The European Parliament voted Thursday to approve a landmark trade agreement between the European Union and Kenya, a major milestone bringing the East African economic hub closer to the EU’s massive single market.
The Economic Partnership Agreement (EPA) aims to eliminate trade barriers and strengthen economic ties between the two partners. “This agreement is a catalyst for economic growth, job creation and sustainable development,” said Alessandra Mussolini, rapporteur for the agreement.
The EPA provides duty-free access to the EU for all of Kenya’s exports. In return, Kenya will gradually open its market to EU imports. Total trade between the sides was €3.3 billion last year.
The agreement also includes binding rules on labor, gender equality, climate and the environment. Mussolini called them “new compared to the EU-East African Community EPA.” Violations can be addressed through a dispute resolution mechanism.
Kenya is the fifth largest economy in sub-Saharan Africa. “By promoting trade and investment, the EPA contributes to economic growth and development in Kenya,” Mussolini said.
Increased exports and investments flowing from the deal are expected to create new jobs and improve living standards. The EU is already Kenya’s second largest trading partner after China, absorbing 27 percent of its exports.
Kenya mainly ships vegetables, fruits and cut flowers to the EU. Imports heading the other direction include machinery, chemicals and mineral products.
The deal only needs formal approval from the EU Council to complete ratification by the bloc. Kenya has already ratified the EPA, which was originally negotiated with the entire East African Community (EAC) in 2014.
Other EAC countries can still join the agreement in the future. For now, Kenya has moved ahead solo after securing EAC approval last year. The other members are Uganda, Tanzania, Rwanda, Burundi and South Sudan.
Thursday’s vote was a resounding 366 in favor, 86 against and 56 abstentions. The lopsided result demonstrates strong support among Members of the European Parliament.
The EU-Kenya EPA reflects the bloc’s increasingly high standards on labor, sustainability and the environment in its trade agreements. The deal comes as the EU seeks closer ties with Africa in the face of competition from China.
