UN body warns region against signing trade deal with EU

[kilam]

By IVAN R MUGISHA

Posted Saturday, April 22 2017 at 12:26

A United Nations think-tank has warned the East African Community against entering into an Economic Partnership Agreement with the European Union arguing that it will neither spur economic growth nor bring wealth to the region’s citizens.

The United Nations Economic Commission for Africa (UNECA) says in a report that if the EPA is signed, local industries will struggle to withstand competitive pressures from EU firms, while the region will be stuck in its position as a low value-added commodity exporter.

“If the EAC-EU EPA is fully implemented, the region risks losing trading opportunities with other partners, industrial output, welfare and GDP,” the 45-page report seen by The EastAfrican says.

The report titled Analysis of the Impact of the EAC-EU Economic Partnership Agreement on the EAC Economies is yet to be made public and is expected to be discussed by the Council of Ministers in the “days to come,” according to sources at the EAC Secretariat.

The report, commissioned by the EAC Secretariat, is likely to further polarise the position of the Community’s members on the EPA, which Kenya and Rwanda have already signed.

• READ: Kenya, Rwanda sign EPA deal with Europe

The two countries were opposed to the commissioning of the study that was requested by Tanzania towards the end of last year.

Uganda said it would only sign the EPA if there was consensus among the EAC members while Burundi refused to sign the agreement until the EU lifts sanctions imposed on Bujumbura in 2015.

• READ: Tanzania demands study on impact of EU trade deal
• READ: EPA trade deal with Europe is a form of colonialism, says Magufuli

Sources say Rwanda and Kenya have already said they will not discuss the report at the next Council of Ministers meeting.

The EU-EAC EPA promises duty-and-quota free access to EU markets for East African goods in exchange for a gradual opening up of the region’s markets to European products.

However, UNECA says the removal of taxes on capital goods from Europe will cause the EAC accumulated revenue losses of $1.15 billion per year. The market would be opened up over a 25-year period and capped at 80 per cent market access.
The UNECA findings are in direct conflict with a 2014 report by the European Commission, which shows that the region will experience an economic boom due to improvements in market access to the EU.

But according to David Luke, co-ordinator of the African Trade Policy Centre at UNECA, the deal with Europe will be calamitous unless EAC countries are able to clearly define what their infant industries are, as well as identify sub-sectors they intend to protect.

“While the EPA purportedly intends to respect regional integration programmes, they are adding to the complexity of the task. Additional burdens are created through provisions that complicate or contradict the agreements African states have with each other or are about to make,” Mr Luke said.

Rwanda’s Minister of Trade, Industry and EAC Affairs, Francois Kanimba, said the report is a “political tool” and a step back in long-term negotiations to secure a positive deal with the EU.

UN body warns region against signing trade deal with EU

 

[Jay456watt]

its true..even though we stand to lose a lot from not signing it...this deal is not favorable for East Africa at all...we cannot continue to depend on tourism and agriculture forever..we must begin to industrialize on a large scale...the EPA deal would kill local industries...we should just move on from this deal hata tukiumia...

 

[kilam]

its true..even though we stand to lose a lot from not signing it...this deal is not favorable for East Africa at all...we cannot continue to depend on tourism and agricuture forever..we must begin to industrialize on a large scale...the EPA deal would kill local industries...

EPA itakuja kuzika viwanda vyetu, viwanda vingi Afrika vilishakufa kutokana na ujinga wetu wa kuvamia ubepari na kuruhusu bidhaa hafifu za China kufurika barani mwetu.

 

[Jay456watt]

EPA itakuja kuzika viwanda vyetu, viwanda vingi Afrika vilishakufa kutokana na ujinga wetu wa kuvamia ubepari na kuruhusu bidhaa hafifu za China kufurika barani mwetu.

kweli kabisa...nadhani Afrika tuna ugonjwa wa kutotumia akili...tunapenda kusaidiwa tu...hatupendi kufikiria na kufanya kazi kwa bidii...its high time pia sisi as EAC we start to export manufacturing products to the whole world and not just cheap raw materials from the gardens and farms...if only we had Magufuli in Kenya! One thing i have noticed abt Kenyatta is that he is a people's person...he wants to impress everyone....thats why hata kupigana na ufisadi imemshinda kwa sababu anataka kila mtu ampende...he should learn from Magufuli...you cannot be a leader and expect everyone to like you....

