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A. Fresh Produce Powerhouse: Vertical Agro Limited
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B.
Vertical Agro Limited is a fresh produce processor in Naivasha, Nakuru County, Kenya. The company specializes in processing and packaging a wide range of fruits and vegetables, including mangoes, pineapples, tomatoes, and onions. They have a strong focus on quality control and sustainability, employing environmentally friendly practices and investing in modern equipment.
The agreement aims to implement the provisions of the EU-East African Community (EAC) EPA, and it remains open to other EAC countries. The EPA and its ambitious commitments represent a crucial deliverable of the EU’s 2021 Trade Policy Review and its trade policy with Africa, helping the EU deepen and expand its current trade agreements with African countries, and enhance their sustainability objectives. Mr Mvurya said the EPA provides Kenyan exporters with stable and predictable access to the European market, which encompasses 27 countries and a robust 14 trillion Euro economy. The new framework replaces a temporary arrangement, offering Kenyan goods immediate duty-free and quota-free access to European markets.
The CS further explained that the deal would facilitate access to new markets for Kenyan products, particularly in the EU, which is a major consumer of Kenyan goods. This access would be facilitated by the removal of tariffs and other trade barriers. The CS also highlighted the importance of the deal for Kenya’s agricultural sector, stating that it would boost exports of agricultural products like tea, coffee, and horticultural products. This would be achieved through improved market access and reduced trade barriers.
The European Union (EU) and Kenya have signed a new trade agreement, the Economic Partnership Agreement (EPA). The EPA, which entered into force on 1st January 2023, aims to deepen economic ties between the two partners. The agreement covers a wide range of areas, including trade in goods, services, investment, and intellectual property.
The EU’s imports from Kenya amount to €1.2 billion (Sh165.5 billion) and are mainly vegetables, fruits, and flowers. EU’s exports to Kenya amount to €1.7 billion (Sh234.5 billion) and are mainly in mineral and chemical products and machinery. The EU is Kenya’s biggest export destination, with 13.6 per cent of its total exports in 2023, followed by Uganda (9.5 per cent) and the United States (8.7 per cent). Kenyas mainly imports from China (17.7 per cent), the United Arab Emirates (15.1 per cent), and India (9.5 per cent); the EU is ranked in fourth place, with 8.1 per cent of total Kenyan imports.
This means that while the EU will remove tariffs on a wide range of goods from Kenya, Kenya will retain some tariffs on certain goods from the EU. The EPA also aims to promote investment and economic growth in Kenya. This is achieved through the provisions of the EPA that encourage investment in key sectors like agriculture, manufacturing, and tourism. The EPA also aims to improve the environment and promote sustainable development in Kenya.
The agreement includes a chapter on agriculture geared towards sustainable agricultural development, including food and nutrition security, rural development, the sustainable use and management of natural and cultural resources, and income and job creation in the agricultural sector. This chapter guarantees that the EU will not apply export subsidies, even in times of market crisis, and commits the Parties to a deepened policy dialogue on agriculture and food security, including transparency as regards their respective domestic policies.
