Tuesday December 19, 2023
Kenya and the European Union on Monday signed an Economic Partnership Agreement (EPA) to boost bilateral trade in goods, increase investment flows, and spur sustainable economic growth.
European Commission President Ursula von der Leyen (2nd L) and Kenyan President William Ruto (1st R) witness the signing of an agreement in Nairobi, capital of Kenya, on Dec. 18, 2023. (Photo by Fred Mutune/Xinhua)
Kenya and the European Union on Monday signed an Economic Partnership Agreement (EPA) to boost bilateral trade in goods, increase investment flows, and spur sustainable economic growth.
The deal, which was inked in Nairobi, the capital of Kenya, will enhance sustainable trade links between both continents and within Africa itself, thereby meeting key objectives for both the EU-Africa relationship and the green transition, the two sides said.
President of the European Commission Ursula von der Leyen said the EPA will fully open the European market for Kenya's products as soon as it enters into force.
"So the door is open, tariff-free, quota-free. The agreement will also contribute to sustainable and fair economic growth, bringing new opportunities for companies, to the benefit of both our people," der Leyen said. "It includes the strongest social and climate commitments of any EU trade deal with an African country."
According to the EU, the EPA provides a platform to support job creation on both sides, along with targeted cooperation to enhance Kenya's economic development.
"It is the most ambitious trade deal ever signed by the EU with a developing country when it comes to sustainability provisions such as climate and environmental protection, labor rights and gender equality," the EU said.
The EU is Kenya's first export destination and second-largest trading partner, with a total of 3.3 billion euros (3.6 billion U.S. dollars) in bilateral trade in 2022, an increase of 27 percent compared to 2018, according to the EU.
Kenyan President William Ruto said that Kenyan exporters will now be able to make long-term plans based on predictable, duty-free and quota-free access to a premium export market.
"The variety of goods traded between the EU and Kenya underscores the potential of this bilateral trade framework to deliver trade and investments of volumes, diversity and promise we can only conclude that although today represents a moment of monumental promise, it is also the beginning of a historic partnership for historic transformation," Ruto said, adding the signing of the EPA deal is also a signal to the world that Kenya is ready to manufacture and export high-value premium products to Europe and to the world at large.
The EPA will also incentivize EU investment in Kenya, thanks to increased legal certainty and stability.
Der Leyen said the agreement is open to the other states of the East African Community, which also includes Tanzania, Uganda, Burundi, Rwanda, South Sudan, Somalia, and the Democratic Republic of the Congo (DRC).
"This makes Kenya a trendsetter, a pioneer. We encourage other Eastern African countries to join this EPA. They can only benefit from the regional integration," she added.
Der Leyen noted that the EPA is the first agreement with a developing country in which the EU's new approach to trade and sustainable development is reflected.
The agreement takes into account Kenya's development needs by providing a longer period to gradually open its market and it also includes a special safeguard for agriculture, food security and infant industry, the EU said.