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EAC, EU trade pact to be ratified in 2016: official

Xinhua, April 29, 2015 Adjust font size:

The Economic Partnership Agreement (EPA) between the East African Community (EAC) and the EU, which was initialized in October 2014, is likely to be ratified by the respective national parliaments by end of October 2016, an EU official said on Wednesday.

EU Trade and Communication Counsellor Christophe De Vroey told journalists in Nairobi that the deal is currently undergoing legal scrubbing to ensure it meets World Trade Organization (WTO) guidelines.

"By end of August, we expect the ministers in charge of trade in the EAC states to sign the agreement," said Vroey.

He said the agreement will be translated into 23 EU languages as well as into Kiswahili. The EPA is meant to replace the previous non-reciprocal trade deal between EU and the EAC that came to an end in 2007.

Under the EPA, EAC goods and services will have 100 percent duty free, quota free access to the EU market.

"However, only 65 percent of goods from the EU will enter the EAC market without incurring import duty," said Vroey, adding that an additional 15 percent of goods from the EU will only access the EAC duty free after 15 years, with another 2.6 percent will have to wait for 25 years.

"A sensitive list of goods containing various agricultural products, wines and spirits, chemicals, plastics, will, however, remain subject to EAC import duties even after the 25-year liberalization effort," he said.

The EU official stated that the trade pact allows the EAC to impose an export tax on raw material in order to foster the development of domestic industry as well as to maintain currency stability.

"The tax will remain in place until it is reviewed by the EPA Council that consists of EAC and EU after a period of 48 months," he said.

Vroey said EU's single market of 500 million consumers is one of Kenya's main export market. "The majority of Kenyan flowers, fruits and vegetables are absorbed by the EU."

The trade counselor said the decision to strengthen the EU/ACP partnership is a mutual choice. He noted that the EU is committed to ensure that the EAC market will not be flooded by cheap subsidized agricultural produce from EU. Endi