Parliament is today expected to ratify the Economic Partnership Agreement with the European Union to help shield the country from heavy taxes on exports to the EU from October 1.
Two special seatings are expected to be held in the national assembly chamber at 9.30am and 2.30 pm.
Top of the agenda is the consideration of the proposal to ratify the EPA between Kenya/EAC and the European Union, which will help to convince the EU not to impose taxes on Kenya’s exports from next month.
Ratification of the EPA, is Kenya's way of showing its commitment to the agreement, Industry, Trade and Cooperatives PS Chris Kiptoo said yesterday.
“Kenya is doing its part as required by the agreement,” Kiptoo told the Star.
A memorandum to the national assembly from the Trade ministry, seen by the Star has urged parliament to fasttrack ratification of the agreement.
This will allow Kenya to notify the EU Council before September 30, the deadline that Kenya needs to meet to avoid trade disruption in the EU market.
“Given the fast-approaching deadline of October 1, 2016 the parliament needs to ratify the EPA by September 20, 2016…This is the only option that Kenya has in order to save over Sh125billion EU export market, which has potential to be lost overnight if the ratification is not notified to the EU by 30thSeptember 2016,” the memorandum reads in part.
Other negative ramifications to the economy that need to be avoided, the memorandum says, is threat of about four million people directly or indirectly working with companies or ventures that are exporting to the EU, losing their livelihoods.
“Further, investments worth over Sh2 billion in floriculture, horticulture, agro-processed products, fisheries, among others is also at stake, come October 1, 2016,” it reads.
The agreement gives the EAC duty free, quota free market access to the EU.
The region has failed to sign the EPA collectively before this month’s deadline, where only Kenya and Rwanda have signed.
Tanzania, Burundi and Uganda refused to sign at the recent Heads of State Summit in Dar es Salaam (September 8) where the EPA talks were pushed to January 2017.
“Kenya cannot move alone we have to wait for the rest,” Kiptoo said.
Kenya (the bloc’s only developing state) will be placed under the General System Preference trade regime from October 1, where goods are charged a duty of between five per cent and 22 per cent on her exports to the EU.
The rest will continue accessing the EU market under the “Everything But Arms” regime.