A critical analysis of the agreement establishing a framework for an economic partnership agreement between the East African community partner states on one part and the European community and its member states on the other part : the most favoured nation clause - A Ugandan perspective

Abstract

After years of intense negotiations between member states of the East African Community (EAC) and the European Union, an interim Economic Partnership Agreement was finally initialled on the 27 November 2007. This interim agreement is intended to be an instrument for development by furthering poverty reduction, sustainable development, regional integration and integration of EAC countries into the world economy. However provisions contained in the interim agreement have raised legitimate concerns as to their ability to address these development issues. The African ministers of trade identified nine contentious provisions which are regarded as both legally and developmentally problematic. One of these issues is the most favoured nation (MFN) clause under which parties are required to extend to each other any better or more favourable treatment granted to other countries, which are either developed countries or major trading economies. The urgency behind the negotiation of Economic partnership agreements between the EU and the African Caribbean and Pacific Countries (within which category fall the EAC member states) was the requirement for a WTO compliant legal regime to govern the relationship between both parties. Previous trade regimes were challenged by other WTO members for being discriminatory. However provisions in the interim agreement such as the contentious MFN clause are more than what is required for WTO compatible regional trade agreements. The inclusion of the MFN clause poses major challenges to the trade and development needs of the EAC countries especially the least developed among them. This dissertation will attempt to critically analyze the potential implications of the MFN clause to the East African countries particularly Uganda as one of the least developed member states in the region.