 

[Hoshea]

Hili lilishapigiwa kelele na Tz, ila mamluki wakadhani tunawaonea wivu sijui tupo asleep na kejeli nyingine kadha wa kadha.

Haya UN wamesema sasa.

 

[Cicero]

its true..even though we stand to lose a lot from not signing it...this deal is not favorable for East Africa at all...we cannot continue to depend on tourism and agriculture forever..we must begin to industrialize on a large scale...the EPA deal would kill local industries...we should just move on from this deal hata tukiumia...

The deal itself assumes EAC will never ever be industrialized.
Ni aibu.
Alafu nchi yenu mnataka kuvunja EAC kisa hizo EPAs.

 

[Jay456watt]

The deal itself assumes EAC will never ever be industrialized.
Ni aibu.
Alafu nchi yenu mnataka kuvunja EAC kisa hizo EPAs.

its because Kenya stands to loose alot from not signing the deal...more than other EAC members...we have the most developed horticulture industry in Africa....we produce a third of the whole world's flowers...we are in the top 5 tea producers in the world...top 10 coffee producers...not signing the EPAs would accrue huge taxes on these exports leading to low profitability, low wages, loss of jobs and perhaps the dying of the industry...nonetheless, i still blv that we should not sign it...for the greater good which is our future industrialization prospects

 

[Tim Choice]

The deal needs to be renegotiated ,restructured to spare Kenya at the same time to not apply to wider EA whose wish is to build up it's industries.

 

[MAKANJAMNA]

The deal needs to be renegotiated ,restructured to spare Kenya at the same time to not apply to wider EA whose wish is to build up it's industries.

EU does not want that. This was TZ argument from the beginning. EU wants the deal to be applied to the whole of East Africa meaning they target a larger market not just Kenya and Rwanda..

 

[Tim Choice]

EU does not want that. This was TZ argument from the beginning. EU wants the deal to be applied to the whole of East Africa meaning they target a larger market not just Kenya and Rwanda..

No, they later reneged and had separate secret talks with Kenya,they said they are going to compromise for Kenya,re-structure or use preferential treatment if the entire thing fails completely!
Those flowers and manufacturing firms in Kenya are half their's too so go figure!

 

[Geza Ulole]

its because Kenya stands to loose alot from not signing the deal...more than other EAC members...we have the most developed horticulture industry in Africa....we produce a third of the whole world's flowers...we are in the top 5 tea producers in the world...top 10 coffee producers...not signing the EPAs would accrue huge taxes on these exports leading to low profitability, low wages, loss of jobs and perhaps the dying of the industry...nonetheless, i still blv that we should not sign it...for the greater good which is our future industrialization prospects

FYI Ethiopia exports more flowers than Kenya n Tanzania does horticulture business too

 

[Iconoclastes]

FYI Ethiopia exports more flowers than Kenya n Tanzania does horticulture business too

Wooooow! Ethiopia is really striving to catch up with Kenya in everything..........this is a 2015 flower export list by country:

Below are the 15 countries that exported the highest dollar value worth of flower bouquet during 2015:

1. Netherlands: US$3.2 billion (40.3% of total flower bouquets exports)
2. Colombia: $1.3 billion (16.5%)
3. Ecuador: $819.9 million (10.4%)
4. Ethiopia: $662.4 million (8.4%)
5. Kenya: $661.9 million (8.4%)
6. Malaysia: $98.1 million (1.2%)
7. China: $87.2 million (1.1%)
8. Belgium: $85 million (1.1%)
9. Italy: $84.2 million (1.1%)
10. Germany: $82.9 million (1.1%)
11. Lithuania: $80.2 million (1%)
12. Israel: $68.8 million (0.9%)
13. Thailand: $67.2 million (0.9%)
14. Canada: $44.3 million (0.6%)
15. Spain: $38.2 million (0.5%)

Among the above countries, the fastest-growing flower bouquets exporters since 2011 were: Lithuania (up 552.1%), Ethiopia (up 292.1%), Kenya (up 45.7%) and China (up 21.9%).

