In 2020, the US and Kenya commenced negotiations to conclude a Free Trade Agreement (FTA). These negotiations slowed down under President Biden's presidency. Furthermore, the term for the US Trade Promotion Authority which gives the President authority to conclude bilateral trade agreements expired on 1 July 2021. For the better part of this year, the new US administration has been reviewing ongoing trade talks to ensure compatibility with their agenda.
However, with a new US Trade Representative in office, there have been indications that talks between the two countries are resuming in earnest. Further, a motion to renew the term of the Trade Promotion Authority was tabled before the US Congress on 27 July 2021. It, therefore, appears that the two countries may make headway in concluding the anticipated bilateral trade arrangement.
Considering Kenya's increasing interest in concluding bilateral agreements with foreign countries, we discuss the operation of a potential US-Kenya FTA in the context of the East African Community (EAC) Customs Union. In the second instalment of a customs-focused series, we highlight potential implementation challenges for consideration during negotiations, with a focus on tariff treatment and rules of origin. Click here to read the full article.
*The first instalment of the series was focused on the operation of the Kenya-UK Economic Partnership Agreement within the EAC Customs Union. In case you missed it, click here to read the full article.
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