Talks on EAC exports to Europe resume today

Cabinet Secretary for East African Affairs, Commerce and Tourism Phyllis Kandie, leads the delegation of ministers and business leaders from the East African Community (EAC) in talks to foster business between East Africa and the European Union resume today in Brussels, Belgium. PHOTO/SALATON NJAU 

In Summary

• The delegation to Belgium consists of EAC affairs ministers from the five member states, a legislator from Kenya and technical officers who have been involved in the talks which started in 2002.
• Under the East African Customs Management Act, Kenya does not have direct control on business deals with Europe, having bound itself to a pact that requires five member states to pursue EPAs as a bloc.
• Kenya has a Sh105 billion market — for flowers, fish, tea and coffee — to lose, should Europe introduce the punitive taxes. However, the other EAC members have strongly resisted a reciprocal deal with EU, saying it could hurt their domestic industrialisation.

By Nation Reporter
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Talks to foster business between East Africa and the European Union resume today in Brussels, Belgium.

The delegation of ministers and business leaders from the East African Community (EAC) will be headed by Kenyan Commerce and Tourism cabinet secretary Phylis Kandie.

Ms Kandie who also chairs the EAC council of ministers will lead the discussions on the Economic Partnership Agreements (EPAs) which are considered crucial to the region’s economic growth.
The negotiations will go on until Thursday and they are aimed at determining the fate of exports from the five EAC states to Europe.

“I am optimistic that we’ll get a positive outcome from these all-important talks with the EU so that Kenya’s products can continue enjoying preference and relief they have been enjoying under the current regime,” she told the Nation.

PUNITIVE TAXES

The delegation to Belgium consists of EAC affairs ministers from the five member states, a legislator from Kenya and technical officers who have been involved in the talks which started in 2002.
The Jubilee government had initially set itself a two-month deadline to sign the EPAs.

Kenya is also keen to seek an end to the drawn-out negotiations for a pact that will safeguard its exports to Europe valued at over Sh100 billion.

Pressure is on the EAC to conclude the talks before the October deadline set by the European Commission and the regional parliament, failure to which punitive taxes would be introduced on goods from countries that have not signed the EPAs.

Under the East African Customs Management Act, Kenya does not have direct control on business deals with Europe, having bound itself to a pact that requires five member states to pursue EPAs as a bloc.

Kenya has a Sh105 billion market — for flowers, fish, tea and coffee — to lose, should Europe introduce the punitive taxes. However, the other EAC members have strongly resisted a reciprocal deal with EU, saying it could hurt their domestic industrialisation.

This has placed Kenya in what technocrats call “an interesting scenario”.

While it is the strongest economy in the region, it has to take care not to hurt the interests of other members of the bloc.