Concern rises in Kenya over impending end to duty-free trade status
The problem is that Kenya’s partners within the Eastern African Community (EAC) are unwilling to ratify an Economic Partnership Agreement (EPA) struck with the EU in 2014. This was supposed to be in place by now, so that it could replace the MAR trade benefits from 1 October. But Kenya’s EAC partners Burundi, Rwanda, Uganda and Tanzania are in no hurry to ratify, having concerns about the EPA and also – because they are poorer than Kenya – can rely on the EU’s Everything But Arms (EBA) free trade arrangement, even if the MAR expires in October. Kenya, on the other hand, would have to rely on the EU’s GSP (generalised scheme of preferences) of lower (rather than no) duties to get its meat and livestock products to EU markets.
Kenya has called on the EU to give it more time, or to ratify the EPA alone, but the European Commission has said no. A spokesperson for the Commission’s directorate general for trade said: “While we acknowledge the progress on signature in some of these regions, it is only through ratification and implementation of the agreement that we will be on solid legal ground.”
Kenyan meat exporters are unhappy with the situation. Speaking to GlobalMeatNews, John Otieno, managing director of the Nairobi-based Key Meat Suppliers Ltd, said that such an action would make it harder for Kenyan exporters to access EU markets.
“Most of the exports from Kenya has been to the Middle East and other African countries. Getting orders from Europe have been an uphill task,” Otieno said, adding: “Kenya should remain competitive as the world is getting more challenging every day. The preferential Trade agreements on the Kenya meat industry would be very necessary to improve the sector and keeping us at par with the best producers because Europe demands very high standards.”
He said industry colleagues were perplexed about why the EU would take a hard line on the issue, but wanted a broad trade agreement with Europe, as it would help raise standards, expand markets and provide employment.
“I would greatly support the free trade agreement as it would provide a wider market of Kenya products. Kenya can be a weakling in the meat business compared to many developed countries exporting to Europe, but with preferential agreements, we will get a slot.” Otieno argued.
