Fw: TRADE WAR BETWEEN KENYA AND SOUTH AFRICA HAS INTENSIFIED AFTER PRETORIA IMPOSED THE BAN ON THE COUNTRY’S AVOCADOES IMPORTS.

— On Wed, 10/29/08, Leo Odera Omolo wrote:

TRADE WAR BETWEEN KENYA AND SOUTH AFRICA HAS INTENSIFIED AFTER PRETORIA IMPOSED THE BAN ON THE COUNTRY’S AVOCADOES IMPORTS.
Business feature By Leo Odera Omolo

As per a report filed earlier by this writer, the South African government has now officially clamped a total ban on Kenya ‘s avocados exports to its market.

This has prompted players in the Kenyan horticultural industry to ask the government to immediately take a retaliatory action on non-tariff barrier on South African imports in response to the latter’s ban on Kenyan avocados.
South Africa in the past six months, has virtually banned imports of fresh fruits from Kenya , citing fruit fly infestation.

There have been an un successful efforts by Kenya in the past to have the ban lifted, with the Kenya Plant Health Inspectorate Services (KEPHIS) pleading for Kenya fruits in vain. This is an internationally recognized body charged with the responsibility of serving as a certifying agency, serving South Africa with documents detailing tests carried out that gave the fruits a clean bill of health.

Fresh Produce Exports Association of Kenya chief executive officer (CEO) Stephen Mbithi was recently quoted by the Nairobi’s popular weekly, the EASTAFRICAN as saying that, although South Africa has finally responded to inquiries on why the ban was still on and asked for “further technical details,- – the ban should be lifted because it is illegal and against the World Trade Organization’s{WTO} Sanitary and Phyatosanitary agreement .

Kephis managing director Dr.Chagema Kedero was also quoted by the same media as saying that the institution was currently busy sampling the information wanted by South African authorities and was hopeful that the interrupted trade would be restored soon.

The KEPHIS boss added that Kenya joined the organization for economic cooperation and development fruit and vegetable scheme, which sets out standards in international trade, and of which South Africa is a member, a development that is expected to make it easier for the two countries to resolve the problem amicably, Dr.Mbithi said if the ban is not lifted then Kenya must with immediate effect ban imports of fruit pulp and fresh fruits from South Africa in retaliation.

His sentiments had been echoed by Mr.Matanda Wabulye, the CEO of the Kenya export Promotion Council, who was also quoted by the same media house as saying “we see this ban as a constraint on trade with South Africa – – South Africa banned Kenyan avocados from its markets in April this year saying they could spread fruit flies, but market players discounted this angle of argument, saying it was a lame excuse because, although the flies are a common pest across Africa there was no infestation in the region as cited by the South African Authorities.

Kenya is South Africa largest trading partner in East Africa with the economic survey of 2008 showing there was a fast growing trade between the two economic power houses of the region of the Eastern and Southern African regions.

Last year export to South Africa was worth kshs 2.3 billion against South African import worth USD 504 million. If the avocados produce exporters have their way , apples, mangoes, oranges and pears among other common fruits from South Africa that have dominated local retail outlets in the recent past ,could disappear from many towns in Kenya.

Sources at the Trade Ministry in Nairobi say the government is pursuing a diplomatic solution to he simmering trade row and the parties seem to be agreeing.

Avocado is one of the Kenya ‘s emerging horticultural crops that fetches up to kshs 2.3 billion (usd 31.4 million) annually from exports mainly to the European Union (EU)

On an industrial scale , the crop is an important revenue earner for listed agricultural farm,Kakuzi imited based in Thika district.

Kakuzi exports of the Hase avocado variety accounts for an estimated 7 per cent of Kenya ‘s total avocado export to Europe .

However at Kshs 150 million (USD 2.1 million) annually, South Africa market is still considered the single largest export destination for Kenyan avocados outside Europe .

Industry player say that if South Africa had a genuine ease, the EU considered being more stringent in traceability, sanitary and physosanity rules, would have banned the fruit as well.

Kenya is favoured by an equatorial climate that allows it to produce avocado through out the year unlike south Arica , whose productions is seasonal.

The officials say the local horticultural industry has been working closely with the Kenya plant Health inspectorate services personnel to have he said phytosanitary concern addressed.

Despite local producers farning to value addition in the hope of increasing exports recounts snow avocado export to South Africa have fallen by 80 per cent since the ban was affected from last April.

The ban has raised eyebrows as some see it as an illegal way of protecting the South African avocado industry.

Experts say the South Africa government has been known to resort to non- tariff trade barriers before to protect it’s from external competition.

“They are breaking WTO agreement because they are trying to protect their industry by banning imports “said Dr.Mbithi.

The South African government, however many the legally exploiting a provision in international trade laws that allows countries to institute trade barriers in certain circumstances.

“International laws themselves allow countries to protect themselves from hazardous imports that threaten their crops and this is what the South African government has used “said an official of the Kenya Horticultural crops Development Authority Edward Maina. South African like Kenya also a major producer of avocados with most of its exports going to Europe . However avocado industry in that country is seasonal due to the presence of very cold winters leading to low productions.

The production season for the county’s avocados is between March and October while Kenya on the other hand enjoys an equatorial climate and avocado trees in the country produce all year around Mt.Kenya and the North rift region.

Despite the ban, not all of Kenya ‘s avocados exports to South Africa have been affected, since some exporters have started adding value to their avocado experts extracting the oil and exporting it.

Ends

leooderaomolo@yahoo.com

About the author,
Leo Odera Omolo is a veteran Kenyan journalist operating as a freelance writer in the lakeside city of Kisumu and frequents the neighbouring Tanzania and Uganda ,
He can be reached on his cellphones Nos 0722-486181 and 9734-509215 for day and nights
Or his postal address P.O. box 833 , Kisumu-Kenya

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Date: Fri, 7 Nov 2008 02:51:21 -0800 (PST)
From: Leo Odera Omolo
Subject: Fw: TRADE WAR BETWEEN KENYA AND SOUTH AFRICA HAS INTENSIFIED AFTER PRETORIA IMPOSED THE BAN ON THE COUNTRY’S AVOCADOES IMPORTS.

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