Ugee

East Africa and European Union, sign trade pact

The five East African Community countries have signed a joint Economic Partnership Agreement with the European Union, paving the way for greater access to European markets by EAC products. EU trade with the EAC countries has been governed by the Cotonou arrangements, which expires at the end of this year. The new EPA signed yesterday is an interim measure that will enable the partners to negotiate a comprehensive deal by July 2009. It will grant the African, Caribbean and Pacific countries duty-free and free access to the EU market. EU ambassador Vincent De Visscher said: “The framework agreement will establish a strategic trade and development partnership with the objective of promoting regional integration, growth and good governance within the EAC.” EAC states will gradually open their markets to goods from the EU over a period of 25 years. Julius Onen, the EAC deputy secretary general for trade and policy, said after 15 years, 82% of the EU’s exports will enter the EAC markets duty-free. Onen said this was also the first international trade agreement concluded by the EAC as a block. Visscher said this is also the EU’s first trade agreement with an economic block. EAC textile manufacturers will be able to source raw materials from anywhere, make clothes and export to the EU duty-free and without quota restrictions. There will also be no quota restrictions on the export of sugar to the EU. The signing ceremony took place at the Golf Course Hotel in Kampala yesterday. Trade ministers Basil Mramba (Tanzania) and state minister Nelson Wambuzi Gagawala signed the agreement with Visscher and Onen. Rwanda investment state minister Vincent Karega, Kenya High Commissioner to Uganda Japheth Gitugi and Burundi ambassador Jean Ngendanganya also signed. The Private Sector Foundation said the framework would prevent disruption of trade. “If this was not signed, we were going to be subjected to paying taxes that are higher than the profit margin made. This gives us increased access to the market quota-free for sugar and rice,” said official John Sempebwa. Under the deal, the EU will strengthen EAC institutions as the region achieves a political union. Visscher said: “We hope to help you towards achieving this.” Onen said: “This is an engine for growth, job-creation and poverty elimination.”

 

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