Britain raises hope for Economic Partnership Agreement

Dr. John Murton(left) Deputy High Commissioner British High Commission & Ibukun Adebayo(right) Co-Head Emerging Markets International Markets Unit London Stock Exchange Group during the launch of companies to inspire Africa report 2017. PHOTO: WILBERFORCE OKWIRI

Britain has assured Kenya its imminent exit from the European Union will not affect trade ties in any way.

The assurance by British Prime Minister Teresa May to President Uhuru Kenyatta on the sidelines of the London Conference on Somalia last week came against the backdrop of growing uncertainty over the future of Kenya’s exports to the UK over failure by East African Community (EAC) nations to sign an Economic Partnership Agreement (EPA) deal.

EPA would guarantee EAC traders duty and quota-free access to the EU market in exchange for gradual opening of up to 80 per cent of the region’s market to European products.

Tanzania, the main opposer of the deal, cited the economic and constitutional uncertainties arising from Brexit as the reason for rejecting it.

It argued that with the exit of Britain from the core market, it had little to gain from the partnership agreement negotiations and signing up the deal would not in any way spur its national interests.

Kenya has been putting up a spirited fight to have all EAC countries get on board as a way of safeguarding unlimited duty free access of its exports to Europe.

Tanzania and Uganda have stalled in signing the deal initialised in October 2014, saying it needs to be renegotiated afresh following Britain’s exit from the EU. But following last week’s meeting between President Kenyatta and PM May, the latter assured Kenya its exit from the trade bloc would not affect trade arrangements between the two countries.

“The British Prime Minister assured President Kenyatta that Kenyan goods will enjoy duty free and quota free access to the British market despite Brexit,” Britain’s Deputy High Commissioner to Kenya Dr John Murton told The Standard at his Nairobi residence during the launch of a report by the London Stock Exchange (LSE) titled, Companies to Inspire Africa 2017.

Dr Murton at the same time confirmed the High Commission was working on a plan to woo British companies listed at the LSE to make capital injections into Kenyan firms in different sectors.

 The Companies to Inspire Africa 2017 report captures a total of 137 companies in the East and Central African region, that have shown growth prospects and which have drawn a interest from LSE-listed British firms.

 

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