EU closer to rescinding deal, could tax Kenyan flowers
The Standard, Kenya
EU closer to rescinding deal, could tax Kenyan flowers
8 April 2012
By Luke Anami
The European Union Parliament has tasked a British MP to prepare a report that will determine whether Kenyan flowers exports will be subjected to duty in the EU markets, or continue operating in the quota-free market regime.
David Martin has been appointed as the rapporteur to prepare a report on the proposed amendment to the European Commission regulation 1528/2007, which imposes a December 31, 2013 deadline on the conclusion of all negotiations for the Economic Partnership Agreements (EPAs), otherwise a 16 per cent duty will be charged on imports from ACP countries.
Once passed, 18 African Caribbean and the Pacific (ACP) countries - which include Kenya - will be deleted from the quota-free agreement that allows Kenya to export its flowers to the EU market duty-free.
"David is expected to prepare a report and a resolution on the EC proposal for discussion and adoption in the EU parliament by mid this year," Morgan Githinji, an expert on multilateral trade issues based at the ACP secretariat in Brussels, said.
The report comes a month after the European Parliament Committee on Trade made a visit to Kenya and Zambia last month.
Adopted or rejected
Voting is expected to take place during EU’s plenary session that could either see the amendment adopted - and therefore pushed to the EU parliament for debate - or rejected.
A decision as to whether the amendment will be adopted or rejected should be ready by September, when Kenya and other ACP countries are expected to know their fate.
"We have rejected the EC’s proposals and will lobby for its rejection. I have written to all ministers of Trade of the 27 countries EU countries, lobbying for the rejection of this amendment," Musikari Kombo, President of the ACP Joint Parliamentary Assembly, said in an interview with The Standard.
The ACP group believes that the regulation should be maintained until the full EPAs have been concluded and implemented.
Extend deadline
"We have already pleaded that the EC extends the deadline for negotiating these clause as we look at what are our alternatives."
Washington Oloo, Kenya’s Deputy Head of Mission to the European Union (EU) last month warned Kenya’s flower exports to the EU risk being subjected to duty should a proposal to impose a deadline on the EPAs negotiations with the East African Community sail through in the European Parliament June this year.
"The decision is expected in Parliament this summer (June) and if passed Kenya’s flower exports will no longer enjoy duty free access to the European market."
