Last updated on December 19th, 2023 at 04:22 pm
Kenya, a country in East Africa, and the European Union (EU), a supranational political and economic union of 27 member states, have signed an Economic Partnership Agreement that aims to boost trade.
The economic agreement will grant Kenya’s exports duty-free status and unlimited access to the EU bloc. Kenya and the European Union had initiated a draft deal in June. However, it was not signed by most of the EAC (East African Community) countries.
The agreement was approved by the European Union Council last week. The agreement was finally signed on Monday.
The Economic Partnership Agreement between the EU and Kenya will now be presented to the parliaments of both sides for ratification before it comes into force.
How can Kenya and EU Economic Partnership Agreement help to boost trade
Rebecca Miano, the Cabinet Secretary for Investments, Trade & Industry of Kenya, said on Monday, “Today’s agreement heralds a new dawn where Kenyan goods gain immediate duty- and quota-free access to the European market.”
Kenya and EU Economic Partnership Agreement will help to boost trade. Under the agreement, European goods will also get access to the Kenyan market.
The East African nation is a major exporter of tea, coffee, flowers, fruits and vegetables to the European Union. Kenya accounts for 21% of its overall exports.
Last year, trade between the EU and Kenya was 3.3 billion euros. The EU was Kenya’s second largest trade partner.
Kenya’s President William Ruto said, “This agreement that we are signing today leaves the door open, and I say, wide open, for our EAC partners to join.”
EU Commission President Ursula von der Leyen said, “We encourage the other Eastern African countries to join the agreement.”
The EU has said that the agreement will increase trade in goods and create new economic opportunities. The deal has been signed in Nairobi, the capital of Kenya. It will enhance sustainable trade links between the EU and Kenya.