The Bilateral Trade present a crucial opportunity for Kenya to enhance its economic growth and strengthen its position in the global market. As an emerging economy with vast potential, Kenya must approach these agreements with a strategic mind set and clear objectives. In this blog, we will explore the key areas Kenya should prioritize in bilateral trade to maximize its benefits and promote sustainable development. Let’s discuss the notification in brief:
The United States and Kenya Strategic Trade and Investment Partnership (STIP) was established on July 14, 2022, in a virtual meeting between Katherine Tai, the United States Trade Representative, and Betty Maina, the Kenyan Cabinet Secretary for Industrialization and Trade.
In addition to courting the US, President of Kenya William Ruto has increased both domestic and international travel, and according to his deputy, Rigathi Gachagua, the President is opening up the economy for foreign investors and bilateral trade.
According to the most recent reports, Dr. Ruto spent roughly four times as much on overseas travel between July 2022 and December 2022 as his predecessor did. During this time, the new head of State made 10 visits to announce his presence on the international scenario.
The Office of the President received Sh 262.6 million for international travel in this fiscal year, which ends in June. This is an increase of more than three times the Sh72.1 million provided by the previous Treasury team.
The Iranian President, who recently signed more than 10 MOUs with the President, is only one of the heads of state and government that the President has hosted.
The real question is whether the administration of the President has a clear trade agreement strategy that may help it reap the rewards of its investments in these trade accords.
There are certain similarities between dowry and Bilateral Trade; including the fact that neither is ever conducted in public and that each party is equipped with a trade agreement.
Since both nations will be looking for products to sell to one another, "open market access" is one of the options on the table. Despite seeming profitable, Kenya might not gain from it.
First of all, each of these countries is in discussions about trade with Kenya. Second, the AGOA agreements with the US should not be a model for these trade conversations.
Three-quarters of the textiles exported by the 52 participating African nations under AGOA to the US originate from Kenya.
When compared to a nation like Vietnam, which exports between USD 15 and USD 25 billion to the US, based on Kenya Import Data.
How can Vietnam (with 97 million people) provide 50 times more textiles than the rest of Africa, with 1.4 billion people, under the same market conditions?
The difference between what Africa focused on and what it should have focused on is the key to the solution. In actuality, Kenya's decision to pursue market access would benefit its competitors.
Kenya has an upper middle-class economy, so its trade agreement should concentrate on harmonizing norms and regulations to give Kenya a competitive edge.
Kenya actually has to be competitive in alternative supply chains, including those for pharmaceuticals, semiconductors, and rare earth minerals.
Kenya has also started manufacturing semiconductors and nanotechnology in Nyeri County. It has begun manufacturing nanotechnology-related integrated circuits, sensors, and other goods for the global market. These are a few of the various supply chains that could give Kenya an edge.
In addition to these, Kenya has the most advanced digital institutions and an open, transparent financial system.
Therefore, as Kenya enters into a trade agreement, it is hoped that those who will be representing Kenya will make a proposal that is unique to Kenya in exchange for something that will truly serve the interests of the whole public and not just a select few. Additionally, it is hoped to ensure that by achieving this, it will be in the spirit of equal partners, with coordinated standards and regulations that benefit neither party.
There are numerous bilateral trade agreements and updated Kenya trade statistics available for traders to gain real-time market insights. So, if you need any type of assistance regarding Kenya Imports and exports, Kenya trade data, or Kenya export data, connect to our website, KenyaTradeData.com, to learn more about the latest and most updated global market insights. Join today to book a free live demo!
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