Nairobi will press neighbours to finalise EU deal
Subject Implications if the EU and EAC fail to finalise a proposed trade deal. Significance Kenya is urging its East African Community (EAC) counterparts to resolve an impasse in signing an Economic Partnership Agreement (EPA) with the EU. The EPA was initialled by all parties in October 2014 and was due to be signed in July, but in the wake of 'Brexit', Tanzania and Uganda announced that they would not sign the EPA until further discussions and investigation had taken place. The countries have until October 1 to sign the agreement, otherwise existing trade deals with the EU will lapse. Impacts A collapse of the EPA process will weaken the EAC customs union, as member states will lack a common external tariff. Kenyan exporting firms could relocate to neighbouring states if access to EU markets is threatened. Without steps toward resolving Burundi's political crisis, the EU could withhold finalising any deal that affords benefits to Bujumbura.