Tanzania is concerned that signing a bad EPA will compromise the
region’s interests in subsequent trade negotiations. FOTOSEARCH
A decision on whether all the East African Community partner
states will sign the European Union-EAC Economic Partnership Agreement
(EPA) will be known in November during the Heads of State Summit.
Uganda’s
President Yoweri Museveni, who is the chairman of the EAC, held a
meeting with the European Commission President Jean-Claude Juncker on
September 27 to present the concerns raised specifically by Tanzania on
the EPA, leading to the delay of signing the agreement.
“I
arrived in Belgium on a three-day working visit. As chairman of EAC, I
will hold discussions with the EU over EPA and other related issues,”
confirmed President Museveni on his Twitter handle.
He
was accompanied by the EAC Secretary-General Liberat Mfumukeko,
ministers of trade from each partner state and assistant ministers or
permanent secretaries.
Betty Maina, Principal Secretary
in Kenya’s Ministry of EAC Affairs, said President Museveni presented
the concerns raised by Tanzania on why it was unwilling to sign EPA,
seeking clarification from the EU.
“We expect that EU
will respond to the concerns before November. A decision and partner
states’ position will then be known in November,” said Ms Maina.
Contentious issues
Tanzania is concerned that signing a bad EPA will compromise the region’s interests in subsequent trade negotiations.
Among
the contentious issues is that EU unilaterally puts embargos on trade
under the EPA while Article 136 of the EPA still refers to the same
agreement that the EU has used to put an embargo on Burundi.
Tanzania
also says that EAC partner states will not operationalise the free
movement of goods while there is no free circulation of goods in the
region and no refund mechanism for Customs duty paid to another partner
state.
The other concerns raised are on the effect of
the Most Favoured Nation clause on the future engagement of EAC with
third parties.
Tanzania is concerned about how the EAC
partners will hold the EU liable as one party in case of failure to
implement any of the EPA provisions when Article 132 (1) of the EPA does
not define the EU as one party when it comes to the definition of
parties and fulfilling of their obligations.
Also,
Tanzania is concerned about how the EAC partner states will bridge the
gap in their balance of trade with EU while continuing trading with raw
materials, taking into account that the EPA has limited EAC policy space
in instituting duties and taxes on export.
East
African heads during their last Summit in May jointly agreed that the
EAC members who have not signed the trade deal should not do so pending
clarification of contentious issues.
“If an acceptable solution is not reached with the EU within the next six months, the chairperson, working with the Council of Ministers, is expected to explore the use of variable geometry in the implementation of the EPA by EAC member states,” said President Museveni during the Summit.
“If an acceptable solution is not reached with the EU within the next six months, the chairperson, working with the Council of Ministers, is expected to explore the use of variable geometry in the implementation of the EPA by EAC member states,” said President Museveni during the Summit.
The
variable geometry allows partner states that are ready to sign and
implement the EPA to go ahead with the decision. However, Article 37 of
the EAC Customs Union Protocol stipulates that the partner states should
sign the EPA as a bloc.
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