EAC states risk losing ties in other trade blocs
EAC States Risk Losing Ties in Other Trade Blocs
The East African Standard (Nairobi)
January 24, 2005
James Anyanzwa
Nairobi
East African Countries risk losing membership in other regional trading blocs upon implementation of the Customs Union (CU) protocol, a consultancy firm has warned.
Clarity Consultancy firm yesterday said the three countries - Kenya, Uganda and Tanzania - could lose their preferential treatment in other economic blocs since the new pact does not allow affiliate parties to participate in other economic arrangements.
"These regulation have been put in place to protect members states from unfair trade practices as well as dumping of products" Jackton Ochieng, the firm’s CEO said.
Ochieng, who is also a tax consultant, said in a statement that with the new arrangements coming into place, Kenya and Uganda would have to give up Membership in Comesa, while Tanzania will give up membership in SADC.
He said if Tanzania was to remain in SADC, then it would be a threat to Kenya and Uganda.
He said in the absence of proper implementation of rules of origin, Tanzania may import at preferential rates from SADC, repackage the products and export the same to the community, thus escaping duties.
Ochieng said there was need for EAC countries to renegotiate new economic arrangements after the inauguration of the customs union.
"The EAC customs union has the ability to enter into agreements with other trading blocs," he said.
He said EAC pact lobbied by Regional Co-operation Minister John Koech has a chance to renegotiate arrangements with trading blocs like Comesa and SADC.
He said the implementation of the Customs Union is not enough, since key stakeholders and beneficiaries do not seem to appreciate its benefits.
"The signing of the Customs Union protocols and its coming into effect on January 1, 2005 appeared too sudden," Ochieng said.
"There are still generally poor levels of information about the Union in all the three countries as many traders and consumers do not have any idea as to how they will benefit from the pact or what implications it has on them."
