Already Kenya and Rwanda have signed the pact, but the trade deal requires that all EAC states commit to it for it to take effect.
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“If the EPA is not signed and ratified by all EAC partner states by September 30, 2016, Kenya stands to lose its market to the European Union, having significant impact on her economy”, Kenya’s Trade and Industrialisation Ministry wrote in a statement last week.
The Confederation of Tanzania Industries (CTI) and the Tanzania Private Sector Foundation (TPSF) praised President John Magufuli for showing leadership by successfully convincing fellow EAC presidents to reject signing a much-criticized trade agreement.
Tanzania has exclusively maintained that it will not append its signature on the agreement “until the country’s demands that focus on the best interests of the people are met”.
Tanzanian local industry leaders on Friday commended the East African Community (EAC) leaders for rejecting to sign a trade deal with the European Union before the October 1 deadline.
“In Tanzania, we have already resolved to create an industrialised economy; so if we are to adopt this agreement the way it is right now, the question would be how can we safeguard those industries from competition with European industries?” he questioned.
Kenya stands to lose the most without the deal signed, as other member states – including Tanzania, Burundi, Uganda – would still continue getting duty- and quota-free access under EU’s Everything But Arms initiative since they are classified as Least Developed Countries.
Another issue of contention, according to the Tanzania President, is the likely impact on the region’s agricultural sector – which is the largest contributor of GDP – as imported produce from Europe would likely be cheaper considering that European Union farmers largely benefit from subsidies.
The day-long meeting concentrated on Tanzania’s reluctance in signing the trade deal with the EU.
Tanzania wants the EAC to consider the impact the EPA may have on the region’s weak manufacturing base and to discuss the bloc’s customs union, Mahiga said.
“I had to read all 146 EPA articles so we know what we’re talking about”.
President Yoweri Kaguta Museveni looks through the dammy E- copy of the East African passport together with other East African Heads of State during the 17th Summit of the EAC on Wednesdsay 2nd March 2016.
But Tanzania’s Minister of Foreign Affairs Augustine Mahiga, describing the EU as an “industrial giant”, said fledgling industries in his country would not be able to cope with zero-rated imports of European goods.
Dr Mahiga said South Sudan has officially become member of the regional bloc, noting that the ministerial sessions preceding the Dar summit will have representatives from Juba.
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The newly appointed EAC deputy secretary general Rwandan Christopher Bazivamo also took an oath of office.
