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

Key points

1. Kenya concluded negotiations on an EPA with the EU on 19 June 2023, as the first member of the East African Community (EAC) to do so.¶
2. EPAs are generally negotiated with regional blocs to foster regional integration, but differing views among EAC partner countries impeded an EU-EAC EPA.¶
3. Kenya, no longer a least developed country, sought an agreement to keep duty-free and quota-free access to the EU market; other EAC states agreed in February 2021 that Kenya negotiate bilaterally.¶
4. Kenya is the EU's most important trading partner among EAC countries, accounting for nearly half of EU imports from the EAC and more than half of its exports to the EAC.¶
5. The EU-Kenya EPA is largely based on the draft EU-EAC EPA, in practice implementing it bilaterally between the EU and Kenya.¶
6. The agreement covers goods only but includes a rendez-vous clause obliging the parties to conclude negotiations on trade in services and other trade-related issues within five years of entry into force.¶
7. The EPA allows temporary export taxes, asymmetric market access for EAC products, and refers to sustainable development, regional integration and good governance.
8. The development pillar foresees support for capacity building and structural transformation, prioritises development cooperation financing for implementing the agreement, and has the EU cover transitional fiscal losses from phasing out tariffs while engaging in dialogue on fiscal reforms.¶
9. The EPA improves on the draft EU-EAC EPA by including an annex with binding provisions on trade and sustainable development and a transparent dispute resolution mechanism.¶
10. No role for parliaments is foreseen in monitoring the EPA, but a joint consultative committee is set up to promote dialogue among the private sector, civil society, academia and social and economic partners.¶
11. The rapporteur underlines the importance of an effective monitoring mechanism to identify and address implementation hurdles, and of financial support for partner countries to implement trade and sustainable development provisions, including obligations in Annex V.¶
12. Development concerns should remain an essential element of the EPA's implementation and inform all EU actions, in line with its policy coherence for development obligations.