Kenyan flower producers have received a major boost following a landmark move by the United Kingdom (UK) to remove export tariffs for cut flowers from countries around the world to the UK.
The British High Commission in a statement on April 11, 2024, announced that flower exports from East Africa and other regions are set to be temporarily exported to the UK tariff-free effective immediately.
This duty suspension will remain in place for two years from April 11, 2024, to 30 June 2026.
According to the commission, the suspension of the Global Tariff for the commodity is aimed at increasing trade and providing better value for consumers.
“From today, the UK has temporarily removed export tariffs for cut flowers, with the aim of making trade with the UK easier and cheaper for growers in East Africa and beyond,” read part of the statement.
The Commission further revealed that the same would apply to all flowers being exported to the UK even if they transit via a third country.
Tariff suspension
At the same time, it will also allow unlimited quantities of the product transiting through auctions in the Netherlands where previously an 8% UK Global Tax would apply to enter into the country.
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UK’s Trade Commissioner for Africa John Humphrey said that the move aims to increase trade and further strengthen the economic relationship between the UK and the East Africa region.
“The UK’s relationship with East Africa is rooted in mutually beneficial trade. This additional flower power will allow trade to bloom. We go far when we go together… or in this case, we grow far when we grow together, further reinforcing the UK’s commitment to the expansion of trade in East Africa. UK consumers could win big too – on price, seasonality and variety,” said Humphrey.
Win for East Africa Flower Growers
The suspension of the 8% duty for the commodity applies across the world but will be a big win for major flower-growing regions in Kenya, Ethiopia, Rwanda, Tanzania, and Uganda, according to the commission.
This is particularly important for East Africans growing the perishable commodity who the Commission says transport their blooms via third-countries or auction houses before they arrive in the UK.
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According to statistics, Kenya was ranked as the fourth biggest exporter of cut-flowers in the world in 2022, accounting for 6% of global cut-flower exports.
Ethiopia is the second largest producer of the product in Africa, making up 23% of Sub-Saharan African exports.
Additionally, the value of trade in cut flowers between the UK from various countries in 2023 was valued at £12.6m for Ethiopia, Rwanda at £727,000 (Ksh118,711,743), Tanzania at £839,000 (Ksh136,996,719), and Uganda at £1.1m (Ksh179,625,160).
A tariff is a tax imposed by one country on the goods and services imported from another country to influence it, raise revenues, or protect competitive advantages.
Tariffs are used to restrict imports, in turn increasing the price of goods and services purchased from another country, making them less attractive to domestic consumers.
