Lack of EU deal costs Kenya dearly

What you need to know:

  • Experts have warned that exports from Kenya will attract tariffs even if the trade deal is signed now.

Kenya’s fresh produce exports to the European Union countries will attract tariffs from October 1 after the country delayed to sign Economic Partnership Agreement.
Local products enjoy duty-free access to Europe under the current trade arrangement.

East African Community members at the weekend agreed on a draft agreement to be ratified by the states but the EU in Monday’s Nation said exports from Kenya would be slapped tariffs ranging from 2.6 per cent to 20.5 per cent from next month.

“The EAC has agreed on a common position on the EPA, but has not yet met with the EU Commission. The EAC has requested a meeting with the EU on 24-26th September,” a statement released Monday by EU officials read.

Experts have warned that exports from Kenya will attract tariffs even if the trade deal is signed now.

Kenya hopes that other EAC states will ratify the agreement signed on Saturday by end of the month to hasten the sealing of the trade deal with Europe.

THAT TAKES TIME

“The EU regulations require that any trade agreement made will have to be discussed at the Council of Ministers level and ratified by the EU parliament before it is implemented – and that takes time,” Mr Christophe De Vroey, trade counsellor at the EU mission in Nairobi said last month.

Fresh Produce Exporters Association of Kenya had also warned that goods would be subjected to tariffs since the European Parliament takes four months to work on legislation.

The tariffs mean exporters and farmers will earn less in coming months as new taxes on Kenyan exports to Europe are effected, making them less competitive.