Kenya has passed a preferential trade deal with the European Union (EU), ending the political issues with neighboring East African Community (EAC) partners who refused to adopt a joint deal in 2016.
The Economic Partnership Agreement will give Kenyan traders duty and quota-free access to the European Market. In 2022, the EU recorded total trade with Kenya at $3.5 billion, a 27% increase from 2018.
According to the agreement, for the next 25 years, Kenya will gradually reduce duty on imports from the EU and incentivize European companies to set up in the country. In addition, Kenya is obligated to maintain international labor and environmental standards, which include provisions for climate change, gender equality, and environment.
“It is the first agreement with a developing country in which the EU’s new approach to trade and sustainable development is reflected,” says the EU parliament.
Currently, the EU imports $1.28 billion worth of goods from Kenya including fruits, vegetables, and cut flowers. According to the statistics, the country is one of the largest producers of flowers sold in Europe. In exchange, the country imports heavy machinery and minerals worth $2.1 billion.
