The European Union and Kenya signed a landmark trade deal Monday aimed at boosting bilateral commerce, spurring economic growth and advancing climate commitments between the two partners.
The Economic Partnership Agreement “will boost bilateral trade even further, support investments and create good jobs in Kenya,” said European Commission President Ursula von der Leyen at the signing ceremony with Kenyan President William Ruto.
The deal eliminates nearly all tariffs between the EU and Kenya. It is expected to expand market access for Kenyan exporters and provide legal certainty for EU investors looking to put money into the African nation.
“Kenya is a key partner for the European Union in Africa,” said von der Leyen, calling the agreement the “strongest” in terms of social and environmental standards that the EU has struck with a developing country.
The climate and labor provisions align with efforts by Kenya and the EU to transition toward clean energy and environmental sustainability. Ruto said the deal will “contribute to sustainable and fair economic growth, bringing new opportunities for companies, to the benefit of both our people.”
Trade between Kenya and the EU totaled 3.3 billion euros ($3.5 billion) last year, up 27% from 2018, according to EU figures. Kenya is the EU’s eighth largest trading partner in sub-Saharan Africa.
The wide-ranging pact covers trade in goods and services, investments, intellectual property rights, government procurement and sustainable development. It includes safeguards for Kenyan agriculture and infant industries adjusting to EU competition.
“The balanced agreement takes into account Kenya’s development needs,” von der Leyen said, citing longer implementation periods for Nairobi to phase out some tariffs.
The deal now heads to the European Parliament.