The UK moved closer to signing a sixth trade agreement in Africa today (3 November), with negotiations for a trade deal with Kenya complete. The agreement will ensure that all businesses operating in Kenya, including UK companies, will be able to continue to enjoy duty-free access as they export products such as vegetables and flowers to their customers in the UK. Data taxes. Few countries have made as rapid progress as Kenya in the use of mobile financial services and digital transformation. In order to generate more revenue from digital transactions, the government recently introduced two taxes: a 1.5 per cent tax on digital services, which will come into effect on 1 January 2021, and a former withholding tax levied on “non-resident marketing, sales promotion and advertising services”. U.S. technology companies find these taxes discriminatory. Indeed, last month, the United States announced tariffs on certain French products in retaliation for France`s unilateral tax on digital services, which targets American companies. While this issue has not been directly related to trade negotiations, it remains to be seen how the United States could address this issue in the negotiations. How will efforts to resolve this problem in the OECD conflict fuel discussions between the parties? I am pleased that we have a trade agreement with Kenya.
This agreement gives businesses the certainty that they will be able to continue trade as they do now and support jobs and livelihoods in our two countries. Despite the coronavirus pandemic, the Trump administration and the Kenyan government began trade negotiations in early July. Depending on the outcome of the negotiations, the trade agreement could be the most important development in U.S.-Africa trade relations since the adoption of Congress by the African Growth and Opportunity Act (AGOA) in 2000. According to U.S. Trade Representative (USTR), Ambassador Robert Lighthizer, the U.S.-Kenya agreement will become a model for future trade agreements with other African countries. The United Kingdom is an advocate of liberal free trade and believes in building strong and sustainable partnerships in Africa.