Uk Kenya Trade Agreement Text

This guide provides information on the aspects of trade covered by the EPA. This is for British companies that trade with Kenya. The deal could pave the way for large Kenyan companies to significantly increase the volume of exports to the UK. This, in turn, could create opportunities for international expansion and thus strengthen the reputation of Kenyan companies on the world stage. See the list of minimum operations in Article 9 of the Protocol on Rules of Origin in the text of the Economic Partnership Agreement between the United Kingdom and Kenya. Read the contract documents to understand what the agreement covers and how it might apply to your business. In order to be considered sufficiently processed, your goods must comply with the corresponding product-specific rule (RPS). The PSRs of this agreement use the Harmonized System (HS) nomenclature as amended in 2012. You must apply the RPS to your product using the code in which it was classified in this nomenclature. Parliament`s report shall contain an explanation of the agreement, including any substantial differences or improvements. It also contains information on rules of origin and trade tariff rate quotas. If you have any questions about trade, please contact the Department of International Trade (DIT).

If you want to talk directly to someone, we have local trade offices across the UK. In any office, you can contact an international trade consultant. Find your local sales office. The agreement is expected to preserve trade between the UK and Kenya and lead to increased trade. In 2019, trade between Kenya and the United Kingdom increased to 1.4 billion. GBP estimated; Kenya`s main exports to the UK are vegetables, cut flowers and black tea. With the UK`s withdrawal from the Kenyan trade agreement with the EU (and thus the expiry of its UK provisions), this trade was threatened by the prospect of new tariffs. The agreement guarantees these exports for the benefit of Kenyan exporters.

In return, British exporters benefit from better access to Kenyan markets and the opportunity to sell at more competitive prices. For example, the agreement provides for a reduction in levies on certain materials used for railway expansion, which in turn supports the development of much-needed infrastructure in Kenya. In line with the strategic partnership ambitions agreed by His Excellency President Uhuru Kenyatta and British Prime Minister Boris Johnson in January 2020, the United Kingdom and Kenya have agreed to negotiate an Economic Partnership Agreement. These negotiations are based on the initialled text of the EU-EAC EPA and are open to all EAC Partner States. Documents containing information on the contract and a summary of the trade agreement between the United Kingdom and Kenya. The deal will increase competition in Kenya, which could open up opportunities. Barriers affecting the productivity of the Kenyan economy include high energy costs and infrastructure deficiencies. Many companies in Kenya hope the deal will prompt the Kenyan government to take supply-side measures that will increase production and allow the country to take full advantage of the deal. This, in turn, could create new opportunities through more economic growth and employment. As far as Kenya is concerned, it should be noted that the agreement is open to extension to other States of the East African Community.

Progress in Kenya is therefore being closely monitored in neighbouring countries. There will undoubtedly be more updates. Support for the agreement in Kenya has been somewhat mixed; Until ratification, there were doubts as to whether the deal would receive the support of a sufficient number of Kenyan MPs. The deal is also facing ongoing challenge in Kenyan courts, with several lobby groups arguing that there has been insufficient consultation on the terms. Although the ratification process is now complete, the agreement still faces opposition in the form of a large group of farmers and lobby groups that have since filed a petition with the Nairobi Supreme Court. The hearing of this petition could drag on for months and delay progress in the use of the agreement. The Memorandum of Understanding [MS No 9/2020] sets out how the EPO will be implemented in the UK, including any changes to UK law. Alibaba has expanded its international trading platform to a second African state, providing Ethiopia with an electronic infrastructure that provides access to services and markets, including China.

Kenyan opponents of the deal also warn that it could lead the country to become too dependent on imports. This could have a negative impact on President Kenyatta`s socio-economic goals (which include improving production and food security in the country). A recent report found that an estimated 1.4 million Kenyans currently face “acute food insecurity”, and there are fears that the trade deal could exacerbate this problem by reducing the amount of food produced in Kenya and ultimately driving up prices. You can use EU processing materials or products in your exports to Kenya. The United Kingdom and Kenya must have complied with the necessary requirements of the Protocol on Rules of Origin […].