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East Africa

Season of

trade deals,

which way

for EAC President Uhuru Kenyatta with UK, Prime Minister, Boris Johnson (FILE

countries? PHOTO)

here is a flurry of activity in trade Besides, Kenya is globally classified A proposal from the European nation
Tpolicy circles cross the region as East above its partners, as a Lower Middle- shows that its government wants
African countries are scramble to secure Income country, accordingly standing similar privileges under the current
bilateral trade deals with the United to lose the most if the EAC does not sign EU agreement with the East African
Kingdom for the post-Brexit era. The a collective post-Brexit trade deal with trade bloc, explaining that “deviating
as the current multilateral agreement is the UK, as its exports will be subjected substantially would require a new
set to expire at the end of this month, to taxes and other restrictions. mandate and could take many years.”
although president Museveni of Uganda
seeks an extension to December to allow All the other EAC member states, are The prospect of the UK formulating its
for negotiations between EAC countries classified as Least Developed Countries own trade policy following Brexit is likely
for a new collective pact that has stalled (LDCs), meaning they will continue to have implications for the existing
due to ideological differences. enjoying unrestricted access to the Economic Partnership Agreements
Similarly, the UK entered into an British market. (EPAs) between the European Union
11-month transition period in which it (EU) and some African, Caribbean and
will largely follow EU rules but will not Given the delays Kenya and Rwanda had
have any representation in the bloc’s sought to be allowed to negotiate bilateral Pacific (ACP) countries, and the UK’s
institutions. This period will come to an deals with the UK that will allow in the future trading arrangements with the
end on 31 December. UK official exited delaying EAC partners wanting to join ACP.
the EU on 31 January. Only when the later, a proposal that Uganda opposes. The latter will be determined by the
UK leaves the EU can the two sides nature of the UK’s trade deal with the EU
With only four months left until the And in the clearest indication that the post Brexit and the trading regime it sets
current trade arrangement expires EAC member states are not reading up with those ACP countries that have
December, each of the EAC countries has from the same script, the Tanzanian
invoked a clause—“variable geometry government is already engaging the an EPA. ACP countries receive duty-free
“in their treaty that allows individual UK directly to renegotiate its current and quota-free (DFQF) market access
countries to negotiate and enter into bilateral trade relationship with Britain into the EU for all goods (except arms
trade pacts simultaneous as they enter in the wake of the latter’s exit from the and ammunition) under the EPAs1,
into deals collectively s a community. while the same treatment is offered by
The EAC is expected to have signed a European Union, Deputy Minister for the EU to least-developed countries
draft agreement by the end of next this Trade Stella Manyanya said, noting that (LDCs) through the Everything-but-
month, which now seem highly unlikely. they are looking to protect locally-made Arms (EBA) scheme.
Besides Kenya all the other EAC member goods.
countries are against the September30 Britain voted to exit the EU in 2016 and In the absence of equivalent market
deadline, which they consider to short. access, these countries may face higher
As the leading biggest trade partner with formally left the bloc in January this year, most-favoured nation (MFN) tariffs in
the UK, and the one to lost most when with a one-year transitional period, the UK market. In the short-term, the
a collective deal is entered into, Kenya meaning that all trade deals previously challenge for the UK is to ensure trade
seem to be getting frustrated with the signed the UK with other countries, continuity on terms that are at least as
slow pace of negotiations at the regional through the European bloc, will remain favourable as those provided under the
trade bloc level. until the transitional period is over. EPAs.

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