DARE-ES-SALAAM, TANZANIA — The East African Business Council (EABC) has warned of disastrous repercussions if the EAC countries do not conclude the Economic Partnership Agreements (EPAs) with the European Union (EU).
“Today, we have less than 90 days to the conclusion of the negotiations with EU and if we do not move fast, the business community may be dealt a great blow when the current preferential trading regime expires on 31st December 2007,” Mr. Arun Devani, the EABC Chairman warned last week.Devani said that if the EAC partner states fail to meet the negotiations deadline, they may face the consequences of trading with the EU in competition, on equal terms, with all other developing countries.
This is in line with the Generalized System of Preferences (GSP) scheme, which is consistent with the international rules of trade.
“The EAC region is also faced with various challenges relating to value addition, private sector empowerment, food security and commodity dependence. As you can see, the repercussions of missing out on the EPAs timetable will be great and can be disastrous to the region,” Devani said.
The EABC is concerned over the slow pace in arriving at a common position towards implementing the decision to negotiate an EAC-EPA with the EU. Devani appealed to the EAC governments to move fast and commence talks immediately.
EABC uproar follows the just ended two-day talks involving technical experts and the permanent secretaries from the EAC in Arusha late last week to build a negotiating framework.
Devani also warned that divisions may arise from the decision by the partner states to “open up an avenue to pursue other options” for negotiations other than through the proposed EAC configuration.
“It is the view of EABC that “other options” may stimulate the sensitivities which dominated and caused EAC partner states to continue negotiating under different configurations,” Devani said.
He added, “It (uncertainty) also creates likelihood that partner states may be tempted to continue negotiating in two different configurations (ESA and SADC). This scenario clearly is not healthy for the EAC.”
Devani said that the situation also casts a cloud of uncertainty over the business community in the region.
He added that the uncertainty is affecting business plans particularly for the EU destined export companies.
Devani said with the EPAs in balance, EAC exporters cannot easily negotiate favorable contracts with European Union countries for transactions beyond the life of the current EU-ACP agreement which guarantee duty free access.
The process of negotiations could spill over the due date for the EPAs, Devani said.
Devani also said that EABC is ready and would like to be fully involved in the EPA negotiations process. We have been consulting at national and at regional level with our Members.
