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News That Matters

18/06/2023 ---- 24/06/2023

Kenya and the European Union (EU) have signed a trade deal, the EU-Kenya Economic Partnership Agreement (EPA), which guarantees duty-free entry for Kenyan agricultural products into the EU market. This agreement will allow Kenya to export €1.2 billion ($1.31 billion) worth of mainly agricultural products to the 27-member bloc, significantly impacting the country's economy since 70% of Kenya's total flower production is sold in Europe.

The deal is the first broad trade agreement between the EU and an African nation since a similar agreement with Ghana in 2016. Kenya will gradually and partially open its market to European goods, with tariffs reduced over a 25-year period. Trade relations between the EU and Kenya have grown by 27% from 2018 to 2022.

As part of the commitment to sustainable growth, Kenya has agreed to enforce binding commitments related to environmental protection, climate action, fighting gender inequality, and strengthening labor rights. Kenya has also signed a trade deal with the United Kingdom in December 2020 and is currently negotiating with the United States and the United Arab Emirates.

In a separate development, South Africa, the Netherlands, and Denmark have launched a $1 billion green hydrogen fund to fight climate change. South Africa's energy transition plan includes setting up an export hub for green hydrogen, which is renewable energy produced without greenhouse gas emissions. The Netherlands and Denmark have expressed their support for South Africa's efforts and plan to contribute to the country's renewable energy, hydrogen, and infrastructure development.

The Kenya-EU trade agreement ensures duty-free and quota-free access for Kenyan goods to the EU, while EU imports to Kenya will receive progressive tariff reductions over 25 years, with some sensitive products excluded. Kenya's main exports to the EU are agricultural products, including vegetables, fruits, tea, coffee, and cut flowers. The EU's Global Gateway initiative aims to increase investments in Kenya by hundreds of millions of dollars, countering China's Belt and Road program.

This deal is the culmination of trade talks between the EU and the East African Community (EAC) that started a decade ago, and the agreement is open for other EAC members to join. Partnerships like these are essential for fostering sustainable growth, promoting fair trade practices, and combating climate change. With the signing of this landmark trade agreement, Kenya and the EU have set a positive example for other countries to follow, paving the way for a greener and more equitable future.

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The European Union (EU) has imposed an 11th round of sanctions on Russia for its invasion of Ukraine, targeting the transit of goods and technology for military use through Russia and the sale of sensitive dual-use goods and technology to countries potentially reselling to Russia. European Commission President Ursula von der Leyen welcomed the sanctions package, while Ukrainian President Volodymyr Zelenskyy expressed concerns about the slower-than-desired counteroffensive against Russian forces.

Germany has announced an additional €381 million ($416 million) in humanitarian aid for Ukraine, and the EU will add €3.5 billion ($3.8 billion) to a fund for weapons for Ukraine. The UK's Ministry of Defence reports that Russia is building defensive lines in Crimea, and the International Ukraine Recovery Conference held in London saw over 60 countries attending, with Ukraine's Prime Minister Denys Shmygal estimating the rebuilding cost at $750 billion.

The situation in Ukraine has been exacerbated by the destruction of the Kakhovka Dam in southern Ukraine on June 6th, causing flooding and a rising death toll, now at 41. Satellite images show four canal networks disconnected from the reservoir, which held 18 cubic kilometers of water before drying up. The loss of water from these canals is critical for food production in the region, as they yielded about two million tonnes of grain and oil seeds in 2021. The destruction of the dam has had a "huge impact on global food security," as Ukraine is a major exporter of sunflower, maize, wheat, and barley.

Tensions within Russia have escalated between the Russian military and the Wagner mercenary group, headed by Yevgeny Prigozhin. Prigozhin has accused Russian Defence Minister Sergei Shoigu of ordering a rocket strike on Wagner's field camps in Ukraine, and the Russian National Anti-Terrorism Committee has opened a criminal inquiry on charges of making calls for a military coup. In response, Russia's Federal Security Agency (FSB) has filed criminal charges against Prigozhin, punishable by 12 to 20 years in prison.

The feud between the Wagner Group and the Russian military leadership has led to increased security measures in Moscow and other Russian cities. Prigozhin has vowed to topple Russia's military leadership, claiming that Wagner's forces have entered the southern Rostov region, where Defence Minister Sergei Shoigu is located. However, the Russian Defense Ministry has denied these claims and called on Wagner fighters to lay down their arms.

As tensions continue to rise within Russia and between Russia and the EU, the situation in Ukraine remains precarious. The United Nations has placed Russian forces on its annual blacklist for violating children's rights in Ukraine, attributing 136 child deaths in the country in 2022 to Russian forces and affiliated groups. Despite the ongoing conflict, Ukraine remains on course towards opening EU membership talks, while the international community continues to monitor the situation and provide support for the beleaguered nation.

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US Secretary of State Antony Blinken's visit to China comes at a critical time, as tensions rise over Taiwan and near-collision incidents between Chinese and US military vessels. The primary goal of the visit is to reestablish reliable communication lines between the two superpowers, due to Beijing's military not picking up calls from the Pentagon, increasing the risk of misunderstandings.

