NAIROBI, Kenya
Kenya is
proceeding with Free Trade Agreement talks with the US despite opposition by a
section of African countries and the East African Community (EAC) bloc.File: Kenya's president Uhuru Kenyatta with US President Donald Trump in White House.
On Wednesday evening, US Trade
Representative Robert Lighthizer and Kenya’s Industry and Trade Cabinet
Secretary Betty Maina formally launched the talks.
The government is pushing to secure a
free trade pact ahead of the lapse of the African Growth and Opportunity Act
(AGOA) in 2025, which eliminates import tariffs on goods from eligible African
nations.
The country is keen to secure market for
its textile exports, clothing, tea, coffee and fish. More than 70 percent
of Kenya's exports are duty-free under AGOA.
"If we can only capture five
percent of the US market for these products, we could increase our export
revenue by more than two trillion shillings," CS Maina sadding that the
country hopes to conclude the deal within 12 months.
Kenya has assured the continent and her
npartners in the East African Community that the deal, if secured, will not
affect any existing trade ties.
“Proposed Free Trade Agreement talks
between Kenya and US will not undermine Kenya's previous agreements with
regional and continental trading blocks,” CS Maina said.
However, those opposed to the deal view
it as selfish and a threat to regional trade pacts.
Trade lobby groups also argue it will
lead to the collapse of local industries and key sectors of the
economy, on cheaper imports from the US market.
A number of trade lobby groups from five
countries have urged the Kenyan government to postpone the talks to allow
proper stakeholder engagement before sealing any deal.
The lobby groups from Kenya,Uganda,
Tanzania, Rwanda and Nigeria are concerned the talks are undermining ongoing
implementation of the African Continental Free Trade Area (AfCFTA).
The continental deal is aimed at
accelerating intra-African trade and boosting Africa's trading position in the
global market, by strengthening Africa's common voice and policy space in
global trade negotiations.
“Coming at a time when the AfCFTA is on
the verge of implementation, we feel this is the wrong move as it will
undermine the progress made by African countries in negotiating to increase
intra-regional trade,” the lobbyists say in a letter to the AfCFTA
Secretariat, copied to the Kenya’s Trade Ministry, African Union and the Law
Society of Kenya.
They include West African Institute for
Trade and Agricultural Development, National Association of Nigerian Traders,
Econews Africa, Kenya Human Rights Commission, Haki Madini Tanzania and the
Centre for Trade Policy and Development.
Other signatories include the South
Sudan Human Rights Society for Advocacy, Third World Network Africa, Tax
Justice Network Africa and ADIR Burundi.
They further argue that the agreement
poses the danger of crippling sectors such as agriculture and manufacturing and
disintegrating Kenya's economy.
In agriculture, the US seeks to secure
comprehensive market access for US agricultural goods, promote greater
regulatory compatibility with US rules and establish specific commitments for
trade in products developed through agricultural biotechnology.
The likely impact is that the agreement
will likely affect food security as the ability of local farmers to produce
will be limited by stiff competition from subsidised products from the US
market, the groups says.
Further, it may limit the ability of the
Kenyan government to regulate risky pesticides or agricultural technologies or
even shelter local production from volatile prices or supplies, they note.
“It is important to note that concluding
an FTA (Free Trade Agreement) with the US will have a negative knock-on effect
on the integration efforts under the East African Community and the Continental
Free Trade Agreement,” Edgar Odari, an official at Econews notes.
They want Kenya to delay defer the talks
to provide more time to address key issues related to the FTA, among them the
impact of the deal to Kenya’s economy, regional trade pacts and Area AfCFTA
deal.
Kenya is counting on the deal to
transform its economy.
The bilateral trade agreement followed
President Uhuru Kenyatta’s meeting with US President Donald Trump in February.
“Under President Trump’s leadership, we
look forward to negotiating and concluding a comprehensive, high-standard
agreement with Kenya that can serve as a model for additional agreements across
Africa," Lighthizer had said.
US Ambassador to Kenya Kyle McCarter has
noted that the agreement if secured, will make Kenya more competitive and
stronger economically.
Last month, President Uhuru Kenyatta
reiterated that bilateral trade deal between Kenya and the US will not
undermine the AfCFTA, but instead will be a win for Africa.
"Kenya will be the first under the new AfCTA so we are going to be trailblazers in this and we hope that others will also follow through," President Uhuru said. – The Star
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