Economic Partnership Agreement: Kenya

Lord Boateng Excerpts

Tuesday 2nd March 2021 Lords Chamber

[Lord Boateng (Lab) [V]]

My Lords, it is a pleasure to speak in the maiden debate of the noble Lord, Lord McDonald. I had the honour of serving with him as a Minister and then as a colleague. He may be young compared to many of us, but he was never naive—at least not in my experience.

I welcome the opportunity to have this debate and commend the work of my noble and learned friend Lord Goldsmith and his committee in giving this agreement much-needed scrutiny. I particularly support the call, and concerns expressed within it, for the implications of this agreement for economic regional integration. Successive Governments of all political hues have long supported regional economic integration in Africa as one of the best means of lifting people out of poverty. It would be a tragedy if these agreements—this is the first of a number—were to undermine the real progress that has been made in the development and economic integration of the regions of Africa, not least as this is the first year of the African Continental Free Trade Agreement. This free trade agreement creates the largest global free trade area in the world by country number, aims to be a model of cross-border co-operation—something that DfID, as it was, and the current department have long championed—and, importantly, offers a real prospect for a continent currently facing a pandemic that has caused it up to $79 billion in output losses in 2020 alone. Africa has never needed economic integration more than now. The World Bank estimates that the African Continental Free Trade Agreement will boost regional income by 7%, or $450 billion, speed up wage growth for women and lift 30 million people out of extreme poverty by 2035.

If regional integration does not come to pass on the continent, we face the real prospect of holding it back and increasing still further the number of people who will fall into poverty as a result of Covid. I therefore urge the Minister to respond positively to the request in the report that the Government should provide an assessment of the risks posed by the agreement to the East African Community Customs Union, as well as an assessment of the implications of any bilateral agreement for regional integration in East Africa. This is important today, since Ghana has signed—in the Locarno room—a post-Brexit trade agreement with the UK. I commend the hard work of Ministers on both sides for all they have done in that regard. If that hard work is to be turned into benefits for farmers, young entrepreneurs and small and medium-sized businesses, it requires that this report and its implications are taken seriously by the Government so that, when we come to consider Ghana’s free trade agreement with the UK, it will enhance rather than damage regional integration.