During his visit, Blinken and Chinese Foreign Minister Qin Gang discussed Taiwan, China's support for Russia over Ukraine, and reports of a Chinese spy facility in Cuba. Trade is seen as a promising source of stability between the US and China, but human rights organizations urge Blinken to address China's human rights record.

On June 18, 2023, Blinken and Qin held a six-hour talk in Beijing, agreeing on four sectors: maintaining high-level contacts, advancing the China-US joint working group, addressing specific issues, and expanding people-to-people and educational exchanges. This meeting aimed to manage divergences and prevent China-US relations from spiraling out of control.

This visit marks the first trip to China by a top US diplomat since 2018, with China-US relations at their lowest point in decades due to disagreements on trade, national security, and technology. The Taiwan question remains a core issue, with China urging the US to abide by the one-China principle and the three Sino-US joint communiqués.

Experts see this meeting as a "window of opportunity" to save bilateral ties from further deterioration, but the Taiwan question remains a crucial factor in the stability of China-US relations. In addition to the US-China talks, Chinese Premier Li Qiang visited Germany and France in March 2023, demonstrating China's commitment to bilateral ties with European countries and China-EU strategic ties.

During Li's visit, Germany unveiled its first-ever comprehensive national security strategy, advocating cooperation with China. France and Germany are also seeking deeper cooperation with China for a multipolar world order. The Summit for a New Global Financing Pact, hosted by France on June 22-23, will be attended by Premier Li and other global leaders.

Chinese leader Xi Jinping and US Secretary of State Antony Blinken met in Beijing on Monday, marking the first US Secretary of State visit to Beijing in five years. The meeting aimed at improving US-China ties after a dispute over a Chinese surveillance balloon. Xi emphasized the need for a stable Sino-US relationship for the future of mankind, while Blinken emphasized the need for responsible management of competition between the two countries through open channels of communication.

Although no concrete agreements have been mentioned by either side so far, both the US and China have played down expectations of a major breakthrough during Blinken's visit. However, these high-level talks are a step toward bridging the gap between the two superpowers and managing their divergences to prevent further escalation of tensions.

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Amidst the escalating conflict between Ukraine and Russia, the African Peace Initiative led by South African President Cyril Ramaphosa offered a glimmer of hope. On June 16, Ramaphosa, accompanied by the presidents of Senegal, Zambia, and the Comoros, called for de-escalation during a visit to Bucha, a suburb of Ukraine's capital, where the Russian army is accused of killing civilians in 2022.

Ukrainian President Volodymyr Zelensky met with the African delegation, which included senior officials from Uganda, Egypt, and The Congo, and ruled out talks with Russia. As of May 8, the Office of the UN High Commissioner for Human Rights (OHCHR) recorded 23,606 civilian casualties in Ukraine.

The African peace overture comes as Ukraine launches a counteroffensive against Kremlin forces using advanced weapons from countries like the US, France, the UK, and Germany. The African peace mission led by Ramaphosa and the seven-nation delegation seeked for a possible resolution, following China's unsuccessful peace proposal in late February.

During their visit to Ukraine, the delegation proposed conditions to end hostilities between Russia and Ukraine and stated that the African Peace Initiative is prepared for further engagement.

While Putin claims that Ukraine will soon run out of military equipment and that sanctions on Russia have failed to isolate it, NATO member states have pledged new weapons and ongoing support for Ukraine. At a two-day meeting in Brussels, Belgium, NATO defense ministers discussed increasing defense production with industry leaders to help sustain Ukraine's fight. US Defense Secretary Lloyd Austin emphasized the need for both short-term and long-term support for Ukraine.

In a show of solidarity, Denmark, the Netherlands, the UK, and the US announced the joint delivery of hundreds of Soviet-era air defense missiles to Ukraine, with the delivery underway and expected to be completed within weeks. Additionally, Denmark and Norway agreed to donate 9,000 rounds of artillery to Ukraine and may finance the delivery of 14 German-made Leopard-2 main battle tanks.

As the African Peace Initiative aims to bring about a peaceful resolution, Russia has stationed its first batch of tactical nuclear weapons in Belarus, with Putin stating that the weapons would only be used if Russia's territory or state is threatened. The transfer of tactical nuclear warheads is expected to be completed by the end of summer.

In a meeting with African leaders in St Petersburg, Ramaphosa called for de-escalation and peace negotiations in Kyiv. However, Zelensky maintained that no negotiations with Moscow would take place while they continue to occupy Ukrainian territory.

The African Peace Initiative brings hope amidst the escalating conflict, but the situation remains tense, with the proliferation of private military companies (PMCs) like Russia's Wagner Group potentially stoking dangerous rivalries and undermining Russia's national security. The war in Ukraine is likely to be a catalyst for bloodshed elsewhere in the world at the hands of Russian PMCs.

As the world watches the unfolding crisis, the African Peace Initiative led by President Ramaphosa offers a chance for diplomacy and dialogue in the face of escalating violence and destruction. While the road to peace may be long and fraught with challenges, the Initiative serves as a reminder that the pursuit of a peaceful resolution must not be abandoned.

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