Kenya and the European Union on Monday signed a long-negotiated commerce settlement to extend the stream of products between the 2 markets, as Brussels pursues stronger financial ties with Africa.
The Economic Partnership Agreement will give Kenya duty-free and quota-free entry to the EU, its largest export market, whereas European items will obtain progressive tariff reductions.
Both sides had initiated a draft deal in June after seven months of negotiations. The deal was authorised by the European Union Council final week. It will now be offered to the parliaments of either side for ratification earlier than it comes into power.
The settlement is the primary broad commerce deal between the EU and an African nation since 2016 and follows a spending spree by China on lavish infrastructure initiatives throughout the continent.
“Although today represents a moment of monumental promise, it is also the beginning of a historic partnership for historic transformation,” Kenyan President William Ruto stated at a ceremony attended by European Commission chief Ursula von der Leyen in Kenya’s capital Nairobi.
“The core of this arrangement is to put real money into the pockets of ordinary people,” stated Ruto.
EU chief von der Leyen stated the partnership was a “win-win situation on both sides” and referred to as on different East African nations to affix the pact, which got here after years of negotiations that concluded in June.
“We are deepening trade ties and building up our economic resilience,” she stated.
“We are opening a new chapter in our very strong relationship and now our effort should be focused on implementation,” von der Leyen added.
‘New daybreak’
Both the Kenyan and the European parliaments should ratify the deal earlier than it comes into power.
“Today’s agreement heralds a new dawn where Kenyan goods gain immediate duty- and quota-free access to the European market,” Rebecca Miano, Kenya’s commerce minister, stated earlier than signing the settlement.
“Over time, European goods will also gain preferential access to the Kenyan market.”
The European Union stated that the deal was “the most ambitious economic partnership” it had with a growing nation.
It contains commitments to sustainable improvement in areas resembling labor rights and environmental safety, the EU stated in a press release.
“A dedicated chapter has been included on economic and development cooperation, aimed at enhancing the competitiveness of the Kenyan economy,” the EU stated.
The 27-nation bloc accounts for greater than 20% of Kenya’s total exports, based on authorities information, primarily agricultural merchandise, together with greens, fruits and the nation’s well-known tea and low.
Total two-way commerce between the markets hit 3.3 billion euros ($3.6 billion) in 2022, up 27% since 2018, based on EU figures.
‘Door wide-open’
The EU has taken steps to counter China’s Belt and Road program, saying in February it might enhance investments in Kenya by a whole bunch of hundreds of thousands of {dollars} by means of its personal Global Gateway initiative.
The Kenya deal is the end result of commerce talks between the EU and the regional East African Community (EAC) that began roughly a decade in the past.
The East African financial powerhouse signed and ratified an preliminary commerce settlement with the EU in 2016 alongside the then six-member nation EAC nevertheless it fell by means of after some international locations did not greenlight the pact, with Kenya finally pursuing its personal deal.
The EAC has since expanded to eight member nations, who will all be welcome to affix the brand new deal, Ruto stated.
“This agreement that we are signing today leaves the door open, and I say, wide-open, for our EAC partners to join,” he famous.
While the opposite EAC members are categorised as least developed international locations, which means their exports may proceed to get entry with out the deal, Kenya is middle-income and subsequently needed to search a stand-alone association.
“We encourage the other Eastern African countries to join,” von der Leyen stated.
Source: www.dailysabah.com