[A2k] European Union, East Africa sign trade pact

[Kawooya, Dick]

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Colleagues FYI. Details yet to emerge.

Dick
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European Union, East Africa sign trade pact
By Geresom Musamali and Macrines Nyapendi

[http://newvision.co.ug/D/8/12/599365]

The five East African Community countries have signed a joint Economic Part=
nership Agreement with the European Union, paving the way for greater acces=
s to European markets by EAC products.

EU trade with the EAC countries has been governed by the Cotonou arrangemen=
ts, which expires at the end of this year. The new EPA signed yesterday is =
an interim measure that will enable the partners to negotiate a comprehensi=
ve deal by July 2009. It will grant the African, Caribbean and Pacific coun=
tries duty-free and free access to the EU market.

EU ambassador Vincent De Visscher said: =93The framework agreement will est=
ablish a strategic trade and development partnership with the objective of =
promoting regional integration, growth and good governance within the EAC.=
=94

EAC states will gradually open their markets to goods from the EU over a pe=
riod of 25 years.

Julius Onen, the EAC deputy secretary general for trade and policy, said af=
ter 15 years, 82% of the EU=92s exports will enter the EAC markets duty-fre=
e. Onen said this was also the first international trade agreement conclude=
d by the EAC as a block. Visscher said this is also the EU=92s first trade =
agreement with an economic block.

EAC textile manufacturers will be able to source raw materials from anywher=
e, make clothes and export to the EU duty-free and without quota restrictio=
ns. There will also be no quota restrictions on the export of sugar to the =
EU.

The signing ceremony took place at the Golf Course Hotel in Kampala yesterd=
ay. Trade ministers Basil Mramba (Tanzania) and state minister Nelson Wambu=
zi Gagawala signed the agreement with Visscher and Onen. Rwanda investment =
state minister Vincent Karega, Kenya High Commissioner to Uganda Japheth Gi=
tugi and Burundi ambassador Jean Ngendanganya also signed.

The Private Sector Foundation said the framework would prevent disruption o=
f trade. =93If this was not signed, we were going to be subjected to paying=
 taxes that are higher than the profit margin made. This gives us increased=
 access to the market quota-free for sugar and rice,=94 said official John =
Sempebwa.

Under the deal, the EU will strengthen EAC institutions as the region achie=
ves a political union. Visscher said: =93We hope to help you towards achiev=
ing this.=94
Onen said: =93This is an engine for growth, job-creation and poverty elimin=
ation.=94