Kenyan exporters will now access the European market duty-free starting December 25. This is after the European Parliament and Council reinstated Kenya to the list of beneficiary countries in the ‘EU Market Access Regulation’.
The EU delegation to Kenya said the commission had heeded the appeal made at the end of October by President Uhuru Kenyatta to the then EU Trade Commissioner Karel De Gucht and has fast-tracked Kenya’s return to the quota-free, duty-free export regime.
"I am very happy to confirm that, as of Christmas day, Kenyan goods – cut flowers, fresh produce and much more - will once again enter the European Union market without tariffs or quota limits,” said EU Ambassador Lodewijk Briët.
Kenya failed to meet the October 1 deadline to sign the Economic Partnership Agreement (EPA), which saw Kenyan exports start to attract duty to access the EU market. The trade talks collapsed after the two regional blocs — East African Community and European Union failed to agree on three issues — export taxes, export subsidies and the Cotonou agreement.
The deal ought to have been concluded by July 1, 2014 ahead of the October 1 deadline to give EU three months to include Kenya on the list of beneficiaries of the market access regulation based on its economic categorisation globally.
However, on October 14, Kenya struck a deal with the EU that will see exporters continue enjoying duty-free access to the EU countries.
Flower exports to the EU market have been attracting import duties between 5 per cent and 8.5 per cent under the EU GSP regime due to the delay in finalising an EPA between the EU and the East African Community (EAC) member States.
Kenya is the major provider of quality cut flowers to the EU market, with a total export value of Sh39.2 billion and a market share of about 40 per cent.
Prior to the reinstatement, Kenya had been negotiating the trade talks under the EAC regional bloc and it is the only country in the bloc that is ranked as a developing country, while Tanzania, Uganda, Rwanda and Burundi are least developing countries thus enabling them to enjoy duty free market access.
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