By Silas Apollo
Kenya has signed a partnership with the European Union (EU) to enhance trade in goods and create new economic opportunities.
The negotiations for an Economic Partnership Agreement (EPA), were concluded today during an official ceremony held in Nairobi by EU Executive Vice-President and Commissioner for Trade Valdis Dombrovskis and cabinet secretary for trade and investments Moses Kuria, in the presence of President William Samoei Ruto.
EPA is poised to be the most ambitious EU trade deal with a developing country when it comes to sustainability provisions such as climate and environmental protection and labour rights.
“This is a balanced agreement, taking into account Kenya’s development needs by allowing it a longer period to gradually open its market, safeguards for agriculture, and protection of its developing industry,” EU said in a statement released after the signing of the agreement.
“A dedicated chapter has been included on economic and development cooperation, aimed at enhancing the competitiveness of the Kenyan economy.”
Once ratified, the agreement will see Kenyan exports enjoy duty and quota free market access to the EU as well as secure a market for Kenyan farmers and boost their income potential.
The EU will also encourage the private sector to invest in Kenya to help stimulate job creation in the manufacturing sector, in industries such as chemicals, steel, pharmaceuticals, machinery and other related products.
The partnership is set to help champion the implementation of the provisions of the EU-East African Community (EAC) EPA, and will be open for other EAC countries to join in the future.
“Together with EU development assistance, this will help build capacity and assist Kenya in implementing the EPA smoothly, while supporting local farmers in meeting EU standards and in reaping the opportunities this agreement provides,” it added.
The deal comes at a moment when the EU has over the last couple of months become Kenya’s first export destination and second largest trading partner, totaling Shs 503.37 billion (€3.3 bn) of trade in 2022 – an increase of 27% compared to 2018.
The EPA will create even more opportunities for Kenyan businesses and exporters, as it will at once fully open the EU market for Kenyan products, while incentivising EU investment to Kenya thanks to increased legal certainty and stability.
Kenya has a pioneering role in sustainability efforts on the African continent and is a reliable ally in the fight against climate change. It co-leads the Coalition of Trade Ministers on Climate initiative launched earlier this year, together with the EU, Ecuador and New Zealand.
The EU-Kenya EPA builds on this strong track record and is the first agreement with a developing country in which the EU’s new approach to trade and sustainable development is reflected.
The deal contains strong trade and sustainability commitments, including binding provisions on labour matters, gender equality, environment and the fight against climate change.
The EPA is now expected to go through legal revision and scrubbing and then be translated before the Commission submits it for signature and conclusion to the Council.
Once adopted by the Council, the EU and Kenya can sign the agreement. Following the signature, the text will be transmitted to the European Parliament for consent.
The parties may then decide to provisionally apply parts of the agreement, the agreement enters fully into force once Kenya and the EU member states also ratify it.
