On July 1, the EU-Kenya Economic Partnership Agreement (EPA) entered into force, representing a key milestone in the EU-Kenya Strategic Partnership, as the benefits of the Agreement are reciprocally applicable to both parties and not only to Kenya as before.
Kenya is the main economic hub of East Africa, and the EU is the first destination for its exports and its second largest trading partner. EU-Kenya trade relations thus have great potential for growth, as the Agreement boosts bilateral trade in goods and investment, reinforces good trade practices, facilitates mutually advantageous and sustainable economic relations and stimulates job creation.
Main benefits of the EPA on trade in goods
As in other EPAs, the EU-Kenya EPA provides for asymmetrical tariff elimination. This means that:
- The EU fully liberalizes access to its market from day 1 of the implementation of the EPA, allowing all goods from Kenya (mostly agricultural, such as vegetables, cut flowers, fruits, tea and coffee), except arms, to enter the EU market without tariffs and quotas.
- Kenya has committed to gradually reduce tariffs on imports from the EU over a maximum period of 25 years, benefiting from transitional periods. In addition, it can exclude sensitive products from liberalization, such as certain agricultural products, wines and spirits, chemicals, plastics, wood paper, textiles and clothing, footwear, ceramic products, glassware, articles of base metals and vehicles.
In addition, the agreement contains a protectionist clause that prevents the EU from applying general subsidies to agricultural exports to Kenya unless there is further political dialogue with Nairobi. It aims to protect Kenyan agriculture and food security from unfair competition from the EU.
Evidence of origin to claim for the EPA tariff preferences
It is envisaged to negotiate a new Protocol on Rules of Origin as soon as possible, and at the latest within the first five years of implementation of the EPA. In the meantime, the rules of origin of the EU Market Access Regulation (EU) 2016/1076 will temporarily apply to the trade of both parties.
This means that, for the time being, the rules of origin that currently apply to Kenyan exports to the EU will continue to apply and, as a new development, the rules of the Market Access Regulation will also apply to preferential exports from the EU to Kenya, until reciprocal rules of origin are negotiated and applied.
In order to benefit from the tariff preferences, set out in the Agreement, article 14 of the Market Access Regulation establishes as valid proofs of origin:
