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Archive for the tag “Free Movement”

Trump’s Trade-War is now hitting East Africa: Because of possible lost trade with Second-Hand Clothes!

Museveni buying shoes in Wandegeya, 02.06.2017.

United States of America is really just cherry-picking the world right now, they are evolving into a beast and not an Uncle Sam. President Donald J. Trump don’t like to have friends, unless they are related or Roger Stone. That is now seen with his recent activity, not that he knows of these countries or these market. That I say, because he has no hotel or haven’t laundered money from there. The countries being hurt by his new policies are Rwanda, Uganda and Tanzania. Places he would never travel to or have consideration about. That is because in his mind, they are shitholes, but as long as they serve as vassal states for the United States. Everything is fine and dandy.

What we are talking about is this:

(A) THE PRESIDENT IS AUTHORIZED TO DESIGNATE A SUB-SAHARAN AFRICAN COUNTRY AS AN ELIGIBLE SUB-SAHARAN AFRICAN COUNTRY IF THE PRESIDENT DETERMINES THAT THE COUNTRY (SEE NOTE*)

(1) (A country that) has established, or is making continual progress toward establishing–

(A) a market-based economy that protects private property rights, incorporates an open rules-based trading system, and minimises government interference in the economy through measures such as price controls, subsidies, and government ownership of economic assets” (AGOA – ‘AGOA Country Eligibility’).

It is special that the US President is using this against these three states on the imports of used-clothes and shoes. That these three republics trying to develop their own textile and clothes industry, to create work and also revamp the economies. That would mean, that people would also earn more money and spend more money. In the end buying foreign produced clothes on the fashion-lines, that usually are branding American and European brands. Therefore, I don’t understand why Trump suddenly acts like this, when Rwanda, Uganda and Tanzania wants to secure their industries.

Because, it is not many days ago, since the President himself used rules and provisions to secure the Steel and Aluminum industry on his own soil. So, that the giant United States can control it, but their trading with other can be spoiled, because it doesn’t favor the President. Seems like double-standard to be. It is easy to muffle the poor and the ones with lack budgets, that are in need of donors. They need to stifle the demands of the powerful, but the ones with power can just use the same means themselves. Still, that doesn’t make it right.

That the United States are trying to force their used-clothes on Rwanda. Like they don’t deserve their own clothes industry and to secure better products, local designs and local textiles is insane. Why shouldn’t they strive for that? Why shouldn’t Uganda strive for their own Bata’s? What is wrong with Tanzanian made shoes? Nothing really, that should be supported, especially if the United States wants to think long-term and create better exports. They would earn even more on ordinary trade of clothes, not second-hand that sold bulk and through other channels. But I am sure that Trump has no knowledge of this or even could imagine it.

This is clearly a step of imperialism from United States, since they cannot stomach, that the partners and the ones getting donations through USAID. Isn’t accepting to be a bazaar for their used stuff. The products that is B-Level and already had their day in the sunshine.

Knowingly, how he is America First, the man himself should understand how others wants to build to their own industries, but thinking Trump has that capacity of thinking is overstepping and thinking that he could actually calculate, that others are sovereign too and not only his state. The East African Republic’s shouldn’t be punished for acting in their own interests over second-hand clothes. Neither second hand shoes. That is insulting and infuriating. If it was just charity and done out direct needs. It would make sense, but if your forcing bad products, because of own will for quick-profits and at the same time destroying local industries. I understand why Rwanda, Tanzania and Uganda is trying to ban it and stop it. I respect that and stand behind it. Who wants a old T-Shirt, when you can buy a local-made?

If you buy a local-made, it would create a job for the one making it, the one designing it and the one selling, plus the distribution within the state. That is good business and create lots of job. These jobs create other jobs and funnel money in the system. So some of them will buy foreign design and clothes, that might even be American. That is how the United States should think, if they cared about a free-market narrative, but they are now planning to punish Rwanda and others, because they want to build-up own industry.

Trump is creating a trade-war over Second Hand Clothes.

Second Hand Clothes to East Africa!

