Towards A Free Trade Agreement

A free trade agreement (FTA) or treaty is a multinational agreement under international law to create a free trade area between cooperating states. Free trade agreements, a form of trade pacts, set tariffs and tariffs on imports and exports by countries, with the aim of reducing or removing barriers to trade and thereby promoting international trade. [1] These agreements “generally focus on a chapter with preferential tariff treatment,” but they often contain “trade facilitation and regulatory clauses in areas such as investment, intellectual property, public procurement, technical standards, and health and plant health issues.” [2] There are significant differences between unions and free trade zones. Both types of trading blocs have internal agreements that the parties enter into to liberalize and facilitate trade between them. The key difference between unions and free trade zones is their approach to third parties [lack of ambiguity needed]. While a customs union requires all parties to apply and maintain identical external tariffs on trade with non-parties, parties to a free trade area are not subject to such a requirement. Instead, they can set and maintain any customs regime for imports from non-parties, as they see as necessary. [3] In a free trade area without harmonized external tariffs, the parties will adopt a system of preferential rules of origin to eliminate the risk of trade diversion [necessary ambiguities]. [4] In 2018, President Donald Trump and President Uhuru Kenyatta strengthened bilateral relations between the United States and Kenya in a strategic partnership and established a Trade and Investment Working Group to explore ways to deepen trade and investment relations between the two countries and lay the groundwork for a stronger trade relationship in the future. In 2020, the two presidents agreed to establish closer economic relations by negotiating a free trade agreement. “We believe that this agreement with Kenya will complement Africa`s regional integration efforts, including in the East African Community and the pioneering African Continental Free Trade Area (AfCFTA), and the United States is pledging additional support to help AfCFTA reach its full potential.” “Kenya and the United States have strong trade relations, exemplified by the increase in exports and imports, which have increased over the years,” said Maina, secretary of the firm.

The United States of America is an important target market for Kenya, a position that was maintained in the years following the East African Community (EAC), the European Union (EU) and the East and South African Common Market (COMESA). “Increasing and maintaining exports to the United States requires a predictable trade agreement to ensure preferential market access for Kenyan products. Kenya is also working to attract foreign direct investment from the United States, which will improve vertical and horizontal links in the Kenyan economy. The growing inflow of investment from the United States has the potential to create jobs and catalyze other value chains that will benefit Kenya`s micro and small businesses. The Market Access Card was developed by the International Trade Centre (ITC) to support companies, governments and market access researchers. The database, which is visible through the market access map online tool, contains information on tariff and non-tariff barriers in all active trade agreements that are not limited to those that are officially notified to the WTO. It also documents data on non-preferential trade agreements (for example. B generalized preference regimes). Until 2019, Market Access Map has provided downloadable links to text contracts and their rules of origin. [27] The new version of the Market Access Map, which will be released this year, will provide web links