Region’s trade deal with WTO finalised

 

Tourism Cabinet Secretary Phyllis Kandie, (right), her Foreign affairs and as well as Industrialisation counterparts Amina Mohammed and Adan Muhamed (standing) at an Agoa meeting in Washington DC in August. Kenya will next year

By CHRISTABEL LIGAMI

In Summary

• Once implemented, it is expected to cut the cost of doing business between the EAC and other economies by almost 14.5 per cent, adding to trade reforms already underway in the region to bring down trade barriers.

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The East African Community partner states have taken the final step in the implementation of the World Trade Organisation Trade Facilitation Agreement, a move expected to widen the market for the region’s goods and services in developed countries.

The five member states beat the March 31 deadline for their commitment and full participation as a bloc in the WTO trade agreement as required by the WTO Protocol.

Once the protocol is implemented, it is expected to cut the cost of doing business between the EAC and other economies by almost 14.5 per cent, adding to trade reforms already underway in the region to bring down trade barriers.

Peter Kiguta, EAC Director-General for Customs and Trade, said that the final notification documents have been deposited with WTO after the East African states agreed on the notification criteria late last month.

The earlier deadline for the notification had been set for July 2014, but EAC partners negotiated an extension up to March 31, 2015.

Negotiating as a bloc

According to Mr Kiguta, partners petitioned for an extension so that they could trade with the other economies as a bloc.

“Although under the WTO requirements, countries negotiate as individual partners, EAC countries are bound by the Customs Union to negotiate trade agreements as a bloc. And under Article 24 of the WTO treaty, partners have the leeway to do so but only after consultation and approval by the WTO Trade Committee,” he said, adding that the negotiations by the member states as a bloc meant the need for more time for consultations.

The final preparations are underway to ratify the protocol, with Kenya preparing to host the WTO Council of Ministers towards the end of this year.