Council Decision (EU) 2024/1647 of 30 May 2024 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

What it is

to conclude the Economic Partnership Agreement between the European Union and Kenya. ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act. BACKGROUND: Kenya is a growing economy and a key regional economic player. Kenya is the ninth largest economy of the African continent and East Africa’s main economic hub. The economy staged a strong recovery after the COVID-19 pandemic, with GDP growth projected at 5.5% in 2022 and the poverty rate resuming its trend decline after rising earlier in the pandemic. The economic relations between the EU and Kenya are well established with the EU being Kenya’s second largest trading partner. Total trade between the EU and Kenya reached EUR 3.3 billion in 2022. Moreover, the EU’s imports from Kenya are EUR 1.2 billion and are mainly vegetables, fruits, and flowers, with Kenya’s intention to increasingly export more complex goods and increase value addition in exported goods. On the other hand, EU exports to Kenya amount to EUR 2.02 billion and are mainly mineral products, chemical products, and machinery. A trade agreement with Kenya - covering trade in goods, development cooperation and sustainability - would preserve and even boost EU’s market share in a booming market and will strengthen Kenya’s position in the region. BACKGROUND: on 12 June 2002, the Council authorised the Commission to open negotiations for Economic Partnership Agreements (EPAs) with the African, Caribbean and Pacific Group of States. Kenya signed and ratified the EU-EAC EPA on 1 and 28 September 2016, respectively. For the EU-EAC EPA to enter into force, all EAC members need to sign and ratify it. To this date, the signature and ratification of the other EAC members are still pending, thus preventing the EU-EAC EPA from entering into force. On 19 December 2019, the Council updated the Commission’s negotiating directives of 2002 by including the conclusion of a chapter on trade and sustainable development in EPAs. On 27 February 2021, the EAC Summit authorised individual EAC members to proceed with the bilateral implementation of the EU-EAC EPA under the principle of ‘variable geometry’. On 4 May 2021, Kenya notified the Commission of its request to move forward in that sense. On 17 February 2022, the Union and Kenya signed a Joint Statement on the margins of the EU-African Union Summit agreeing to advance the negotiations on an EPA between the Union and Kenya, which is to remain open for accession by other EAC Partner States. Finally, on 24 May 2023, the negotiations for the Agreement were successfully concluded and in accordance with a Council Decision, the Agreement was signed, subject to its conclusion at a later date. It is now necessary to approve the Agreement on behalf of the European Union. CONTENT: the purpose of the draft Council Decision is to approve on behalf of the Union, 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. The Committee on International Trade adopted a report by Alessandra MUSSOLINI (EPP, IT) on the draft Council decision on the…

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