Kenya will gradually remove tariffs on U.S. products as part of its objectives in the Free Trade Agreement. This move will help protect the country’s key economic sectors as Kenya prepares for trade negotiations with the U.S. under the Free Trade Area.
In late May, the U.S. specified in its objectives that it aims to “Secure comprehensive market access for U.S. agricultural goods in Kenya by reducing or eliminating tariffs.”
Rather than lifting tariffs at once, the country will first implement tax cuts in the interest of the economy. Similarly, the state will slowly open tenders to American firms. However, Kenya will shield several strategic national organizations from the Free Trade Agreement.
These are part of the terms on Kenya’s side, awaiting the negotiations, which will take place between July 9th and July 17th 2020.
SEE ALSO: Tunisia Begins Trading under COMESA FTA
FREE Trade Agreement to Favor Kenya’s Interests
According to Kenya’s negotiation objectives released on Tuesday and seen by Business Daily, the country will pursue rules of origin, allowing local companies to source raw materials from within regional blocs.
Further, the country will consider critical differences in the development journeys of the two countries, recognizing the need to grow Kenya’s agricultural and industrial sectors.
Speaking on the negotiations, Trade CS Betty Maina said that FTA agreements would ensure free trade between the U.S. and Kenya. FTA will offer better bilateral terms than arrangements in the World Trade Agreement. Currently, the African Growth and Opportunity Act (AGOA) governs trade between the U.S. and Africa until 2025.