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that seeks to check producer behaviour in such areas as pricing, horizontal and vertical arrangements like cartelization, and output restrictions. The Monopolies and Prices Commission is responsible for implementing the law. The envisaged agreement will simply reinforce what already exists.There are other operational agreements whose implementation should be closely observed, given their bearing on Kenya's economy. Such areas include agreements on agriculture, trade related investment measures (TRIMS), and sanitary and phytosanitary measures (SPS).AgricultureThe Agreement on Agriculture is important since it is in this sector that Kenya has a comparative advantage. The extent to which EU has compensated its farmers for price fluctuations raises cause for concern. It is true that some subsidies are allowed that should be phased out over a given time period. However, the sheer size of the compensation which amounts to S£12 billion in the previous four years, and the fact that the level of compensation has increased in each subsequent year raises questions as to the commitment of EU in eliminating its farm subsidies11. Heavily subsidized products include wheat, beef, dairy products and sugar. Market access opportunities for agricultural-based products, which should result from changes in policies relating to export compensation and domestic support, are likely to be nullified if the subsidies are not phased out in the transition period. Kenya's potential for export growth lies in the agricultural sector. With the advent of trade liberalization, Kenyan farmers have been faced with increasing competition from imported farm produce that offers unfair price advantage to locally processed products. It is probably this factor that led to the ban on importation of milk and milk products in 1996.Sanitary and phytosanitary measures36
Under the Agreement on Sanitary and Phytosanitary Measures, members are allowed to take action necessary to protect human, animal and plant life or health in conformity with the provisions of the act. Recent developments indicate that members are only willing to comply to the letter of the agreement when it does not compromise their national interests. In January 1998, The European Union banned the importation of fresh fish and fish products from Kenya, Uganda, Tanzania and Mozambique ostensibly to safeguard EU consumers from the risk of cholera. Though lifted in July 1998, this action was taken without regard to the disciplines of the agreement, which provides that if a member is to apply sanitary and phytosanitary measures, it has to prove scientifically that the product in question poses a real threat to the health of consumers. Guidelines are provided that require that the assessment of the risk is done on the basis of techniques developed by relevant international organizations. This is to ensure that such action is not based merely on fears or conjecture but that there is sufficient scientific evidence. Even after the risk