The United Kingdom’s decision to temporarily suspend the 8% Global cut flower tariff marks a significant development for Kenya’s floriculture sector. Announced by the British High Commission, this two-year elimination of the UK Global Tariff (UKGT), effective from April 11, 2024, to June 30, 2026, promises zero tariffs on unlimited quantities of flowers, even those transiting through third countries. This policy adjustment aims to streamline trade and reduce costs for East African growers and others worldwide.
Previously subjected to an 8% tariff when transiting through third nations, flower exports can now reach the UK market under more favorable economic terms. This suspension stands to benefit major flower-producing regions, notably Kenya, Ethiopia, Rwanda, Tanzania, and Uganda, enhancing their competitive edge in the global floriculture market. Kenya, ranking as the fourth largest global cut-flower exporter, and Ethiopia, commanding a 23% share of Sub-Saharan African exports, are poised to experience substantial growth.
John Humphrey, the King’s Trade Commissioner for Africa, expressed enthusiasm about the tariff removal, emphasizing the synergistic potential of such trade initiatives. He stated, “This additional flower power will allow trade to bloom. We go far when we go together…or in this case, we grow far when we grow together, further reinforcing the UK’s commitment to the expansion of trade in East Africa.”
This initiative is aligned with the UK-Kenya Economic Partnership Agreement activated in March 2021, which has already facilitated over Sh1.5 billion in annual savings for Kenyan exporters on products like green beans and flowers.
Reflecting on burgeoning trade relations, recent data reveal an 11.1% increase in trade volume between the UK and Kenya, totaling £1.4 billion (Sh228 billion) for the year ending Q3 2023. Specifically, UK imports from Kenya, prominently from the agricultural sector, observed a 15.1% rise, illustrating a strengthening economic bond.
This suspension of the UKGT not only solidifies the UK’s commitment to fostering robust trade relationships with East Africa but also signals a promising horizon for Kenya’s floriculture industry, enhancing its global stature and economic vitality.
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