Those countries that posted declines in their exported flower bouquets sales were led by: Belgium (down -67.1%), Israel (down -26.3%), Netherlands (down -26.1%) and Thailand (down -17.2%).

The listed 15 countries shipped 93.4% of all flower bouquet exports in 2015 (by value).
Flower Bouquet Exports by Country

Thank God Tanzania aint in that list, but tukiendelea kuregea, prob'ly mtatupita tu. But for now, u are simply not a threat!

 

[Iconoclastes]

If we are going to avoid this deal on the basis of our wish to protect and develop our fledgling industries, then I suggest tht we also also restrict the flow of cheap and usually substandard goods from China that have contributed, in fact to a greater effect the decline of our industries. Otherwise, I see no point why we should be wary of the Europeans.

 

[Jay456watt]

FYI Ethiopia exports more flowers than Kenya n Tanzania does horticulture business too

noted.

 

[Geza Ulole]

Wooooow! Ethiopia is really striving to catch up with Kenya in everything..........this is a 2015 flower export list by country:

Below are the 15 countries that exported the highest dollar value worth of flower bouquet during 2015:

1. Netherlands: US$3.2 billion (40.3% of total flower bouquets exports)
2. Colombia: $1.3 billion (16.5%)
3. Ecuador: $819.9 million (10.4%)
4. Ethiopia: $662.4 million (8.4%)
5. Kenya: $661.9 million (8.4%)
6. Malaysia: $98.1 million (1.2%)
7. China: $87.2 million (1.1%)
8. Belgium: $85 million (1.1%)
9. Italy: $84.2 million (1.1%)
10. Germany: $82.9 million (1.1%)
11. Lithuania: $80.2 million (1%)
12. Israel: $68.8 million (0.9%)
13. Thailand: $67.2 million (0.9%)
14. Canada: $44.3 million (0.6%)
15. Spain: $38.2 million (0.5%)

Among the above countries, the fastest-growing flower bouquets exporters since 2011 were: Lithuania (up 552.1%), Ethiopia (up 292.1%), Kenya (up 45.7%) and China (up 21.9%).

Those countries that posted declines in their exported flower bouquets sales were led by: Belgium (down -67.1%), Israel (down -26.3%), Netherlands (down -26.1%) and Thailand (down -17.2%).

The listed 15 countries shipped 93.4% of all flower bouquet exports in 2015 (by value).
Flower Bouquet Exports by Country

Thank God Tanzania aint in that list, but tukiendelea kuregea, prob'ly mtatupita tu. But for now, u are simply not a threat!

Continue Reading
BUSINESS

Kenya, Uganda flower earnings wilt as Tanzania exports bloom

Newly introduced taxes and oversupply have been blamed for poor performance on the international market. PHOTO | FILE NATION MEDIA GROUP

IN SUMMARY

Duty-free access

• The International Trade Committee of the European Parliament has adopted the recommendation for an early non-objection to the Commission Delegated Act reinstating Kenya on duty-free access to the EU market under the Market Access Regulation (MAR).
• According to Union Fleurs where the Kenya Flower Council is a member, there is now a possibility that Kenya could again benefit from duty-free access to the EU market by end of 2014 under the MAR.
• The recommendation will be announced to the European Parliament Plenary during its session of December 15-18 in Brussels. If no member of parliament objects, the Delegated Act will be deemed approved by the European Parliament. It is now scheduled that the Council will formally express its non-objection to the Delegated Act on December 17.

Kenya is projecting a 10 per cent drop in earnings from its flower exports as East Africa’s cut-flower industry registers another year of mixed returns.

