Tanzanian officials have put off a
meeting intended to iron out outstanding trade disputes with Kenya amid
concerns Dar es Salaam was maintaining a hardline stance in the spat.
Representatives
of the two countries, including officials from cross-border trade
agencies, were expected to meet from tomorrow in Tanzania, according to
an agreement reached on August 3.
But Kenya’s
principal secretary for trade Chris Kiptoo, who was also scheduled to
meet his Tanzania counterpart Adolf Mkenda on Friday, said the meeting
was off following a note from Tanzania postponing the meeting.
“I
have just seen the note asking for a postponement to 9th September. We
would review it and communicate the outcome. My technical team was ready
including the private sector to begin these negotiations which had
started on a positive note,” Mr Kiptoo said.
The
two trade bosses led a meeting in Namanga where both countries agreed
to lift some of the trade restrictions, including the one that barred
milk and milk products from Kenya from entering Tanzania and the
restrictions on wheat from Tanzania.
The agreement
resolved to allow some 26 trucks ferrying wheat from Tanzania that were
stopped at the border to be allowed entry into Kenya and opened borders
for Kenyan milk and milk products some of which had expired over the
standoff, leading to unquantified losses.
The Namanga agreement failed to reach a deal on a
number of issues raised by Kenya, including a higher tax on cigarettes
from Kenya which are treated like products coming outside the East
African Community.
Tanzania cited domestic legislation
when it hit Kenya cigarettes with an excise tax of 75 per cent, pricing
them out of the market.
“The United Republic of
Tanzania will develop an action plan to address the issue and
communicate the framework for the implementation to the Republic of
Kenya during the next bilateral meeting,” read the agreement signed by
both officials.
Kenyan Tobacco manufacturers said the prohibitory taxation was in breach of East African Community laws.
The
protocol treats all goods originating from partner states as community
goods, hence tradable under the Community preferential tariff treatment.
Kenya and Tanzania have had long trade squabbles
across their borders that received the attention of both President Uhuru
Kenyatta and Tanzania’s John Magufuli.
A trade truce
signed between Foreign Affairs cabinet Secretary Amina Mohamed and her
Tanzanian counterpart Augustine Mahinga was not followed to the letter
as Kenyan products still experienced various barriers forcing Mr Kiptoo
to travel to Namanga for the August 3rd meeting.
Kenya’s
exports to Tanzania dropped 34 per cent in the first five months of the
year to Sh4.35 billion raising concerns over negative impacts of the
long running trade standoff.
Tanzania has been Kenya’s
second largest market in the region after Uganda, providing sale outlet
for a range of products that include palm oil, soap, medical drugs,
cooking fats, iron sheets, sugar confectionery, and margarine.
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