What changed

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for adraft Council decision on the conclusion, on behalf of the European Union, of the Economic Partnership Agreement between the Republic of Kenya,European MemberUnion, of the East Africanone Communitypart, ofand the oneRepublic part,of andKenya, Member of the EuropeanEast UnionAfrican Community, of the other Partpart

(COM(2023)0562(15958/2023 – C90000/2023C90468/2023 – 2023/0338(NLE))

(Consent)

The European Parliament,

– having regard to the proposal for adraft Council decision (COM(2023)0562),(15958/2023),

– having regard to draft Economic Partnership Agreement between the Republic of Kenya,European MemberUnion, of the East Africanone Communitypart, ofand the oneRepublic part,of andKenya, Member of the EuropeanEast Union,African Community, of the other Partpart (00000/2023),(13573/2023),

– having regard to the request for consent submitted by the Council in accordance with Article 207(4), first subparagraph, and Article 218(6), second subparagraph, point (a) (v), of the Treaty on the Functioning of the European Union (C90000/2023),(C90468/2023),

– having regard to Rule 105(1) and (4) and Rule 114(7) of its Rules of Procedure,

– having regard to the opinion of the Committee on Development,

– having regard to the recommendationletter offrom the Committee on InternationalAgriculture Tradeand (A90000/2023),Rural Development,

– having regard to the recommendation of the Committee on International Trade (A9-0012/2024),

1. Gives its consent to the conclusion of the agreement;

EXPLANATORY STATEMENT

In the light of the above, the Rapporteur recommends the Parliament to give its consent to the conclusion of the Agreement.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur declares under her exclusive responsibility that she did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

8.12.2023

OPINION OF THE COMMITTEE ON DEVELOPMENT

for the Committee on International Trade

on the proposal for a Council Decision on the conclusion, on behalf of the European Union, of the Economic Partnership Agreement between the Republic of Kenya, Member of the East African Community of the one part, and the European Union of the other Part

0000/2023 – C90000/0000 – 2023/0338(NLE))

Rapporteur for opinion: Tomas Tobé

SHORT JUSTIFICATION

On 19 June 2023, Kenya, as the first Member of the East African Community (EAC) concluded negotiations on an economic partnership agreement (EPA) with the EU.

The original purpose was to negotiate and conclude an EPA with the EU that covers all EAC partner countries (‘bloc-to-bloc’, an EU-EAC EPA): EPAs are generally negotiated with regional blocs rather than individual countries in order to foster regional integration, which would help the development of the countries concerned. However, EAC partner countries have different views regarding the EU-EAC EPA, and this has impeded progress.

In contrast to the other EAC partner states, Kenya is no longer a least developed country and is therefore interested in concluding an agreement in order to keep duty-free and quota-free access to the EU market. Against this background, the other EAC partner states agreed in February 2021 that Kenya negotiates a bilateral EPA with the EU, pending progress on the EAC-wide EPA.

Kenya is the by far most important trading partner of the EU among the EAC partner countries, representing nearly half of EU imports from the EAC and more than half of its exports to the EAC.

The EU-Kenya EPA is to a very large extent based on the draft EU-EAC EPA. It means in practice that the draft EU-EAC EPA is implemented bilaterally between the EU and Kenya.

In terms of content, it is a goods-only agreement but contains a ‘rendez-vous clause’, obliging the Parties to conclude negotiations on trade in services and other trade-related issues within five years from the entry into force of the EPA. The EPA provides for flexibility through the possibility to introduce temporary export taxes. It allows for asymmetric market access for EAC products. The objectives of the agreement include, inter alia, references to sustainable development, regional integration and good governance.

The EPA's comprehensive development pillar aims at addressing EAC partners' adaptation challenges by foreseeing support in terms of building capacity and fostering structural transformation. It also states that financing relating to development cooperation shall prioritise support to the implementation of this agreement, striving to maximise its expected benefits. The EPA also recognizes the potential fiscal losses of phasing out tariffs, which the EU commits to cover transitionally whilst also engaging in an enhanced dialogue on the issue of fiscal reforms.

It should be noted that the EU-Kenya EPA contains an improvement compared to the underlying draft EU-EAC EPA insofar as it includes an annex with binding provisions on trade and sustainable development (TSD), and a transparent dispute resolution mechanism.

Regrettably, no role for parliaments is foreseen in the monitoring process of the EPA. On the other hand, the EPA provides for a joint consultative committee to promote dialogue and cooperation between representatives of the private sector, organisations of civil society, including the academic community, and social and economic partners. The joint consultative committee can pronounce itself on all matters covered under the EPA.

Any agreement is only as good as its implementation. The rapporteur therefore underlines the importance of an effective monitoring mechanism which can identify and help to address potential implementation hurdles. Equally important is appropriate financial support to partner countries to help them implement trade and sustainable development provisions, including their international obligations, referred to in Annex V of the EPA. Development concerns should remain an essential element of the EPA’s implementation and inform all EU’s actions, in line with its PCD obligations.

The rapporteur believes that, overall, the EPA has the potential to act as a catalyst for inclusive and sustainable development and growth in Kenya and also in the neighbouring EAC region.

******

The Committee on Development calls on the Committee on International Trade, as the committee responsible, to recommend approval of the proposal for a Council decision on the conclusion, on behalf of the European Union, of the Economic Partnership Agreement between the Republic of Kenya, Member of the East African Community of the one part, and the European Union of the other Part.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR FOR THE OPINION HAS RECEIVED INPUT

The rapporteur declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

PROCEDURE – COMMITTEE ASKED FOR OPINION

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

24.1.2024

LETTER OF THE COMMITTEE ON AGRICULTURE AND RURAL DEVELOPMENT

Mr Bernd Lange

Chair of the Committee on International Trade

BRUSSELS

Subject: Opinion on Council decision on the conclusion, on behalf of the Union, of the Economic Partnership Agreement between the European Union, of the one part, and the Republic of Kenya, Member of the East African Community, of the other part (2023/0338(NLE))

Dear Mr Chair,

I refer to the Commission proposal for a Council decision on the conclusion, on behalf of the European Union, of the Economic Partnership Agreement with Kenya [2023/0338 (NLE)].

The Committee on Agriculture and Rural Development considered the matter at its meeting of 24 January.

The Committee agreed with the conclusion of the above agreement with Kenya, and asked me to convey its opinion to you pursuant to Rule 56.

Yours sincerely,

Norbert Lins

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

PROCEDURE – COMMITTEE RESPONSIBLE

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE