Team maalum kutoka Kenya kuwasili Dar kuishawishi serikali ikubali kusign EPA za EAC-EU


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A fresh diplomatic row is brewing between Kenya and Tanzania over the neighbouring country’s reluctance to sign a trade deal with the European Union.

Tanzania last week said it will not sign the Economic Partnership Agreement between the East African Community and the EU. It says it needs to monitor developments following Britain’s successful June 23 referendum vote to leave the EU.

The signing of the EPA by the EAC was set for July 18 ahead of its ratification deadline by the European Commission on October 1, 2016.

Kenya has accused Tanzania of “intentionally” blocking her by refusing to sign the EPA. Tanzania Foreign Affairs PS Aziz Mlima said the government will not sign the deal aimed at giving East African states, as a bloc, duty-free and quota-free market access into the EU.

“Tanzania wants to capitalise on its access as a least developed country to increase its market share against Kenya,” a ministry official privy to the negotiation process told the Star.

If Tanzania backs out, it will jeopardise the process for the second time after a similar move in 2014. Kenyan exports to the EU will attract duty of between five per cent and 22 per cent, like it happened in 2014 when Kenya was placed under the General System Preference trade regime for three months.

As a result, the country’s private sector suffered losses estimated to be Sh600 million per month before successfully lobbying to be reinstated to duty-free status.

About 87 per cent of Kenya’s exports – in agriculture and manufacturing industries – to the EU valued at Sh98 billion were affected, according to a document issued by the EAC ministry ahead of the EAC meeting on the EPA. “The other EAC countries continue accessing the EU market under Everything But Arms initiative since they are categorised as Least Developed Countries,” the document adds.

The report shows Tanzania ignored an EAC secretariat meeting on July 5 to deliberate on the preparation for the signing of the pact, despite President John Magufuli being the EAC chairman.

Foreign affairs CS Amina Mohammed is expected to lead a team to Dar-es-Salaam today to try and convince Tanzania to take part in the signing. Rwanda, Uganda and Burundi are willing to take part in the deal.
 
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They can not change their mind, we should just move on, after all soon they will be in the same pot... Though having these guys as our neighbor is a hustle, hawatutakii enyewe.
 
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Duuh kumbe na sisi huwaga tunakaza.. Tuombe Mungu zisje zikawa mbwembwe na mishauko ya dem bikra alaf baadae anaachia... Cjui
 
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if i may ask, why should Kenya access the benefits of a least developed country while is developed country? Can any Kenyan in here explain to me? Tanzania, Uganda, Rwanda and Burundi should not give in on this! IMHO


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MORE REACTION AND SCREAMING HEADLINES FROM NAIROBI

July 12, 2106
Nairobi, Kenya
By Standard Newspaper

Kenya reads mischief in Tanzania's move to pull out of joint EPA talks

An East African Community meeting called on July 5 will stand out as extraordinary for the region’s trading bloc secretariat.

No one needed to leave their offices during this particular meeting. It was to be conducted via video conferencing.

The main agenda was to put final touches and deliberate on the preparations for signing of a key trade agreement with the European Union that was to happen next week in Nairobi.

The meeting chaired by Uganda’s minister of Trade, Industry and Cooperatives, Amelia Kyambadde, was attended by all other five partner states except Tanzania, which claimed it was not aware of the assembly. This was despite the EAC secretariat confirming it had sent a notification letter to all the partner states.

Several days later, Tanzania shocked the other members when it said it would not sign the trade deal come next week on grounds that it is not in the interest of local industries.

“We saw the absenteeism of Tanzania from the meeting as part of its reluctance to sign the trade agreement,” a source who attended the meeting told The Standard. Kenya, which stands to be the biggest loser from this development, plans to dispatch a delegation to try and talk Tanzania out of its decision.

The backing out of the trade deal, known as the Economic Partnership Agreement (EPA), promises huge economic cost to Kenyan exporters to the European markets.

Economic Partnership Agreements (EPAs) are trade and development agreements negotiated between the EU and African, Caribbean and Pacific (ACP) partners engaged in regional economic integration processes.

Reliable sources within the Foreign Affairs ministry say Kenya sees the decision by Tanzania as ‘blackmail’ and is taken out of ‘malice’ as part of a series of decisions that have been taken by President Magufuli’s government that promise to hurt Kenya’s economy.

“We see this as blackmail and may be aimed at increasing its share of exports to the EU at the expense of Kenya. The argument that the deal is not good for local industry is hollow because it’s the entire region stand to benefit from better export terms,” explained the source.

The source requested to remain anonymous on grounds it would jeopardise the talks and go against the code of secrecy that is required of negotiating teams. Kenya will be the biggest loser if Tanzania refuses to sign the deal by October.

