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PUBLISHED ON April 12th, 2019

UK committed to Kenya trade partnership

An article published in the April 11 edition of the Business Daily titled ‘Kenya economy to lose Sh2 billion in no-deal Brexit’ was misleading and has caused unnecessary concern among businesses and their employees.

The British government has made clear our commitment to a smooth transition post Brexit, to ensure continuity in our trading relationship with Kenya.

The Prime Minister made this commitment during her visit last year. Deal or no-deal, we will ensure Kenya retains its duty-free, quota-free access to the UK market.

The article, which draws on a UN trade agency report, states that ‘‘the research found that countries such as Kenya, which currently enjoy preferential market access to the UK under terms negotiated with the EU, would face immense losses in the case of a no-deal exit’’.

Such analysis wrongly assumes that the UK will not have its own preference schemes in place once we leave the European Union. This is not the case. The UK government has made clear its commitment to maintaining Kenya’s quota-free duty-free access to the UK market, and will take measures to protect Kenyan exports.

The article also suggests that the UK’s Most Favoured Nation (MFN) tariff regime will raise taxes on Kenyan goods by five percent whilst lowering tariffs on competitors’ products.

This again is based on a false assumption that there will be no preference measures in place in event of a no-deal departure. The British government is clear that we will not increase tariffs beyond what the EU already has in place.

In the event of a no deal Brexit, the UK will either maintain the same EU tariff on any given product line, or remove it all together. As noted, Kenyan exports, deal or no deal, will retain duty-free, quota-free access to the UK.

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.

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