Private Sector meet to discuss contentious issues under EPA

Arusha, Tanzania, November 26: Private sector representatives and officials from public sector involved in Economic Partnership Agreement (EPA) negotiations between November 27 and 28 met in Arusha, Tanzania for a regional meeting to discuss priority areas for the private sector in the negotiations.

The meeting organized by the East African Business Council with support from TradeCom Facility was expected to come up with strategies for the private sector in East Africa to articulate its position on various issues pertaining EPA.

The meeting was part of the cooperation between EABC and TradeCom Facility on a project aimed at improving EAC Private Sector Awareness on the EPA and Involvement in Trade Policy. “EAC-EC EPA is another form of integration between the EAC and the European Union with the aim of creating an EAC-European Union Free Trade Area,” Mr Adrian Njau, the Project Coordinator said. “This integration pattern will have substantial impact on the private sector in the EAC region. Therefore, private sector participation in such negotiations is of paramount importance.”

East African Community, in 2007, initialed a Framework Economic Partnership Agreement (FEPA) with European Commission which was expected to be concluded on July 31, 2009. However, the signing was postponed to a later date yet to be agreed until negotiating teams iron out contentious issues. Some of the contentious issues include development cooperation, Most Favaured Nation Clause, Trade in services.

“The private sector in the region has little knowledge of EPA negotiations, how the new trade regime will impact to their businesses and how best they can play an active role in ensuring that private sector interests are duly taken on board,” Mr Njau said. “The meeting will therefore enhance the competence of the private sector, by updating them on negotiation trend with the aim of improving their capacity to contribute to and support negotiations regardless of the level at which negotiations have reached.”

The FEPA contains Market Access offers on trade in goods made by both the EAC and EC to each other, development cooperation issues and Fisheries and provides space for further negotiations leading to a comprehensive and full EPA. It excludes sensitive products such as agricultural products from liberalization as well as a clause to shelter growing industry from external competition.

EU’s market access offer consists of duty free and quota free access to imports from the EAC Partner States except for rice and sugar for which a transitional arrangement was put in place. Exports of rice will continue to attract a tariff until January 1st 2010 at which point it will become duty free while exports of sugar attracted a tariff until October 1st 2009.

EAC market access offer to the EU, on the other hand, consists of 82% liberalization of imports from the EU over a twenty five (25) year transition period (64% in 2010; 16% in 2023; and 2% in 2033).

The EU has been negotiating EPA with African Caribbean and Pacific (ACP) countries since September 2002 with the aim of replacing non-reciprocal trade preferences granted under the Cotonou Agreement. EPA’s are structured to introduce reciprocity to trade arrangement between EU and developing nations as per World Trade Organisation requirements.

However EPAs have often met obstacles with only Caribbean countries under the Caribbean Forum Configuration able to conclude negotiations for full EPA. Four countries (Madagascar, Mauritius, Seychelles and Zimbabwe), of Eastern and Southern Africa (ESA) configuration, under which EAC initially negotiated,in August 2009, signed an interim agreement with the EU but Comoros and Zambia did not sign.

Botswana, Lesotho and Swaziland under Southern Africa Development Community Configuration also signed an interim EPA although South Africa, Namibia, and Angola are yet to sign. West African and Central African countries are still negotiating interim agreements.

About EABC
EABC is an apex body of business associations in Kenya, Uganda, Tanzania, Rwanda, and Burundi with the aim of promoting Private Sector's regional and global competitiveness in Trade and Investment. Founded in 1997, EABC has been actively involved in lobbying on behalf of the private sector to ensure that issues affecting the private sector in East Africa are properly addressed.

About TradeCom
The TradeCom Facility, is an African, Caribbean and Pacific (ACP) Group Programme financed by the European Development Fund. The TradeCom Facility was established to provide and coordinate trade-related technical assistance to ACP countries. It aims at consolidating, and even creating, where absent, the necessary capacity that would enable ACP countries to craft trade policies with a view to achieving sustainable development, poverty reduction and successful integration into the global trading system.

For more information contact:
Godwin Muhwezi Bonge
East African Business Council
P O Box 2617,
Arusha, Tanzania
Cell: +255 766196025/ +256753080571
Website: www.eabc.info