MPs from Kenya last week passed a motion stopping the government from entering into an Economic Partnership Agreement with the European Union before all the contentious issues are dealt with ahead of the October 2014 deadline.

In a motion that was introduced by Deputy Speaker Joyce Laboso, also the chair of the African, Caribbean and Pacific (ACP) parliamentary group, the MPs urged the government not to sign the EPAs in their current form until all contentious issues are addressed.

EAC member states have been negotiating EPAs with the EU since 2007. The Kenyan government has for the past two months been pushing its neighbours to conclude the ongoing trade negotiations before the end of the year.

Read: Kenya pushes for speedy end to trade talks between regional bloc

However, the bloc has raised concerns on the contentious aspects of the EPAs, including offering undue advantage to products from other markets at the expense of local and regional industries; the projected effect on Kenya’s economy, particularly on the agriculture and manufacturing sectors; an amendment to the European Union’s Market Access Regulations (1528 of 2007), whose effect is that the 18 countries that have not signed or ratified the full EPAs — most of which are from sub-Saharan Africa, Kenya included — will henceforth be removed from duty-free, quota-free access to EU markets.

“The rejection of EPAs in their current form is informed by the potential harm to the Kenyan economy. Nowhere will the dangers of an all-out liberalisation of trade with the EU be felt more than in the dominant agricultural and nascent manufacturing sectors,” said Dr Laboso.

The move by the Kenyan law makers follows recent calls by Deputy President William Ruto on the other member states to fast track the pending clauses that will ensure that the EPAs are signed before the end of the year.

Focus on the benefits

Chairman of the Kenya Private Sector Alliance Patrick Obath said Kenya needs to focus on where it is benefiting more than on where it is losing.

“We need to give in on some things because we cannot benefit 100 per cent,” said Mr Obath.

He said that Kenya will mostly benefit from exports of its agricultural products — horticulture (flowers, vegetables and fruits), tea, coffee and fish — but could lose out in some areas of service trade where its expertise will be required to compete with EU professionals.

The EAC negotiators say 80 per cent of contentious clauses in the EPAs have been concluded but they have been asking for an extension of the 2014 deadline to 2016 to conclude contentious issues.