Negotiations Between Kenya and the U.S.
Free trade negotiations between the governments of Kenya and the US started in July. A bilateral trade deal would augment commerce. U.S. Trade Representative Robert Lighthizer said that the agreement has the potential to stop the EU’s dairy export dominance. As for 2019, the EU had 81%, while the U.S had less than 1% of market share in Kenya. President Trump was additionally encouraged by The International Dairy Foods Association (IDFA) as growing Kenya’s economy could be a great destination for food and agricultural exports. If the agreement would take place, that would be the most important one since the African Growth and Opportunity Act (AGOA) from 2000.
Nowadays, Kenya imposes high tariffs on agricultural products. As for dairy, it equals an average of 50% to stabilize domestic prices. Moreover, Kenya requires compliance with Sanitary and Phytosanitary measures which include, among others, testing for radioactivity and not just one, but two pasteurization treatments.
The U.S. dairy industry casts US$620 billion to the U.S. economy and supports more than 3 million jobs. The country claims a trade surplus thanks to exporting to more than 140 countries.
