England has pulled out itself from the European Union and lately Tanzanian authorities have announced to be pulling out of EU sponsored Economic Partnership Agreements (EPAs).
The EPAs allowed East African Community (EAC) member countries to directly trade with the EU countries. Tanzania has become the first in the region to pull out of it. The country has second largest economy in east Africa.
According to Permanent Secretary in the Ministry of Foreign Affairs, Aziz Milma, TEXIT is aimed to protect Tanzania’s infant economy amid the government is taking initiative in establishing an industrial economy.
Political and economic observers for the east African nation said the pull out may be a big blow to Kenya as they benefited its flower exports to the EU countries.
Kenya too is a member of the EAC bloc.
Milma added the EPA turned economies of small countries into international markets for the products of developed countries. This resulted with killing up of local industries.
Tanzania was to sign the EPA on July 18.
Milma further said the other individual EAC countries of Kenya, South Sudan, Burundi, Rwanda and Uganda are free to sign if they believe it will benefit them.
A renowned economist said Tanzania would not benefit from the partnership as it favored flowers and vegetables exports of Kenya to the duty free EU countries.
Samuel Wangwe further added, “EPA won’t help in promoting our local industries but rather, will benefit a lot given that developing countries have standard goods to sell in EA markets.”
