Kenya, EU Ratify Preferential Trade Deal Boosting $3.5B Trade
Kenyan legislators have ratified a preferential trade agreement with the European Union (EU), boosting total trade between the two regions. The Economic Partnership Agreement (EPA) promises duty-free and quota-free access to the $13.9 trillion European market for Kenyan merchants. However, a public consultation will be held before the trade minister, Lee Kinyanjui, implements the agreement.
The EPA, ratified following endorsements from both Kenyan and EU lawmakers, is set to significantly enhance trade relations. In 2022, total trade between Kenya and the EU reached $3.5 billion, marking a 27% increase since 2018. The EU imports goods from Kenya valued at $1.28 billion, including cut flowers, vegetables, and fruits, while Kenya imports EU goods worth approximately $2.1 billion, primarily heavy machinery and minerals.
Over the next 25 years, Kenya will progressively reduce tariffs on EU imports and offer incentives for European businesses to operate in Kenya. The agreement also includes clauses addressing climate change and upholding international labor standards, including gender equality. The Kenyan government must adhere to these standards as per the agreement.
The EPA presents a significant opportunity for Kenya to expand its trade horizons and stimulate economic growth. Following the ratification, a public consultation will be held to gather input and ensure transparency in the implementation process led by Trade Minister Lee Kinyanjui.
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