Covington Co-Authors Report on U.S.-Kenya Free Trade Agreement

WASHINGTON—Covington joined the American Chamber of Commerce Kenya and the U.S. Chamber of Commerce to publish “U.S.-Kenya Trade Negotiations: Implications for the Future of the U.S.-Africa Trade Relationship,” an in-depth study examining the challenges and benefits of a potential free trade agreement (FTA) between the U.S. and Kenya.

“Kenya is a long-standing, strategic U.S. partner in Africa,” said Witney Schneidman, chair of Covington’s Africa Practice Group, who co-authored the report, “and American investment and bilateral trade are important elements of the U.S.-Kenya relationship.” Dr. Schneidman also noted that “A successful trade agreement between both countries would mark an important development in U.S. trade policy toward Africa in general, and sub-Saharan Africa in particular.”

In February 2020, the United States and the Republic of Kenya announced the launch of negotiations for a free trade agreement that would be the first of its kind between the United States and a sub-Saharan African country. The report identifies several priorities for an FTA between the United States and Kenya, including:

• The introduction of more predictability in U.S.-Kenya commercial relations. 
• Promoting economic opportunities for small and medium enterprises in both countries. 
• Injecting reciprocity into the U.S.-Kenya commercial relationship and making U.S. goods and services more competitive with products from Europe. 
• The economic importance of digital trade during the COVID-19 pandemic. 
• Addressing Kenya’s ban on most imports of GMOs, an obstacle for agricultural trade.
• The improvement of intellectual property protections and enforcement.
• An opportunity to address challenges in Kenya to international trade, including those relating to the regulatory environment, trade facilitation, intellectual property enforcement, law enforcement, and supply chain policies.
• Maintaining African Growth and Opportunity Act benefits for Kenya while the U.S. seeks to ensure adequate reciprocal market access.

The report draws from insights gathered from interviews with business executives and experts to explore stakeholder interest and perspectives regarding free trade agreement obligations on apparel and agricultural products as well as financial and digital services.