Kenya inked an Economic Partnership Agreement with the EU on Monday to give its agriculture products duty-free access to its biggest export market.
At a signing ceremony in Nairobi, officials announced a 25-year tax reduction for European goods entering Kenya.
Officials from both sides said the accord took seven months to negotiate, making it the EU’s fastest.
Kenya’s seventh-largest economy exports tea, coffee, flowers, fruits, and vegetables. It exports 21% to the EU.
“Beyond trade, the agreements is designed to stimulate investments and manufacturing,” Kenya’s President William Ruto stated in his remarks.
Kenya and its six East African Community partners inked an initial trade pact with the EU in 2016, but other EAC members did not sign it. Therefore, it did not take effect.
Kenya’s exports needed a stand-alone arrangement because it is middle-income, unlike the other EAC members, which are least developed.
The two parliaments must now approve the pact. Kenya’s trade minister expects to sign a US-Kenya trade and investment accord next year.
