So what’s the TFTA (download an English language PDF here)? Why is it so important? And what’s good about it for Kenya? A lot of that is in this nice article by the Oxford Business Group titled Kenya to benefit from newly agreed TFTA.
Extracts
- The Tripartite Free Trade Agreement (TFTA) is an economic integration initiative pursued by the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC), which will create a 26-country integrated economic bloc.
- Members of the TFTA aim to progressively eliminate tariffs to trade in goods, liberalise trade in services, cooperate on customs matters, among other areas.
- Kenya is expected to be 1 of only 5 countries in the bloc to see exports increase by more than $100m following full implementation of the TFTA.
- The TFTA gives Kenyan exporters preferential access to 6 new markets not already covered by the EAC or COMESA, namely Angola, Botswana, Lesotho, Mozambique, Namibia and South Africa.
- “Sensitive” agricultural goods like sugar, maize, wheat and rice will be subject to duty and quota restrictions, as will other products such as cement, plastics, electronics and paper till at least 2017 to give these industries in some countries time to adjust to increased competition.
- Members of the TFTA aim to progressively eliminate tariffs to trade in goods, liberalise trade in services, cooperate on customs matters, among other areas.
Ahead of the World Trade Organizations (WTO) 10th Ministerial Conference (MC10) to be held later this month in Nairobi, Kenya’s parliament (national assembly) hurriedly ratified the TFTA . This was in a debate just before their year-end recess, and during this, some members chastised the government (executive) for being slow to bring the TFTA before parliament – and legislative assent is a condition that all member states must meet.
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