Kenya Enters Trade Agreement With EU To Protect Exports

Kenya Enters Trade Agreement With EU To Protect Exports

Kenya and the European Union signed an Economic Partnership Agreement on Monday, June 19, ensuring duty-free access for farm products into Kenya’s top export market.

According to the agreement, tariffs on European goods entering Kenya will be reduced over a 25-year period, officials announced at a signing ceremony in Nairobi, the capital of Kenya.

According to officials from both sides, the negotiation process for the agreement took seven months, making it one of the quickest the EU has ever achieved.

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.

Together with its partners in the six-nation East African Community trade bloc, Kenya signed an initial trade agreement with the EU in 2016. However, because the majority of EAC nations did not sign it, it did not fully take effect.

Kenya is a middle-income country and therefore needed a stand-alone agreement, whereas the other EAC members are categorized as least developed countries, meaning their exports could continue to get access without the deal.

The agreement is now submitted for ratification 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 finalized by the end of the current year.