E Africa signs final trade deal with EU

KAMPALA – Five East African countries agreed a new trade deal with the European Union yesterday, just weeks before a preferential trade pact is due to expire, EU officials said.

Kenya, Tanzania, Rwanda, Uganda and Burundi – which form the East African Community trading bloc – and the European Commission inked an interim deal, covering trade in goods, ahead of negotiations in other areas such as services and investment. “This is not yet the (full) Economic Partnership Agreement.We wanted in the first place to make sure trade will not be interrupted,” said Tom Vens, the head of trade and regional integration at the EU delegation to Uganda.”It contains chapters on goods, fisheries,” he told Reuters.The interim agreement includes a list of agricultural and industrial products that the EAC considers sensitive and in need of temporary protection to prevent local companies going bust.Brussels is in talks to sign EPAs with nearly 80 nations in the African, Caribbean and Pacific (ACP) group of former European colonies.Negotiations were launched more than five years ago and the EU says the new deals must be in place by December 31.That is the expiry date of a World Trade Organisation waiver which has allowed existing EU preferential trade deals with the ACP group to continue, despite being ruled illegal by the WTO.ACP nations that fail to sign face higher tariffs for their goods entering Europe from January 1.Many have complained they were not given enough time to prepare their local economies for the changes.”The EAC states will gradually open their markets to goods from the European Union over a period of 25 years.After 15 years, 80 per cent of the exports from the EU will enter the EAC market free of duties,” the EU said in a statement.It added that this would cover mostly industrial inputs and capital goods and that about a fifth of EAC trade would be exempted from the requirement to liberalise.”Negotiations will continue next year, with a view to concluding a comprehensive EPA not later than July 2009.”Last Friday, the European Commission and four states in Southern Africa – Botswana, Mozambique, Swaziland and Lesotho – inked an interim, goods-only EPA.But Namibia, Angola and regional heavyweight South Africa did not initial it.EU officials expect only subgroups in some of the six ACP regions will sign up by January 1, given opposition of some countries to the new deals.Nampa-Reuters”This is not yet the (full) Economic Partnership Agreement.We wanted in the first place to make sure trade will not be interrupted,” said Tom Vens, the head of trade and regional integration at the EU delegation to Uganda.”It contains chapters on goods, fisheries,” he told Reuters.The interim agreement includes a list of agricultural and industrial products that the EAC considers sensitive and in need of temporary protection to prevent local companies going bust.Brussels is in talks to sign EPAs with nearly 80 nations in the African, Caribbean and Pacific (ACP) group of former European colonies.Negotiations were launched more than five years ago and the EU says the new deals must be in place by December 31.That is the expiry date of a World Trade Organisation waiver which has allowed existing EU preferential trade deals with the ACP group to continue, despite being ruled illegal by the WTO.ACP nations that fail to sign face higher tariffs for their goods entering Europe from January 1.Many have complained they were not given enough time to prepare their local economies for the changes.”The EAC states will gradually open their markets to goods from the European Union over a period of 25 years.After 15 years, 80 per cent of the exports from the EU will enter the EAC market free of duties,” the EU said in a statement.It added that this would cover mostly industrial inputs and capital goods and that about a fifth of EAC trade would be exempted from the requirement to liberalise.”Negotiations will continue next year, with a view to concluding a comprehensive EPA not later than July 2009.”Last Friday, the European Commission and four states in Southern Africa – Botswana, Mozambique, Swaziland and Lesotho – inked an interim, goods-only EPA.But Namibia, Angola and regional heavyweight South Africa did not initial it.EU officials expect only subgroups in some of the six ACP regions will sign up by January 1, given opposition of some countries to the new deals.Nampa-Reuters