EU Initials Trade Deal With East African Nations
The European Commission Tuesday initialed (iværksatte) an interim trade accord with five east African nations that will replace preferential tariff agreements due to expire this year.
Under the accord, East African Community (EAC) states Burundi, Kenya, Rwanda, Tanzania and Uganda will enjoy duty-free, quota-free access to the EU for all products – except sugar and rice – from January 1.
A deal on services and investments, not covered in the interim agreement, will be negotiated next year.
After 15 years, 80 percent of the exports from the EU will enter the EAC market free of duties.
Thw agreement, which will replace the Cotonou trade arrangement that lapses at the end of this year, is a first step towards EPAs which the EU said will help development but critics said would expose the continent to too much competition.
EU Trade Commissioner Peter Mandelson said the agreement “will prevent trade disruption and allow the EU to open its markets fully to exports’ from the five nations as of January 1”.
Brussels says that under the new deal 60 percent of the EACs import tariffs on EU goods will be fixed at zero by 2010, but that this merely reflects “binding” existing zero-duty items in a formal agreement rather than cuts in applied tariffs.
The EAC countries have come under pressure from their agricultural exporters, particularly flower growers in Kenya, to ensure their privileged access to EU markets can continue. Unless new deals are concluded by the New Year, some ACP countries will face far less generous trade arrangements.
Many countries complain they were not given enough time to prepare their economies. The EU has said it will not seek a new waiver (frist). Oxfam and other development campaign groups accuse the EU of strong-arming ACP countries into doing deals.
– The EU has essentially forced the East Africans to choose between guaranteeing markets for their agricultural exports today, and maintaining a degree of protection to promote future industrial growth, which all developed countries have done in the past, said Luis Morago, the head of Oxfams EU office.
Kilde: www.worldbank.org
