Commissioner Jane Marriott on what the UK-Kenya trade deal means for East Africa
The UK has edged closer to signing a sixth trade deal in Africa, even as negotiations on its trade deal with Kenya were finalised earlier this month.
Mon, 16 Nov 2020 13:21:47 GMT
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AI Generated Summary
- The UK-Kenya trade deal aims to ensure mutual benefits for both nations, maintaining trade continuity post-Brexit without imposing additional costs.
- The agreement faced scrutiny from other EAC member states, citing concerns of rushed negotiations and unfair terms, which were clarified by Jane Marriott.
- Despite challenges, the UK remains optimistic about the deal's ratification by December and is open to broader EAC participation in the future.
The United Kingdom has taken a significant step towards signing its sixth trade deal in Africa, with recent finalization of negotiations on its trade deal with Kenya earlier this month. In a recent interview with Jane Marriott, UK High Commissioner to Kenya, CNBC Africa delved deeper into the intricacies of the Kenya-UK trade deal. The primary aim of the agreement is to ensure mutual benefits for both Kenya and the UK. Should this agreement not be in place, the default terms would revert to World Trade Organization rules post-December, thereby imposing tariffs on goods, particularly impacting Kenyan exports to the UK. Marriott highlighted the fruitful collaboration between the UK and Kenya teams, working towards the shared goal of maintaining trade continuity from January 1, 2021, without imposing additional costs on businesses from either country. She emphasized that the deal lays the foundation for future agreements with potential for expansion into other sectors beyond trade. The UK High Commissioner expressed her optimism for the deal's success and its potential to foster greater regional trade within the wider East African community. Marriott dismissed claims of the deal being lopsided, asserting that it brings about balanced benefits to both nations. She highlighted the foreign exchange revenue generated by Kenyan exports to the UK, which contributes to Kenya's economy through taxes and overall economic growth. Marriott also hinted at the prospect of widening the trade agreement to encompass the wider East Africa community in the future. The interview addressed concerns raised by other East African Community (EAC) member states, such as Rwanda, Burundi, Tanzania, and Uganda, who felt that the deal was rushed and unfair. Marriott clarified that the negotiation timelines were constrained by the imminent UK-EU transition deadline, necessitating a swift resolution. Kenya's unique status as a lower middle-income country underlined the critical need for timely agreement, as it faced potential tariff impositions post-Brexit that its least developed neighbors would not. Marriott exuded confidence in the deal's ratification before the end of December, leaving the door open for other countries to join the framework as they deem fit. The interview also elucidated on the intricacies of transitional mechanisms proposed by EAC countries, confirming that deviations from WTO rules precluded their adoption. Marriott reassured that the UK remains committed to engaging with the wider EAC and reiterated the open-ended nature of the agreement for future expansion. Despite concerns raised regarding the impact of Kenya's solo agreement on EAC unity, Marriott underscored the necessity of the UK-Kenya deal to avoid disruptions in bilateral trade. She expressed hope for broader EAC involvement in the near future, reiterating the UK's support for regional trade initiatives to foster economic growth and cooperation. The UK's longstanding support for the EAC, notably through initiatives like trademark East Africa, underscores its commitment to promoting regional trade facilitation and reducing barriers for enhanced cross-border commerce.