Saturday, November 9, 2024
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In a significant development for Brussels’ quest to deepen economic engagement with Africa amidst competition from China, Kenya and the European Union have signed a trade deal. Kenyan President William Ruto presided over a ceremony in Nairobi to mark the formal conclusion of negotiations for the EU-Kenya Economic Partnership Agreement.

Once ratified and implemented, the agreement will grant Kenya duty-free and quota-free access to the EU, its largest market, which currently receives approximately one-fifth of all Kenyan exports. The deal will also lead to progressive tariff reductions over 25 years for EU imports to Kenya, except for some sensitive products.

Kenyan Trade Minister Moses Kuria expressed pride in the momentous occasion, highlighting the significance for both Kenya and the European Union. Kenya’s main exports to the EU include agricultural products like vegetables, fruits, tea, and coffee. Furthermore, more than 70% of Kenya’s cut flowers find their destination in Europe.

President Ruto emphasized that the deal would assure a predictable market for Kenyan farmers and provide new opportunities to boost trade. For Kenyan industrialists, it ensures a stable market, while EU industrialists also stand to benefit.

EU Trade Commissioner Valdis Dombrovskis highlighted the strong appetite among EU companies to expand business in Kenya, which has already received 1 billion euros ($1.1bn) in investments over the past decade. This trade deal will serve as a catalyst for further collaboration.

The agreement marks the first comprehensive trade deal between the EU and an African nation since 2016. It comes as a response to China’s Belt and Road program, with the EU announcing increased investments in Kenya through its Global Gateway initiative.

Dombrovskis sees Kenya as a beacon of dynamism and opportunity in a region often characterized by turbulence. The EU views Africa as a priority region and hopes this agreement with Kenya will pave the way for stronger trade ties across the continent.

The trade deal is the culmination of a decade-long negotiation process between the EU and the East African Community (EAC), which initially included Kenya, Rwanda, Uganda, Burundi, and Tanzania. Kenya proceeded independently in ratifying the agreement, but Dombrovskis stated that the deal remains open for other EAC members, including the Democratic Republic of the Congo and South Sudan, to join.

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