Kenya: EPAs and the farwell to development plans
“Kenya aims at being an industrialized nation by 2020. For this to happen crucial sectors of the economy need to be revived and promoted. And attempts are underway. But they will all be nullified if Kenya signs an EPA with the European Union”, warns Peter Aoga from EcoNews Africa. On 27th September 3 years ago, negotiations on so called Economic Partnership Agreements (EPAs) between the EU and ACP regions were launched. These negotiations aim at creating Free Trade Areas between some of the world’s richest countries and some of the poorest – and it is obvious who will benefit.
PRESS RELEASE
Nairobi
EcoNews Africa For release on 27th September 2005
EPAs – FAREWELL TO KENYA’S DEVELOPMENT PLANS
“Kenya aims at being an industrialized nation by 2020. For this to happen crucial sectors of the economy need to be revived and promoted. And attempts are underway. But they will all be nullified if Kenya signs an EPA with the European Union”, warns Peter Aoga from EcoNews Africa.
On 27th September 3 years ago, negotiations on so called Economic Partnership Agreements (EPAs) between the EU and ACP regions were launched. These negotiations aim at creating Free Trade Areas between some of the world’s richest countries and some of the poorest – and it is obvious who will benefit.
An EPA with the EU would seriously undermine Kenya’s industrialisation plans and the revitalization of critical sectors in agriculture and manufacturing, such as dairy, sugar, cotton and textiles, shows a new research study jointly carried out by EcoNews Africa and Traidcraft (UK). At a critical time, when Kenya is trying to re-build its manufacturing sector and diversify its production, Kenya needs to have sufficient policy space to pursue its own economic and development policies – without being pushed by EU to open up its markets.
“The dairy industry supports 3 million people in Kenya and we have a great potential to expand our dairy exports in the regional markets. The sector was severely threatened a few years ago through surges in imports of dry milk powder. The local production will continue to need protection against dumping of subsidized dairy products. Opening up to the EU would be devastating for the sector”, says Justus Monda from Ngoma Campaign in Nakuru.
“Many local industries suffered severe blows following past liberalisation. 70,000 jobs were lost in the textile industry and more than 90,000 jobs disappeared in the leather sector. Now there are attempts to revive these sectors. But the local industries are vulnerable and not yet ready to face competition from more advanced industries in Europe”, says Steve Ouma from Kenya Human Rights Commission.
Kenya’s trade with its neighbours in EAC and COMESA is on the increase - and this is also where the potential for the future lies. Kenya already exports the majority of its manufactured products to the region, while the exports to the EU are mainly primary products. But if a Free Trade Area under an EPA is created with the EU, Kenya would have to compete with cheaper European goods also on the regional markets. And this could be the final death knell to the local industries and Kenya’s hopes to become an industrialized country.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Karin Gregow, EcoNews Africa, Tel: 0722-565116