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- Jan 20, 2016
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Kenya has defied a recommendation from the East African Community (EAC) secretariat to allow imports of wheat flour from Tanzania.
A report from the EAC Council of Ministers meeting last week indicate that Kenya ignored the technical guidance issued by the secretariat on February 6 calling on Kenya to allow imports of wheat products from Tanzania.
“In that guidance, among other things, they informed partner states that where wheat flour is milled from imported wheat grain in a partner state it qualifies under the EAC Rules of Origin to be accorded Community Tariff Treatment when traded between partner states,” reads a report from EAC.
However, Kenyan wheat millers have long argued that Tanzania imports its wheat products and should therefore not enjoy tax incentives under the East African Community Customs Union rule of origin, which gives preferential treatment to goods produced within the region.
Kenya responded to the EAC guidance by allowing imports of only 40 trucks of wheat flour from Said Salim Bakhresa and Co. Ltd, which has a local subsidiary in Kenya.
Tanzania’s minister of Trade said Kenya had since gone on to hold another 28 trucks of wheat products from Monaban Trading Co. Ltd, Arusha.
“In all these occasions the Republic of Kenya couldn’t provide any written document to justify their actions which go against the EAC Customs Union,” Tanzanian officials said.
A report from the EAC Council of Ministers meeting last week indicate that Kenya ignored the technical guidance issued by the secretariat on February 6 calling on Kenya to allow imports of wheat products from Tanzania.
“In that guidance, among other things, they informed partner states that where wheat flour is milled from imported wheat grain in a partner state it qualifies under the EAC Rules of Origin to be accorded Community Tariff Treatment when traded between partner states,” reads a report from EAC.
However, Kenyan wheat millers have long argued that Tanzania imports its wheat products and should therefore not enjoy tax incentives under the East African Community Customs Union rule of origin, which gives preferential treatment to goods produced within the region.
Kenya responded to the EAC guidance by allowing imports of only 40 trucks of wheat flour from Said Salim Bakhresa and Co. Ltd, which has a local subsidiary in Kenya.
Tanzania’s minister of Trade said Kenya had since gone on to hold another 28 trucks of wheat products from Monaban Trading Co. Ltd, Arusha.
“In all these occasions the Republic of Kenya couldn’t provide any written document to justify their actions which go against the EAC Customs Union,” Tanzanian officials said.
