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PUBLISHED ON November 2nd, 2016

Tanzanian President Magufuli leaves Kenyans guessing on EU trade deal

State Department for Trade Principal Secretary Chris Kiptoo said although President Uhuru Kenyatta and his counterpart did not discuss EPA, the visit by the latter has “improved relations” between the two East African countries, which have in recent times taken a nose-dive.PHOTO: COURTESY

Tanzanian President John Magufuli yesterday jetted out of the country without uttering the term ‘EPA’.
However, the Government believes the visit will go a long way in thawing the frosty relations between the two East African countries, especially after Tanzania declined to sign the Economic Partnership Agreement (EPA).
State Department for Trade Principal Secretary Chris Kiptoo said although President Uhuru Kenyatta and his counterpart did not discuss EPA, the visit by the latter has “improved relations” between the two East African countries, which have in recent times taken a nose-dive.
“President Magufuli spoke well, and we were all happy with the visit. It has helped a lot in improving our relations,” said Dr Kiptoo, for the first time admitting that relations between Dar es Salaam were frosty.
Magufuli, famous for his frugality and spirited fight against graft, visited Kenya for the first time – a departure from the other Tanzanian heads of state who visited Kenya within a year of their presidency. “We did not discuss specific issues like EPA and the rest,” said Kiptoo. Kenyans had hoped the two-day visit by the Tanzanian President would help in resolving such issues as EPA.
While Kenya has signed and ratified the trade agreement which allows the EU and EAC to freely access each other’s market, Tanzania has refused to append its signature on the deal citing threat to its infant industries.
Kiptoo reckoned the issue will be dealt with in the joint economic commission, which will be held in Dares Salaam in December. The discussion will be led by the ministers of foreign affairs from the five EAC member states. “We are hoping those issues (ratification of EPA by Tanzania) will be discussed there,” said Kiptoo on phone.
National interest
It is also understood Kenya has come under attack for signing and ratifying the agreement on its own, with some suggesting Kenya is destroying the EAC. However, a senior government official said it was Tanzania which was rocking the boat of EAC by refusing to sign the agreement.
On his part, Kiptoo said Kenya took the decision to sign the document unilaterally for national interest. “We had to do that for national interest, how can somebody say that. Signing is by individual countries, ratification is by individual countries. It is just that EPA will come into operation once everybody has appended their signatures,” said Kiptoo.
He added that what Kenya did gave legal instrument to what the Summit had said- that Kenya should not be punished. “If you say, ‘Don’t punish Kenya,’ EU will not just listen to something like that. It needs a legal instrument,” said Kiptoo.
The official also said Uganda, which had promised to sign and ratify the deal, was dragging its feet because it wanted “to play the role of the prefect,” he offered. Kitoo dismissed the claim as a “rumour” he could not confirm.

“I think there is good progress, Tanzania has come on board and we are discussing. I can only say there are good prospects with the kind of discussion we are having,” Kiptoo said. He expects Kenya to remain in the duty-free, quota-free category until the agreement is signed.
Kenya and Rwanda have already signed, even though the deal requires all the five member States to sign the document together. The official insisted Kenya took that route after realising the EU Parliament had already started the process of moving Kenya into Generalised Scheme Preferences (GSP), where Kenya’s exports to the 27-member union could start attracting hefty taxes.
If moved to the GSP, Kenya’s exports to the EU including flowers, vegetables, fruits and fish may start attracting levies ranging from 12 to 25 per cent.
Kenya was under pressure to show the European Union they were ready to go by ratifying the agreement. Thus, Parliament, on September 20, went on and ratified the agreement that will guarantee Kenyan exporters duty-free, quota -market in the 27-member state until January 16.
The official said Burundi has no problem with the document. Reportedly, Burundian President has no problem with the document but its politicisation by the European Union. The President of the war-torn country feels this good document is, unfortunately, coming from Brussels, which he feels is the source of their problems.

Source: Standard Media

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.

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