Uganda has received a significant economic boost with the United Kingdom’s decision to grant tariff-free access to its market for cut flower exports. Effective from April 11, 2024, the UK has suspended the Global Tariff (UKGT) on cut flowers for a period of two years, offering a favorable opportunity for Ugandan flower producers to expand their trade.
This suspension of the 8% duty on cut flowers extends not only to Uganda but also benefits other East African nations, including Ethiopia, Kenya, Rwanda, and Tanzania, until June 30, 2026. Previously, Ugandan flower exporters faced challenges due to the imposition of an 8% UKGT when their products transited through third countries or flower auctions in the Netherlands.
The aim of this decision is to promote trade and enhance the economic relationship between the UK and the East African region. By allowing unlimited quantities of flowers from Uganda to enter the UK market without tariffs, consumers in the UK stand to benefit from improved affordability, access to a wider variety of flowers, and reduced seasonal limitations.
John Humphrey, the UK’s Trade Commissioner for Africa, expressed optimism about the positive impact of this move on trade relations, stating, “This additional flower power will allow trade to bloom.” He emphasized the importance of collaboration in fostering economic growth and reiterated the UK’s commitment to supporting trade expansion in East Africa.
In 2023, the value of cut flower trade between the UK and Uganda amounted to £1.1 million, with Rwanda, Tanzania, and Ethiopia also contributing significantly to the market. Kenya, renowned as the fourth largest exporter of cut flowers globally in 2022, plays a vital role in the international flower trade, while Ethiopia stands as the second largest cut flower producer in Africa, accounting for 23% of Sub-Saharan African exports.
Despite the potential of Uganda’s flower industry, the country has experienced a decline in total export values to the UK over the past decade, particularly in agricultural products. From a peak of US$ £42.3 million in 2011, the export value decreased to £13.6 million in 2023. The suspension of tariffs on cut flowers presents a promising opportunity for Uganda to revitalize its export sector and strengthen its trade ties with the UK.
