*by L. Muthoni Wanyeki
We should not be surprised at our state’s almost complete lack of understanding of the concerns raised in a suit filed last week by the Kenya Small Scale Farmers Forum, with the support of the Kenya Human Rights Commission, to block any trade agreement between Kenya and the EU.
The farmers are seeking orders to stop the government from concluding its negotiations on the Economic Partnership Agreements, which are expected to end the preferential terms of trade enjoyed under the four Lome agreements by the African, Caribbean and Pacific states in relation to the entry of export goods into the European Union. The EPAs were to make the ACP-EU trading relationship compliant with the World Trade Organisation requirements.
The farmers forum feel that the state has failed to spearhead its concerns during the lengthy negotiations.
A study commissioned by the Ministry of Trade and Industry and carried out by the Kenya Institute of Public Policy Research Analysis — the government’s own economic think tank — shows that the EPAs will bring about a revenue loss of between $89.5 million and $134.3 million. They will reduce national output by between 0.6-1 per cent, and result in the loss of at least 3,000 jobs.
The EPAs will also drive intra-East African Community trade down by about 15 per cent.
As a result, Kenya will either be forced to expand its tax base or seek increased external revenues.
For members of the Farmers Forum, the EPAs will pose significant challenges to the continued domestic production of food commodities — from maize, rice, sugar and wheat staples to dairy and meat products.
The study collaborates another one by the Africa Trade Policy Centre of the United Nations Economic Commission for Africa, which found that the “reciprocity” touted by proponents of WTO-compliance will be costly for Africa; with implementation of the EPAs causing competition, loss of revenue and difficulties in market access.
This study cites a reduction in trade taxes of 25 per cent and a loss of six per cent of total revenue within the Common Market for Eastern and Southern Africa — in effect, undermining Africa’s recent progress towards integration.
Let me add that “reciprocity” in “free” trade in goods and services does not apply in respect to Africans’ freedom of movement within the EU — despite the the current debates on so called “blue cards” for skilled African migrant workers.
There are, of course, alternatives. There are always choices even when it’s drummed into us that there are none.
May our small farmers' voice be listened to in a constructive and thoughtful manner.
*L. Muthoni Wanyeki is the Executive Director of the Kenya Human Rights Commission (KHRC)
The East African
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