Trade Agreements Between Kenya And Other Countries

In addition to the opening of trade negotiations, the United States and Kenya have agreed on a framework for strategic cooperation to provide technical assistance and trade capacity building in Kenya to maximize Kenya`s exploitation of the trade benefits of the African Growth and Opportunity Act for the remaining years of the preferential program, which is due to expire in 2025. The framework will also support the development and competitiveness of Kenya`s major agricultural value chains. For Kenya, there are several reasons to raise your hand. First, more than 70% of Kenya`s exports to the United States are duty-free under AGOA, a major U.S. preferential trade program that is scheduled to expire in 2025. The United States remains one of Kenya`s main export markets, and Kenya has repeatedly stated that it is important to guarantee duty-free access to the United States before AGOA expires. Of the six EAC member states, Kenya is the only one not on the UN`s list of least developed countries (LDCs). Under the Generalized Preferences System (GSP), a separate trade preference program, least developed countries have additional access to duty-free exports of goods to the United States. Although the GSP excludes some of Kenya`s major exports, such as textiles and clothing, products covered by AGOA, many of Kenya`s agricultural exports would be duty-free if it is a LDC country. As a result, Kenya is more exposed than the neighbouring countries of the ABC if AGOA is at the end of its contract. Given that the United States is an important security partner and Kenya falls well short of the 2008 Vision 2030 targets, with an average annual GDP growth of 10%, Kenya has several incentives to negotiate with the United States.

Nevertheless, Kenya`s actions are contrary to Article 37 of the EAC Common Market Protocol, which refers to the `coordination of trade relations` and calls on Member States to `adopt common negotiating positions in the development of mutually beneficial trade agreements with third parties; and promote participation and common representation in international trade negotiations. In addition, the environment will also be an important aspect of the agreement. Like the agreement between the United States and Mexico, the environmental chapter will ideally include measures to combat wildlife trafficking, illegal exploitation and fishing, fishing subsidies and marine pollution. This will be particularly important if fisheries are not addressed at the next Ministerial Conference of the World Trade Organization. The main question mark is how a bilateral free trade agreement deals with tariffs, tariffs and trade facilitation. As a member of the EAC Customs Union, Kenya is bound by the group`s common external tariff. The progress of bilateral discussions in this area is not clear. Regional agreements.

One of the most frequently asked questions is how a free trade agreement between the United States and Kenya will affect efforts to implement the African Continental Free Trade Agreement (AfCFTA). Until now, the USTR`s statement on this issue has been ambiguous, saying only that the United States “will support, if necessary, regional integration.” U.S. companies and groups such as the U.S. Chamber of Commerce are committed to discussions on the FTA and AfCFTA, and these two groups reinforce Kenya`s growth and development goals. President Kenyatta also sought to allay fears that the ongoing trade negotiations between Kenya and the United States will harm the AfCFTA. He said Kenya`s trade agreement with the United States will provide broader assistance to the continent by creating a link for other African nations to negotiate bilateral afCFTA agreements in the future. Kenya also has obligations as a member of the Customs Union of the East African Community (EAC). Like its EAC colleagues, Kenya applies an external tariff

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