Page 18 - Nile Explorer 10 Final-3-FINAL O-WITH NEW ALDO PHO COPY FOR PRINT
P. 18
Economic Partnership Agreement (EPA)
whose signing stalled in 2016. Tanzania
has always argued that there were still
pertinent issues in the EAC-EU EPA,
and that it needed more clarifications on
them from Brussels.
Concerned about delays brought
about by Tanzania in concluding the
Economic Partnership Agreement
(EPA) with European Union, other EAC
partner states, like Kenya, Uganda and
Rwanda are opting to go it alone, further
complicating EAC’s Customs union
framework.
EAC Flags
The reluctant EAC partner states to
the customs union find themselves in
and Planning, also the Acting DSG- cover goods, fisheries and development a very precarious position, s the world
Finance and Administration) and Hon. cooperation. eagerly awaiting the start of the African
Christophe Bazivamo (DSG-Productive Economic Partnership Agreements Continental Free Trade Area (AfCFTA),
and Social Sectors). (EPAs) are trade and development whose coming into force has been
The EAC intra-trade stands at about 20 agreements negotiated between the rescheduled from July 1, to 2021.
percent compared to the intra-African EU and African, Caribbean and Pacific
trade of about 11 percent. partners engaged in regional economic The African Continental Free Trade
Area (AfCFTA) agreement will create
There has also been a positive Revenue integration processes. the largest free trade area in the world
GDP ratio correlation, which negated The EU-EAC EPA covers trade in goods measured by the number of countries
earlier fears of tax income loss at the and fisheries as well as development participating. The pact connects 1.3
commencement of the Customs union. cooperation that aims to reinforce billion people across 55 countries with
The emergence of Non-Tariff Barriers cooperation on the sustainable use of a combined gross domestic product
(NTBs) has, however, been the biggest resources. Further negotiations are (GDP) valued at US$3.4 trillion. It has
impediment to realization of Common ongoing to include services and trade- the potential to lift 30 million people out
Market Protocol ideals. related rules in the future. of extreme poverty, but achieving its full
“NTBs include rules that government The East African Community’s potential will depend on putting in place
puts in place or suppliers, wholesalers, partner states have kept the European significant policy reforms and trade
or how difficult it is to move the product Union guessing over the controversial facilitation measures.
from the producer to the consumer.
You cannot win war against a NTB. But
what you do is to create an observatory
capacity that once you observe that this
is an NTB, develop protocols on how
to deal with it,” said Mr Mwencha, the
Chairman of Trade Mark East Africa.
The Custom Union has allowed East
Africa to operate as a free trade area
where partner states have reduced or
eliminated taxes on goods originating
from within the community and have
a Common External Tariff (CET) on
goods imported from other countries.
Moreover, the East African Community
is divided on whether to sign key
trade agreements with the European
Union, recently the United Kingdom
(UK) following the Brexit. Trade and
development agreements have been
negotiated between the EU and African,
Caribbean and Pacific partners to Ordinary Summit of EAC
18 | The Nile Explorer 010