The two countries have agreed to allow the importation
and export of wheat flour, milk and cooking gas with Tanzania is expected to
make a decision on when cigarettes from Kenya can be allowed in to their
market.
A communiqué signed by the two nations says
the trade
agreement takes effect immediately.
Kenya and Tanzania have been engaged in trade and
diplomatic tiff for a long time now affecting business between the regional
economic heavyweights.
Two weeks ago, the Ministers of Trade and Foreign Affairs
from the two nations met to end the stand-off which has cost business owners
millions of shillings in losses.
But barely one week ago Tanzania failed to remove a
number of restrictions that existed before the truce, denying Kenyan exporters
entry into the Tanzanian market.
A statement signed by the two states says that the
Tanzanian authorities have given dairy products exporters from Kenyan
un-hindered access into the Tanzania market with immediate effect.
However, manufacturers of cigarettes will have to wait
for two weeks before Tanzania can make a decision on whether they will be
granted duty free access to the Tanzanian market.
On the other hand, Kenya has given wheat exporters from
Tanzania the nod to bring the commodity to Kenya.
Already 26 trucks that were stuck at the Namanga border
have been cleared to enter the Kenya market.
Kenya has also agreed to allow cooking gas from Tanzania
in a deal that is set to lower the prices of the product in the local market.
The two parties have agreed to meet in a fortnight to review the progress of
the agreement.
Source: kbc Kenya