US AND EAST AFRICA SIGN NEW TRADE AGREEMENT

Workers at an EPZ textile factory. US and EAC trade
officials discussed ways to increase sales of African
products to the American market.

Trade between the United States and the East African Community (EAC) member countries is set to increase following signing of a raft of trade agreements by the two regions on Thursday.

US Trade Representative Michael Froman led trade ministers from each of the five EAC countries in signing the Cooperation Agreement on Trade Facilitation, Sanitary and Phytosanitary Measures, and Technical Barriers to Trade.

Mr Froman said the signing was an important milestone for deepening the ties between the two blocs.

"This agreement will help us lift the burdens that trade barriers impose, unlocking opportunity on both our continents," said Mr Froman.

The pact is aimed at speeding movement of goods within the EAC and expanding the volume of exports to the US.

“The agreement will help EAC partner states enhance the region’s capacity for trade and investment,” Kenya’s Foreign Affairs Cabinet Secretary Amina Mohamed said in a speech read on her behalf by Phyllis Kandie, the minister for EAC, Commerce and Tourism.

She said the FTA will help reduce barriers in shipping and the cutting down the cost of trade, adding that the deals would increase exports, help create jobs and grow EAC and US economies.

The initiative aims to help the EAC countries to implement a World Trade Organisation compact that streamlines bureaucratic procedures at border crossings.

It also seeks to strengthen food safety standards to enable the EAC countries to gain access to international markets for their plant and animal products.

Mr Froman hailed the reforms being undertaken by the EAC members that lower trade barriers, harmonise regulations and link their infrastructure.

He noted that transit times from Mombasa to Kigali have been cut from 21 days to six, while associated transport costs have dropped by more than $1,700 per container.

The two-way trade between the US and EAC currently tilts sharply in the United States' favour. Of the $2.7 billion in total trade in 2014, US exports to EAC countries — consisting mainly of heavy machinery and aircraft — were valued at $2 billion, while US imports from the East African bloc — mostly apparel — amounted to $743 million.

At their meeting on Thursday, US and EAC trade officials discussed ways to increase sales of African products to the American market.

These efforts will be carried out as part of a special East African regional strategy for making better use of the trade opportunities offered under the African Growth and Opportunity Act.

The East African