Agoa.info - African Growth and Opportunity Act
TRALAC - Trade Law Centre
You are here: Home/News/Article/US, Kenya officially launch trade talks

US, Kenya officially launch trade talks

Published date:
Thursday, 09 July 2020

The United States and Kenya formally launched negotiations Wednesday on a bilateral trade deal, which the countries hope could be replicated across Africa.

“Under President [Donald] Trump’s leadership, we look forward to negotiating and concluding a comprehensive, high-standard agreement with Kenya that can serve as a model for additional agreements across Africa,” said U.S. Ambassador Robert Lighthizer in a joint U.S.-Kenya statement.

The first round of discussions, held over the next two weeks, will be conducted remotely because of the coronavirus pandemic.

Both countries announced formation of a working group to “lay the groundwork for a stronger future trade relationship” in August 2018, the same year the relationship between the two countries was upped to a strategic partnership. Trump and Kenyan President Uhuru Kenyatta officially agreed to pursue trade negotiations in February 2020.

The U.S. and Kenya also announced a new strategic cooperation framework Wednesday, meant to help Kenya benefit fully from the African Growth and Opportunity Act, which allows most products from sub-Saharan Africa into the U.S. duty free. The program is scheduled to expire in 2025.

The negotiations have seen some pushback. Nearly 30 nongovernmental organizations signed a letter (see attached) Tuesday against the proposed agreement, arguing that bilateral free trade would hurt Kenyan agriculture and manufacturing and undermine regional economic integration efforts through the African Continental Free Trade Area.

Lighthizer emphasized a deal’s potential for regional unity, saying, “We believe this agreement with Kenya will complement Africa’s regional integration efforts, including in the East African community and the landmark African Continental Free Trade Area, and the United States pledges its continued support to help the AfCFTA achieve its fullest potential.”

Betty Maina, Kenya’s cabinet secretary for industrialization, trade, and enterprise development, said in the statement that an agreement would boost Kenyan exports and foreign investment and would create jobs.

Trump, who opposes U.S. membership in the World Trade Organization, has led the charge to negotiate separate bilateral agreements with American trade partners.

Read related news articles

USTR releases summaries from US – Kenya Strategic Trade and Investment Partnership negotiations

Consistent with the Biden-Harris Administration’s commitment to the highest levels of transparency in trade agreement negotiations, the Office of the United States Trade Representative (USTR) today released summaries of texts proposed by the U.S. side on good regulatory practices, workers’ rights and protections, and a second tranche of agriculture text. Negotiations on these texts are ongoing. USTR will negotiate the workers’...

08 April 2024

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

You are here: Home/News/Article/US, Kenya officially launch trade talks