The US-Kenya Free Trade Agreement – What It Means for Both Parties

The United States of America and the Republic of Kenya have officially launched negotiations for a new trade agreement. The proposed agreement, commonly referred to as the US-Kenya Free Trade Agreement (FTA), is aimed at increasing trade between the two countries by eliminating tariffs, reducing non-tariff barriers, and promoting investment.

The US-Kenya FTA has the potential to offer many benefits to both the US and Kenyan economy. For the US, the agreement presents an opportunity to increase its exports to Kenya and tap into the East African market. Kenya, on the other hand, stands to benefit from increased foreign investments and access to the American market.

The current trade between Kenya and the US is largely dominated by exports from Kenya to the US, mostly in the form of textiles and agricultural products. However, the total trade volume between the two countries is still quite low. The US-Kenya FTA therefore presents an opportunity for both parties to expand their trade relationship and increase their economies` growth.

The US has had great success with similar agreements with other countries, such as the US-Mexico-Canada Agreement (USMCA), which replaced the North American Free Trade Agreement (NAFTA). The USMCA has increased trade between the three countries and has resulted in job creation and economic growth.

The US-Kenya FTA negotiations began in July 2020, with both countries committing to concluding an ambitious, comprehensive, and high-standard agreement that will benefit both economies. The negotiations are expected to cover a wide range of issues, including trade in goods and services, regulatory coherence, intellectual property rights, and labor and environmental standards.

There are, however, some concerns about the potential impact of the agreement on the Kenyan economy. Local industries, especially the textile and agricultural sectors, have expressed apprehension that they may not be able to compete with American goods flooding the Kenyan market. There are also concerns about possible job losses if American companies set up businesses in Kenya and take over local markets.

The Kenyan government has acknowledged the concerns and has promised to ensure that the agreement is beneficial to the country`s economy. The government has also assured that they will ensure that local industries are protected and that the agreement benefits small and medium enterprises.

In conclusion, the US-Kenya FTA presents a significant opportunity for both countries to increase their trade relationship and grow their economies. However, it is essential that the agreement is balanced and fair to both parties and that it benefits local industries and small and medium enterprises. Overall, the agreement has the potential to offer significant benefits to both the US and Kenya, and it`s an exciting development for the East African region.