After ten years of negotiations, Kenya and the European Union have implemented a trade agreement, enabling the entry of tax-free goods from the 27-country bloc into the Kenyan market for a period extending to 25 years. The EU-Kenya Economic Partnership Agreement (EPA) was activated on Monday, as announced by Rebecca Miano, Kenya's Cabinet Secretary for Investment, Trade, and Industry. This agreement, excluding arms, offers Kenyan goods, including agricultural produce like vegetables, cut flowers, fruits, tea, and coffee, continued duty-and quota-free access to the EU.
Ms Miano: "The EU-Kenya EPA is one of the most ambitious agreements negotiated between the European Union and an African country in terms of promoting economic sustainability. It can serve as a template for other African countries, particularly those in Eastern Africa to adapt." The deal encompasses trade, economic, and development cooperation, featuring a chapter on trade and sustainable development addressing labour issues, gender equality, and environmental concerns.
In exchange, Kenya will gradually reduce duties on European imports over a 25-year period, leading to a liberalized trade environment for European machinery, mineral, and chemical products, alongside incentivized EU investments. A protective clause within the agreement prevents the EU from imposing blanket subsidies on agricultural exports to Kenya, aimed at safeguarding Kenyan agriculture and food security.
The agreement marks a significant milestone, being the first of its kind between the EU and a developing country, and follows the European Parliament's approval on February 29. It reflects modifications from the previously stalled EU-East African Community pact, incorporating additional clauses on climate change. The ratification by Kenyan lawmakers enables the enforcement of this agreement, distinguishing Kenya's position from its East African Community counterparts due to its lower middle-income status and the strategic economic partnership with the EU.
Source: businessdailyafrica.com