However, Tanzania will continue enjoying preferential treatment for its exports to EU since it falls under the category of least developing countries. Kenya is the only country from the EAC that was dropped from this list after it was classified as a middle-income country, which has seen it lose out on some of the trade privileges it used to enjoy.

“This really is killing the spirit of EAC given that we are not moving together as one, which is the basic principle of the regional bloc,” he said. A similar stunt pulled by Tanzania in 2014 after it delayed in signing the agreement saw Kenya temporarily placed under what is known as the Generalised System of Preferences (GSP) trade regime.

This saw Kenya’s exports attract duty of between five per cent and 22 per cent, threatening to price Kenya out of the lucrative EU export market. This cost exporters more than Sh600 million in discounts every month to allow traders factor in the new taxes and remain competitive.

More than 87 per cent of Kenya’s exports to EU are agricultural, agro-processed and manufactured products.

“As Kenya suffered, other EAC countries continued accessing the EU market under Everything But Arms (EBA) initiative since they are categorised as least developing countries,” the source said. This was reversed in December 2014, three months after it was enforced.

The agreement was to be signed on July 18 on the sidelines of the UNCTAD conference .

Source: Kenya reads mischief in Tanzania's move to pull out of joint EPA talks
 
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They can not change their mind, we should just move on, after all soon they will be in the same pot... Though having these guys as our neighbor is a hustle, hawatutakii enyewe.

Tatizo ni kwamba, hiyo EPA haina manufaa yoyote kwa Tanzania yetu, sasa kwanini tusaini? kwa sababu tu tunataka kuwanufaisha wakulima wa maua wa Kenya?

Sisi kama TanZania tunanufaika nini na hiyo EPA kwa maana tayari sisi tuna uwezo wa kuuza bidhaa zetu EU tax free bila hata ya hiyo EPA, sasa kwa nini tujifunge na mikataba mingine?
 
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if i may ask, why should Kenya access the benefits of a least developed country while is developed country? can any Kenyan in here explain to me? Tanzania, Uganda, Rwanda and Burundi should not give in on this! IMHO


nomasana, sam999, NairobiWalker, hbuyosh, msemakweli, simplemind, Kimweri, Bulldog, MK254, Kafrican,Ngongo, Ab_Titchaz,mtanganyika mpya, JokaKuu, Ngongo, Askari Kanzu, Dhuks, Yule-Msee, waltham, Mzee, mombasite gabriel, Juakali1980 , Boda254, mwaswast, MwendaOmo, Mwanakijiji, Iconoclastes, oneflash, Kambalanick, 1 Africa, saadeque, burukenge, nyangau mkenya, Teen-Upperhill Nairobi, kadoda11

Isitoshe tulipowahitaji Kenya kwenye mambo yetu walitubania, kumbuka tulitaka kujenga Br Arusha -Musoma pmj na Reli mpaka leo hii Wakenya waliungana na Wazungu kutugomea mpaka walianzisha kampeni Dunia nzima kwa sababu ya Masai Mara yao, sasa kwa nini leo hii sisi tujifunge na Mkataba ambao hatuuhitaji?
Isitoshe TanZania yetu tunaweza kufaidika kwa kuuza bidhaa zetu EU bila kusaini hiyo EPA!
 
Geza Ulole

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Isitoshe tulipowahitaji Kenya kwenye mambo yetu walitubania, kumbuka tulitaka kujenga Br Arusha -Musoma pmj na Reli mpaka leo hii Wakenya waliungana na Wazungu kutugomea mpaka walianzisha kampeni Dunia nzima kwa sababu ya Masai Mara yao, sasa kwa nini leo hii sisi tujifunge na Mkataba ambao hatuuhitaji?
Isitoshe TanZania yetu tunaweza kufaidika kwa kuuza bidhaa zetu EU bila kusaini hiyo EPA!
wapeleke ujinga wao walipe kodi kama developed country to access the EU market!
 
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wapeleke ujinga wao walipe kodi kama developed country to access the EU market!

Au wakishindwa wa out source Ulimaji wa maua yao Arusha halafu waexport kutokea TanZania, hiyo nayo ni option ninayoiona, hawa Wazungu walima maua sidhani kama watakubali kulipa hiyo kodi, hivyo Arusha wakae mkao wa kula!
 
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European Commission

Press release
From EU /EC HQ

Brussels, 16 October 2014

EU strikes a comprehensive trade deal with East African Community

Negotiators from the EU and the East African Community (EAC) finalised today a new comprehensive Economic Partnership Agreement (EPA) between both regions.

The agreement will provide legal certainty for businesses and open a long-term perspective for free and unlimited access to the EU market for products from Burundi, Kenya, Rwanda, Tanzania and Uganda.

