Home East Africa EAC member states can ride on UK-Kenya trade deal

EAC member states can ride on UK-Kenya trade deal

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  • Though Kenya has negotiated solely Its trade agreement with UK ahead of the Brexit transitional deadline, other East African countries could ride on the deal for the next few years.
  • The proposal that was agreed to in principle last week in Nairobi provides to save its exports from facing taxation in the UK market, once the transitional clauses under the EU expire.

Though Kenya has negotiated solely Its trade agreement with the UK ahead of the Brexit transitional deadline, other East African countries could ride on the deal for the next few years and consider whether to enter the deal.

The proposal that was agreed to in principle last week in Nairobi provides to save its exports from facing taxation in the UK market, once the transitional clauses under the EU expires. Kenyan products such as tea, coffee, vegetables, and flowers will benefit from the agreement while the UK will have free access to export vehicles, pharmaceuticals and paper worth almost £800 million ($1 billion).

 Officials who are privy to the deal say that East African Community member states have up to five years to join the UK-Kenya trade agreement. In other words, the transitional clauses, will allow other EAC member states to utilise what Kenya had agreed on with the UK. They can also discuss variable new issues such as services trade, new technology, and research and innovation, which were lacking under the European Union Economic Partnership Agreements (EPAs).

The UK had sought similar deal with all six East African Community member states However, negotiations could not happen because Uganda, Tanzania and Burundi were preoccupied with elections and the rest with Covid-19.

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