Nairobi signs post-Brexit trade agreement for exports

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President Kenyatta meeting with UK Prime Minister Boris Johnson. FILE PHOTO | NMG

Nairobi has signed a post-Brexit trade deal with the UK, preserving duty- and quota-free access of exports when London formally exits the European Union (EU) at the end of the month.

The two countries on Tuesday signed a long-term treaty in London which they said would “enhance privileges for agricultural goods and confer originating status” to exports from the six-nation East African Community (EAC).

This follows bilateral negotiations, which started late September after Nairobi’s bid to hold the talks under the EAC framework flopped, with the rest of its EAC peers snubbing the meetings.

“We have agreed on a comprehensive package of benefits that will ensure a secure, long-term and predictable market access for exports originating from the EAC free trade area,” said Trade secretary Betty Maina in the statement.

The strategic Economic Partnership Agreement (EPA) agreed by the two nations and which will now await approval by respective lawmakers, is based on the text in the stalled EU-EAC trade pact, which Kenya ratified in October 2016.

Nairobi has for four years struggled to rally its EAC peers sign and ratify EAC-EU pact so that it comes to force, and Kenya’s exports continue to access the 27-member EU bloc tax-free under a temporary special arrangement.

Rwanda signed the deal but failed to ratify it into its laws, while Tanzania and Uganda have not approved the pact.

The EAC countries except Kenya are shielded from higher tariffs on exports under the World Trade Organisation’s (WTO’s) Special and Differential Treatment provisions because they are Least-Developed Countries.

The Trade ministry said the Kenya-UK deal recognises and supports Nairobi’s trade commitments under the WTO framework, including deepening EAC integration and participating in the stuttering Africa Continental Free Trade Agreement.

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