East African Community omission from Kenya-EU trade agreement

The newly opened Fertiplant fertilizer granulation factory in Nakuru is visited by President William Ruto and a gr...

Although it has cast doubt on East African unity, Kenyan President William Ruto praised his nation's "remarkable partnership" with the European Union (EU) as the two sides signed a 25-year trade agreement.

The economic hub of the area: has it weakened this unity or was it forced to go it alone?

That's been a hot topic of discussion all week, and it's likely to get even hotter once we hear the official reactions from the six other states that make up the East African Community (EAC), a trading bloc in the region that some people think ought to have been at the center of the deal with the more powerful and larger EU.

They haven't spoken up yet, but the deal - the most extensive agreement Kenya has ever negotiated with the EU, tying both parties for 25 years - seems to go against at least the Tanzanian government's position.

Last year, it stated in a statement that it would only support a deal that benefited the entire EAC, not just Tanzania.

Econews Africa, a lobbying group, is reportedly considering taking Kenya's decision to court because it has so enraged it.

Edgar Odari, executive director of Econews Africa, asserts that Kenya "effectively jumped the gun, opened up new negotiations with the European Union, [including] a new chapter on trade and sustainable development, and went ahead to get it signed by President [Ruto].".

Kenya did sign an agreement with the EU in 2016 through the EAC, but it was never fully implemented because the majority of the other members of the regional bloc refused to sign.

Supporters of President Ruto's bilateral agreement accuse them of taking too long to sign it, which hurts Kenya the most.

They point out that only Kenya is a member of the EAC that is classified as an "emerging" nation; the other members are "least developed," which means that their exports could continue to reach the EU market even in the absence of a deal.

In order to maintain access to the lucrative market, Kenya had to come to its own agreement.

Workers pack roses 13 January 2006 at Oserian farm in Naivasha northwest of Nairobi.
Kenya is a significant supplier of flowers to Europe.

Kenya's most significant export market is the 27-nation EU, which is also its second-largest trading partner after China.

In contrast to the $2 point 2 billion in machinery exports to Kenya, the EU imports $1 point 3 billion (£1 billion) worth of vegetables, fruits, and flowers from Kenya.

Kenya's presidential spokesperson Hussein Mohammed hailed the agreement, saying it would:.

  • bolster manufacturing sector investment.
  • in various industries, create jobs.
  • place the nation in the role of a hub for European businesses looking to enter the East African market.
  • entitle Kenyan farmers to duty-free entry into their main export market.

Kenyan officials have, however, made very little comment regarding the tariff reduction over a 25-year period and the fact that the agreement grants the EU unrestricted access to the Kenyan market.

Many people worry that this could result in an influx of European goods into Kenya, harming domestic industries.

In order to allay these worries, the government will need to support Kenyan companies as they expand in order to fend off competition from much larger European players, all the while making sure that exports to the lucrative EU market rise.

Its confidence in its ability to meet the challenge is so great that it is considering signing a bilateral trade agreement with the US next year, raising the question of what this means for efforts by African states to forge a unified trade front.

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