The UK has moved a step closer to signing a sixth trade deal in Africa on 3 November 2020, as negotiations on a trade deal are finalised with Kenya. The agreement will ensure all companies operating in Kenya, including British businesses, can continue to benefit from duty-free access as they export products including vegetables and flowers to their customers back in the UK.
Top goods imports to the UK from Kenya in 2019 were in coffee, tea and spices (£121 million), vegetables (£79 million) and live trees and plants, mostly flowers (£54 million). The UK market accounts for 43% of total exports of vegetables from Kenya as well as at least 9% of cut flowers, and this agreement will support Kenyans working in these sectors by maintaining tariff-free market access to the UK. It also guarantees continued market access for UK exporters, who together sold £815m in goods and services to Kenya last year.
As the largest economy in East Africa and among the top 10 across the continent, Kenya is an important trading partner for the UK. This deal also recognises the importance of the wider region – other members of the East African Community trade block are able to join the agreement when they are ready.
International Trade Minister Ranil Jayawardena said: I’m delighted we’ve reached a trade agreement with Kenya. This deal gives businesses the certainty that they’ll be able to continue trading as they do now, supporting jobs and livelihoods in both our countries.
I look forward to forging further trade ties with Kenya – the largest economy in the region – and working with other East African countries to agree trade continuity, harnessing free and fair trade to secure shared prosperity for our peoples.
Minister for Africa James Duddridge said: The UK is a champion of liberal free trade and believes in building strong, lasting partnerships in Africa. Our approach delivers mutual benefits and we have a proud record of doing business with integrity.
This trade deal will build on the UK and Kenya’s historic ties and is the perfect springboard to increase our trading in future.
The agreement will be formally signed shortly once it has been subject to checks.
The deal itself is a translation of the terms previously agreed between the EU and the East African Community (EAC) and includes clauses to allow other East Africa Community states to join in the future.
In under two years, the UK government has signed or agreed in principle trade agreements with 52 countries. Total UK trade with these countries was worth £146 billion in 2019.
Meanwhile, the Labour Shadow Trade Minister Gareth Thomas MP, in a press release made available to African Voice said, “farmers in Kenya and other developing nations face having huge tariffs imposed on the bananas, tuna, cocoa and flowers they sell into the U.K.”
Mr Thomas said, “The UK Government is yet to publish any details of its proposed GSP scheme, however NGOs and other stakeholders familiar with negotiations expect any proposed British GSP scheme to mirror the EU’s GSP scheme. If this indeed were to be the case such conditions would see farmers in these two nations face tariff increases of 4.2% on cocoa butter, 6.1% on Cocoa Paste, 8.5% on fresh flowers and 20.5% on canned tuna when exported to the UK.”
The Labour MP has since written to the Secretary of State for International Trade, Liz Truss MP, to urge her to look again at the issue with urgency and compassion.
“It is 4 years and 4 months on from the Brexit referendum and now with only 9 weeks until the end of the transition period it appears that Government Ministers are effectively threatening to impose substantial tariffs and regional trade barriers on developing nations in Africa!
Instead of threats the Government needs to work constructively and cooperatively with Ghana and Kenya to protect the interests of both British consumers the interests of some of the poorest farmers and producers in Africa.”
Kindly follow us on twitter:@AfricanVoice2
