EAC first to gain from new American policy

Saturday, 17 August 2013 16:46 Kenan Kalagho, EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA

DAR ES SALAAM, TANZANIA - The East African Community (EAC) is set to benefit from a new United States government policy  to increase internal and regional trade within African countries.
The ultimate goal is to expand trade and economic ties between African countries.
Intra-African trade remains low. Only 11% of Africa’s trade is within the continent, compared to Asia, where 50% of total trade is between countries in the region.
The US is forming a partnership with Trade MarkEast Africa (TMEA), a non-profit consultancy, who are providing the necessary the technical support.
A key issue is making sure that regional trade barriers are removed.
The US Trade Representative Ambassador Michael Froman issued a press statement recently saying the five East African countries of Tanzania, Burundi, Kenya Rwanda and Uganda represented a market with significant opportunity for US exports and investment.
Froman said the EAC has agreed to work hand in hand with the US in advancing the economic ties of investment and in order to build a robust private sector linkage as well as public-private sector engagement under the US-EAC commercial dialogue.
Amb. Froman’s words came soon after a recent meeting with EAC trade ministers and the blocs’ Secretary General, Amb. Dr. Richard Sezibera.
Amb. Froman said President Obama wants to start the Trade Africa Initiative with the EAC.
Basically Tradee Africa involves ensuring investments, regional integration, trade competitiveness as well as supporting the greater US-Africa trade investment.
US imports from Africa are still dominated by oil.
He said that both the US and EAC have launched formal negotiations on Trade Facilitation Agreement with a view of spearheading negotiations on US-EAC Trade and Investment Partnership (TIP).
TIP being sought out in partnership with USAID. Hopes are that the EA trade hub becomes a US-EA Trade and Investment Centre that would later expand US regional trade programs across sub-Saharan Africa.
With populaiton of 130 million, the EAC region is seen as increasingly stable and pro-business.
The EAC is also said to be benefiting from the emergence of an educated, globalised middle class which has resulted into an increased growth in trade. 
This has doubled over the past five years with the region’s GDP rising to more than $80 billion during the past 10 years.
These US-EAC Trade and Investment Partnerships were launched in 2012 with the several ongoing technical and ministerial meetings being held over the past months.