(3 minutes read)
Kenya and the European Union signed a trade agreement recently at a ceremony in Nairobi. It is the first major deal of the EU since 2016 with an African country. Brussels is seeking to forge closer economic ties with the continent to counter growing Chinese influence in the region.
Kenya and the European Union signed a trade agreement recently at a ceremony in Nairobi. It is the first major deal of the EU since 2016 with an African country. Brussels is seeking to forge closer economic ties with the continent to counter growing Chinese influence in the region.
Kenyan President William Ruto presided over a ceremony in Nairobi to mark the formal conclusion of negotiations for the EU-Kenya Economic Partnership Agreement. Once ratified and entered into force, Kenya will receive duty-free and quota-free access to the EU. The EU is Kenya’s biggest market where it sends roughly one-fifth of all its exports. Imports from the EU to Kenya such as chemicals and machinery will receive progressive tariff reductions over a period of 25 years. But some sensitive chemical products will be excluded.
Kenya’s main exports to the EU are agricultural products, including vegetables, fruits, tea, and coffee. More than 70% of Kenya’s cut flowers are destined for Europe. Ruto said the EU was the second most important development partner for Kenya after the World Bank. The deal would help the country’s farmers since they can be assured of a predictable price for their products. EU companies had invested 1 billion euros (US$1.1bn) in Kenya in the past decade. There is a huge potential for upping investments by EU countries.
Read Also:
https://trendsnafrica.com/kenya-tanga-ports-expansion-to-bring-down-transaction-cost/
https://trendsnafrica.com/kenya-to-select-lead-managers-for-eurobond-shortly/
https://trendsnafrica.com/kenya-announces-new-credit-scheme-for-vulnerable-groups/
The EU has already mobilized €3.4 billion to support over one hundred and fifty projects in the country, including renewable energy, electric car mobility, and a sustainable agricultural value chain. A further €500 million has been mobilized to support connectivity for jobs and skills as well as digital governance.
