Business, Freight News

Kenya fruit and veg trade at risk as EU hikes duties

[ October 1, 2014   //   Chris ]

The EU is imposing higher import duties on vegetables and flowers from Kenya as negotiations due to a lack of progress in signing an Economic Partnership Agreement (EPA) with the East African Community (EAC). The EPAs has signed EPAs with most groups of countries in the African, Caribbean and Pacific (ACP) group of states, but not with the EAC, due to internal differences between its members and the 1 October deadline has now passed. While this does not affect the other EAC members – Rwanda, Burundi, Tanzania and Uganda – which, as Least Developed Countries will continue to enjoy low-tariff access to the EU market, this does not apply to Kenya. Duties of between 8-12% will now be applied to imports from Kenya, putting at risk trade worth hundreds of millions of pounds. According to Brussels sources, some EU importers have already switched to Ethiopian producers.

Tags: East Africa, European Union, Kenya