Rwanda, Kenya sign EPAs deal

Kampala. Trade ministers for Kenya and Rwanda yesterday signed the Economic Partnership Agreement (EPA) pact in Brussels, Belgium, with the European Union, a deal the East African Council of ministers recommended earlier this year.
This signals a start of the EAC partner states securing the duty-free quota free market access to the EU.
It also sends strong signals to the EU on the EAC partner states commitment to the EPA.
On Tuesday, Uganda made a U-turn on its promise to delay the signing of the EPAs.
Trade minister Amelia Kyambadde said the government has since made up its mind and was ready to sign the deal irrespective of whether all the other regional countries are on board or not.

Speaking at the sidelines of the 7th Ministry of Trade, Industry and Cooperatives sector review annual conference in Kampala on Tuesday, Ms Kyambadde said: “The EU is our major trading bloc and we are going ahead to sign the EPAs.”

Burundi have also shown strong desire to sign the agreement in its current form, leaving Tanzania in its effort to seek further reassurance regarding the matter.
Tanzania’s refusal to sign the EPAs is due to fear of repercussions the deal would have on the growth of the emerging regional industries.
Without guarantees against the side effects, Tanzania says it is not prepared to commit itself into economic enslavement.
EPAs are trade and development agreements negotiated between the EU, African, Caribbean and Pacific (ACP) partners engaged in regional economic integration processes.
Should the deal go through, regional products (save for Tanzania) to the EU market and vice versa will be granted preferential treatment.

The EU is Uganda’s second leading exports markets destination
Speaking at the conference, the assistant commissioner, External Trade, Mr Emmanuel Mutahunga, said: “We can’t afford to lose the EU market because it’s contributing a lot to our economy.”
He said Uganda coffee exports to the EU are worth $252 million (Shs851b) while flowers exports to the region bring in $45m (Shs152b).

Mr Mutahunga said a conclusive decision on the deal is expected to be discussed at the on-going negotiations by the regional council of ministers who will make final recommendations to the heads of states next week in Arusha, Tanzania. The EAC states are expected to sign the deal before this month ends.
The Private Sector Foundation Uganda executive director, Mr Gideon Badagawa, said Uganda’s decision to sign the EPAs has been long overdue.
“EPAs will build our capacities as far as infrastructures are concerned which is an important gain,” Mr Badagawa said.

Producers’ fears

Commenting on complaints by manufactures who are scared that if Uganda signs the EPAs, they will be wiped out, Mr Gideon Badagawa said: “EPAs will instead strengthen them in terms of upgrading to hi-tech technology with support from the EU.”

[email protected]