The Trade Agreement between Kenya and the United Kingdom (UK) is now in operation. This is coming after officials from both sides were able to complete the required ratification process.
The East African nation of Kenya is looking to increase its market share in the United Kingdom (UK) by 5 percent by 2025. This will translate to 10.2 billion United States Dollars (1.1 trillion Kenyan Shillings). This is significantly higher than the 39 billion Kenyan Shillings for the last 5 years up until 2019.
In the beginning of March 2021, the Trade agreement between Kenya and the United Kingdom (UK) which occurred after Brexit, got approved by legislators in both countries. This subsequently led to an opportunity to continue to encourage quota and duty free access for exports out of Kenya after the post Brexit. The quota free and duty free access however, does not include industrial products and or agricultural products.
The Cabinet Secretary for Trade and Enterprise Development; Betty Maina has encouraged Kenyans to place themselves in such a way that they can maximize the market potential of the exports coming out of Kenya, and also take advantage of the trade agreement in regards to effectively promote said kenyan exports to the United Kingdom (UK).
In the words of the Cabinet Secretary for Trade and Enterprise Development; Betty Maina, “The challenge to Kenyans exporting and those who can export is to take advantage of this comprehensive framework to promote their exports in the UK markets while creating jobs and worth.”
The Trade Agreement between Kenya and the United Kingdom (UK) will include a “phased liberalisation on some goods over 25 years.”
According to the British High Commissioner; Jane Marriot, a number of the tariffs, will begin to drop after a period of 7 years. Other tariffs will not begin to reduce until 12 years. Other tariffs will reduce gradually until the year 2046.
The British High Commissioner; Jane Marriot, believes that Kenya and the United Kingdom (UK) will need to set up delivery structures which will aid in achieving the goals of the Trade Agreement. Said goals include the creation of an Economic Partnership Agreement council, as well as a committee consisting of senior officials. A number of technical committees will also be set up.
Since February 2021 when the Trade Agreement between Kenya and the United Kingdom (UK) was signed, a number of concerns have been expressed. These concerns from entities in both countries, have contributed to the delay in its use.
While legislators in the United Kingdom (UK) have been cautious about the implications of the Trade Agreement with regards to the economic relationships and political relationships that the East African Community (EAC) has, the legislators in Kenya fear that a particular clause included in the deal prevents the Kenyan Parliament from expressing their reservations and or making any amendments.
According to reports, the Trade Agreement will only allow the Economic Partnership Agreement (EPA) council which consists of ministers from the countries, an Economic Partnership Agreement (EPA) consultative committee with representatives from the private sector, academia and civil society, and a committee of senior officials which include Principal Secretaries or Permanent Secretaries.
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