This archive report was first published on 7 June 2020.
On June 7, 2020, the US negotiating objectives for a trade agreement with Kenya were released, stating that the deal aims to create a mutually beneficial trade agreement that can serve as a model for additional agreements across Africa.
However, Kenya's executive director at Econews Africa, Edgar Odari, warns that the country must exercise an abundance of caution in this situation. The talks are set to commence in July, but Kenya has not published its negotiating objectives, which is crucial for conducting wider stakeholder consultations.
Kenya's economy is at a significant disadvantage compared to the US, with California alone being the fifth largest economy in the world. Kenya, on the other hand, is ranked 98th on the US trading partners list, with exports of $365 million and imports worth $644 million.
The proposed agreement could have far-reaching consequences, including the disintegration of Kenya's economy and the crippling of sectors such as agriculture and manufacturing. Local farmers may struggle to compete with subsidised products from the US market, impacting food security and limiting the government's ability to regulate risky pesticides or agricultural technologies.
The African Growth and Opportunity Act, under which African countries have been exporting goods to the US, expires in 2025. It is essential that African countries collectively discuss a post-Agoa future, rather than individual countries rushing to conclude agreements with significant consequences.
Edgar Odari is the executive director at Econews Africa.