"The East African Community region stands out for its dynamism, and ambition to develop as an integrated region. The comprehensive partnership agreement we have just reached is the best way in which we can support EAC's aspirations", said EU Commissioner for Trade Karel De Gucht. "We have concluded two other development-oriented partnerships with African regions this year. It's a source of my personal satisfaction also to see East Africa benefiting from the opportunities that Europe wants to offer. I hope that these EPAs will be signed and implemented soon."

The new comprehensive EPA lays the new and stable grounds for EU-EAC trade relations. East African Community countries will now be able to focus on improving their economic performance without worrying about the potential loss of full duty-free quota-free access to the European market due to their improving status. All EAC members, least developed or more advanced, will benefit from the same predictable and uniform trade scheme.

To comply with the rules of the World Trade Organisation, the EAC countries committed to increase the share of their duty-free imports to 80% over the coming 15 years. As EAC customs union tariffs on imports are already low, absorbing the EPA is a feasible endeavour. Also, when EAC countries will be ready to grant more far-reaching concessions to the Europe's main competitors, the EU will be able to claim those same improvements. The EU and EAC have also reached a balanced outcome on export taxes.

Beyond the elimination of customs duties, the agreement covers important issues, such as free movement of goods, cooperation on customs and taxation, and trade defence instruments, which mirror the effort of the EAC to strengthen its customs union and to set up an effective internal market. This is the EU's most tangible contribution to support the regional objectives of the EAC.

The agreement, initialled today by all negotiators, is now going to be presented for approval according to the domestic procedures of each partner.

Background

The Eastern African Community (EAC) consists of Burundi, Kenya, Rwanda, Tanzania and Uganda. All EAC members, with the exception of Kenya, are least developed countries according to the UN classification. The current development prospects indicate however they may be successful in leaving this group in a relatively near future.

The geographically and economically homogeneous group is strongly committed to regional integration, with an ultimate goal of becoming a federation. The EAC established a common external tariff in 2005, removed customs duties in intra-regional trade, ratified a common market protocol as of 2010 and most recently took steps towards achievement of a far-reaching monetary union.

In 2007, the East African Community finalised a framework agreement on tariff elimination, which became a basis for the comprehensive Economic Partnership Agreement, initialled today.

In 2013, total trade between the EU and the East African Community amounted to €5.8 billion. The EU imports from the EAC are worth €2.2 billion and consist mostly of coffee, cut flowers, tea, tobacco, fish and vegetables. Exports from the EU into the EAC, mainly machinery and mechanical appliances, equipment and parts, vehicles and pharmaceutical products, amount to €3.5 billion.

For more information

EU relations with Eastern African Community

Economic Partnership Agreements

Source: European Commission - PRESS RELEASES - Press release - EU strikes a comprehensive trade deal with East African Community

N.B
After reading the above press release word by word and line by line we hope we can engage ourselves into free - flow serious discussion as JamiiForums members.
 
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Isitoshe tulipowahitaji Kenya kwenye mambo yetu walitubania, kumbuka tulitaka kujenga Br Arusha -Musoma pmj na Reli mpaka leo hii Wakenya waliungana na Wazungu kutugomea mpaka walianzisha kampeni Dunia nzima kwa sababu ya Masai Mara yao, sasa kwa nini leo hii sisi tujifunge na Mkataba ambao hatuuhitaji?
Isitoshe TanZania yetu tunaweza kufaidika kwa kuuza bidhaa zetu EU bila kusaini hiyo EPA!
Jamaa wasahaulifu sana ingawa wao wamejenga matuta makubwa ya kupitisha reli ya SGR yanayoathiri ustawi wa wanyama-pori hata jamaa zao wa KWS (Kenya Wildlife Service) wanajiuliza Controversial Railway Splits Kenya’s Parks, Threatens Wildlife ilikuwa kuna sababu gani kushubalia barabara ya Arusha - Serengeti- Musoma ikiwa reli ya SGR ina athiri ustawi wa kiasili wa wanyama - pori.

Ile ngoja tujikite zaidi katika huu mkataba tata wa EPA Economic Partnership Agreement kati ya ''EAC'' na EU.
 
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Hao waje tu kwenye tour hiyo mikataba yao hatuitaki.
 
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They can not change their mind, we should just move on, after all soon they will be in the same pot... Though having these guys as our neighbor is a hustle, hawatutakii enyewe.
Mnamajivuno sana you guys.
 
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Please please Tz, don't sign. The interest of Tanzanian should prevail
 
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Wakenya wanataka kututumia kama madaraja ya kufika wanakotaka kwenda. Mbona VAT walifanya bila kutushirikisha? Nani aliipata hiyo faida?
 

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