Washington, DC – The President determined today the eligibility of Rwanda, Tanzania, and Uganda for trade preference benefits under the African Growth and Opportunity Act (AGOA). In response to a petition filed by the U.S. used clothing industry in March 2017, the Administration initiated an out-of-cycle review of Rwanda, Tanzania, and Uganda’s AGOA eligibility regarding their decisions to phase in a ban on imports of used clothing and footwear. The review found that this import ban harms the U.S. used clothing industry and is inconsistent with AGOA beneficiary criteria for countries to eliminate barriers to U.S. trade and investment. Based on the results of the review, the President determined that Rwanda is not making sufficient progress toward the elimination of barriers to U.S. trade and investment, and therefore is out of compliance with eligibility requirements of AGOA. Consequently, the President notified Congress and the Government of Rwanda of his intent to suspend duty-free treatment for all AGOA-eligible apparel products from Rwanda in 60 days” (AGOA – ‘ President Trump Determines Trade Preference Program Eligibility For Rwanda, Tanzania, And Uganda’ 30.03.2018).

This is infuriating and not cool. AGOA should be used as a method to not destroy industry in the developing countries, but add revenue both ways. Now the United States is just using imperialism. Trade-War with East African Countries.

Trump is foolish and also, this is not gaining sympathy and the reasons for this. This isn’t adding and just show how belittling and narrow-minded he is. But that we knew, we just have to see who spanks him. Peace.

Opinion: Now that the World Bank has new priorities, they will most likely not loan to the pipelines in East Africa!

 

There is certain movements that will strike as more expensive for the East African Community (EAC). This being for the Government of Uganda (GoU) and the Government of Kenya (GoK), who has big plans of petroleum pipelines from their oil-fields and to the coast. That being from Turkana to Lamu Port. While the Ugandan oil goes from Hoima to Tanga Port in Tanzania. Both development and industrial projects will have issues with the funding. The World Bank has supported massive infrastructure projects in both countries.

Therefore, for the two counties big development and oil industry, this is giant set-back, since they have to find funding and loans for the pipelines on the open market. Even with higher interests and making the profits of it lesser, than it would have been with a World Bank loan. It would not hurt the pocket as much as it does on the open market. The banks wants more profits themselves and also make sure they are paid-in-full.

With all this in mind. There are speculations, but first. Parts of the self-answering service. Before we look at the reactions in Kenya and Uganda. All of are important, as the state is involved in the licensing and building the pipelines. They are directly into the development and procurement of the pipelines. That is why this is big blow for the administrations and their possible tax-profits on it.

Word Bank Q&A:

Q. How is “upstream” oil and gas defined?

Upstream is an industry term that refers to exploration of oil and natural gas fields, as well as drilling and operating wells to produce oil and natural gas” (World Bank, 2017).

Current projects in our portfolio would continue as planned. However, no new investments in upstream oil and gas would be undertaken after 2019, unless under exceptional circumstances as noted in the decision” (World Bank, 2017).

Kenya Pipeline:

The announcement by the bank, which has significant interests in Kenya’s oil prospecting sector, does not bode well for the country’s anticipated entry into the club of oil producing nations beginning next year. Analysts said they do not expect an immediate reaction to the announcement even as they acknowledged that it takes the shine from oil in the long term” (…) “Locally, the World Bank is offering technical support to the Kenyan government, through the Kenya Petroleum Technical Assistance Project, to prime all stakeholders for commercial oil production and sale. The six-year programme is scheduled to run until February 2021 and involves the World Bank managing a Sh5.2 billion fund set up by investors from Germany, Norway and Britain. The World Bank’s private lending arm, International Finance Corporation, is however directly involved in Kenya’s oil fields, having a 6.83 per cent stake in Africa Oil, the Canadian exploration firm with interests in northern Kenya oil blocks” (Mutegi, 2017)

Uganda Pipeline:

