EU-EAC deal delay won’t hurt horticulture - PS

By Benson Kathuri

Failure by the East African Community (EAC) and the European Union (EU) to sign a trade deal will not hurt exports from Kenya, Trade PS Cyrus Njiru has said.

He assured the exporters and mainly in the multi-billion shilling horticultural sector that the delay in signing the deal under the on-going Economic Partnership Agreements negotiations would not hurt their business.

The two parties had agreed to negotiate and sign a trade deal by July this year but this has been put off indefinitely. "The EU has been our traditional trading partner for a long time and we have many things in common," Njiru said, after opening a two-day workshop on Trade Negotiations sponsored by the UN Economic Commission for Africa in Nairobi yesterday.

Interim Agreement

"It is not in anyone’s interest to disturb the trade between the EAC and the EU and both sides acknowledge that."

Njiru said the parties had agreed on an interim agreement in 2007 that ensured that exports from Kenya to the world’s larges trading block continued to enjoy duty and quota free status.

However, he said negotiations for a comprehensive trade deal would continue until November when the deal could be signed.

Local flower and fruits and vegetables exporters had early last month expressed concern over lack of a legal and policy framework was creating uncertainty in the industry. "We are on the edge again," said Fresh Produce Exporters Association of Kenya chief executive Stephen Mbithi, adding that horticulture exporters are now wary of possible tariff headaches.

They are afraid to conclude orders that could be subjected to tariffs mid-way and want the negotiations concluded.

Sources said some partner states in the region are wary that some issues tabled under discussion under EPAS are subject to negotiations within the World Trade Organisation. Trade experts are calling for a slow down in the negotiations until the issues included like trade in services are concluded at WTO.

However, these negotiations have dragged raising concern that the Doha Development Agenda promising funds for development might never be concluded "Kenya would like to appeal to the key players in the global economy, specifically the United States of America, the European Union and Japan to facilitate the conclusion of these negotiations," Njiru said.