Uganda expects earnings to stay flat, as growers blame high production costs and taxes on flowers by the European Union. Tanzania, on the other hand, expects a 10 per cent increase in earnings owing to improved market access.

The EU had imposed an 8.5 per cent tax on Kenya’s flower exports pending its reinstatement on the list of countries eligible for duty-free access to the EU market, subsequent to signing the Economic Partnership Agreement with the EAC past the agreed deadline of October 1, 2014.

The blocs signed the EPA in mid-October in Brussels.

Jane Ngige, the chief executive officer of the Kenya Flower Council, said the country is expecting a 10 per cent reduction in earnings from last year. This is as a result of high production costs following the government’s decision to introduce a withholding tax on consultancy services to the industry, and import duties by the EU.

Ms Ngige said the increased costs would result in a 10 to 15 per cent reduction in volumes.

“With import duty now being imposed on Kenya’s flower exports for accessing the EU starting October 1, we are unlikely to earn the same income as last year. We anticipate a reduction in earnings as well as the export volumes,” she said.

She added that relief would only come after Kenya is reinstated to the list of countries whose products are allowed to enter the European market duty-free. The process is expected to be completed by the end of December.

Kenya earned Ksh45 billion ($491.4 million) from 123,000 tonnes of flowers last year, with the European market accounting for 40 per cent of the country’s horticulture exports.

Uganda has blamed the oversupply of flowers in the international market for its flat earnings. The executive director of the Uganda Flower Exporters Association, Juliet Musoke, told The EastAfrican that Uganda expects to earn $46 million from 7,000 tonnes of flowers, almost the same volume and value as last year.

“Earnings from flower exports are likely to remain the same because business has not been good in the past three months. There’s either a high supply of flowers at the international market or consumers now prefer other types of flowers,” said Ms Musoke.

Uganda aims to increase the area under flowers from 250 to 450 hectares, and push earnings to $50 million annually. Tanzania is projecting a 10.4 per cent rise in earnings, to $414 million, based on improvements in the economic environment, and Kenya’s move to lift the ban on Tanzania’s flower exports passing through Jomo Kenyatta International Airport last year.

Rwanda, which currently produces 1.4 million stems of summer flowers per year, mainly for the local market, is aims to increase production to 54 million stems per year, the level of output that will allow it to break into the international market. When those targets are achieved, the country projects earnings of $9.83 million from flower exports.

The Rwandan government plans to increase the land under flower production to 115 hectares in the next five years, to sustain local and export markets that are growing at 4.4 per cent per annum.

According to officials from the Ministry of Agriculture, the large volume of flower production will cushion the economy against the widening export - import gap.

“Cut flower exports should reduce the imbalance in trade,” Minister of Agriculture Tony Nsanganira said.

Additional reporting by Adam Ihucha and Kabona Esiara
Kenya, Uganda flower earnings wilt as Tanzania exports bloom

 

[Iconoclastes]

Continue Reading
BUSINESS

Kenya, Uganda flower earnings wilt as Tanzania exports bloom

Newly introduced taxes and oversupply have been blamed for poor performance on the international market. PHOTO | FILE NATION MEDIA GROUP

IN SUMMARY

Duty-free access

• The International Trade Committee of the European Parliament has adopted the recommendation for an early non-objection to the Commission Delegated Act reinstating Kenya on duty-free access to the EU market under the Market Access Regulation (MAR).
• According to Union Fleurs where the Kenya Flower Council is a member, there is now a possibility that Kenya could again benefit from duty-free access to the EU market by end of 2014 under the MAR.
• The recommendation will be announced to the European Parliament Plenary during its session of December 15-18 in Brussels. If no member of parliament objects, the Delegated Act will be deemed approved by the European Parliament. It is now scheduled that the Council will formally express its non-objection to the Delegated Act on December 17.

Kenya is projecting a 10 per cent drop in earnings from its flower exports as East Africa’s cut-flower industry registers another year of mixed returns.

Uganda expects earnings to stay flat, as growers blame high production costs and taxes on flowers by the European Union. Tanzania, on the other hand, expects a 10 per cent increase in earnings owing to improved market access.

