Kenya and Ethiopia have come into bilateral agreement and agreed to collaborate on the implementation of African Continental Free Trade Area.
The two parties represented by senior government officials of the respective governments have signed a Memorandum of Understanding to fast-track the implementation of the African Continental Free Trade Area between Kenya and Ethiopia on a simplified trade regime.
Speaking in Mombasa the Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui said that the government wants to fast-track the trade at the border following continued challenges within the border communities living in Moyale, Kenya.
Kinyanjui said there have been significant challenges thus the need for the agreement, hoping to ensure that communities living within the border can do trade freely.
“We are emphasizing that within the bigger scope of things Kenya and Ethiopia will be looking for ways in which we can implement free trade so that goods produced here or Ethiopia can come and people can work anywhere in the two countries not forgetting tourism in Mombasa and many other things that will boost our economy,” he said.
The CS assured the public that the government will continue to engage with neighboring countries to make sure there is a good trading environment for the people.
He noted that Ethiopia has critical goods that we need as a country with Kenya also having finished industrial products that are useful to Ethiopia thus the need for the partnership.
He added that people should be encouraged to invest to reap the benefits of the signed partnership between the two countries.
Kinyajui said the government has invested in infrastructure to make trading easy, urging Kenyans to take advantage and trade with neighboring countries.
Minister of Trade and Regional Integration of the Federal Democratic of Ethiopia Kassahun Gofe underscored the importance of concluding negotiations to kick start the implementation of the simplified trade regime to accelerate trade between the border communities of the two countries.
Gofe, who represented the Ethiopian government, said the meeting considered two key outstanding issues which include areas of border trade, trading threshold, travel frequencies and the common list of product ice.
He added that the parties also agreed that the border area of Ethiopia be 50 kilometers from the common border while for Kenya to be 100 kilometers from the common border.
He said the value threshold was also agreed to be 1000 US dollars, which is the frequency of four times per month and a common list of products.
“Details of the deliberations are continued in the matrix of agreed minutes, and both parties have agreed to collaborate on the implementation of the Africa Continental Free Trade Area,” he said.
He urged the technical committees of both ends to finalize the agreement aknowledging the effort put in reaching a consensus by the two parties.
“We have finally signed the agreement after two years of serious negotiations, thus the main issue will be implementing and starting trade of what was agreed,” said Gofe.
The deliberations were made after a joint communiqué of the 3rd bilateral meeting between Kenya and the Federal Democratic Republic of Ethiopia on the simplified trade regime done in Mombasa, Kenya.
The Ethiopian side agreed to initiate and exchange the draft instrument.