Let’s not become a bazaar for US products

Kenya is in talks with the US on a bilateral trade agreement. This comes on the back of the African Continental Free Trade Agreement (CFTA) scheduled to come into force this year. Kenya has formally ratified the CFTA treaty, and currently trades with the US under the African Growth Opportunity Act (Agoa) that is scheduled to expire in 2025. Established in 2000, Agoa grants qualified goods from eligible countries access to the US duty free. Thirty nine African countries currently qualify for Agoa benefits. In 2018, Africa-US trade (imports plus exports) totaled $40.9 billion. Africa-China trade in 2018 totaled $204.2 billion. The US has a lot of catching up to do on this front.

Having trade talks with the US raises questions about Kenya’s role in the CFTA. Like with Agoa, the expectation was that Africa would negotiate a joint trade agreement with the US and other major economies. In that light, Kenya might appear a spoiler against continental unity. While in Washington, DC for the trade talks, President Uhuru Kenyatta vowed that our objective is not to hobble the CFTA, but be a “pace-setter” for the rest of the continent.