Kenya and China Sign Preliminary Trade Agreement
Kenya has signed a preliminary trade agreement with China, granting duty-free access to the Chinese market for 98.2% of its export products. The two parties are continuing discussions towards a comprehensive bilateral trade agreement. This agreement follows negotiations aimed at aligning Kenya's market access with that of other African countries already enjoying duty-free and quota-free access to China.
Background and Objectives
Kenya has long sought to reduce its persistent trade deficit with China while expanding access to its local products in major global markets. According to the United Nations Comtrade database on international trade, Chinese exports to Kenya totaled $8.582 billion in 2024, while exports in the opposite direction did not exceed $200 million.
New Opportunities for Growth
The new prospects could open up new growth trajectories for farmers, industries, and the entire East African region. By increasing exports of in-demand products like tea, coffee, and avocados, Kenya can reduce its trade deficit, generate foreign exchange, and strengthen regional production. Additional technical consultations will be undertaken to implement the agreement and prepare Kenyan producers to fully capitalize on this expanded market access.
Regional Implications
For countries like Tunisia, which already benefit from a free trade agreement with China under the African Continental Free Trade Area (AfCFTA), it is crucial to accelerate implementation to fully benefit from it and generate a significant positive impact on our trade balance.
