KIRUKU: Let us seal the cracks or bid integration goodbye

KIRUKU: Let us seal the cracks or bid integration goodbye

When East African Community Secretary General Liberat Mfumukeko held a meeting with Tanzanian President John Joseph Magufuli last week, some rather unfortunate news was released: That the next summit of the regional organisation had once more been postponed.

Initially slated for early January, the summit was pushed to the end of that month but failed to take place. It was then planned for February, but has now been rescheduled to 6 April after two member countries said they had other activities on the planned dates.

Burying our heads in the sand and hoping all is well will not take the regional integration agenda anywhere. Rather, facing challenges head on and sealing the fissures and cracks that are threatening to derail the regional agenda is key to realising the EAC vision of eventual political confederation. A game of cards, in which partner states put some cards on the table and others beneath, won’t do the region any good.

The current problem seems to stem from a deadlock over the signing of an Economic Partnership Agreement (EPA) with the European Union, an issue that must be resolved before the next summit is held. Talks over the EPA have flopped after Uganda, Tanzania and Burundi failed to provide key trade data that was needed to set the agenda for the Council of Ministers meeting. 

It is not entirely surprising that the EPA deal is proving contentious. Indeed, only Kenya stands to lose its access to European markets if an EPA is not signed. This is because Kenya is classified as a middle-income economy, while all other East African economies are categorised as least developed countries and qualify for duty-free access to the EU under the Everything But Arms (EBA) arrangement.

Still, there are many voices in Africa questioning the wisdom of accepting the lopsided trade arrangements that EPAs entail. Whatever the case, however, the decision by some countries to take into account their own best interests and leave Kenya to its fate could lead to economic hostility and a similar inward-looking attitude between partner states.

Only Kenya and Rwanda have signed and ratified the EPA deal. Tanzania, which holds the current chair of the EAC, has twice declined to sign the pact – in 2014 and 2016 – saying it will hurt the growth of its industries. Uganda and Burundi are yet to come on board as well.

It is of crucial importance to find a common ground for East African countries to collaborate on such issues, in which opinions differ and some states may have to make a sacrifice on behalf of others. Partner states must therefore commit themselves to finding a solution on the EPA deal and patching up the contentious areas.

Indeed, the 6 February deadline that the European Union had given the regional bloc members to have signed and ratified the trade pact has lapsed.

Quite instructive is the fact that every country has brought its own demands before signing the trade pact. Burundi is demanding that the EU resume its aid support, which was withdrawn due to political unrest, before signing the agreement. Tanzania claims that signing the pact in its current form will jeopardise its industrialisation strategy.

Uganda, which has shown strong commitment to signing the trade pact, has not endorsed it despite the fact that the EU is Uganda’s second leading export market destination.

That this debate continues amid deep suspicions threatening the unity of the EAC due to alleged failure by some countries to support the bid by Kenya’s Cabinet Secretary Amina Mohamed for the African Union Commission chairmanship can only worsen relations. The seat was won by Chad’s Moussa Faki Mahamat in the elections held last month.

It is against this background that Kenya has threatened to re-evaluate its bilateral relations with neighbouring countries. The big question now is: Should the integration agenda be put on hold until all the critical issues are dealt with?

A fortnight ago, IMF managing director Christine Lagarde advised that the current fissures in the regional bloc over the EPA, the single tourist visa, and non-tariff barriers were signs that the building blocks of co-operation were not firmly in place.

With the foundations of the EAC shaking, fast-tracking integration should no longer be the priority; rather, the region should aim to consolidate the gains made. These include the gains made in infrastructure development, the Common Market, and the Customs Union protocols.

Rolling back on the EAC integration isn’t an option; going slow on Monetary Union and Political Confederation would probably be wise.

The small cracks in integration are a threat to the bloc’s future. It is necessary to deal with them with utmost sobriety.

Want to send us a story? Submit on Wananchi Reporting on the Citizen Digital App or Send an email to wananchi@royalmedia.co.ke or Send an SMS to 25170 or WhatsApp on 0743570000

Leave a Comment

Comments

No comments yet.

latest stories