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Kenya's FTA with US: A Win-Win or a Risky Gamble?

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 23 June 2020.

Kenya is set to begin negotiations for a free trade agreement (FTA) with the United States in July, a move that has sparked both optimism and concern among stakeholders.

President Uhuru Kenyatta has expressed confidence in the country's ability to negotiate a win-win deal, stating that 'trade negotiations are not about winner takes all. Everybody must leave the table feeling a winner.'

However, critics argue that Kenya's per capita income of $3,440 is significantly lower than that of the US, which stands at $63,690. They contend that the country is making a mistake by pursuing an FTA, which could expose its fragile market to skewed competition and favour US products.

The East African Trade Network (EATN), a lobby group comprising civil society organisations, farmers' groups, and trade unions from Kenya, Uganda, Tanzania, Rwanda, and Burundi, has expressed opposition to the trade deal.

According to the EATN, signing the FTA will undermine Africa's integration, expose Kenya to trade and investments disputes, and increase the risk of 'regulatory chill' where countries are unwilling to implement progressive legislation for human rights or environmental conservation.

Additionally, two lawyers have filed a petition at the East African Court of Justice arguing that the trade deal violates the EAC Treaty and its protocols.

President Kenyatta has sought to dispel fears that the trade talks will undermine the African Continental Free Trade Agreement (AfCFTA), stating that they will instead assist the continent by creating a reference point for bilateral arrangements within the continental framework.

He added that Kenya will be 'trailblazers' and hopes that other countries will follow suit.

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