Kenya and the European Union have signed a trade deal in a coup for Brussels as it seeks deeper economic ties with Africa in the face of competition from China.
Kenyan President William Ruto presided over a ceremony in Nairobi on Monday to mark the formal conclusion of negotiations for the EU-Kenya Economic Partnership Agreement.
Once ratified and entered into force, Kenya will receive duty-free and quota-free access to the EU, its biggest market where it sends roughly one-fifth of all its exports.
Imports from the EU to Kenya such as chemicals and machinery will receive progressive tariff reductions over a period of 25 years, but some sensitive products will be excluded.
“Today is a very proud moment for Kenya, and I believe a very proud moment for the European Union,” Kenyan Trade Minister Moses Kuria said after signing the accord with EU Trade Commissioner Valdis Dombrovskis.
Kenya’s main exports to the EU are agricultural products, including vegetables, fruits and the country’s famous tea and coffee.
More than 70 percent of Kenya’s cut flowers are destined for Europe.
Ruto, who said the EU was “the second most important development partner for Kenya after the World Bank” said the country’s farmers could be “assured of a predictable market” and the agreement provides new opportunities to boost this trade.
“It ensures a stable market for industrialists, for our farmers, and also industrialists in the European Union,” he said.
Dombrovskis said EU companies had invested 1 billion euros ($1.1bn) in Kenya in the past decade but that there was “a strong appetite” to do more business. “With this deal in place, we have the right platform to do so,” he said.
SOURCE: AL JAZEERA
