Kenya International Trade Agreements: Exploring New Horizons
International trade is an essential component of economic growth and development. It enables countries to exchange goods and services, and in turn, helps in the creation of employment opportunities, and the generation of revenue. Kenya is one of the most promising economies in Africa, and over the years, the country has been actively pursuing international trade agreements to bolster its economy. In this article, we will explore the various international trade agreements that Kenya has signed, and their implications on the country`s economy.
East African Community (EAC) Treaty
Kenya is a member of the East African Community (EAC), a regional intergovernmental organization comprising of six East African countries, namely Kenya, Tanzania, Uganda, Rwanda, Burundi, and South Sudan. The EAC Treaty provides for the creation of a regional common market, with free movement of goods, services, capital, and people. The benefits of the EAC Treaty to Kenya include an expanded market for its goods and services, increased investments, and the establishment of a harmonized legal and regulatory framework.
Common Market for Eastern and Southern Africa (COMESA) Free Trade Area
Kenya is also a member of COMESA, a regional organization that promotes economic integration through the creation of a free trade area. The COMESA Free Trade Area allows for the free movement of goods and services, and the removal of trade barriers such as tariffs and quotas. Kenya benefits from the COMESA Free Trade Area through access to a larger market for its goods and services, increased investments, and enhanced regional cooperation.
East African Community-European Union (EAC-EU) Economic Partnership Agreement (EPA)
The EAC-EU EPA is an agreement between the EAC and the European Union (EU) that aims to create a free trade area between the two regions. The agreement allows for the removal of tariffs and other trade barriers between the EAC and the EU. Kenya benefits from the EAC-EU EPA through the increased market access for its goods and services, increased investments, and improved regional integration.
Kenya-United States of America (USA) Trade and Investment Framework Agreement (TIFA)
The Kenya-USA TIFA is an agreement that seeks to promote trade and investment between Kenya and the USA. The agreement provides a framework for regular discussions between the two countries on trade and investment issues, with the aim of enhancing bilateral trade and investment relations. Kenya benefits from the TIFA through increased market access for its goods and services in the US, increased investments, and enhanced bilateral relations.
Kenya-China Comprehensive Economic Cooperation Agreement (CECA)
The Kenya-China CECA is an agreement that seeks to enhance economic cooperation between Kenya and China. The agreement covers trade, investments, and other areas of economic cooperation. Kenya benefits from the CECA through access to the Chinese market, increased investments, and enhanced bilateral relations.
Conclusion
Kenya`s international trade agreements are instrumental in the country`s economic growth and development. They provide access to larger markets for its goods and services, increased investments, and enhanced regional and bilateral cooperation. However, it is important to note that international trade agreements also come with challenges such as increased competition, the need for compliance with international standards and regulations, among others. Therefore, there is a need for Kenya to strike a balance between the benefits and challenges of international trade agreements, and consistently review them to ensure they remain relevant to the country`s economic interests.