Kenya defends new trade deal with EU

By Helen Nyambura-Mwaura

NAIROBI (Reuters) - Kenya defended on Monday its decision to sign a new trade deal with the European Union that will see the east African nation eventually open its markets to tariff-free products from the rich bloc.

Kenya, as part of the East African Community (EAC), signed in November an interim pact to replace the Cotonou Agreement that governed trade between the EU and some 80 ex-colonies in Africa, the Caribbean and the Pacific (ACP).

That former pact, which allowed preferential terms for ACP countries but was outlawed by the World Trade Organisation, expired on December 31. The countries were negotiating replacement deals known as Economic Partnership Agreements.

ACP exports to Europe that were previously duty- and quota-free would have been forced to pay severe levies in the absence of a fresh deal.

"It is misleading and incorrect to argue that Kenya will not get much in return," said a statement by top trade official, David Nalo, referring to criticisms from Kenyan farmers' groups and anti-poverty campaigners that the government was arm-twisted into initialling the deals.

"The main objective of the framework agreement was to safeguard against trade disruption expected to arise from the lapse of the preferential Cotonou trade regime by December 31 last year," the statement added.

Kenya is a leading exporter of horticultural produce -- especially cut flowers and green beans -- to the EU.

Nalo said the new deal would guarantee continued duty- and quota-free exports to Europe, except for arms and ammunitions, while sugar and rice sales would gradually be liberalised.