Agoa.info - African Growth and Opportunity Act
TRALAC - Trade Law Centre
You are here: Home/News/Article/Kenya: 'US cranks up trade deal with Kenya'

Kenya: 'US cranks up trade deal with Kenya'

Kenya: 'US cranks up trade deal with Kenya'
Published date:
Wednesday, 25 March 2020
Author:
Luke Anami

Kenya's deal with the US for a Free Trade Agreement is taking shape with United States Trade Representative Robert Lighthizer notifying Congress officially of a plan that is likely to threaten the unity of the East African Community.

In a letter dated March 17, 2020, President Trump through Mr Lighthizer wrote to Nancy Pelosi, US Senate Speaker; Senator Charles Schumer, Minority Leader; Kevin McCarthy, Minority Leader US House of Representatives; Charles Grassley, President Pro Tempore, of the US Senate, notifying them of the president's intentions.

"I am pleased to notify Congress that the president intends to initiate negotiations on a trade agreement with the Republic of Kenya. We are committed to concluding these negotiations with timely and substantive results for US consumers, businesses farmers, ranchers and workers consistent with US priorities and negotiating objectives established by Congress in statute."

"In pursuing negotiations on a trade agreement with Kenya, we are responding to Congress support, as expressed in the African Growth and Opportunity Act (Agoa), to negotiate reciprocal and mutually beneficial trade agreements that serve the interests of both the US and sub-Saharan Africa," said Mr Lighthizer in a letter to the Senate Speaker.

The deal comes hot on the heels of the second official visit of President Uhuru Kenyatta to Washington a month ago. It was also a follow-up to trade and security talks that Kenya held with the US two years ago.

The proposed deal, if passed, would see Kenya open its borders for duty-free imports from the US, while Nairobi would also get to export a range of goods tax-free to the US. The two countries share around $1 billion in trade annually.

However, the deal has raised concerns within the EAC where critics aver the planned bilateral agreement would be a breach of regional and continental trade protocols.

EAC trade officials in Arusha say the deal is potentially in breach of Section 37 of the East African Community Customs Union Protocol that requires a member state to inform its partners of its intentions before such a deal is signed.

In response, Kenya's Cabinet Secretary in charge of Agriculture Peter Munya argued that the proposed deal is intended to replace the Agoa agreement, which expires in 2025 and allowed duty-free access of a wide range of African goods to the US.

 

Read related news articles

Kenya: 4th AmCham business summit to advocate for enhanced partnership and investment In US-East Africa trade

The fourth edition of the regional American Chamber of Commerce Kenya (AmCham) Business Summit, the premier platform for strengthening bilateral trade and investment between the United States, Kenya, and East Africa is set to be held on April 24–25, 2024, in Nairobi, Kenya. Kenya’s President William Ruto is confirmed as Chief Guest, leading a government delegation to the summit that aims to expand commercial opportunities and markets....

19 March 2024

US-Kenya: Ruto’s US state visit needs to navigate America’s uncertain political future

President William Ruto will visit the United States on a State Visit in May during what is likely to be one of the most turbulent US elections in memory. Barring some miracle, or catastrophe, the US presidential election will be a showdown between the same two contenders—albeit older and less energetic—as in 2020. The US presidential election in November is the most significant geopolitical risk event of 2024. Its outcome could result in...

26 February 2024

US President Biden to welcome Kenyan President Ruto to the White House in May

President Joe Biden plans to welcome Kenyan President William Ruto to the White House in May, hosting a state visit after reneging on his promise to visit Africa last year. White House press secretary Karine Jean-Pierre said Friday that the visit set for May 23 will mark the 60th anniversary of U.S.-Kenya diplomatic relations and "celebrate a partnership that is delivering for the people" of both countries while affirming "our strategic...

18 February 2024

US keen to strengthen Kenya’s public procurement system as trade talks resume [incl. Readout]

The US plans to strengthen Kenya’s public procurement systems in what is seen as a strategy to put in place sound structures ahead of the planned trade pact. This comes as talks on the Strategic Trade and Investment Partnership (STIP) resumed last week with a meeting in Nairobi. Kenya is pushing for the deal and renewal of the African Growth and Opportunity Act (AGOA) which expires next year. Washington in a statement on Tuesday said the...

07 February 2024

'Nigeria missing as Kenya, Ghana tap AGOA opportunities to boost foreign exchange earnings'

Africa’s biggest economy is still failing to tap the opportunities that the African Growth and Opportunity Act (AGOA) present to boost its foreign exchange, amid acute dollar shortages. The AGOA has been on for over twenty-three years as it was enacted in 2020. In 2015, the program was modernised and extended to 2025, implying that there are only about 15 months before the window closes. Some countries have taken advantage of the AGOA more...

05 February 2024

US officials to fast-track talks on Kenya-US Strategic Trade and Investment Partnership (STIP)

US authorities will expedite negotiations on the Kenya-US Strategic Trade and Investment Partnership (STIP) and consider extending the African Growth and Opportunity Act (AGOA) beyond its expiry next year. Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Musalia Mudavadi who spoke after a meeting with US Secretary for State Mr Tony Blinken said these initiatives will facilitate expanded duty and quota-free access...

02 February 2024

Kenya, US trade talks resume in Nairobi, go for common ground

The third round of the Strategic Trade and Investment Partnership (STIP) negotiations between Kenya and the United States opened in Nairobi yesterday. Investment, Trade and Industry Cabinet Secretary Rebecca Miano said Kenya’s delegation is being led by Trade Principal Secretary Alfred K’Ombudo.  The main agenda items for the meeting which wraps up tomorrow revolve around agriculture, good regulatory practices, and workers’ rights...

30 January 2024

Kenya, US talks shift to agriculture

Kenya and the United States are set to begin talks on contentious clauses in a proposed bilateral trade deal amid fears the agreement could flood the market with cheap agricultural imports from America. The delayed third in-person round of talks will focus on agriculture, good regulatory practices and workers’ rights and protections, according to a statement from the US Trade Representative Office (USTR). The three-day negotiations...

27 January 2024

Kenya-US far from trade deal as year ends

Kenya’s hopes of concluding a trade deal with the US by end of this year seem unlikely pushing the long draw talks into next year. The Kenyan government had in March this year expressed optimism of sealing a deal before the year ends, in its quest to secure preferential trade terms way before the expiry of the African Growth and Opportunity Act (AGOA), in September 2025.  Kenya and the US have held three rounds of in-person negotiations...

21 December 2023

Kenya-US to deepen ICT, apparel and agriculture trade

Kenya and United States are in talks to identify areas of interest in information communication technology (ICT) sector that can interest US firms.  A meeting between The US Ambassador to Kenya, Megan Whitman, and the Cabinet Secretary for Investments, Trade, and Industry Rebecca Miano, the states sought cooperation in six key areas. The meeting laid the groundwork for an enhanced collaboration between Kenya and the United States in...

09 November 2023

Optimism as Kenya-US trade deal enters 3rd round of negotiations

Trade negotiations between Kenya and the United States entered the third round last week, with four items listed for negotiations. The Kenya-US Strategic Trade and Investment Partnership (STIP) negotiations, held from October 4-7 in Washington DC, covered agriculture and sanitary and phytosanitary measures, services, domestic regulations, anti-corruption; and women, youth among others. The Kenyan trade team also held discussions with...

16 October 2023

You are here: Home/News/Article/Kenya: 'US cranks up trade deal with Kenya'