NAIROBI (Xinhua) --
Kenya said Friday that it plans to
sign an non-reciprocal trade deal with India to reduce the trade
deficit with the Asian nation.
Peter Munya, cabinet
secretary in the ministry of industry and trade, told
journalists in Nairobi that the bilateral trade between Kenya
and India is currently in favor of the latter to the tune of 1.6
billion U.S. dollars.
"We are therefore seeking a market access agreement with
India which will waive import duties for Kenya goods in order to
bridge the trade deficit," Munya said after the conclusion of
the eighth Kenya-India Joint Trade Committee (JTC).
The two-day meeting reviewed progress made in implementing
decisions agreed upon from the seventh session of the JTC held
in New Delhi, India on 2015 and underscored the importance of
accelerating implementation to facilitate trade and investment
between the two countries.
The ministry of industry will soon commission a study to find
out which particular sector that Kenya has a comparative
advantage and can competitively export goods to India.
Munya noted that Kenya previously sought to export pulses to
India but was unable after Indian farmers also posted bumper
harvests leading to a glut in the Asian nation.
He said Kenya is exploring the possibility of manufacturing
spare parts for India’s huge automotive sector, noting that
other lucrative products that Kenya could export to India
includes agricultural products such as macadamia nuts.
Munya said Kenya has agreed to the request of India to
promote Indian investment in Kenya’s Special Economic Zones in
order to enjoy the benefits of manufacturing in leather,
automobile assembly and textiles sectors.
"Kenya will also tap into India’s well-developed plastic
sector to manufacture plastic products for pellets, textile
fibers and road construction," he added.
Indian Minister of Commerce and Industry Suresh Prabhu said
his country has extended lines of credit to the energy, small
and medium enterprise sector development.