Egypt seeks end to trade dispute

Egyptian diplomatic officials have said they are working to settle Egypt's three-week trade dispute with Kenya, the 'East African Standard' reported on Tuesday. "I am working closely with [Minister for Trade and Industry] Nicholas Biwott, and some of the problems affecting both sides will be sorted out," the 'Standard' quoted the Egyptian ambassador to Kenya, Refaat Al-Ansary, as saying. Al-Ansary added that negotiations to resolve the dispute were taking place through diplomatic channels. "It is my hope this will not take long", he said.

The current trade dispute began when a large consignment of Kenyan tea was blocked at Egypt's Port Said after the north African country insisted on charging a 33 percent duty. According to traders, the move was in retaliation for the Kenyan government's refusal to allow imports of Egyptian paper sacks into Kenya duty free. Both countries are members of the Common Market for Eastern and Southern Africa (COMESA) trade bloc, and have signed a COMESA free trade agreement.

Kenyan tea exports - the country's highest source of foreign exchange - have also been hit hard by US efforts to combat terrorism in Central Asia. Pakistan is the largest buyer of Kenyan tea, with some 70 million kg bought each year, followed by the United Kingdom and Egypt, while Afghanistan is fourth, with 24 million kg each year.