EU duty free flower exports delayed closer to Valentine’s Day

The renewal of a duty-free regime between the European Union and five East African nations may not win approval until January, an EU official said on Friday.

The delay raises fears that the current market access uncertainty could extend to Valentine’s Day, the flower industry’s peak sale season.

The flowers sold in the two weeks leading up to February 14 account for about a third of annual sales for Kenya’s flower producers, some 90 per cent of them roses, according to the Fresh Producers Exporters Association of Kenya (FPEAK).

“We’re looking at the third or fourth week of January. I do not think it’s going to be possible to speed up the procedures further,” Lodewijk Briet, EU ambassador to Kenya, told Reuters.

A European Union tax on fresh fruit, vegetables and flowers from Kenya has been in effect since October 1 after the parties missed a deadline to formalise the duty-free export regime by signing the Economic Partnership Agreement (EPA).

READ: Relief for Kenya as Tanzania signs EU trade deal

Although they finally signed the EPA last month, the pact now awaits approval by the European Parliament and the European Commission.

“We should certainly not take parliament for granted,” Mr Briet said.

Chief executive of FPEAK Stephen Mbithi, however, said he was still hopeful of restoration of Kenya in the list of countries that trade with EU duty-free by the end of December.

Horticulture is a leading source of foreign exchange for Kenya alongside tea exports and tourism.

Under the EPA, EAC will gradually open up to 80 per cent of its market to EU products in the next 15 years in exchange for the unfettered market access.

Over the period, the EU has committed to phase out subsidies that make its agricultural commodities cheaper in the local market even after absorbing freight charges. 

The EAC negotiators also bargained to keep existing taxes on export commodities but will only introduce new ones after consultation with EU.