NAIROBI – The Kenya-European Union Economic Partnership Agreement will liberalise trade, offering tariff-free quota-free access to the huge EU market for our exports, President William Ruto has said.
Following the signing of the declaration of intent on Monday at State House Nairobi, the two sides in a joint statement said the agreement will boost trade in goods and create new economic opportunities, with targeted cooperation to enhance Kenya’s economic development.
“It is 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,” the statement said.
Speaking at the function, President Ruto said, “The EU – Kenya Economic Partnership Agreement also anchors a framework which enables us to direct our strategic focus towards tackling climate change, and further commits the parties to take active measures to promote sustainable trade.”
The negotiations, the statement said, were concluded during an official ceremony in Nairobi by European Commission Executive Vice-President and Commissioner for Trade Valdis Dombrovskis and Kenya’s Ministry of Investments, Trade and Industry Cabinet Secretary Moses Kuria, in the presence of President Ruto.
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The EU is Kenya’s first export destination and second largest trading partner, totalling €3.3 billion 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, and it will incentivise EU investment to Kenya thanks to increased legal certainty and stability.
Dombrovskis observed that there is a huge trade potential in Kenya.
“This agreement is a strong incentive for increased trade and foreign direct incentives. It will support sustainable economic growth,” Dombrovskis said.
He said the EU remains steadfast in promoting regional integration.
“We will ensure that we break economic and political barriers to integrate the world more.”
EU Chief Negotiator Dora Correia and her Kenyan counterpart, who is also Trade Principal Secretary, Alfred K’Ombudo are credited for meeting the timelines, which President Ruto noted would otherwise have taken years to conclude.
The next stage will be legal revision (“legal scrubbing”) , from where the agreement will 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.
President Ruto said he hopes the deal will be operationalised by the end of the year.
The Economic Partnership Agreement between the EU and Kenya aims at implementing the provisions the EU-East African Community EPA, and it will be open for other EAC countries to join in the future.
Other EAC bolted out at the 21st Ordinary Summit in February 2021, when it was noted that not all partner states were in a position to sign, ratify and implement the EPA agreement but recognised the importance of some partner states to move forward.
Kenya and Rwanda had signed the deal but it could not be operationalised without all the EAC members’ signatures and so Kenya sought a framework to proceed bilaterally.
The EPA was a sticky issue during the 20th Heads of State Summit in Arusha on February 1, 2019, with Tanzania insisting that it must be allowed more time to send experts to EU headquarters in Brussels to present its grievances.
Tanzania, for instance, argued that the agreement would have serious consequences on its revenues and the growth of its industries.
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