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The pact, the first trade agreement between the EU bloc and a developing country, ensures Kenya’s largely agricultural produce such as vegetables, cut flowers, fruits, tea, and coffee continue to enter the bloc duty-and quota-free.
Kenya and the European Union have enforced a trade deal after prolonged negotiations. Both countries are now opening up the domestic market for tax-free goods from the 27-country bloc after 25 years.
EU-Kenya Economic Partnership Agreement (EPA), which preserves unrestricted access of Kenyan goods to the European bloc except for arms, came into force recently, Kenya’s Cabinet Secretary for Investment, Trade and Industry Rebecca Miano announced.
The EU-Kenya EPA is one of the most ambitious agreements negotiated between the European Union and an African country. It seeks to promote economic sustainability. It can serve as a template for other African countries, particularly those in Eastern Africa to adapt, according to analysts.
The agreement includes trade, economic and development cooperation, and a chapter on trade and sustainable development which covers provisions on labour issues, gender equality, forestry and environment, and the fight against climate change.
The pact, the first trade agreement between the EU bloc and a developing country, ensures Kenya’s largely agricultural produce such as vegetables, cut flowers, fruits, tea, and coffee continue to enter the bloc duty-and quota-free.
Nairobi, on the other hand, has committed to gradually lower duty on imports from Europe within 25 years after which trade will be liberalized.
The EPA deal, however, has a protectionist clause, which bars the EU from applying blanket subsidies to agricultural exports to Kenya in the absence of a deepened policy dialogue with Nairobi. This clause is aimed at safeguarding agriculture and food security in Kenya against unfair competition from the EU.
Trade between the two parties favors the EU, which sold goods worth Ksh223.12 billion (USD 1.7 billion) to Kenya while importing Ksh150.08 billion (USD 1.2 billion).
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The enforcement of the EU-Kenya EPA comes after approval from the European Parliament on February 29, paving the way for heads of State and government to complete the ratification process.