The EU had imposed an 8.5 per cent tax on Kenya’s flower exports pending its reinstatement on the list of countries eligible for duty-free access to the EU market, subsequent to signing the Economic Partnership Agreement with the EAC past the agreed deadline of October 1, 2014.

The blocs signed the EPA in mid-October in Brussels.

Jane Ngige, the chief executive officer of the Kenya Flower Council, said the country is expecting a 10 per cent reduction in earnings from last year. This is as a result of high production costs following the government’s decision to introduce a withholding tax on consultancy services to the industry, and import duties by the EU.

Ms Ngige said the increased costs would result in a 10 to 15 per cent reduction in volumes.

“With import duty now being imposed on Kenya’s flower exports for accessing the EU starting October 1, we are unlikely to earn the same income as last year. We anticipate a reduction in earnings as well as the export volumes,” she said.

She added that relief would only come after Kenya is reinstated to the list of countries whose products are allowed to enter the European market duty-free. The process is expected to be completed by the end of December.

Kenya earned Ksh45 billion ($491.4 million) from 123,000 tonnes of flowers last year, with the European market accounting for 40 per cent of the country’s horticulture exports.

Uganda has blamed the oversupply of flowers in the international market for its flat earnings. The executive director of the Uganda Flower Exporters Association, Juliet Musoke, told The EastAfrican that Uganda expects to earn $46 million from 7,000 tonnes of flowers, almost the same volume and value as last year.

“Earnings from flower exports are likely to remain the same because business has not been good in the past three months. There’s either a high supply of flowers at the international market or consumers now prefer other types of flowers,” said Ms Musoke.

Uganda aims to increase the area under flowers from 250 to 450 hectares, and push earnings to $50 million annually. Tanzania is projecting a 10.4 per cent rise in earnings, to $414 million, based on improvements in the economic environment, and Kenya’s move to lift the ban on Tanzania’s flower exports passing through Jomo Kenyatta International Airport last year.

Rwanda, which currently produces 1.4 million stems of summer flowers per year, mainly for the local market, is aims to increase production to 54 million stems per year, the level of output that will allow it to break into the international market. When those targets are achieved, the country projects earnings of $9.83 million from flower exports.

The Rwandan government plans to increase the land under flower production to 115 hectares in the next five years, to sustain local and export markets that are growing at 4.4 per cent per annum.

According to officials from the Ministry of Agriculture, the large volume of flower production will cushion the economy against the widening export - import gap.

“Cut flower exports should reduce the imbalance in trade,” Minister of Agriculture Tony Nsanganira said.

Additional reporting by Adam Ihucha and Kabona Esiara
Kenya, Uganda flower earnings wilt as Tanzania exports bloom

Brooo! What's wrong witya?

This is a report we saw in 2014.

The fact that the Kenyan flower industry was experiencing some challenges due to the adverse climatic conditions and the tariffs imposed by the EU, leading to the 10% drop in profit, did not lead to Tanzania overtaking Kenya in that sector. Kenya still emerged the mightier.

Kenya exports far more flowers, and earns far more than Tanzania. A 10% loss for Kenya and 10% gain for Tanzania simply had no impact on that reality.

FYI, Kenyan exports and earnings improved after 2011, with the improvement in weather condition and the EU withdrawing the taxes they had imposed on the Kenyan exports destined for the European market.

 

[Iconoclastes]

https://www.rabobank.com/en/images/World_Floriculture_Map_2015_vanRijswick_Jan2015.pdf

Cc: Geza Ulole

 

[Geza Ulole]

=

MONDAY, FEBRUARY 2, 2015
Horticulture exports rise to $450m in 2014

Tanzania Horticulture Association chief executive officer Jacqueline Mkindi in a past event. PHOTO | FILE

In Summary

• Taha official says there is high demand for French beans and avocados from Tanzania
• Most of the produce, including flowers, cuttings, beans, peas and berries, were exported to mainly European countries

Arusha. Horticulture exports from Tanzania hit a record $450 million last year, up from $374 million in 2013 and $380m in the previous year.

