The Cabinet has approved the commencement of negotiations on a free trade agreement (FTA) between Kenya and the United States.
Members of the Cabinet approved the talks between the two nations during a meeting chaired by President Kenyatta at State House, Nairobi on Thursday.
Speaking at the meeting, Kenyatta said the agreement would help Kenyan goods to have easier access to the expansive American consumer market especially as the Africa Growth and Opportunity Act (AGOA) pact nears expiry.
A Free Trade Agreement is a pact between two or more nations to reduce barriers to imports and exports. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
Bloomberg reported that Kenya and Morocco would be the first nations in sub-Saharan Africa to benefit from free trade agreements with the US. The deals with Kenya and Morocco are expected to serve as a model for future trade pacts between the US other Sub-Saharan Africa countries.
Kenya ranks as the US’ sixth-biggest trade partner in the sub-Saharan region with total exchanges of goods and services between the two countries standing at $1.2 billion in 2018, according to Bloomberg.
