Kenya’s Henry Rotich (centre) in a past meeting with EU officials. The
EPA's signing and ratification has stalled since October 2016. FILE
PHOTO | NMG
Kenya hopes to marshal support for its ambitious plan to trade
with Europe during the East African Community heads of state scheduled
for February 1, in Arusha, after efforts to get its partners to sign and
ratify the Economic Partnership Agreement with the European Union bore
little fruit.
The EPA, whose signing and ratification
has stalled since October 2016, allows duty-free, quota-free access of
EAC products to the European market.
Kenya, the
region’s biggest exporter to the European market, has been allowed
temporary access to the European market under special arrangements after
Tanzania, Uganda and Burundi failed to sign and ratify the agreement
citing various country-specific concerns.
The pact
requires all EAC countries to sign and ratify for it to take effect, but
only Kenya has signed and ratified while Rwanda has signed but not
ratified.
As a result, Kenya is asking that EAC partner
states adopt the variable geometry, a move that would be viewed as
counter to regional integration.
The Principle of
Variable Geometry allows member countries to enforce the trade agreement
with the EU as individuals rather than a bloc, implying that Kenyan
products will start accessing the EU market under EPA.
Differences
The EU has asked the EAC partner states to iron out their differences and agree on the way forward on the trade agreement.
“The
next EAC Summit in 2019 is expected to discuss the EPA issue and the
way forward,” the EU said in its latest EPA update report dated November
2018.
The EastAfrican has learnt that Kenya
is planning to table a proposal before the EAC Council of Ministers on
January 30, seeking to be allowed to enforce its own trade agreement
with the EU as other partner states sort out their own issues.
If
Kenya’s proposal on variable geometry is adopted by the ministers, it
will be forwarded to the heads of state for review and final decision.
Kenya's
Principal Secretary in the Department of Trade Dr Chris Kiptoo
confirmed to this paper that the country has settled for the principle
of variable geometry but the proposal has to get the backing of all the
EAC member states.
“We have already signed and ratified
this agreement. We don’t have any problem. If the other countries have
issues then I think the principle of variable geometry should apply so
that those who are ready can sign and proceed but the proposal has to be
endorsed by all member countries,” said Mr Kiptoo.
The EastAfrican has
learnt that some of the regional partners are of the view that such a
move will compromise the principle of solidarity that binds EAC member
states together.
It is understood that Uganda, which
has expressed interest to sign the agreement, is keen on the principle
of solidarity, which requires all countries to sign and act as one.
It
is also feared that signing the pact as individual countries would
weaken the region’s rules of origin principle and give rise to partner
states operating on different trading regimes, compromising efforts
towards regional integration.
EAC’s commitment to the
EPA has however come into sharp focus after it emerged that Kenya has
won a timeless access to the EU market under the Market Access
Regulations.
On the other hand, Uganda, Rwanda, Burundi
and Tanzania, which are considered least developed countries, continue
having duty-free and quota-free access to the EU under the Everything
but Arms arrangement.
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