European Council approves EU-Kenya Economic Partnership Agreement

The agreement will solidify the EU's cooperation with Kenya, considered the economic hub of East Africa. It is designed to benefit workers, businesses, and traders on both sides, promoting sustainable development through measures on labour rights, environmental protection, and climate action, the European Council said in a press release.

Key features of the EPA include duty-free, quota-free access to the EU market for all Kenyan exports, excluding arms, as soon as the agreement is in force. It also provides for the partial and gradual opening of the Kenyan market to EU imports. Binding provisions on trade and sustainable development, such as climate and environmental protection and labour rights, along with a transparent dispute resolution mechanism, are integral components of the agreement.

The EU is Kenya's primary export destination and its second-largest trading partner, with bilateral trade amounting to €3.3 billion in 2022, marking a 27 per cent increase since 2018.

The agreement is set to enter into force on the first day of the second month following the notification by both parties of the completion of their internal procedures.

Negotiations on the EAC-EU EPA concluded in 2014, with Kenya ratifying the agreement in September 2016. The EU and its Member States also signed it in June 2016. However, implementation was delayed as not all East African Community (EAC) partner countries signed and ratified the agreement.

A breakthrough came at the EAC Summit on 27 February 2021, chaired by Kenya, allowing individual EAC states to implement the EPA. Following this, Kenya formally requested to engage with the EU on a bilateral basis in May 2021. Political discussions on the bilateral implementation with sustainability provisions were concluded on 19 June 2023.

The European Commission submitted its proposals for Council Decisions on the signing and conclusion of the EPA on 28 September 2023. The Council adopted the decision to sign the EPA on 12 December 2023, and the agreement was signed in Nairobi on 18 December 2023. The European Parliament consented to the conclusion of the agreement on 29 February 2024, and Kenya ratified it on 24 April 2024.

Fibre2Fashion News Desk (KD)