'Kenya needs savvy diplomats to steer global trade agenda'
The importance of economic diplomacy for Kenya is at its most crucial position in the face of retreating globalisation amid the rise of protectionism.
Protectionism agendas, perpetuated through right-wing ideologies, is gaining significant influence across the globe and developing nations need to be cautious of the implications to their own economies.
The interdependency in international business and the web of globalisation, means political decisions have a farther economic reach than ever before.
The current America First policy has directly affected Kenyan and Rwandan industries. Both nations banned second-hand clothes to promote their industries, but the US policy forced Kenya to reverse the restriction in favour of the African Growth and Opportunity Act (Agoa).
Rwanda held firm and its duty-free benefit under Agoa has been suspended
[AGOA.info note: Rwanda has been placed on formal notice - see LINK - regarding the withdrawal of AGOA preferences for its apparel exports].
There are similar economic and aid contraction threats to countries not voting in favour of US-backed resolutions at the UN General Assembly, which further compounds the impact across the world due to the trade war between the two largest economies.
The toxic trade verbiage between China and the US are impacting exports from the EU while, Brexit negotiations are placing significant uncertainty to UK and EU trading partners.
Beyond the US and the UK, the rising right-wing narrative crept its head in the Netherlands, France, Germany and Italy who are all influential trade partners with sub-Saharan Africa and specifically, key destinations of Kenyan exports.
Closer to home, protectionist lobbying postponed Nigeria’s commitment to the African Continental Free Trade Area agreement.
Kenya’s diversified economy has a growing dependency on international trade and we, therefore, need to be deliberate with our engagements in the international community.
Development and prosperity is the cure to many of our social ills, so we should place the economic agenda at the forefront of our domestic and foreign policies.
Kenya has been expanding its diplomatic engagements to the East while maintaining relations in the West. It is, however, time for us to be very purposeful with economic diplomacy across all foreign engagements.
Economic diplomacy is the management of relationships between countries and serves national development interests. Kenya’s international neutrality allows an opportunity to appropriately lower its emphasis on political diplomacy and dial-up economic interests.
Kenyan imports in 2017 were three times the value of our exports. This deficit is an opportunity to penetrate more markets in Africa and beyond, while simultaneously, enticing foreign direct investment.
Such opportunities need to be cerebrally managed by the diplomatic community to drive the economic agenda at home.
In order to ensure its effectiveness, the posts would likely be a double subordination to the Ministry of Industrialisation and Ministry of Foreign Affairs.
Political polarity is less a factor in international trade and Kenya needs a hybrid of diplomats and technocrats to truly propel the development agenda in the face of threatened globalisation principles.
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 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
'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
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
Kenya President Ruto joins US-Kenya business roadshow in San Francisco
Kenya's President William Ruto will address leading US technology companies and investors on Friday at the US-Kenya Business Roadshow in San Francisco organised by the American government’s Prosper Africa initiative. The roadshow - also co-organised by the US Embassy in Nairobi - highlights the business and investment potential in Kenya’s booming tech sector, a statement from the US Embassy in Kenya said. The event is part of a...
15 September 2023
AGOA boosts Kenya's textile exports to US, sector sees 7.2% growth
The African Growth and Opportunity Act (AGOA) has benefitted Kenya’s textile and apparel sector, leading to monthly exports to the tune of Sh4.5 billion, or Sh150 million per day, last year, according to a study by London-based Institute of Economic Affairs (IEA). The programme has had a positive impact on the country’s export-processing zones (EPZs), especially in the textile and garment sector. Kenya is the second-largest exporter of...
08 August 2023
Kenya's president meets US delegates on trade and investments
Kenyan President William Ruto has today held talks with US Trade Representative, Ambassador Katherine Tai. The discussions were based on US trade policy. Ruto said that the country is ready to strengthen the already existing relations between the two nations. "We will stretch our ties beyond the African Growth and Opportunity Act (AGOA) in the wake of advanced technology and climate change, for the full exploitation of our trade potential,"...
19 July 2023
US trade rep in Nairobi as Kenya's solo deals worry the EAC block [incl. Readouts]
The US trade representative is in Nairobi to co-lead a meeting that seeks Kenya's partnership in a fresh trade deal. The Trade and Investment Framework Agreement (TIFA Council) is pursuing various agreements even as regional peers express concern over Kenya's solo approach. Yesterday, Trade Representative, Katherine Tai met patron circle members of the American Chamber of Commerce-Kenya (AmCham Kenya) ahead of today's...
17 July 2023
US boosts Kenya apparel industry with $55m in new trade deals
The US is giving Kenya $55 million for expansion of export processing zones in a move that will boost Nairobi’s apparel exports. US initiative Prosper Africa and the US Embassy announced the funding at the launch of the US-Kenya Business Roadshow held on April 25 in New York. The announcement was part of the commitments made by President Joe Biden at the US-Africa Leaders’ Summit last year. The funds will be channelled under USAid and...
29 April 2023
Why Africa, why Kenya? Remarks by US Ambassador to Kenya
Thank you, Scott, for the kind introduction. It is a pleasure to partner with the Prosper Africa initiative to drive investment in Kenya and countries across the African continent. I am happy to kick off our U.S.-Kenya Business Roadshow with all of you today, and to announce that we will be partnering with Prosper Africa throughout the year to engage businesses and investors in cities across the United States. Our next stops include San...
26 April 2023
Kenya-USA: Joint Statement on the third US-Kenya bilateral strategic dialogue [incl. VIDEO]
The text of the following statement was released by the Governments of the United States of America and the Kenya on the occasion of U.S.-Kenya Bilateral Strategic Dialogue in Washington, D.C. on April 24, 2023. Begin Text: The Governments of the United States of America and the Republic of Kenya held the third iteration of the U.S.-Kenya Bilateral Strategic Dialogue in Washington, D.C. on April 24, 2023. The U.S.-Kenya Strategic...
24 April 2023