NAIROBI: The European Union (EU) and Kenya announced a major trade agreement on Monday in a coup for Brussels as it seeks deeper economic relations with Africa in the face of competition from China.
William Ruto, Kenyan President, presided over a ceremony in capital Nairobi to mark the formal conclusion of talks to the EU-Kenya Economic Partnership Agreement.
Once ratified and implemented, Kenya will receive quota-free and duty-free access to the bloc, its biggest market, where it sends hardly one-fifth of all its exports.
Ruto described the deal as a “very important milestone” and hoped it would be entred into force next year.
The Kenya agreement is the culmination of trade negotiations between the EU and the East African Community that began roughly a decade ago.
Imports from the European Union to Kenya, like chemicals and machinery, will receive progressive tariff reductions over twenty-five years, but some sensitive items will be excluded.
Kenyan Trade Minister Moses Kuria said after inking the deal with EU Trade Commissioner Valdis Dombrovskis, that today was a very proud moment for his country, and he also believed it a very proud moment for the EU.
Two-way trade
Two-way trade totalled 3.3 billion euros (3.6 billion dollars) last year, up 27% since 2018, as per EU figures.
Kenya’s main exports to the EU are agricultural products, including fruits, vegetables, and the African country’s famous tea and coffee.
Over 70% of Kenya’s cut flowers are sent to Europe.
Ruto said the farmers in Kenya could be assured of a predictable market and the deal provided new opportunities to expand this trade.
He added that it ensures a stable market for farmers and industrialists in Kenya as well the industrialists in the EU.
