NUNZIUM

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.