Agoa.info - African Growth and Opportunity Act
TRALAC - Trade Law Centre
You are here: Home/News/Article/US food firms to visit Kenya scouting for trade opportunities

US food firms to visit Kenya scouting for trade opportunities

US food firms to visit Kenya scouting for trade opportunities
Published date:
Saturday, 29 October 2022
Author:
Brian Ngugi

Representatives from 32 US agribusiness firms are set to jet into Kenya on Sunday as part of an American government delegation scouting for trade opportunities.

The US food firms are looking for new and expanded markets in Kenya for their crops. Kenya currently faces food insecurity and also wants to seal a trade deal with Americas.

Nairobi has been pressured by Washington to allow access to its genetically modified (GM) food and crop products and this month gave approval to GM imports, providing a huge market opportunity for American companies.

Kenya lifted a decades-old ban on GM crops in response to the worst drought to affect the East African region in 40 years, with authorities hoping it will improve crop yields and food security.

“I am excited to lead this delegation to foster stronger ties and build economic partnerships between the United States, Kenya and Tanzania as both of these countries present a growing opportunity for US agricultural exports,” said US Deputy Agriculture Secretary Jewel Bronaugh in a statement ahead of the visit.

“This trade mission will provide firsthand knowledge of market conditions and opportunities in East Africa and expand awareness about US agricultural and food products in the region.”

During the week-long trade mission, US participants will meet with potential Kenyan importers, processors and distributors to establish trade relationships and expand opportunities for US agricultural exports.

“In addition, US federal and state officials will engage with government counterparts on trade-related policies that will advance US interests and strengthen bilateral relations in the region,” said the United States Department of Agriculture.

Among those expected on the trip are officials from the agriculture departments of US food baskets in Kansas, Wisconsin, Minnesota, Oregon and Nebraska.

The powerful Washington-based US Grains Council which promotes US genetically-engineered crops including maize, barley and wheat in markets outside of the US is also expected.

The lobby recently hailed President William Ruto’s decision to lift the ban on GM crops.

“This is an encouraging development,” said Kurt Shultz, its senior director of global strategies following the end of the ban.

“The Kenyan government is responding to the reality that its farmers and livestock industry need new tools to increase their agricultural productivity.

“Lifting this ban will enhance domestic production in Kenya and allow Kenya to participate in the global corn trade market where 90 per cent of the corn and soybeans are GM, making it easier for imports to backfill their needs in times of crop shortfalls, such as increasingly recurring droughts.”

 The US government had prior to the recent lifting of the ban slammed Kenya for its reluctance to approve imported genetically modified foods and crops saying the measure is restricting its exports.

 The US Trade Representative’s office (USTR) had said in its annual report that approval by Nairobi could boost agricultural purchases by Kenya from the US, which is the world’s biggest producer of GM crops.

Kenya had been reluctant to approve the import or planting of genetically modified food crops since November 2012, amid an ongoing debate about the safety of GMOs, which are touted to have several advantages such as higher yields and resistance to drought and pests.

“Kenya’s GMOs ban has blocked both US government food aid and agricultural exports derived from agricultural biotechnology,” the USTR said in its annual trade barriers list published in late March.

“The restriction affects US exports of processed and unprocessed foods and feed ingredients, such as soy, corn, and distiller dried grains with solubles.”

The visit of the US firms comes at a time the Joe Biden administration has signalled the resumption of stalled talks for a free trade agreement between Nairobi and Washington, amid growing unease in Kenya about the delay to conclude the deal.

Kenya seeks to seal the deal before the expiry of the Africa Growth and Opportunity Act, which allows Sub-Saharan African countries to export thousands of products to the United States without tariffs or quotas until 2025.

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

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

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

Kenya-US trade agreement 'may need a rethink on workers'

The US and Kenya announced a trade and investment partnership in July 2022. Talks have been progressing on the way forward in nine areas, including agriculture, anti-corruption, digital trade, environment and climate change action, and workers’ rights and protections. The Strategic Trade and Investment Partnership (STIP) will be the first significant trade partnership between the US and a country in sub-Saharan Africa. Countries in the...

16 August 2023

You are here: Home/News/Article/US food firms to visit Kenya scouting for trade opportunities