The Economics Blog

Traditionally, the US has adopted a multilateral approach to trade with Africa via the African Growth and Opportunity Act (AGOA), which was passed by Congress in 2000. Now, Trump wants to start dealing with African countries bilaterally and Kenya is his first choice. ⠀

It would be America’s first free trade agreement (FTA) with a sub-Saharan African country and a model for future trade agreements in the continent.⠀

What would the deal mean for U.S.-Kenya trade?⠀

In 2018, US-Kenya trade was valued at $1.1 billion, placing Kenya as the 98th trading partner of the US. Likewise, the US was Kenya’s third-largest export destination at the time.⠀

This huge disparity in trade has triggered controversial views that the FTA is a strategic attempt by the US aimed at nullifying Chinese influence in Africa.⠀

The agreement could catalyse Kenya’s foreign industrial investment and export capacity. However, it could also…

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