Row with Kenya over 100 percent hike in duty on Pakistani rice has been resolved after threats of retaliatory action by Pakistan. An official statement issued by the commerce ministry on Tuesday says that the Kenyan High Commission has informed the government that Kenya has waived Common External Tariff (CET) on Pakistani rice, which had stockpiled at the Mombassa port in Kenya. Due to imposition of CET at 75 percent from January 1, 350 containers with consignments of Pakistani rice were held up at Kenyan ports.

Now Pakistani rice arriving or held at the Mombassa port will be cleared at the pre-CET rate of 35 percent between now and March 15, 2005, the statement added.

The Kenyan government has also waived customs duty on warehouse rent for rice and other goods, which were held at the port awaiting clearance.

The Kenyan government is additionally continuing its dialogue with the commerce ministry for a long-term solution of the CET on rice and other products.

A letter issued by the Kenyan High Commission stated that a formal representation will be made to the East African Community (EAC) secretariat for discussion by a special session of the EAC Council of Ministers on the need to review the rate of rice.

Copyright Business Recorder, 2005