EAC EU EPAs: 53 days to go

The Kenya Flower Council in collaboration with Kenya Association of Manufacturers hosted exporters from the memberships of KFC, KAM, FPEAK, KNCCI and AFIPEK to receive an update on the EAC EU Economic Partnership Agreements ( EPAs) negotiations.  This follows a Joint EAC – EU EPA negotiations senior officials meeting that took place on 21st – 23st July 2014 in Kigali, Rwanda where the three outstanding issues i.e export taxes, domestic and export subsidies and good governance remained unresolved.  As such these were escalated to the ministerial level and it is anticipated that the ministerial meeting will take place in September.

GSP preferences for Kenya from 1 October 2014:  (From the Union Fleurs)

The Commission Regulation granting GSP preferences to Kenya (amongst others) as from 1 October 2014 has now been issued and transmitted to European Parliament and Council. It will only be published in the EU Official Journal and enforced once the full legal procedure will be completed.

This Regulation is required to ensure that Kenya can at least benefit from the EU GSP reduced duties as of 1 October 2014. If not passed on time, this might expose Kenya to full MFN duties for a temporary period (possibly with retroactive effect of GSP duties to 1 October 2014 as in the case of Ecuador with GSP+ preferences end of 2013 / early 2014 – not a very practical option for the business as we know).

The Kenya Flower Council will strive to keep you abreast with developments as they unfold.

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