The European Commissioner for Trade, Valdis Dombrovskis, formalised the conclusion of negotiations on the Economic Partnership Agreement with Kenya in Nairobi on Monday 19 June. Kenyan President William Ruto and Trade Minister Moses Kuria praised the speed with which the negotiations were concluded and congratulated the negotiators.
An agreement of this type had in fact already been concluded between the EU and the East African Community in 2016, but it has still not entered into force, as not all the member countries of the East African Community have ratified it. In February 2022, Kenya asked for the agreement to be concluded bilaterally, while waiting for the other members. They are invited to join the agreement at a later date. “We are committed to working with our East African partner states to bring them together around the agreement”, said the Kenyan President.
Trade liberalisation
This agreement will completely open up the European market to Kenyan exporters as soon as it comes into force, meaning that all Kenyan products, except arms, will be able to enter the single market without tariffs or quotas. “This will really encourage trade and also European companies to invest in Kenya”, according to Mr Dombrovskis.
Conversely, access to the Kenyan market for Europeans will only be opened up gradually and partially. The agreement provides for a total period of 25 years to achieve maximum opening of the Kenyan market (around 82% of total EU exports to Kenya). For the remaining products, Nairobi will be able to maintain protection and, therefore, tariffs; this mainly concerns agriculture, food and light industrial products.
Trade and sustainable development
“This is the most ambitious trade deal the EU has concluded with an African country in terms of climate protection, labour issues and gender equality”, said Valdis Dombrovskis.
The text commits both parties to respecting the Paris Agreement and the fundamental conventions of the International Labour Organization (ILO) through a binding Trade and Sustainable Development (TSD) chapter. However, as with most free trade agreements concluded by the EU in the past, this TSD chapter is not liable to result in sanctions for the party failing to comply with it.
Kenya is one of the initiators of the Coalition of Trade Ministers on Climate along with the EU, New Zealand and Ecuador (see EUROPE 13103/10). (Original version in French by Léa Marchal)