Region Businesses Worried Over Economic Pacts Deadline

By Emmy Olaki, New Vision, Kampala

The East African business community has expressed concern over the region's failure to arrive at a position regarding the Economic Partnership Agreements (EPAs).

The EPAs, which will expire on December 31, permit duty-free exports from the African Carribean and Pacific (acp) countries to the European Union (EU).

Last week, experts and permanent secretaries from the partner states decided to use other avenues for negotiating other than the proposed East African Community (EAC) configuration.

"The partner states agreed in principle to negotiate the EPAs under the EAC configuration, but upheld the immediate decisions to configure to the EAC bloc, preferring more time to consult. This was driven by experiences from previous negotiations under arrangements like the Southern African Development Cooperation (SADC)," Arun Devani, the East African Business Council's (EABC) chairman, said.

"It is the view of EABC that 'other options' may stimulate the sensitivities which dominated and caused EAC states to continue negotiating under different configurations."

"We have less than 90 days to the conclusion of the negotiations with the EU. If we do not move fast, the business community may be dealt a great blow when the preferential trading regime expires on December 31," Devani warned.

He said if the EAC fails to meet the negotiations deadline, the region would have to trade with the EU on equal terms with all other developing countries under the Generalised System of Preferences Scheme, which is consistent with the international rules of trade.

"The situation above further creates uncertainty amongst the wider business community of EAC. The uncertainty is detrimental, affecting business plans particularly for the EU destined export companies as they cannot easily negotiate favourable contracts with EU partners for transactions beyond the life of the current EU-ACP agreement."

Devani said the region is also faced with various challenges like value addition, private sector empowerment, food security and commodity dependence.

"The repercussions of missing out on the EPAs timetable will be great and can be disastrous to the region."