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Tanzanian horticultural exporters worry over Brexit

Xinhua, July 18, 2016 Adjust font size:

Exporters of horticultural products in Tanzania said on Sunday they were worried over the impact of Britain's exit from the European Union (EU).

Jacqueline Mkindi, the Executive Director of the Tanzania Horticultural Association (TAHA), said supermarket chains in Britain were among the major markets for horticultural products from Tanzania.

She said: "It is true if things do not stabilize in EU and UK, we are going to be affected."

Last year, Tanzania exported horticultural products, including flowers, vegetables and fruits worth 547 million U.S. dollars, 90 percent of which was sent to the EU market, including Britain.

"Our avocado is sold mainly to the UK. But should the pound sterling go down against the euro and U.S. dollar, our exports will go down and income will go down. We are still crossing our fingers," said Mkindi.

She said the flower market would be much affected by any instability in the EU and UK over Britain's exit from the EU as was the case during the world economic crunch of 2008/2009 because flowers were considered a luxury item.

Mkindi said although there were no indications of immediate adverse effects of Britain's pull out from the EU, they were still analysing the situation carefully because things will not be the same when UK was part of the huge market.

Tanzania's refusal to sign the Economic Partnership Agreement (EPA) over national interests could also affect the flower market.

The move will adversely hit the horticultural industry in Kenya, particularly the flower sector.

Tanzania alongside with Uganda have announced they were prepared to delay the signing of the EPA which was to take place in Nairobi on Monday on the sidelines of the UN Conference on Trade and Development.

The move by the two East African Community (EAC) member countries could see the bloc fail to beat the October 1 deadline, effectively locking out Kenya from its current preferential access to European markets and subject the exporters to higher tariffs.

Normally the horticultural produce from Kenya, Uganda and Tanzania enjoy preferential terms, exempting them from paying taxes to access the EU market. This makes the produce more competitive. Endit