Integration News
EU Market Access MoreNews Predictable National National News
A
fter East African countries finally came to an agreement with the European Union on market liberalization, the Rwandan government is confident on competing and benefiting from the European market.
In a press briefing, the Permanent Secretary in the Ministry of East African Community (MINEAC) Innocent Safari and his counterpart in the Ministry of Trade and Industry( MINICOM) Mr. Emanuel Hategeka, who was also the Rwanda’s Chief negotiator in the process, elaborated on how Rwanda stands to take advantage of the European market. Mr. Hategeka said the government was to embark on sensitizing different partners especially the private sector on how best they could tap into the European market. The negotiations between the EAC Partner States and EU ended towards the end of 2014 with each team claiming a win for what was under negotiations. Implementation of the agreement is expected to start immediately after the signing of the historical accord. However, despite the wider market access, the question remains whether some regional small economies like Rwanda will have enough to export to the market. According to the agreement, the EU will open up to 100% of its market while the East African region will liberalize only 82.6% to protect small industries. “What we need now is to develop the www.mineac.gov.rw
capacity of our traders and it is one of the obligations of the EU according to the agreement. Our aim is to integrate into the global trade economy. We had the supply chain constraints but now it’s an opportunity for Rwanda and the region,” Hategeka said.
Kenya Airways cargo plane loading goods Rwanda and the EU have with European Union. been major trading partners and Safari observed that the European the potential is evident in light of market liberalization was an the growing bilateral trade between opportunity for the local products the two. Rwandan exports to the to shine in the global market. He EU have fluctuated in volume and said that MINEAC was ready to value but the EU remains Rwanda’s collaborate with other government major trading partner. For example, agencies and the private sector to the volume of Rwandan exports to ensure that Rwandan traders tap the EU was 22,724 tons, 27,473 tons into the EU market. and 21,495 tons in 2011, 2012 and 2013 respectively. The merchandise In 2013, Rwanda’s main export exported from Rwanda to the destination was Europe, EU market was valued at $199m, accounting for 33% of the total $169m and $168.6million in 2011, trade. Rwanda mostly exports 2012 and 2013 respectively. coffee, tea, vegetables, flowers, and other goods. Gerald Nkusi The agreement will help to provide Mukubu, the acting Chief Rwanda with a predictable trade Executive Officer of the Private regime that provides duty free Sector Federation (PSF) believes and quota free market access for the country has enough to export Rwandan products instead of the to the European market. earlier unilateral offer that would be withdrawn any time by the EU. “We had some challenges with our products like standards and Rwanda like other regional packaging but now we are going to countries is expected to enjoy the work with the ministry in charge cumulative process where the to address all the issues. We have to business community could source utilize this opportunity,” he noted. raw materials from all African, However capacity building and Caribbean and Pacific states, facilitating Rwanda traders would overseas countries and territories, require about $8.9 billion in the EU countries and other countries next 25 years. that have Free Trade Agreement July-Dec 2014
25