Most of the produce being flowers, cuttings, beans, peas and berries and others were exported to the Netherlands, Belgium, France,, United Kingdom, Canada, Austria and Kenya.

“Less than 10 per cent is exported to the neighbouring countries including Comoro, Malawi, Mozambique and South Africa,” said Mr Anthony Chamanga, policy and advocacy manager with the Tanzania Horticultural Association (Taha).

He told The Citizen that there was a high demand for French beans and avocados from Tanzania in overseas markets because they have been found to meet the safety and other requirements.

“We have built confidence for the importers after they found our products to be safe and of high quality because of application of modern agronomic methods,” he said.

According to him, Tanzania’s market share in the flower business in Austria has gone up to 30 per cent in the past few years.

He added that Taha was anticipating a continued rise in exports given the promotional activities taken in the international horticultural fairs and engagement of more farmers and outgrowers.

“Vegetable exports will increase this year,” Mr Chamanga said without specifying, adding that there is a significant expansion of investments by commercial farmers.

Taha’s goal is to reach a yearly export value of $1 billion with increased investments in the sector. At the association’s inception in 2004 exports earned the sector a mere $64m.

According to the association’s chief executive officer Jacqueline Mkindi, between 2005 and 2010 nearly $1 billion was channelled by private investors to commercial horticultural production and trade.

As a result there have been increased employment levels, with over 400,000 people currently being employed in horticulture, directly and indirectly and increased market access to farmers.


http://www.thecitizen.co.tz/News/Bu...50m-in-2014/1840414-2610434-1g88hfz/index.htm

 

[jingalao]

The deal itself assumes EAC will never ever be industrialized.
Ni aibu.
Alafu nchi yenu mnataka kuvunja EAC kisa hizo EPAs.

Why should we work on assumptions if the truth is available?

 

[jingalao]

=

MONDAY, FEBRUARY 2, 2015
Horticulture exports rise to $450m in 2014

Tanzania Horticulture Association chief executive officer Jacqueline Mkindi in a past event. PHOTO | FILE

In Summary

• Taha official says there is high demand for French beans and avocados from Tanzania
• Most of the produce, including flowers, cuttings, beans, peas and berries, were exported to mainly European countries

Arusha. Horticulture exports from Tanzania hit a record $450 million last year, up from $374 million in 2013 and $380m in the previous year.

Most of the produce being flowers, cuttings, beans, peas and berries and others were exported to the Netherlands, Belgium, France,, United Kingdom, Canada, Austria and Kenya.

“Less than 10 per cent is exported to the neighbouring countries including Comoro, Malawi, Mozambique and South Africa,” said Mr Anthony Chamanga, policy and advocacy manager with the Tanzania Horticultural Association (Taha).

He told The Citizen that there was a high demand for French beans and avocados from Tanzania in overseas markets because they have been found to meet the safety and other requirements.

“We have built confidence for the importers after they found our products to be safe and of high quality because of application of modern agronomic methods,” he said.

According to him, Tanzania’s market share in the flower business in Austria has gone up to 30 per cent in the past few years.

He added that Taha was anticipating a continued rise in exports given the promotional activities taken in the international horticultural fairs and engagement of more farmers and outgrowers.

“Vegetable exports will increase this year,” Mr Chamanga said without specifying, adding that there is a significant expansion of investments by commercial farmers.

Taha’s goal is to reach a yearly export value of $1 billion with increased investments in the sector. At the association’s inception in 2004 exports earned the sector a mere $64m.

According to the association’s chief executive officer Jacqueline Mkindi, between 2005 and 2010 nearly $1 billion was channelled by private investors to commercial horticultural production and trade.

As a result there have been increased employment levels, with over 400,000 people currently being employed in horticulture, directly and indirectly and increased market access to farmers.


Horticulture exports rise to $450m in 2014

Ukiondo Arusha sidhani kama kuna eneo jimginelinalolima maua..
EU HAWATAKI KOROSHO YETU AU CHAI YETU AU MAHARAGWE YETU...