Parliament urged to intervene in trade treaties

According to the Speaker, Parliament will be involved in the on-going trade negotiations

Trade and development civil societies have petitioned Parliament to intervene in the on-going investment negotiations between the East African countries and the United States of America.

The lead petitioner—Southern and Eastern African Trade Information and Negotiations Institute (SEATINI) says Uganda should beware of the current regional investment treaty that offers a raw deal for both the country and the region.

Quoting the four-page petition, Ms Jane Nalunga, the SEATINI country director, said: “Our major concern with the EAC-US Trade and Investment Partnership (TIP) negotiations is that the US is negotiating on the basis of a template which has already been submitted to the EAC.”

She continued: “The template is tailored to protect and promote the rights of US investors without addressing their obligations and the rights of the EAC countries. The EAC is therefore entering these negotiations based on the U.S terms.”
Ambassador Nathan Irumba, the SEATINI executive director and an analyst on trade matters and development told the Speaker, Ms Rebecca Kadaga, early this week that the US template (2012 U.S Model Bilateral Investment Treaty) contains several onerous articles and provisions, including defining Investment broadly and not in line with property rights of Uganda and EAC as a whole.

The agreement also has a provision allowing the outflows of profit and other investment income, something Amb. Irumba said will have a negative effect on the balance of payments.

In her response, Ms Kadaga said parliament will take interest in the on-going negotiations, referring the petition to the Trade committee.
“Parliament must be involved in the beginning and not the end. We don’t want to ratify what we were not party to in the beginning.”

iladu@ug.nationmedia.com