Union signing put off

Nov 28, 2003

Ricks Kayizzi and Emmy Olaki</b><br>THE signing of the East African Customs Union (EACU), which was to be signed tomorrow in Arusha has been postponed to January 15/16, officials have said.

By Mary Karugaba,
Ricks Kayizzi and Emmy Olaki

THE signing of the East African Customs Union (EACU), which was to be signed tomorrow in Arusha has been postponed to January 15/16, officials have said.

Abid Alam, the chairman of the Uganda Manufacturers Association (UMA)said that although they had sent a big delegation to Arusha, they were surprised to be informed at the last minute that signing had been “postponed”.

“We were looking forward to the signing of the agreement and had hoped to work within its framework to negotiate for more concessions for the private sector,” said Alam yesterday in an interview with The New Vision.

A customs union is an agreement between two or more parties to remove trade barriers with each other and to establish common tariff policies with respect to imports from other countries outside the agreement.

According to various well placed sources some of whom preffered anonymity, one of the reasons for putting off the signing of the treaty is the absence of Tanzania’s president Benjamin Mkapa. Mkapa is currently undergoing treatment for arthritis at Hirslander clinic in Zurich.

“According to the Tanzanian constitution, it is only the president who is authorised to sign the union agreement,” said Jachan Omach, MP Nebbi and an Assistant chairman, to the parliamentary finance committee.

Hilary Obonyo, UMA’s executive director also confirmed the postponement of the signing ceremony due to the absence of Mkapa.

“There were pending issues which needed Mkapa’s personal involvement and consent. He is reportedly still in hospital recovering from a hip injury he sustained recently,” he said yesterday.

Zanzibar’s president Amani Karume was slated to have represented Mkapa at the signing ceremony, but Obonyo said the president’s was critical.

Obonyo said the postponement might be an opportunity for members of the local private sector, who had a feeling that all thorny and outstanding issues had not been ironed out.

The postponement comes at a time when sections of the private sector, especially in Uganda have complained of poor participation in negotiations and therefore unfair tariffs for them.

“The customs union could be a positive undertaking if run properly, but can turn into a disaster for consumers and manufacturers if mismanaged,” revealed Alam.

He repeated his earlier call that local businesses should be given more time to grow, and become competitive.

The signing has been at best postponed until mid-January 2004. Implementation starts in July.
Ends

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