Business Daily (Nairobi)
Jim Onyango
28 October 2007
The Government has put up a spirited defence of its decision to negotiate a new trade agreement with Europe, saying it is in the best interest of the country.
Ministry of Trade officials said a new agreement is necessary to protect local producers from unfair competition against European goods.
Kenya and 15 other countries in the Eastern and Southern Africa are negotiating a reciprocal free trade agreement with the European Union commonly is known as economic partnership agreement (EPAs).
EPAs are reciprocal free trade agreements that upon their signing in December 2007 will open regional markets to goods from the European union and vice versa.
Richard Sindiga, the chief economist at the Ministry of Trade and Industry, said measures have been taken to address key concerns such as ensuring food security, employment, livelihood, regional market and industrial and agricultural development.
"We are insisting that Europe should not be allowed to export to Kenya live animals, animal or vegetable fats, prepared food stuffs, animal products, plastics and raw hides," Dr Sindiga said.
Under EPAs, Europe will also be barred from selling wood, charcoal, footwear, umbrellas, metals and vehicles to Kenyan consumers.
Mr Sindiga said the EPAs aimed at poverty reduction and sustainable development through regional integration and liberalised trade between the EU and the African, Caribbean and Pacific (ACP) countries.
Local farmers and even some church leaders fear that local manufacturers will lose out if Kenya signed the agreement that they say will expose locally-produced goods to unfair competition from Europe.
Last week, a group of farmers, and a human rights watchdog filed a landmark case in Nairobi challenging the State over ongoing negotiations for a new trade agreement with Europe.
The Kenya Human Rights Commission (KHRC) and the small-scale growers contend that though the process of the negotiations for a new Economic Partnership Agreements (EPA) between Kenya and Europe - its key trade partner - is of national concern, the state has failed to exhaustively involve all those who stand to be adversely affected by the pact.
They further allege that, the Government has remained adamant to share information on the nature and status of the negotiations even with Parliament which is the legislative arm of the country.
But the ministry of Trade has come out fighting saying that the doors are still open for the aggrieved farmers, stake holders and manufacturers, to air their views.
"We are not prepared to take our country backwards. We are talking of improving our economy. Our goods risk losing out at the European markets if we don't enter into the EPAs" said Sindiga.
The ministry has been supported by the umbrella body of local manufacturers-the Kenya Association of Manufacturers whose CEO, Betty Maina, said "We urge the Government to do everything possible to conclude the talks to enable our goods to enjoy European market access"
For the last 25 years, trade relations between Kenya and other Africa Caribbean Pacific (ACP) countries and the EU have been based on non- reciprocal trade preferences which granted nearly all products originating from the ACP countries duty-free access to the European market.
But despite this, the ACPs have seen their share in the EU total imports decline over the years amid marginalisation at the global level.
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