Kenya escalates Tanzania trade war with new tariffs
Wednesday, September 26, 2018 21:08
By GEORGE OMONDI
Kenya is imposing 25 per cent duty on Tanzania’s products like flour which it says are produced from imported wheat. FILE PHOTO | NMG
Nairobi has hit back at Dar es Salaam by imposing new tariffs on Tanzania products like flour after the neighbouring country ignored a deal that granted Kenyan-made chocolate, ice cream, biscuits and sweets unrestricted entry into its market.
This came after Tanzania and Kenya failed to resolve the trade war sparked by use of imported materials in goods made in the countries, setting the stage for a fresh round of the trade war.
Tanzania maintains that it has retained 25 per cent import duty on Kenyan-made confectioneries such as chocolate, ice cream, biscuits and sweets, citing use of imported industrial sugar.
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Tanzania will also continue to levy 25 per cent duty on Kenya’s edible oils as well as the Tembo cement brand produced by Bamburi Cement Factory which it says are made from imported palm and clinker respectively.
Kenya, on the other hand, is imposing 25 per cent duty on Tanzania’s products like flour which it says are produced from imported wheat. The row comes barely a month after the two countries announced an end to all trade disputes.
A team picked by the East African Community to audit Kenyan firms concluded in its report that: “Products manufactured using industrial sugar, when transferred to the EAC qualify for preferential tariff treatment provided they meet the criteria set under the EAC rules of origin 2015, and any other conditions set under the regional customs law.” Acceptance of the certificate — a document showing where a good has originated and is used to determine duty on imported goods — guarantees the entry of Kenyan goods tax-free passage to Uganda and Tanzania.
The EAC common market allows for free movement of locally manufactured goods. Tanzania and Uganda revenue bodies have however accused Kenyan manufacturers of tilting competition in their favour by using imported industrial sugar under a 10 per cent duty remission scheme.
Kenya escalates Tanzania trade war with new tariffs
MY TWO CENTS
This deceitful tendency from Kenya has not started today and it's time for JPM to demonstrate good leadership. Everyone know the industrial contaminated sugar came from Brazil via Somali smugglers syndicate protected by Duale Jubilee Majority Leader of the National Assembly of Kenya and Adan Mohammed Cabinet Secretary for Industrialization and Enterprise Development.
It has to be noticed Parliamentary Committeee following Matiangi's outburst was stopped from investigating this duty free illicit sugar with traces of mercury on fearing the reprocation from Tanzania that had just charged all sugar products from Kenya a 25% tax.
This duty arose from the basis of a decision by GoK that chose to advance unfair advantages to Kenyan manufacturers in comparison to other manufacturers in Tanzania n the region at large while disregarding the EAC's rule of origin.
Now here is what JPM has to do, first since GoK has anticipated this trade row n started preparing for forceit future by protecting her interests in the region.
Take an example of the recent Treasury approval of a mechanism to share revenues btn PW n KQ on routes plied by both is meant to cushion Kenya in case of another flight ban. JPM should pass a law to dilute shares under KQ in PW.
Second, all dairy products from Kenya should be taxed plus beer products just like our flour is being targeted.
I will come up with better ideas to tame the nyang'au greedy now fueled with corruption n trying to disregard EAC rule of origin.
