Kenya's major flower exporters have appealed to the government to appoint a team to negotiate at the new rounds of the Lomé trade talks.
The industry stakeholders warned that Kenya risks losing its European cut flower market to Uganda and Tanzania if the Kenyan team fail to lobby against imposition of duty on its cut flowers as prescribed in the Lome V trade terms.
Erastus Mureithi, chief executive of Suera Flowers, said the objective was to consult stakeholders on how to strengthen direct access to the processes towards a framework of African, Caribbean and Pacific countries.
'This team is to hold formal consultations on the request for tariff waiver under the Lome-V' said Mureithi. 'What is at stake is that Kenya may lose its current status as least developed country once the Lome V becomes effective.' The negotiations are a major shift in the EU's trade policy towards developing countries. Uganda and Tanzania are categorised as least developed countries and their exports to the EU will be duty free even after Lome V comes into effect.
In such a scenario, Kenya will relinquish its preferential trade terms to access the $80 billion European market in 2008. Its goods and services will be subject to tariff, while Kenyan exports would be restricted to a quota system.
'This is a tricky situation. The government should quickly form a committee of professionals to negotiate the new trade pact,' said Mureithi.
