Kenya’s largest export market, the EU, will be open to duty-free and quota-free access thanks to the Economic Partnership Agreement, while European goods will see progressive tariff reductions.
The pact, which comes after China went on a spending binge on extravagant infrastructure projects around the continent, is the first large-scale trade agreement between the EU and an African country since 2016.
Speaking at a ceremony in Nairobi, the capital of Kenya, European Commission leader Ursula von der Leyen was joined by Kenyan President William Ruto. “Although today represents a moment of monumental promise, it is also the beginning of a historic partnership for historic transformation,” Ruto remarked.
“The core of this arrangement is to put real money into the pockets of ordinary people,” Ruto stated.
After years of discussions that came to a conclusion in June, EU chief negotiator Michael von der Leyen declared that the alliance was a “win-win situation on both sides” and urged additional East African countries to sign on.
“We are deepening trade ties and building up our economic resilience,” she stated.
“We are opening a new chapter in our very strong relationship and now our effort should be focused on implementation,” von der Leyen stated.
Before the agreement takes effect, it needs to be ratified by the parliaments of Kenya and Europe.
The agreement was described as “the most ambitious economic partnership” between the European Union and a developing nation.
According to a statement from the EU, it contains pledges to sustainable growth in areas like environmental protection and labour rights.
“A dedicated chapter has been included on economic and development cooperation, aimed at enhancing the competitiveness of the Kenyan economy,” said the European Union.
According to EU Trade Commissioner Valdis Dombrovskis, the “historic agreement” will open up new avenues for mutual benefit and cooperation.
According to official figures, the 27-nation bloc contributes over 20 percent of Kenya’s total exports, which are mostly agricultural goods like fruits, vegetables, and the nation’s well-known tea and coffee.
According to EU statistics, total two-way trade between the markets reached 3.3 billion euros ($3.6 billion) in 2022, up 27% from the previous year.
