UK Implements Temporary Suspension of Export Tariffs for East African Flower Producers

In a significant development for the floral industry, the United Kingdom has decided to temporarily remove export tariffs for cut flowers, effective from Thursday, April 11. This decision comes as part of the UK’s efforts to streamline trade processes and reduce costs for flower growers in East Africa and other regions.

Under this new measure, cut flowers can now be exported to the UK with zero tariffs, even if they pass through a third country during transit. This adjustment is particularly beneficial for flower producers in East Africa, who often rely on transit routes through intermediary countries or auction houses before reaching the UK market. By removing these tariffs, the UK aims to facilitate smoother trade relations and strengthen economic ties with East Africa.

The removal of the 8% duty on cut flowers is not limited to East Africa but extends globally. However, it represents a significant opportunity for major flower-producing regions like Kenya, Ethiopia, Rwanda, Tanzania, and Uganda. This suspension of tariffs will remain in place for a period of two years, spanning from April 11, 2024, to June 30, 2026.

John Humphrey, His Majesty’s Trade Commissioner for Africa, expressed optimism about the potential of this measure to enhance trade between the UK and East Africa. He emphasized the mutual benefits of trade cooperation and highlighted the UK’s commitment to fostering growth in the region’s economies through expanded trade relations.

This decision is expected to have far-reaching implications, not only for flower producers but also for consumers in the UK. With the removal of tariffs, consumers may enjoy the prospect of lower prices, greater availability of flowers throughout the year, and a wider selection of floral varieties.

The significance of this move is underscored by the importance of the floral industry to the economies of East African countries. In 2022, Kenya was ranked as the fourth largest exporter of cut flowers globally, accounting for 6% of total cut flower exports. Similarly, Ethiopia emerged as the second-largest producer of cut flowers in Africa, contributing 23% of Sub-Saharan African exports in this category.

Looking at trade figures from 2023, the value of cut flower exports from Ethiopia to the UK alone amounted to £12.6 million. Rwanda, Tanzania, and Uganda also recorded substantial export values, with figures standing at £727,000, £839,000, and £1.1 million, respectively.

As the floral trade landscape undergoes these changes, stakeholders across the industry will be closely watching to assess the impact of the tariff suspension on market dynamics, supply chains, and economic outcomes for both producers and consumers.

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