Kenya’s proposed free trade deal with the US creates uproar

• The free trade deal would be a first for US trade relations in sub-Saharan ­Africa.
• Critics point out that the proposed agreement would be a breach of regional and continental trade protocols

Kenya’s proposed free trade deal with the US would lead to Kenya opening its borders for duty-free imports from the United States, and also to export a range of goods tax-free to the US. This deal would be a first for US trade relations in sub-Saharan ­Africa.

However, according to critics, the proposed bilateral agreement would be a breach of regional and continental trade protocols. Kenya on its part argues that the proposed deal is intended to replace the African Growth and Opportunities Act (Agoa) agreement, which expires in 2025. US administration has recently signaled its preference for bilateral free trade agreements with individual countries instead of multilateral trade deals such as Agoa.

 EAC Trade officials in Arusha point out that the deal is potentially in breach of Section 37 of the East African Community Customs Union Protocol. According to the EAC’s  Customs Union Protocol — of which Kenya is a signatory — an EAC member is bound to notify the partners of any intention to offer third-party preferential market access since member states share a common Customs territory. The African Continental Free Trade Area (AfCFTA) once in force also prohibits bilateral free trade negotiations with third parties. The Kenyan government has however disputed these accusations. A Kenyan government official stated that Agoa being the only route for Kenyan goods to access the US market duty-free and once it is withdrawn, Kenya’s trade with US will suffer while the other EAC partner States will continue to enjoy the benefit under the Least Developed Countries framework. Kenya –US trade stands around $1 billion annually. The proposal will be tabled once the US Congress gives the green light for the agreement.  Critics were of the view that It was better to negotiate as a bloc to maximise on the economies of scale.