The European Union has for the first time indicated that the failure by the East African Community to sign a new trade agreement will lead to introduction of taxes on Kenyan exports to Europe.
The East African Community is trading “free” with the European Union — without a binding agreement — following the expiry of an interim arrangement and the failure by teams negotiating from both parties to settle on a comprehensive Economic Partnership Agreement.
There is need to address the prevailing trade imbalance between Kenya and South Africa in order to enhance trade relations between the two countries Trade Permanent Secretary Dr (Eng) Cyrus Njiru has said.
Kenya is gunning for a fast-track programme that will enable it sign a comprehensive economic partnership agreement with the European Union by July next year despite opposition from civil society groups.
Developing countries negotiating with the European Union for an economic partnership agreement (EPA) or a free trade agreement should apply for "GSP-Plus" status with the EU, Kenya Civil Society activists say.
The Minister for East African Community, Amason Jeffah Kingi, is scheduled to lead the Kenyan delegation to the 18th meeting of the East African Community (EAC) Council of Ministers Meeting slated for October 15-23, 2008 in Kampala, Uganda.
Tea used to be Kenya's major cash crop earner but ever since the world's largest consumer of tea, Pakistan, entered into a free trade agreement with seven of its Asian neighbours, the local tea industry has been haemorrhaging.