💥 Fed cuts sparks mid cap boom! ProPicks AI scores with 4 stocks +23% each. Get October’s update first.Pick Stocks with AI

INTERVIEW-Kenya flower sales no reason for EU pact-campaigner

Published 06/29/2009, 11:22 AM
Updated 06/29/2009, 11:34 AM

* Kenya should not allow itself to be pressured into signing

* EPA trade deals divide Africa further

* Help small-scale farmers develop irrigation systems

By Helen Nyambura-Mwaura

NAIROBI, June 29 (Reuters) - Kenya should not allow Europe to use the issue of flower exports to arm-twist it into signing a new trade agreement, a campaigner said on Monday.

Kenya is the biggest exporter of cut flowers to the European Union. The proceeds -- nearly $1 billion last year -- are one of the top sources of hard currency earnings for east Africa's largest economy.

Kenya, and other poor countries in Africa, the Caribbean and Pacific (ACP), have been asked to sign the Economic Partnership Agreements (EPAs) to replace preferential trade arrangements made redundant by the World Trade Organisation.

"One of the strongest arguments used for pushing EPAs has been flower farms," said Eric Mgendi, ActionAid's communication coordinator for Africa.

ACP countries had until the end of 2007 to sign EPAs, or risk having European trade interrupted. Negotiating as a bloc, the five-member East African Community to which Kenya belongs, struck an interim pact to protect the export-based economies.

Kenyan President Mwai Kibaki said in March that a final deal would be concluded in July.

The partnership agreement offers EAC exports, except for rice and sugar, duty- and quota-free access to European markets in return for more open entry of European goods and services.

FLOWERS JUST BAIT

But Mgendi said Kenya does not have to sign a deal because of the threat its horticulture exports will be disrupted.

"They are just using that as a bait. If the EU wants flowers, whether we have signed the agreement or not, they will come and buy the flowers," he said.

Kenya's horticulture exports, which also include vegetable and fruit sales, raked in 73.7 billion shillings, or about $923.5 million, in 2008, up from 57.2 billion shillings in 2007.

Kenyan flowers are much cheaper to produce than in Europe but some consumers have been reluctant to buy produce flown from other parts of the globe because of concerns about global warming.

"Kenya should not have been cowed into ratifying. The government's own research ... says, in terms of weighing the cost benefit analysis of EPAs, we are going to lose more."

The ACP represents some 300 million people and includes some of the world's least developed nations. They have struggled to maintain a united front in the face of pressure from Brussels.

"The biggest disadvantage of signing EPAs is that it disintegrates us with other African countries further because they divided us into blocs and each bloc is being given a concession," Mgendi said.

Mgendi said Kenya should instead focus on improving irrigation and small scale horticultural production. Some 70 percent of exports are by big scale producers, Mgendi said. In the 1970s, only about a third were from large-scale growers.

"If you want to reduce poverty, you have to support small scale farmers to participate and benefit from that kind or trade, not just a few individuals. That will promote equity." (Editing by David Clarke)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.