Following the collapse of the EU-EAC Economic Partnership Agreement (EPA) due to internal disagreements among East African Community (EAC) states, the EAC is now exploring alternative trade arrangements with several countries, including the United Kingdom, United Arab Emirates (UAE), Singapore, Pakistan, China, Turkey, and Serbia.
At least seven countries have expressed interest in establishing free trade arrangements with the EAC, signaling a potential expansion of markets for EAC products. This development comes after the failure of the EPA deal with the European Union, prompting EAC leaders to prioritize negotiations with these new partners.
During the 43rd Meeting of the Sectoral Council of Trade, Industry, Finance, and Investment, EAC line ministers approved negotiations for Free Trade Agreement (FTA) Agreements with the UK, UAE, Pakistan, and Singapore. The Council directed the EAC Secretariat to engage with each of these countries by July 30, 2024, to initiate negotiations.
Negotiations with Turkey, China, and Serbia will follow once discussions with the first four countries have progressed. These countries are significant trading partners for the region, with historical ties, particularly with the UK and Pakistan, dating back over a century.
The EAC has previously attempted similar trade arrangements, notably the EU-EAC EPA, aimed at granting EAC products tariff-free access to the European market. However, internal disagreements among EAC states led to the collapse of the agreement, as concerns were raised about its potential impact on local industries.
Despite Kenya being the only EAC member to sign and ratify the EPA, implementation has been hindered by EAC regulations. Additionally, Kenya’s separate Free Trade Agreement with the UK has created complications, particularly concerning tariffs imposed by the EAC.
The divergence between EAC rules and international agreements highlights the challenges faced by member states in navigating complex trade arrangements. Moreover, the absence of WTO membership for some EAC members, such as Somalia and South Sudan, further complicates the regulatory landscape.
As the EAC moves forward with negotiations with new trade partners, it must navigate these complexities to ensure the creation of mutually beneficial agreements that promote economic growth and development within the region.
