UGANDA: East Africa signs interim trade deal with Europe ahead of EPA

The East African Community bloc signs an interim trade agreement with the European Community, which has been pushing for a new trade deal with African, Caribbean and Pacific countries, known by its acronym EPA. EPA has met stiff resistance from African countries worried the new pact would hit their manufacturing sectors and damage economies growing at their fastest pace in three decades. The five members of the East African Community (EAC) trading bloc on Tuesday (November 27) signed a final trade agreement with the European Union ahead of the expiry of a preferential trade pact next month. Kenya, Tanzania, Rwanda, Uganda and Burundi are among about 80 nations in the African, Caribbean and Pacific (ACP) group of ex-European colonies that have been in talks with the EU about new trade deals to replace a pact expiring on December 31, making way for continued trade witht the EU without higher tariffs on Africa countries. The interim agreement is in preparation for the Economic Patnerships Agreement (EPA) which is yet to come into effect. EU representatives at Tuesday's signing said they hoped the EPA, when it came into force, would stimulate trade and competition. "So realising that the trade flow between the ACP and the European Union was steadily going down, we said: 'What about competitiveness? Were the preferential trade agreements beneficial to the ACP? Is it the time to change it so there is competitiveness in the ACP countries?" said Vincent de Fisscher, head of the EU delegation. ACP nations that fail to sign up to EPA face higher tariffs for their goods entering Europe from beginning of January next year. Many have complained they were not given enough time to prepare their local economies for the changes and in the case of the East African Community, that has led to an interim deal.

ITN Source | November 27, 2007

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