The free trade agreement is also an important precursor to post-AGOA relations for the United States. AGOA was passed by the U.S. Congress during the Clinton administration in May 2000 and was extended until 2025. The agreement should never be permanent, but a springboard for a more mature trade relationship between the United States and the continent. However, the trade and investment landscape in Africa has evolved since AGOA came into effect and was last renewed in 2015. For example, China`s growing economic influence in Africa and the conclusion of Mutual Economic Partnership Agreements (EPAs) between the EU and regional economic communities in Africa have penalized US companies in Africa. These events likely pressured the U.S. Congress to protect U.S. companies interested in Africa. Given that the renewal of AGOA is left to the discretion of Congress and the extension of current legislation is not guaranteed, it is likely that the US will demand similar concessions granted by Kenya to the EU in the EPAs. «We also have the possibility to simplify the import and export of raw materials. Such an approach reduces bureaucracy, with online check-in reducing contacts at the border. This initiative will go a long way in promoting trade within the EAC and beyond. If AGOA were not renewed, the failure to secure the free trade agreement under such conditions would put Kenya in a precarious trading position compared to other EAC countries.

World Trade Organization (WTO) rules, in particular the enabling clause, provide for a Generalised System of Preferences (GSP) allowing industrialised countries to offer products originating in developing countries non-reciprocal preferential treatment (e..B g. zero or low import duty rates) over most-favoured-nation (LAM) rates. The preferential country is free to determine which countries and products should be included in its systems. Under the U.S. GSP program, exports from least developed countries (LDCs) benefit from additional duty-free access to the United States; However, Kenya is the only EAC country not to have been designated as an LDC by the United Nations Conference on Trade and Development (UNCTAD) .. . .