By STANDARD REPORTER
NAIROBI, KENYA: Kenya has been lauded for her interest in enhancing intra-African trade and boosting exports through regional trade blocks.
Kenya Association of Manufacturers (KAM) Chief Operations Officer, Kennedy Mohochi said efforts to secure additional markets would have positive impact on business.
Mr Mohochi was speaking during a forum organised by the association to review the progress of negotiations on the proposed Tripartite Free Trade Area (TFTA) and its impact on business. He lauded the Ministry of Foreign Affairs and International Trade for closely engaging the private sector in these negotiations.
The establishment of the TFTA anticipated to happen in 2015 will constitute 26 countries of three regional trade blocks.
The three blocks are the East African Community (EAC), Common Market of East and Southern Africa (COMESA) and Southern Africa Development Community (SADC) including Southern Africa Customs Union (SACU).
It will be one of the largest free trade areas in the world with over 600 million people and presents a huge market for investors and traders. The region has a combined Gross Domestic Product (GDP) of $624 billion, a GDP per capita averaging $1,184.
It makes up half of the African Union in terms of membership and just over 58 per cent in terms of contribution to GDP and 57 per cent of the total population of the African Union.
According to Joseah Rotich of Ministry of Foreign affairs, the pace of the tripartite negotiation process was hampered during the preparatory period by a number of factors that has lead to the process lagging behind schedule.
For instance, he explained, there have been delays in submission of trade data and information required from the member states concerned. “Negotiations on the interpretation and application of the negotiation principles adopted by the summit have also been lengthy,” added Rotich. Resistance by some Member States also led to delays in constituting the Technical Working Groups.
Delays in agreeing on the tariff liberalisation modalities due to reluctance of some Member States, inadequate finance to support the negotiation process, lack of consistency in participation of experts in negotiations are amongst other reasons.