Deal with US should benefit both parties

Kenya signed a trade pact with the US during President Kenyatta’s visit to Washington DC last week. Broadly, the trade pact seeks to expand reciprocal trade between the two countries, which for Kenya means securing more business opportunities in the US and boosting export revenues.
One of the components was air transport whose purpose is to enable the two countries establish cargo hubs within their respective jurisdiction and expand commodity trade. This follows the launch of direct flight between Nairobi and New York in 2018 designed to ease travel and boost trade.
The US is one of the world’s biggest markets and many countries seek to enter into trade deals with it. But an analysis of the trade regime between Kenya and America reveals wide inequalities. So far, the main business engagement with the US is African Growth Opportunity Act (Agoa) that allows selected African countries easy access to the US market through preferential treatment, including tax waivers which lower product costs.
But the general trend is that Kenya’s and Africa’s engagement with the US is minimal and skewed negatively against the continent. Africa exports largely raw materials to the US and other western economies, which attract marginal returns. Contrastingly, the West exports to Africa and other developing countries manufactured goods that attract high buyer-fee. This is modern-day exploitation that continues unabated even as Africa’s leaders pursue trade deals with the West.
To this extent, trade agreements have to be critically evaluated to determine if they promote mutual benefits for the trading nations.
At another level, there has been debate as to whether Kenya should pursue more of bilateral or bloc trade treaties. This comes against the wisdom that since most Africa’s economies are fragile compared to their foreign partners, there is merit in going for regional or continent-wide trade accords. Thus far, at the continental level, Heads of State have signed the African Continental Free Trade treaty. East African countries equally have common trade protocols. Experts argue that the continent serves to benefit more if countries collectively entered into deals with the rest of the world rather than individually. However, it has to be pointed out that there is no exclusive mutuality between the two sets of arrangements. What is pertinent is the nature and scope of trade deals.
For Kenya, the agreements would make sense if they translate into real expansion of markets and enhance the quality of products that rake in substantial revenue.