Published
KENYA- The European Union and Kenya have announced the enforcement of the EU-Kenya Economic Partnership Agreement (EPA), the first trade agreement between the bloc and a developing country.
The EPA will preserve unrestricted access to Kenyan goods in the European market. According to an official statement from the Kenyan government, the agreement will encourage cooperation in commerce as well as development.
The pact will ensure a steady supply of horticultural products, tea, coffee, and other agricultural produce for the European bloc. Under the terms of the agreement, Kenya will gradually open up its market for duty-free goods from the block after 25 years.
Kenya’s Cabinet Secretary for Investment, Trade and Industry Rebecca Miano said, “The EU-Kenya EPA is one of the most ambitious agreements negotiated between the European Union and an African country in terms of promoting economic sustainability. It can serve as a template for other African countries, particularly those in Eastern Africa to adapt.”
The EU lauded the move, reiterating that it provides beneficial opportunities for the signatories.
The EU said in a statement, “The agreement will boost bilateral trade in goods, increase investment flows, strengthen the ties between reliable partners, and facilitate mutually advantageous economic relations in a sustainable manner, stimulating job creation and economic growth.”
According to both signatories, the pact underpins Kenya’s potential as a preferred investment destination in Africa. Kenya has also committed to providing specific incentives to EU members to invest in the Kenyan market.
However, Kenya negotiated important trade protections in the agreement. The EPA prohibits the EU from imposing blanket subsidies to agricultural exports to Kenya unless the signatories engage in a comprehensive policy dialogue. This clause will protect the local agricultural sector from cheap European goods flooding the market.
Market analysts predict the pact will favor the EU, which exported goods worth KES 223.12 billion (US$1.7 billion to Kenya) in 2023 while importing goods worth KES 150.8 billion (US$1.2 billion).
The pact’s enforcement comes after a formal approval from EU’s parliament on February 29 after close to a decade of negotiations. The current version of the agreement is a modified version of the EU-East African Community (EU-EAC) pact first developed in 2014.
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