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First with the News

Kenya Signs Trade Deal With EU To Safeguard Exports

June 19, 2023
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By Oyintari Ben

Kenya and the European Union (EU) on Monday signed an Economic Partnership Agreement that will ensure agriculture products have duty-free access to Kenya’s largest export market.

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At a signing ceremony in Nairobi, Kenya’s capital, officials said the agreement would result in a 25-year tariff reduction on European goods entering Kenya.

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According to representatives from both parties, the negotiation process for the agreement took seven months, making it one of the quickest ever for the EU.

The seventh-largest economy in Africa, Kenya, is a significant exporter of tea, coffee, flowers, fruits, and vegetables. 21% of its total exports are to the EU.

According to Kenya’s President William Ruto, the accords are intended to encourage manufacturing and investments in addition to trade.

Along with its allies in the six-nation East African Community trade bloc, Kenya signed its first trade agreement with the EU in 2016. However, because most EAC nations did not sign it, it did not completely take effect.

Kenya is a middle-income country and hence needed a stand-alone agreement. In contrast, the other EAC members are categorised as least-developed countries, meaning their products could continue to obtain access without the accord.

The agreement is now submitted for confirmation to the parliaments of both parties.

Kenya is also negotiating a trade and investment agreement with the United States, which, according to the country’s trade minister, should be finalised by the end of the year.

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