EU-Kenya EPA to boost bilateral trade & investment

The EU-Kenya Economic Partnership Agreement (EPA) has officially entered into force, marking a significant milestone in the EU-Kenya Strategic Partnership. This agreement is set to boost bilateral trade in goods, increase investment flows, and strengthen ties between the two partners. It aims to facilitate mutually advantageous economic relations in a sustainable manner, thereby stimulating job creation and economic growth.

The EU-Kenya EPA stands out as the most ambitious deal negotiated with an African country in terms of sustainability. It is expected to serve as a template for other sustainable trade agreements. Key commitments within the agreement include binding provisions on labour issues, gender equality, environmental protection, and the fight against climate change, the European Commission said in a press release.

Kenya, known as East Africa's main economic hub, has substantial growth potential in its trade relations with the EU. The agreement is anticipated to unlock new economic opportunities, given that the EU is Kenya's primary export destination and its second-largest trading partner. In 2023, total trade between the EU and Kenya reached €3 billion (approximately $3.219 billion), reflecting an increase of 16 per cent compared to 2018.

The EPA will create more opportunities for Kenyan businesses and exporters by fully opening the EU market to Kenyan products. Additionally, it will incentivise EU investment in Kenya due to increased legal certainty and stability, the release added.

The Economic Partnership Agreement between the EU and Kenya was concluded in June 2023 and signed by both parties on 18 December 2023. The agreement aims at implementing the provisions the EU-East African Community (EAC) EPA, and it remains open to other EAC countries.

Fibre2Fashion News Desk (DP)