The pipeline, is expected to be completed by the year 2020, when the country is scheduled to start oil production. In fact, Uganda’s President, Yoweri Museveni and his Tanzanian counterpart recently commissioned the construction of the East African Crude Oil Pipeline. The two leaders laid mark stones for the crude oil pipeline in Mutukula, Kyotera district and Kabaale in Hoima district. Total E&P Uganda, a subsidiary of French oil giant, Total S.A, is spearheading the construction of the crude oil pipeline on behalf of the joint venture partners. Adewale Fayemi, the general manager, Total E&P Uganda says discussions are ongoing to discuss on the formalities of how the pipeline will be run. Already, an agreement has been reached that the East African Crude Oil Pipeline (EACOP) will be run and managed by a Special Purpose Vehicle (SPV) – private pipeline company. This means that a private company will be incorporated with joint venture partners – Tullow Uganda, Cnooc Uganda Ltd and Total E&P Uganda, and the governments of Uganda and Tanzania as shareholders in the company” (Ssekika, 2017)

Certainly, this will put a strain on the projects. They have to deliver another type of arrangement to make sure they get funding and have the funds to pay the added interests the banks wants. The added points on the dollar and the interest-rates will hit state-owned firms and the state itself. Since the pipelines most likely becomes more expensive and will be less profitable.

That the World Bank is pulling out of these projects is all within line of the Paris Accord, as they have professed is the reason. Still, this will make these projects more expensive and make sure they are earning less on it. Unless, the crude-oil prices are going up to a level that makes these investments even more profitable. That is only for time to tell. Since it is costly projects and also sophisticated to build. There is needed lots of expertise combined state planning to achieve the development plans.

This is just the beginning, but the pipelines and these investments are vital for both Kenya and Uganda. As the governments are already borrowing state funds on the possible earnings from the oil reserves in their basins. Therefore, they need to drill and need the petrodollar as quickly as possible. Peace.

Reference:

Mutegi, Mugambi – ‘World Bank dims Turkana oil hopes’ (14.12.2017) link: http://www.nation.co.ke/business/World-Bank-dims-Turkana-oil-hopes/996-4227848-u02v8n/index.html

Ssekika, Edward – ‘East African Crude Oil Pipeline: The Inside Story’ (11.12.2017) link: http://www.oilinuganda.org/features/economy/east-african-crude-oil-pipeline-the-inside-story-details-emerge-of-how-the-crude-oil-pipeline-will-be-financed-managed.html

World Bank – ‘Q&A: The World Bank Group and Upstream Oil and Gas’ (12.12.2017) link: http://www.worldbank.org/en/topic/climatechange/brief/qa-the-world-bank-group-and-upstream-oil-and-gas

EAC: Signing of the Inter-Governmental Agreement between the Republic of Uganda and the United Republic of Tanzania for the East African Crude Oil Pipeline (EACOP) Project (26.05.2017)

Communique between the President of Tanzania and President of Uganda on Bilateral Talks between the Two Countries on the East African Crude Oil Pipeline (EACOP) Project on the 21st May 2017 at the State House Dar Es Salaam, Tanzania (21.05.2017)

The Battle for the Oil the Coast; the Continuation of the diplomatic squabble between Kenya and Tanzania!

Oil-pipeline

The tides are turning and the continuation of the matter on who gets the crude-oil pipeline through their countries from Hoima down the coast. The Ugandan delegates to Tanzania were treated as royalties as the delegation could bring tax-money and development for the Tanzanian government. While the Kenyan could take that away and they could see either their advantage or disadvantage towards the Port system of Tanga. That might be why CS Keter lost his passport and travel papers on Wednesday in Port of Tanga.

The only ones earning on this diplomatic matter is Ugandan, but the East African Community is creating a hostile environment between countries over a pipeline and the gaining the monies involved in the deal, the rates and construction of the pipeline.

Keter Citizen TV

What was said the day after the Passport and Travel Papers of CS Keter taken at Tanga Port:

“According to a source in the Presidency, Foreign Affairs Cabinet Secretary Amina Mohamed has tasked Kenya’s envoy to Tanzania Ali Chirau Mwakwere with getting to the bottom of the matter. “We want them to tell us what wrong they did as per the East African Protocol.” (…)“The two leaders agreed to meet after two weeks in Kampala to allow their technical officials to harmonise their presentations, focusing on: ensuring a least-cost option for a regional integrated pipeline, address constructability issues along all routes – existing and planned infrastructure, terrain and elevations. Assessing and confirming the current proven reserves which will have an impact on the size of the pipeline,” Keter and his Ugandan counterpart Irene Muloni jointly stated on March 21 following the State House meeting” (…)”It is in the process of assessing the, “viability of the Lamu, Mombasa and Tanga ports,” that Keter and the rest of his delegation encountered hostility”.

