Kenya: EPAs could delay EU bid
East African Business Week (Kampala) | 27 August 2007
Kenya: EPAs Could Delay EU Bid
Shadrack Kavilu
Uncertainty is looming in Kenya’s horticultural sector following the move by the five EAC member states to sign one Economic Partnership Agreement (EPA), which they say could take much longer time than was previously anticipated.
Players in the industry argue that the process should be sealed by October to enable them place price quotation for horticultural products destined for the EU market which accounts for 69% of total trade with the EU.
The new twist in the configurations agreed by the EAC member states to negotiate EPAs under the EAC block has thrown panic to horticultural suppliers who entirely depend on exports to EU.
Instead they argue Tanzania should agree to sign EPA as negotiated by the East and South African countries (ESA) rather than go for fresh negotiations which would create confusion and uncertainty in the industry.
If the EPA is not signed by December, Kenya stands to lose since the countries negotiating under ESA are classified as Least Developed Countries and enjoy Anything But Arms preferential treatment with the EU.
The expiry of the preferential treatment agreed with the EC known as Cottonou Agreement in December, would put Kenyan horticultural suppliers
in a tricky position that could see them lose millions of shillings through new tariff regimes.
They argue that under the other options available that is General System Preference plus (GSP+) and GSP they would attract a higher tariff of 8 percent dealing a big blow to the fast growing industry.
A transitional measure should be put in place to secure horticultural industry to adjust their quotation for January, lamented, Dr Stephen Mbithi the chief executive officer for Fresh Produce Exporters Association of Kenya (FPeak).
"We will be caught in an awkward situation should the process take much longer than we had anticipated since it would be very difficult to place price quotation for orders to be supplied early next year," he quipped.
Mbithi was speaking to journalist at a Nairobi hotel during which he announced that the private sector had developed an equivalent of Europ-Gap standard dubbed Kenya Gap that has satisfied technical evaluation teams from Europe as a Europ-Gap benchmark.
Kenyan-Gap, he said is a comprehensive National Scheme that covers vegetables, flowers and fruits and covers both the technical and social aspects employed by small scale farmers in the country.
Growers will now be able to overcome the major challenge of meeting the Europ- Gap conditions characterized by complicated and expensive procedures demanded by the EU standards.
The sector growing at the rate of 14% annually employs about 4 million people making it one of the largest sub sectors creating wealth and employment in the rural areas.
The Chief executive officer said the launch of Kenyan Gap would be launched during FPeak’s 30th anniversary celebrations scheduled for 29th August that would be attended by Horticultural Trade Associations from East, central and South African region under the auspices of the recently formed Horticultural Council for East central and South African Region.
