·
EABC & KEPSA
in partnership with ITC and TMEA convene regional private sector consultative
workshop on the EAC tariff offers to the AfCFTA
·
Embark on Regional
Value Chains and improve competitiveness -says EABC Chairman
Nairobi, 24th June
2019:- The two-day meeting, organized jointly between the East African
Business Council (EABC), the Kenya Private Sector Alliance(KEPSA),
International Trade Centre (ITC) and
TradeMark East Africa , convened over 40 industry and business experts from the
region to deliberate on liberalization of goods and services in a bid to
repositioning the EAC region in light of the AfCFTA.
44 Member States of the African
Union signed the Framework Agreement establishing the AfCFTA on March 2018 in
Kigali Rwanda. The same Summit adopted the protocol on Trade in Goods, Services
and Rules & Procedures on Dispute Settlement.
The
Chief Guest, Mr. Nicholas Nesbitt the EABC Chairman in his remarks urged the
EAC Partner States to address competitiveness impediments facing East African
businesses such as the high cost of transport, logistics, energy and access to
finance, to harness the benefits brought about by the AfCFTA.
“The
region should embark on Regional Value Addition through manufacturing with the
aim of harnessing opportunities provided by AfCFTA Market. The Afcfta can
support East African Plants to run at full capacity by expanding their markets
to other African countries,” said Mr. Nesbitt.
He
further urged the EAC Partner States to address
Non-Tariff barriers through development of an effective framework/mechanism at
a continental level with punitive measures for member countries who fail to
comply with the stipulated provisions to eliminate NTBs.
Speaking at the opening
session, Hon. Peter Mathuki CEO EABC said, “Africa is positioning to negotiate
as one bloc at the global level. The East African private needs to come up with
a common position on the AfCFTA
negotiations and EABC is keen to spearhead and take a central position in the
AfCFTA conversation.“
“Today's consultative workshop
is a follow up of the EABC-UNECA regional workshop on AfCFTA in April 2019,
which recommended for the involvement of the EAC private sector in the
negotiation process of AfCFTA instruments, understanding the offers to ensure
regional private sector interests are considered,” said Hon. Mathuki.
He said the workshop will enlighten
on the business implications of the AfCFTA protocol on trade in goods and services,
free movement of persons and how the EAC private sector is positioning itself to
seize the benefits arising from the continental free trade area.
In her remarks Ms. Emily
Ndoria, Principal Trade Officer of the EAC representing the EAC Secretary
General said “the EAC has been instrumental in the development of the AfCFTA and
follows
up in the negotiations of trade in goods and services”
The EAC is negotiating as one
bloc and has developed draft offers for the AfCFTA negotiations. The region is looking
at how to maintain the Common Market and Customs Union in light of the AfCFTA.
“A major part of the rationale for the AfCFTA
relates to the fact that intra-regional trade offers potential to facilitate
increased economies of scale as well as diversification and value addition, ”
said Mr. Jean-Sébastien Roure Senior
Officer Trade Facilitation and Policy for Business Section ITC.
Recent
studies have shown that manufactured goods account for 41.9 percent of
intra-African exports, compared with only 14.8 percent of exports outside the
continent. Intra-African trade is also more diversified and has relatively
higher local content. Accordingly, studies also show that establishing the
AfCFTA’s highest intra-African trade boosting effect would be for industrial
products, with obvious positive effects in terms of job and income generation
as well as technological upgrading, skills development and local firms’
competitiveness.
“For
African businesses to increase their competitiveness and African economies to
reap those gains, an important element should be to make sure tariff rates on
important intermediate inputs for which regional production capacity does not
exist are reduced,” said Mr. Jean-Sébastien.
“TMEA is supporting the private sector and EABC to position
itself to take advantage of the opportunities that will arise out of the
AfCFTA. The projected increase in intra-Africa trade will enhance sustainable
economic development and job creation,” said Ms. Paveen Mbeda, Programme
Manager Business Competitiveness TMEA.
During the two day workshop, experts
from ITC and TMEA are expected to share insights on addressing Non-Tariff
Measures, advocacy and Trade Facilitation reforms in regard to the AfCFTA.
The fast pace of country
ratifications has seen 23 member states ratify as of May 31st, 2019 and the
agreement coming into force on 30th May 2019. It is expected that up to 25
member states will have ratified by the time of the African Union Summit in
Niger in July 2019.
Under
Trade in goods, the first step is for countries and customs unions to decide
among themselves which goods should receive each classification –
fully-liberalized, sensitive, and exempt. The private sector as the engine for
economic growth in the region is expected to scrutinize the goods and services
to be liberalized in light of the AfCFTA.
The EAC Partner States in 2010, made commitments to open their
market in seven (7) service sectors, namely: business; education; finance; communication; tourism and travel related;
and transport. The EAC is currently undertaking a comprehensive
review of Common External Tariff in
order to come up with an acceptable EAC CET Structure that recognizes the
different degrees of product value addition and sensitive goods.
Note to editors
About the International Trade Centre (ITC) – The International
Trade Centre (ITC) is the joint agency of the World Trade Organization and the
United Nations based in Geneva, Switzerland. ITC helps small and medium-sized
enterprises (SMEs) in developing and transition countries to connect and become
more competitive in global markets, contributing to the sustainable economic
development in the Aid for Trade agenda and to the Sustainable Development
Goals of the United Nations.
About TradeMark
East Africa
TradeMark
East Africa (TMEA) is funded by a range of development agencies with the aim of
growing prosperity in East Africa through trade. We believe that enhanced trade
contributes to economic growth, a reduction in poverty and subsequently
increased prosperity. Visit: https://www.trademarkea.com/#
About East
African Business Council
The East African Business Council (EABC) is the regional apex body of Private Sector associations and
Corporates from the 6 East African Countries. It was established in 1997 to
foster the interests of the Private Sector in the Integration process of the
East African Community. Being the representative of Private Sector associations in the
region, EABC was granted observer status
in organs and activities of the East African Community (EAC). EABC, therefore, participates in various
sectoral meetings, meetings of the Coordination Committee, the EAC Council of
Ministers, and the Summit of the EAC Heads of State; with a view to ensure that the agenda of the Private Sector is
well articulated and received by the policymakers.
Vision: Borderless
East Africa for business and investment.
Mission: To
promote sustainable Private Sector-driven growth.
EABC
Membership is drawn from the six East African Partner States and is open to all
national and regional associations as well as Corporates with interest in the
EAC Integration process or operations in
the region. At the national level, EABC activities are coordinated through the EABC National Focal Points, who are also the
national Private Sector umbrella bodies. These are Federal Chamber of Commerce
and Industries Burundi (CFCIB), Kenya Private Sector Alliance (KEPSA), Rwanda
Private Sector Federation (PSF), Tanzania Private Sector Foundation (TPSF) and
Private Sector Foundation Uganda (PSFU).
For more information about EABC,
visit www.eabc.info.
For more information, please
visit: http://eabc-online.com
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