Kenya has signed an Economic Partnership Agreement (EPA) deal with the European Union (EU) marking a major milestone in the EU-Kenya Strategic Partnership.
The Agreement opens duty-free (no taxes) and quota-free (unlimited exports) access for all Kenya’s exports to the USD 18 trillion EU market.
The EU is one of Kenya’s largest trading partners, and its most important export market.
EU Commission in a statement on July 1 said the agreement will boost bilateral trade in goods, increase investment flows, and strengthen the ties between reliable partners.
The commission further stated that the deal will facilitate mutually advantageous economic relations in a sustainable manner including stimulating job creation and economic growth.
“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,” read part of the statement.
Kenya -EU Trade Deal
The Agreement includes trade, economic and development cooperation and a chapter on trade and sustainable development which covers provisions on labour issues.
It also puts into consideration matters of gender equality, forestry and environment and the fight against climate change.
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Kenya is Eastern Africa’s leading economic hub and the EU-Kenya trade relations hold substantial potential for furthering growth.
The Agreement will unlock new economic opportunities, as the EU is one of Kenya’s topmost export destinations and second largest trading partner.
Total trade between the EU and Kenya reached over Ksh483,315,000,000(€3.5 billion) in 2023, an increase of 16% compared to 2018.
The EPA will also create more opportunities for Kenyan businesses and exporters including high value manufactured products as it will fully open the EU market for Kenyan products and incentivize EU Investment in Kenya.
More Information About EPA
The Economic Partnership Agreement between the EU and Kenya was concluded in June 2023 and signed by both parties on 18 December 2023.
This followed sustained deliberations led by Trade and Industry CS Rebecca Miano and the Principal Secretary for the State Department of Trade, Alfred K’Ombudo.
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The Agreement aims at implementing the provisions the EU- East African Community (EAC) EPA and it remains open to other EAC Member States.
The EPA and its ambitious commitments represent a crucial deliverable of the Kenya’s 2016 Trade Policy, its Integrated National Export Development and Promotion Strategy and the value-chains approach under the Bottom-up Economic Transformation Agenda.
It also will help integrate Kenyan value chains with global ones and enhance Kenya’s economic development objectives.
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