This model allows foreign companies located in selected export areas to be eligible for duty-free exports to the U.S. market. Clothing as Kenya`s main export objective, the success of its negotiating capacity is assessed on the basis of how it integrates inputs and outputs from its export processing areas. An agreement that considers that all clothing exports, regardless of ownership and source of inputs, are considered “Kenyans” for an appropriate period of time should be the objective. The Kenyan internal market is characterized by a great informality (annex, Table 1). The opening of micro and medium-sized enterprises to external competition from U.S. firms will not only worsen the performance of SMEs, which currently contribute at least 28% of GDP, but also exacerbate inequalities between women and men, given the low ownership of women-owned enterprises. The discussions between Kenya and the United States on a free trade agreement are yet another sign of an improvement in the competitiveness of U.S. businesses in one of the continent`s most dynamic economies and regions. They also pave the way for Kenyan companies to build on AGOA`s successes, while ensuring commercial benefits such as market access beyond 2025. In concluding this agreement, the United States will send a strong signal that it is serious about the importance of Africa, its people and its long-term prosperity. Related Content Africa in Focus The ABC Triangle: AfCFTA, Brexit and COVID-19 to work for Africa Chuku Chuku Tuesday 30 June 2020 Africa focuses on trade in uncertain times: prioritizing regional value chains to accelerate Economic Development in East Africa Andrew Mold and Anthony Mveyange Wednesday, April 15, 2020 Africa will focus on governance in Africa the conditions of competition for U.S. trade cooperation with the Witney region , 28 January 2020 At a time when afCFTA, on the basis of the available evidence, is about to be implemented, we are the reason why this is not the right thing to do, as it undermines the progress of African countries in negotiations on increasing intra-regional trade.
AfCFTA aims to increase intra-African trade from the current 15% to 50%, as well as most major trade in raw materials and industrial products. The U.S. Free Trade Agreement also seeks market access for its recovery, which will have a negative impact on the AfCFTA procedure (see Chart 1 of Appendix). Given the persistence of the coronavirus pandemic, we believe that the timing of negotiations is inappropriate, particularly given that the implementation of AfCFTA was halted as a result of the pandemic. Restrictions on Kenyan exports to the United States are not primarily based on tariffs. From a Kenyan perspective, therefore, these trade negotiations are not so much about tariffs and trade as about attracting foreign investment to Kenya. The most useful potential outcome will be the extent to which Kenya will attract foreign direct investment from the United States and other countries to its areas of economic transformation. 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 would.
Wednesday, April 14th, 2021
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