Kenya, a country located in East Africa, has recently become a hub of international trade and commerce. With a population of over 50 million and a strategic location between India and East Asia, Kenya has become an important trading partner for many countries around the world.
One of the key factors that has contributed to Kenya`s success in international trade is its membership in various trade agreements. In this article, we will discuss some of Kenya`s major trade agreements and how they have benefited the country.
The African Continental Free Trade Area (AfCFTA)
The AfCFTA is a trade agreement between African countries that was established in 2018. The agreement aims to create a single market for goods and services among African countries, with the goal of increasing intra-African trade and boosting economic growth.
Kenya is one of the countries that has signed on to the AfCFTA. This trade agreement has the potential to open up new markets for Kenyan goods and services, as well as provide access to a larger pool of skilled labor and resources from other African countries.
The East African Community (EAC)
The EAC is a regional intergovernmental organization that promotes economic integration among East African countries. Founded in 2000, the EAC includes Kenya, Tanzania, Uganda, Rwanda, Burundi, and South Sudan.
The EAC has implemented several initiatives aimed at promoting trade and investment within the region. For example, the EAC has established a Common Market Protocol that allows for the free movement of goods, services, and labor across the member countries.
Kenya is one of the largest economies in the EAC, and its membership in the organization has helped it to expand its trade with other member countries. For example, Kenyan businesses have been able to tap into the large Tanzanian market, which has a population of over 50 million people.
The United States-Kenya Free Trade Agreement (FTA)
The United States-Kenya FTA is a proposed trade agreement between the two countries. Negotiations for the agreement began in July 2020 and are expected to be completed in the near future.
The FTA aims to increase trade between the United States and Kenya by reducing tariffs and other trade barriers. If implemented, it could provide significant benefits for Kenyan businesses that export to the United States, such as the horticultural and textile industries.
Conclusion
Kenya`s membership in various trade agreements has played a key role in the country`s economic growth and success in international trade. The AfCFTA, EAC, and proposed United States-Kenya FTA are just a few examples of the many trade agreements that Kenya has signed on to in recent years.
By providing access to new markets, reducing trade barriers, and facilitating the free movement of goods and services, these trade agreements have helped to boost Kenya`s economy and improve the standard of living for its citizens. As the country continues to expand its presence in the global marketplace, it is likely that it will continue to sign on to additional trade agreements in the future.
