The East African Community (EAC) is set to embark on negotiations with four prominent economies to establish free trade area (FTA) arrangements. The United Kingdom, the United Arab Emirates (UAE), Pakistan, and Singapore are among the seven countries that have expressed interest in entering into free trade agreements with the bloc.
The EAC Secretariat has announced that negotiations with these countries will commence before June 30 of the current year, following a directive from the EAC Sectoral Council on Trade, Industry, Finance, and Investment, which recently concluded its meeting in Arusha.
During the ministerial segment of the meeting, there was unanimous agreement to prioritize negotiations with the seven countries seeking FTA pacts with the EAC. However, negotiations will initially focus on the UK, UAE, Pakistan, and Singapore, with talks expected to commence by June 30.
Subsequent negotiations will follow with Turkey, China, and Serbia, as resolved by ministers from the seven partner states.
Among the agenda items discussed at the meeting was the Prioritization of EAC Free Trade Negotiations with Selected Third Parties. The EAC International Trade Department is tasked with coordinating the initiation, development, and implementation of policies and programs for trade integration with third parties.
As a Customs Union and Common Market, EAC partner states are obligated to coordinate their trade relations with third parties, adopting common principles related to tariff rates, tariff and trade agreements, liberalization measures, export promotion strategies, and trade remedies.
Additionally, EAC partner states are required to adopt common negotiating positions in developing mutually beneficial trade agreements with third parties.
During the meeting, ministers also addressed simplification and reforms in avocado export procedures within the Community. They directed partner states to streamline export procedures for avocado commodities and other fruit and vegetable exports, while also rationalizing permit issuance and licensing requirements.
Moreover, the sectoral council instructed member countries and the Arusha-based secretariat to mobilize resources for quality infrastructure for fruits and vegetables.
In his remarks, South Sudan's Minister for Trade, William Anyuon Kuol Wol, acknowledged the ongoing challenge of reducing non-tariff barriers (NTBs) within the EAC. He stressed the importance of stakeholders, including the private sector, in holding the EAC accountable and devising effective mechanisms to address and monitor the reduction of NTBs.
EAC Secretary-General Peter Mathuki highlighted a consistent upward trend in intra-regional trade within the bloc. In the financial year 2021/22, intra-trade reached $8.7 billion, followed by a further increase to $9.4 billion in 2022/23, according to Mathuki.