Nairobi — Kenya and other nations negotiating new trade deals with the European Union under the Eastern and Southern Africa (ESA) platform are yet to agree on key elements of the development assistance programme only three months to the December deadline, a status report on the talks indicates.

The report indicates that though text on the development assistance agenda has been prepared, the parties remain divided over its vitality with the EU insisting that it should be removed from the EPA forum.

African states have however insisted on its inclusion on grounds that it will open a window for them to benefit from technical assistance schemes that are critical growth in the various sectors of their economies.

ESA member states have however resolved to forge ahead with preparation of benchmarks on development that will form the basis of negotiations with the EU once consensus is reached.

"Development is paramount to all nations negotiating under ESA and a lot of is expected to be attained in this direction when new EPA are signed," Richard Sindiga, a senior trade official involved in the EPA negotiations.

The sways of development aid are currently being felt across the globe where most nations hard-pushed by harsh conditions attached to such assistance from western nations and financial institutions are turning to fast rising economic tiger, China that is perceived as "a more friendlier partner".

Erastus Mwencha, the secretary-general of the Common Market for Eastern and Southern Africa (Comesa), which backs ESA has recently warned that members states will in future only forge links with partners who offer them favourable aid schemes devoid of bureaucratic requirements.

His statement came in the wake of increased forays by China into Africa that has triggered discomfort in the Western world.

Establishment of development benchmarks is expected to dominate proceedings this week when negotiators under the ESA platform meet in Bujumbura, Burundi as part of efforts to fast track talks ahead of the expiry of current EPA with the EU by December 31.

According to the report, the broad cluster of trade in goods and market access is another key area that has not been covered exhaustively in the negotiations with the EU mainly because of lack of specific tariffs to be used.

Kenya considers the EPA talks key because over 97 per cent of its exports to the EU currently enjoy duty free market access to this market.

It estimates that if it fails to land new EPA with the EU by end of December more than Sh100 billion would be lost in trade and investment mainly in the horticulture industry that provides the bulk export commodities.

Kenya negotiators hope to land 100 per cent duty and quota free access to EU markets for all agricultural and non agricultural products under simplified rules of origin regime when the current negotiations end.

ESA/EPA negotiators are looking up to a re-defined Common Tariff Nomenclature (CNT) and Common External Tariff(CET) from Comesa that fronts ESA to clear this hurdle.

For beginners, a treaty signed by Comesa member states dictates that all adopt a uniform and comprehensive system for the tariff classification of goods with a common and specific basis of description and interpretation in accordance with internationally accepted standards.

To ensure this uniformity, the CET and CTN are brought on board with specific roles in which the former represents the duty rates applicable within the entire trade bloc. The latter on the other hand represents a common description and coding of traded goods.