EAC to increase free import duty by 80% under new EPA

By The guardian reporter

EU Commissioner for Trade, Karel De Gucht

 To access the lucrative European Union (EU) markets, the East African Community (EAC) has joined at least two other African regions in agreeing to increase duty-free imports from Europe to 80 per cent over the next 15 years.

 

The deal was entered last week by EAC negotiators who finalised the new comprehensive Economic Partnership Agreement (EPA) between the two blocs, the European Union has confirmed.

 

In a press release issued over the weekend, the European Commission said the agreement will provide legal certainty for businesses and open a long-term perspective for free and unlimited access to the EU market for products from Burundi, Kenya, Rwanda, Tanzania and Uganda.

 

"The East African Community region stands out for its dynamism and ambition to develop as an integrated region,” said EU Commissioner for Trade Karel De Gucht.

 

“The comprehensive partnership agreement we have just reached is the best way in which we can support EAC's aspirations," he added noting that the EU has concluded at least two other development-oriented partnerships with other African regions this year. 

 

‘It's a source of my personal satisfaction also to see East Africa benefiting from the opportunities that Europe wants to offer to the continent…I hope these EPAs will be signed and implemented soon," said EU’s Commissioner for Trade Gucht.

 

As EAC customs union tariffs on imports are already low, it is reasoned that, absorbing the EPA is a feasible endeavour since it assures EAC producers reliable market in the EU and in general, lays new and stable grounds for EU-EAC trade relations. 

 

East African Community countries will now be able to focus on improving their economic performance without worrying about the potential loss of full duty-free, quota-free access to the European market. 

 

All EAC members, least developed or more advanced, will benefit from the same predictable and uniform trade scheme.

 

The statement explains that, to reap these benefits and to comply with the rules of the World Trade Organisation, the EAC countries committed to increase the share of their duty-free imports to 80 per cent over the coming 15 years.

 

The EU and EAC have also reached a balanced outcome on export taxes.

 

Beyond the elimination of customs duties, the agreement covers important issues, such as free movement of goods, cooperation on customs and taxation, and trade defence instruments which mirror the effort of the EAC to strengthen its customs union and to set up an effective internal market.

 

 This is the EU's most tangible contribution to support the regional objectives of the EAC.

 

The agreement, initiated last week by all negotiators, is now going to be presented for approval according to the domestic procedures of each partner.

 

In 2013, total trade between the EU and the East African Community amounted to €5.8 billion. The EU imports from the EAC are worth €2.2 billion and consist mostly of coffee, cut flowers, tea, tobacco, fish and vegetables. 

 

Exports from the EU into the EAC, mainly machinery and mechanical appliances, equipment and parts, vehicles and pharmaceutical products, amount to €3.5 billion.