EU has signed an interim agreement with the East African Community (E.A.C) comprising of Kenya, Tanzania, Uganda, Rwanda and Burundi. This trade pact will help E.A.C to enjoy duty and quota free access to the EU market, except sugar and rice, even after the previous agreement expires in 31st December 2007.
Even though the two trade blocs had an additional agenda of signing a comprehensive Economic Partnership Agreement (E.P.A) both parties felt that this needs more time for negotiated settlement. The latest trade pact allows EU to buy time from World Trade Organization to ratify E.P.C. Moreover, EU proposed to sign the E.P.A by the end of next year but the E.C.A has urged a two-year moratorium to enable the new members of the E.A.C to implement the provisions of their customs union.
Experts stated that with this interim trade pact the major country which is going to be benefited is Kenya. Kenyan textile industry was in doldrums due to the stringent Rules of Origin of the EU. The new trade pact being in place, the E.A.C can now look forward to a bright future with the business opportunities which it is going to provide.