From Lome IV to Cotonou

From Lome IV to Cotonou

Managing the transition out of preferential trading status

Looks at the options open to Kenya after the withdrawal of Lome privileges. They are:

  • regional partnerships, particularly with Tanzania and Uganda who retain Lome preferences
  • a bilateral trade arrangement with the EU, the worst option for Kenya particularly the manufacturing industry
  • to seek benefits from the EU under a generalised system of preferences (GSP) however this would not be specific to Kenya and could see Kenya's competitive position deteriorate

Kenya must address the supply side constraints that have hindered the development of manufacturing ability which will be essential in the post-Lome era.

To take advantage of all opportunities in the transition out of Lome Kenya must:

  • rehabilitate and expand infrastructure
  • increase private sector involvement in consultations and negotiations with the EU
  • improve ethical considerations in trade and manufacturing
  • develop diplomatic astuteness and greater understanding of national interests in negotiation situations
  • support the steering committee that will guide the country through the transition period
  • deregulate industries, not least to comply with the WTO regime

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