maria Shaba, said recently at the closing of a symposium on the role of civil society, Members of Parliament and private sector on the EAC regional integration.

The two-day meeting, which was organised by Strengthening Africa in World Trade (SEATINI), was attended by East African Legislative Assembly Members of Parliament, officials from civil society and private sector from EAC.

The Member of Parliament EALA representing Kenya, Mr Javis Ahabi, said the EPAs do not address concerns of the unemployed and food security in the region.

“We should be looking at EU multilateral firms setting up manufacturing factories here to provide jobs to our youth. In the current arrangement, a local woman will not be able to put food on the table. Youth will not get education and instead there will be social destabilisation,” he said adding that there should be further consultation and if these concerns are not addressed, we will be heading to higher poverty levels.
However, State Minister for Trade Gaggawala Wambuzi assured stakeholders that the EPAs is being negotiated by EAC as a region and that they are for the good of the future generation.

“The objectives of EPAs do not contradict EAC. They are good for our people. We are still negotiating and we shall consider your concerns,” he said.

Speaking in Nairobi during the Pan-Africa Media Conference recently, former Tanzania President Mr. Benjamine Mkapa warned EAC partner states that the EPA, which is being championed by the EU, could be another “Scramble for Africa” and was likely to weaken the regional bloc economically.

EPAs are a response to continuing criticism that the non-reciprocal and discriminating preferential trade agreements offered by the EU are incompatible with WTO rules. The EPAs are a key element of the Cotonou Agreement, the latest agreement in the history of ACP-EU Development Cooperation.