The EU-Kenya Trade Agreement: What You Need to Know
In June 2020, the European Union (EU) and Kenya announced the launching of negotiations for a new trade agreement, with the aim to replace the current preferential trade arrangement under the EU-ACP (Africa, Caribbean, and Pacific) framework. The negotiations were accelerated in the face of growing uncertainties caused by Brexit and the COVID-19 pandemic, and are expected to conclude by the end of 2021.
The EU-Kenya Trade Agreement (EKTA) seeks to deepen and diversify economic relations between the two partners, enhance market access and reduce trade barriers, and promote sustainable development and regional integration. It covers a wide range of sectors, from goods and services trade to investment, public procurement, intellectual property, and sustainable development.
One of the main objectives of EKTA is to support Kenya`s economic transformation and industrialization, by promoting value-added exports, creating jobs, and attracting foreign investment. The agreement aims to eliminate tariffs and non-tariff barriers on a wide range of products, including agricultural goods, processed foods, fisheries, textiles and clothing, and machinery and equipment. It also seeks to improve customs cooperation, simplify trade procedures, and ensure standards and regulations are compatible.
EKTA also includes provisions on services trade, which accounts for a growing share of Kenya`s economy. The agreement aims to liberalize market access for a wide range of services, such as financial services, transport, telecommunications, and professional services. It also seeks to enhance cooperation on regulatory issues, promote investment in services sectors, and ensure that investors can access and operate under transparent and predictable rules.
Another key aspect of EKTA is sustainable development. The agreement includes provisions on environment, labor, and human rights, which aim to promote a level playing field for trade and investment, and ensure that economic growth is inclusive and sustainable. It also seeks to promote regional integration, by facilitating trade and investment flows between Kenya and its neighboring countries, and by enhancing cooperation on infrastructure, energy, and digital connectivity.
Overall, the EU-Kenya Trade Agreement represents a significant opportunity for both partners to deepen and diversify their economic relations, and to promote sustainable development and regional integration. However, it also raises some challenges and concerns, such as the potential impact on small-scale farmers and local industries, the compatibility with existing trade arrangements, and the balance between liberalization and regulatory cooperation. Therefore, it is important that the negotiations are transparent, inclusive, and participatory, and that the final agreement reflects the interests and needs of all stakeholders.
