Addis Ababa – The recent decision by the United Kingdom to waive the 8 percent tariff on cut flowers for a two-year period, commencing from April 11, 2024, is anticipated to have a significant impact on Ethiopia’s flower export industry, according to Tewodros Zewdie, the Executive Director of the Ethiopian Horticulture Producer Exporters Association.
Under this new arrangement, the tariff on cut flowers will remain suspended until June 30, 2026, thereby facilitating the entry of unlimited quantities of flowers into the UK market at a zero percent tariff rate, irrespective of whether they transit through a third country.
Tewodros expressed optimism about the potential of this decision to bolster Ethiopia’s flower export sector. He emphasized that the removal of the tariff is poised to enhance competition among flower producers in Ethiopia, enabling them to effectively reach their customer base in the UK.
Characterizing the tariff removal as a significant opportunity, Tewodros underscored the importance of maximizing the benefits derived from this favorable trade policy. He urged for enhancements in the support provided to the sector, including improvements in land allocation and administrative assistance, to attract greater investment in the horticulture industry.
Ethiopia currently ranks as the second largest cut flower producer in Africa, accounting for 23 percent of Sub-Saharan African exports in this sector. In 2023 alone, the trade value of cut flowers exported from Ethiopia to the UK amounted to 12.6 million Euros.
The elimination of the 8 percent duty on cut flowers represents a major victory for key flower-producing countries such as Ethiopia, Kenya, Rwanda, Tanzania, and Uganda. This move is expected to foster growth and competitiveness within the global flower trade, opening up new avenues for market expansion and economic development in these nations.
