President William Ruto has hailed the new Kenya-EU Economic Partnership Agreement saying the pact will “usher in an era of blended opportunities” for the country and the region.
In the agreement, Kenya and the EU have committed to advance their mutual trade, investment and economic operation objectives sustainably, through the implementation of a joint environmental conservation agenda.
“I am therefore proud to be here today, to witness this historic milestone in our journey of national economic transformation. It is clear now, more than ever before, that the future holds greater promise than was understood previously,” Ruto said during the signing ceremony at State House, Nairobi.
Present during the signing ceremony was Ursula Von Der Leyen, President of the EU Commission.
Ruto noted that with the signing of the agreement, Kenya has a permanent arrangement to guarantee access to the European market for her enterprises.
“Kenyan exporters will now be able to make long-term plans based on predictable, duty-free and quota-free access to a premium export market,” he explained.
He added that the agreement also makes it possible, through guaranteed market access, to attract investments into innovation, capacity development and value addition to increase and diversify the country’s exports into the European Union
“A good example of the great positive potential arising out of this agreement is the transformation of our leather value chain. We have the third-largest herd of livestock in Africa. The agreement has catalysed our interventions to increase the productivity and competitiveness of the sector by securing a large lucrative market for finished leather products, which include industrial boots, everyday footwear, bags, straps, car interiors and other accessories,” he added.
EU is one of Kenya’s biggest export markets, which accounts for 21.1 per cent of Kenya’s total exports, worth USD 1.4 billion.
The EU’s 27-member, a US16 trillion euro market, contributed 17 per cent of the global GDP and is one of Kenya’s biggest trading partners, whose exports to the country now amount to USD 2.1 billion.
Ruto termed the EU as not just a giant, lucrative market, but a premium market whose demand guarantees higher earnings for Kenya’s products and will drive export production to higher levels of competitiveness.
“As I commend the two negotiating teams, led by Ms Dora Correia for the EU, and Alfred K’Ombudo for Kenya, I encourage them to remain committed to negotiating a future agreement that will open up trade in services between the markets of Europe and Kenya,” Ruto said.
Ruto said he expects that with the signing of the economic partnership agreement, development cooperation will be significantly enhanced, especially in the areas of trade and investment.
“The variety of goods traded between the EU and Kenya underscores the potential of this bilateral trade framework to deliver trade and investments of volumes, diversity and promise,” he added.
He said the agreement was the beginning of a historic partnership for historic transformation.