UN Body Warns EAC Against Trade Deal With EU
UN Body Warns EAC Against Trade Deal With EU

UN Body Warns EAC Against Trade Deal With EU

UN Body Warns EAC Against Trade Deal With EU

A United Nations think-tank has warned the East African Community against entering into an Economic Partnership Agreement with the European Union arguing that it will neither spur economic growth nor bring wealth to the region’s citizens.
The United Nations Economic Commission for Africa says in a report that if the EPA is signed, local industries will struggle to withstand competitive pressures from EU firms, while the region will be stuck in its position as a low value-added commodity exporter, AllAfrica reported.
 “If the EAC-EU EPA is fully implemented, the region risks losing trading opportunities with other partners, industrial output, welfare and GDP,” the 45-page report said.
The report titled ‘Analysis of the Impact of the EAC-EU Economic Partnership Agreement on the EAC Economies’ is yet to be made public and is expected to be discussed by the council of ministers in the “days to come,” according to sources at the EAC Secretariat.
The report, commissioned by the EAC secretariat, is likely to further polarize the position of the community’s members on the EPA, which Kenya and Rwanda have already signed. The EU accounts for 31% of Kenya’s export market. The two countries were opposed to the commissioning of the study that was requested by Tanzania towards the end of last year. Uganda said it would only sign the EPA if there was consensus among the EAC members while Burundi refused to sign the agreement until the EU lifts sanctions imposed on Bujumbura in 2015.
Sources say Rwanda and Kenya have already said they will not discuss the report at the next council of ministers meeting.
The EU-EAC EPA promises duty-and-quota free access to EU markets for East African goods in exchange for a gradual opening up of the region’s markets to European products.
However, UNECA says the removal of taxes on capital goods from Europe will cause the EAC accumulated revenue losses of $1.15 billion per year. The market would be opened up over a 25-year period and capped at 80% market access.
The UNECA findings are in direct conflict with a 2014 report by the European Commission, which shows that the region will experience an economic boom due to improvements in market access to the EU.

Short URL : https://goo.gl/wsjjzf
  1. https://goo.gl/tOcfO6
  • https://goo.gl/hr6r1X
  • https://goo.gl/JluE43
  • https://goo.gl/y2J0f5
  • https://goo.gl/pq6UB5

You can also read ...

More and more Thai merchants are integrating WeChat Pay and Alipay’s systems to cater to tourists.
The internet has changed the way most people live. Through...
Cambodia’s economic outlook remains positive, but is subject to downside risks.
The IMF Managing Director Christine Lagarde expressed optimism...
More India Bank Frauds Revealed
Over 25,800 fraud cases involving about Rs179 crore ($1.79...
Qatar Calls to Investigate UAE Bank’s Bogus Deals
Qatar has asked US regulators to investigate the US subsidiary...
Free trade achieves more good for the planet.
US President Donald Trump’s steel tariffs have brought the...
Morocco Currency Reform on Right Track
Few weeks after the launch of the gradual dirham float, the...
EU Readies Tax on US Technological Titans
The European Union will next week unveil plans for a digital...
Apparel imports from ASEAN are growing, spurred by low labor costs  in such countries as Vietnam.
Import prices for apparel and daily goods in Japan plunged...

Add new comment

Read our comment policy before posting your viewpoints