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EPAs ‘threaten key sectors’

The Citizen, Tanzania

EPAs ‘threaten key sectors’

7 December 2011

By Sylivester Ernest, The Citizen Reporter

Dar es Salaam. The signing of the Economic Partnership Agreements (EPAs) between Europe and the East African bloc (EAC-EPAs) is still uncertain due to disagreements on a number of issues at regional level, as some stakeholders think the signing should not be effected unless some changes are made on the agreement.

Reports suggest that the signing, which was scheduled for this December, has been shelved to July next year.

The East Africa Region member States, according to the principal trade officer in the ministry of Trade and Marketing, Mr Boniface Michael, are still in a dialogue to weigh the pros and cons of the contract. Delegates at a forum organised by the Tanzania Ecumenical Dialogue Group (TEDG) meeting in Dar es Salaam over the weekend resolved to protest the signing.

They agreed that the government of Tanzania was more likely to lose a substantial amount of revenue along with many of the policy tools they need to support economic and social development, since, according to them, most of the ACP governments were heavily dependent on import taxes to raise government revenues.

Furthermore, they said, the current programmes like Kilimo Kwanza would most likely not be accomplished as farmers and producers would be forced into an unfair competition with efficient and subsidised EU producers.

“EPAs would threaten livelihoods in key agricultural and manufacturing sectors,” they said. The TEDG also pointed out that, according to Africa Trade Networks, EPAs aim to establish nothing other than free trade agreements between EU and where ACP reciprocal trade liberalisation is coupled with trade deregulation of investments in favour of European investors.

“We also think that the progress made by the existing regional economic communities will deteriorate, and the sovereignty of these states in making decisions suited to their citizens will be affected and the hard gained stability will weaken because of poverty,” they said in a statement to be directed to the government.

Mr Michael, however, told the meeting which involved members from the Tanzania Episcopal Conference (TEC), the Christian Council of Tanzania, Civil Society Organisations and the media, that the region was yet to agree on specific areas like export taxes, development and economic cooperation before the partnership officially starts.

“We haven’t been able to agree on some issues like improvement of road and port infrastructure since Europe is of the view that the issues should not be included in the pact, instead they have to remain challenges of concerned member states within the region,” the official told the delegates.


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