The European Union and Kenya are set to announce a trade deal on Monday (June 19), European officials say, as Brussels seeks to forge closer economic ties with Africa. Negotiations of the agreement are due to officially end at a ceremony in Nairobi, in the presence of Kenyan President William Ruto, his Minister of Trade Moses Koria and European Commissioner for Trade Valdis Dombrovskis.
Once in force, the Economic Partnership Agreement (EPA) will give Kenya duty-free access to the EU, its biggest market where it sends around a fifth of its exports. These are mainly agricultural products such as tea and coffee and 70% of its flowers.
A “historic day”
Kenya will gradually open its market, except for a series of sensitive products, Dombrovskis said, referring to a “historic day” for both partners. “This puts us firmly on the path to a special relationship, based on mutual trust, rules and opportunities,” he told reporters on Sunday, ahead of the official announcement.
According to him, European companies have invested 1 billion euros in Kenya in the last ten years but there is a considerable “appetite” to do even more business there. “With this economic partnership agreement in place, we also have the right platform to do so,” said the European Commissioner. It is the first major trade deal between the EU and an African country since 2016. It comes after a spending spree by China on major infrastructure projects across the continent.
The EU has taken action to counter China’s so-called “Belt and Road” program, announcing in February that it would increase investment in Kenya by hundreds of million through its own strategy, “Global Gateway”. Kenya is seen by the international community as a reliable and stable democracy in a turbulent region.
Africa is also “a priority region” for the EU, the EU commissioner said, saying he hopes the deal with Kenya will echo elsewhere on the continent. The agreement remains open for other members of the East African Community (EAC) to join, he added. Besides Kenya, the EAC has six member countries (Burundi, DRC, Rwanda, South Sudan, Tanzania and Uganda).