Page 24 - Nile Explorer Issue 12

East Africa

Kenya, UK

ink post-

Brexit trade

pact

President Kenyatta meeting with UK Prime Minister Boris Johnson. FILE PHOTO

he UK, 8 December, signed an Kenya has for four years struggled to not move freely.
TEconomic Partnership Agreement rally its EAC peers to sign and ratify It is against this background that new
with Kenya. The deal was signed in EAC-EU pact so that it comes to force, preferential trade agreements with the
London by International Trade Minister and Kenya’s exports continue to access EU or between the UK on the one hand,
Ranil Jayawardena and Kenya’s Cabinet the 27-member EU bloc tax-free under a and African nations presently trading
Secretary for Trade, Minister Betty temporary special arrangement. with the UK (and the EU) on the other,
Maina. Rwanda signed the deal but failed to become very important and necessary.
The post-Brexit trade deal with the UK, ratify it into its laws, while Tanzania and The most optimal scenario for African
preserves duty- and quota-free access Uganda have not approved the pact. exporters of goods to the UK will require
of the East African country’s exports as The EAC countries except Kenya are new preferential bilateral EU-UK trade
London formally exited the European shielded from higher tariffs on exports agreement.
Union (EU) at the end of the year. The under the World Trade Organisation’s The main Kenyan exports to the UK in
UK-Kenya trade was worth £1.4 billion (WTO’s) Special and Differential 2019 were coffee, tea and spices (£121
in 2019. Treatment provisions because they are million), vegetables (£79 million) and
According to the two ministers, the long- Least-Developed Countries. live trees and plants, mostly flowers
term treaty would “enhance privileges The Brexit deal will certainly affect (£54 million). The UK market accounts
for agricultural goods and confer African countries exporting goods to the for 43% of total exports of vegetables
originating status” to exports from the UK, traditionally an important trading from Kenya as well as at least 9% of
six-nation East African Community partner. African exporters generally cut flowers. This agreement will also
(EAC). enjoy quota-free duty-free access to the guarantee continued market access for
EU countries, including the UK while it UK exporters, who together sold £815m
This follows bilateral negotiations, was an EU member. in goods and services to Kenya in 2019.
which started late September, 2020, after
Nairobi’s bid to hold the talks under the These preferences were granted under As the largest economy in East Africa
and among the top 10 across the
EAC framework flopped, with the rest of the Generalized System of Preferences continent, Kenya is an important trading
its EAC peers snubbing the meetings. (GSP) of the EU, its Everything but Arms
(EBA) arrangement for Least Developed partner for the UK. The deal is based on
“We have agreed on a comprehensive Countries (LDCs) and the SADC-EU the terms previously agreed between the
package of benefits that will ensure Economic Partnership Agreement (EPA) EU and the EAC and includes clauses
a secure, long-term and predictable with the member states of the Southern to allow other East Africa Community
market access for exports originating African Customs Union (SACU) and states to join in the future.
from the EAC free trade area,” said Trade Mozambique. While the UK deal is good news for
secretary Betty Maina in the statement.
African countries exports (mostly Kenya, there is unhappiness in the EAC
The strategic Economic Partnership agricultural products) exported under countries—,Uganda, Rwanda, Tanzania,
Agreement (EPA) agreed by the two these arrangements are only cleared Burundi and South Sudan— who are
nations and which will now await once, at the first port of entry. When said to be other EAC “strongly opposed”
approval by respective lawmakers, is subsequently distributed to different to the Kenya-UK deal. They claim that
based on the text in the stalled EU- EU member states. With the Brexit Nairobi’s unilateral deal with London
EAC trade pact, which Kenya ratified in deal, further distribution (e.g. from undermines the EAC’s customs union
October 2016. Rotterdam to Germany or the UK) may (CU).

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