Economic Partnership Agreement: Kenya

Viscount Trenchard Excerpts

Tuesday 2nd March 2021 Lords Chamber

[Viscount Trenchard (Con)]

My Lords, I thank the noble and learned Lord, Lord Goldsmith, for introducing this debate. Along with other noble Lords, I most heartily congratulate the noble Lord, Lord McDonald of Salford, on his entertaining maiden speech. Your Lordships’ House will gain a great deal from his experience and perspectives as the global Britain programme accelerates.

During the last few weeks of the implementation—or transition—period, all eyes were on the discussions with the EU, led by my noble friend Lord Frost. I trust that we are likely to see rather more of him in your Lordships’ House in future. He successfully concluded the trade and co-operation agreement with the EU on Christmas Eve, a wonderful Christmas present for the British people.

Little attention has been given to the impressive performance of my right honourable friend the Secretary of State for International Trade and her team in sorting out a large number of continuity free trade agreements during December. As of now, the UK has secured continuity or enhanced continuity trade agreements with almost all the 70 countries with which we had previously signed up to free trade agreements as members of the EU. Last month it was announced that we have applied to join the CPTPP, a free trading area with a combined GDP of £9 trillion. This is very exciting and enormously significant for global Britain.

It is also to be celebrated that we have now signed up to seven free trade agreements covering 14 African countries. Important among those agreements to which we signed up in December was that with Kenya. In terms of volume of traded goods, it was perhaps not the most important, but in terms of geostrategic significance I submit that it was rather more important. Some observers have said that the agreement may have a negative effect on economic integration among the members of the East African Community. However, under Article 143 of the agreement, the other members of the EAC are entitled to make an accession request to the UK-Kenya EPA Council.

The International Agreements Committee of your Lordships’ House asked why the Government did not transition the market access regulation into UK law. It seems clear that the reason no other partner state of the EAC chose to ratify the EU-EAC EPA is that they could enjoy duty-free and quota-free access through the EU’s market access regulation. Beyond this, all the other partner states had an additional incentive not to ratify the agreement, as they are least developed countries and, as such, already benefit from duty-free, quota-free access under the EU’s generalised scheme of preferences LDC framework.

Kenya has seen sustained growth for over a decade, rooted in fundamental reforms which have made the Kenyan economy competitive and increased its attractiveness to international investment. I welcome this agreement.