Manoah Esipisu

What is said today on the matter:

“State House Spokesman Manoah Esipisu told reporters in Nairobi that Tanzania was isolated deliberately because it had nothing to do with the issues on the agenda. “Monday meeting was bilateral. As you know we had also invited oil companies but they did not participate in the bilateral meeting,” he told journalists” (…)”Diplomatic sources said Kenya was planning to protest the apparent violation of the East African Community laws on free movement of people, even though Tanzania has argued it had no prior information the officials would be travelling to Tanga” (…)”As Mr Keter and his group were being barred from the Port, the Ugandan delegation led by Irene Muloni, the Energy Minister, were being shown a presentation on the advantages of routing the pipeline through Tanzania” (Mutambo, 2016).

tanga port

More on the matter today:

“A senior State House official who did not want to be named because the matter was being handled at the Foreign Affairs ministry said the incident was “unfortunate” and that Kenya would protest to the Tanzanian government through its high commissioner in Dar es salaam. “I can confirm to you that the matter will be handled through our Foreign Affairs ministry. The incident was embarrassing,” the official said. He said the Tanzanian government was aware of the planned trip, which was part of an assessment of the three ports of Lamu, Mombasa and Tanga to check the suitability of the ports for Ugandan petroleum” (Kajilwa & Ng’etich, 2016),

It is hard to know what this can lead to, at least the Tanzanian diplomatic sources saying it was embarrassing to them, and to get knowledge of the Port Police actions in the Port of Tanga. When the Tanzanian Government person inside their State House says so, then their suddenly was not maliciously intent towards the Kenyan officials and diplomatic team on their soil. Though it will put a strain to the matter, as the actions speaks louder than words and to what extent certain people goes towards the advisories.

The Kenyan are right to ask for a sincere apology and reasoning for the hold-up, the passport and travel documents from the CS Keter and his team, while letting Ugandan Energy Minister Muloni walk around like proud-cock at the Port of Tanga.

This here is proof of the matter and how the governments are handling the matter and approaching each other. The Tanzanian Government should issue an sincere apology and the Kenyan should comply in a peaceful manner, as that is what they have asked for. Since this a big deal for both countries, as I have described again, and would be a long-term economic development project that would benefit more sectors than just the oil. Therefore we can see the growing rift for getting through their country and down to their port. I hope that Tanzanian government have sense and the same from the CS Keter as he was the victim, and have already gotten leverage, but that does not mean it gives a free-pass to the minister of Kenya. This will be something that will continue, into the final agreement between Uganda and the picked destination and the contracts between the Oil-Companies who will be drilling the oil in Lake Albert and the Albertine Region. Peace.

Reference:

Burrows, Olive – ‘Kenya: Govt Protests to Tanzania Over Keter Passport Fiasco’ (24.03.2016) link: http://allafrica.com/stories/201603250043.html

Kajilwa, Graham & Ng’etich, Jacob – ‘Kenya protests to Tanzania over confiscation of Charles Keter’s passport’ (25.03.2016) link:http://www.standardmedia.co.ke/article/2000196026/kenya-protests-mistreatment-by-tanzania

Mutambo, Aggrey – ‘State explains why Tanzania was excluded from oil pipeline talks’ (25.03.2016) link: http://www.nation.co.ke/news/State-explains-why-Tanzania-was-excluded-from-oil-pipeline-talks/-/1056/3132806/-/52cqfg/-/index.html

Joint Communique – 10th Northern Integration Project Summit (Kampala, Uganda 06.06.2015)

10NCIPS.P110NCIPS.P210NCIPS.P310NCIPS.P410NCIPS.P5

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