Kenya Trade Talks Not Aimed at Lowering Tariffs
Just as the U.S. trade representative declined to continue work toward a traditional free trade agreement with the U.K. begun during the previous administration, current USTR Katherine Tai announced July 14 that trade talks with Kenya will deal with trade facilitation, digital trade, science-based sanitary and phytosanitary rules and rooting out forced labor in supply chains -- not reducing tariffs on either side.
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During a background call with trade reporters, senior USTR officials said the Office of the U.S. Trade Representative has not ruled out doing a full-fledged FTA, but, "We feel we have a lot of issues we can move forward on right away."
One reporter noted that Kenya has high tariffs on agricultural imports, such as 35% on rice, and that it doesn't allow genetically modified commodities to enter its market.
"They are starting to open up slightly on GMOs," a senior government official said. "We’re hoping we’re going to have lots of detailed conversations about science-based standards." The two countries' joint statement said: "The United States and Kenya will consider measures to facilitate agricultural trade and enhance transparency and understanding of the application of science- and risk-based Sanitary and Phytosanitary (SPS) measures."
The joint statement also said Kenya wants to accelerate WTO Trade Facilitation's implementation. "The two sides will discuss opportunities to simplify procedures, especially those that allow new entrants to engage in trade," the joint statement said. "In this regard, the two sides will consider various customs practices, transparency and cooperation on customs enforcement to inform mutual understanding, including the Agreement between the Government of the United States and the Republic of Kenya Regarding Mutual Assistance between their Customs Administrations, signed at Washington on August 6, 2014, as well as explore other topics of engagement, including trusted trader benefits for demonstrated low-risk importers, particularly those that participate in their respective country’s Authorized Economic Operator (AEO) program."