Both countries recognize that an agreement between them has the potential to serve as a model for additional agreements across Africa, including with other EAC partner countries. The agreement states a risk of paralysis of sectors such as agriculture and manufacturing and the disintegration of the Kenyan economy. In agriculture, for example, the United States is working to achieve global market access for U.S. agricultural products, promoting greater regulatory compatibility with U.S. regulations, and setting specific obligations for trade in products developed by agricultural biotechnology. The likely outcome is that the deal is likely to have a negative impact on food security, given that the production capacity of local farmers is limited by fierce competition from subsidised products from the US market. In addition, it may limit the Kenyan government`s ability to regulate pesticides or agricultural technologies at risk, or even protect local production from volatile prices or deliveries. Genetically modified organisms (GMOs). The U.S. food industry is an innovator in GMOs and related technologies that improve yields and reduce demand for chemical fertilizers and pesticides. Kenya is strongly opposed to the import of genetically modified food.
This is because this food cannot enter or cross Kenyan ports for other destinations. Like the WTO agreement on sanitary and phytosanitary (SPS) standards, the US trade agreements require SPS rules to be based on science and evidence, leading to a conflict with Kenya`s attitude towards GMOs. These divergences could have an impact on small and medium-sized enterprises, particularly in the agricultural sector, which depend on inexpensive raw materials and other inputs. Based on discussions with industry representatives in the United States and Kenya, we believe that both sides will be able to find a satisfactory solution to this problem. Regional Integration in East Africa and at the Continental Level The United States and Kenya intend to intensify and cooperate to strengthen trade cooperation under the bilateral trade protocol signed in June 2018 to identify trade and investment opportunities in strategic sectors such as energy, health, digital economy, infrastructure, manufacturing and agriculture, and Prioritize. Restrictions on Kenyan exports to the United States are not primarily based on tariffs. From a Kenyan perspective, these trade negotiations are therefore not so much about tariffs and trade as they are about the idea of attracting foreign investment to Kenya. .