EAC-EU trade talks hit a snag

Kenya’s EAC permanent secretary David Nalo, said that in the unlikely event that a comprehensive agreement is not signed in June, “it would most likely come before December”.

Mr Nalo added the parties from both sides of the divide had agreed to continue trading under the interim Framework for Economic Partnership Agreement (FEPA) that expired in July last year.

Efforts to get a comment from the Ministry of Trade were unfruitful, with an official saying they did not wish to talk to the media, yet the country negotiations are conducted under it.

Mr Nalo refuted recent media reports that Kenya had indicated it would go it alone saying that the regional market was bigger for Kenya.

“Kenya is the largest exporter to both the EAC and the Common Market for Central and Southern Africa states therefore, it is safer for us to negotiate as a bloc,” Mr Nalo said.

He added that the country’s largest exports to the EU, notably horticultural produce had come under increasing threat from emerging suppliers such as Ethiopia, Uganda, Tanzania and northern Africa, creating the need to grow regional outlets that offer a larger market for a variety of products.

With the coming into force of the regional Customs Union and the Common Market, it is difficult for any country to be on its own, Mr Nalo added, emphasising that it is easier to bulldoze one country but a different ball game to deal with a block of many nations.

The negotiations have now moved from the negotiators table and will be handled by trade ministers from both regions — EAC and EU for finalisation.

The negotiators found some middle ground on development support.