Egypt Awaits Kenya's Response over New Import Tariffs

Egypt is waiting to receive official confirmation from the Kenyan government regarding its abolition of the customs exemption applied under the COMESA agreement and the effective imposition of a 25% tariff on its imports, so that it can take the necessary decisions to avoid potential negative impacts.

Informed sources said in statements that the past days witnessed the Egyptian side addressing its Kenyan counterpart to formally verify the validity of the information received by a number of Egyptian firms about this crisis, noting that according to the Kenyan response, the Minister of Industry will hold a meeting with officials of the export councils, the Federation of Industries and the Business Council to discuss measures to contain the crisis.

The COMESA agreement is the Common Market for Eastern and Southern Africa. Egypt signed it in 1998, and customs exemptions were applied to imports from the rest of the member states as of 1999 on the basis of the principle of reciprocity for goods that accompany the certificate of origin approved by the concerned authorities in each country. .

The latest data issued by the Central Agency for Public Mobilization and Statistics (CAPMAS) indicates that the total value of Egyptian exports to COMESA reached about $2.1 billion in 2019 compared to $1.9 billion a year earlier, an increase of 11.3%.

Hossam Farid, Chairman of the Egyptian Kenyan Business Council said in private statements that the council will draft a detailed memorandum on the extent of the expected impact of the decision once its implementation is confirmed, and the council has also finalized a list of the number of Egyptian enterprises exporting to the Kenyan market in preparation for the scheduled meeting with Ministry of Commerce and Industry.

Farid added that the implementation of the COMESA agreement would contribute to raising the competitiveness of Egyptian products in Kenya and the neighboring markets, vis-à-vis their counterparts from other countries, but in the event of suspension of implementation, this would represent a major challenge for the export sectors.

On his part, Khaled Abu Al-Makarem, Chairman of the Export Council for Chemical Industries and Fertilizers said that the council received complaints from a group of glass exporters concerning the 25% customs duties imposed by the Kenyan customs authorities in contravention of the provisions of the COMESA, pointing out that the council addressed the sectors of trade agreements and commercial representation at the Ministry of Trade and Industry to take the necessary action in this regard.

Abu Al-Makarem continued that Kenya is one of the most strategic trade partners for Egypt in East Africa, and Egypt's gateway to East African markets, noting that the total value of chemical exports to Kenya during the first half of this year amounted to about $82 million, with a growth rate of 9%, year-on-year.

Paper products, plastic and rubber products, detergents, glass, ink, paints, fertilizers, dry cells and batteries, as well as various chemicals are the most important Egyptian exports to the Kenyan market.