Some uncertainty as negotiations on the US-Kenya trade agreement proceed without a fixed timetable
A recent report has shown that the United States is unsure when discussions for a free trade agreement with Kenya would be completed, notwithstanding the fact that Nairobi previously stated that the talks would be completed by December.
The United States Trade Representative Katherine Tai, who wrapped up a three-day visit in Nairobi on Wednesday, stated that the US negotiators do not have a timetable for ending discussions or signing the planned US-Kenya Strategic Trade and Investment Partnership (STIP).
“In terms of signature and when will we conclude, our focus right now is on substance as opposed to setting an actual deadline,” Ms. Tai said in a media briefing in Nairobi. “There’s a strong motivation on both sides to continue to build trade and economic relationships through these STIP discussions. So I am very encouraged with the engagement that we have had here and we will see how quickly we can move things forward,” she added.
The proposed trade agreement is expected to protect Kenya in the event that the US Congress decides not to extend the African Growth and Opportunity Act (Agoa), which grants countries in sub-Saharan Africa duty- and quota-free access to the American market, when it expires in 2025. The proposed trade agreement does not include any tariff-related clauses.
- The United States Trade Representative Katherine Tai confirms that discussions for the US-Kenya Strategic Trade and Investment Partnership (STIP) are ongoing, with no specific deadline set for conclusion or signature.
- The proposed trade agreement aims to protect Kenya's trade interests in the event of the African Growth and Opportunity Act (Agoa) not being extended beyond 2025.
- The US-Kenya trade talks, initiated in July 2022, continue to progress, with the first round of negotiations held in Nairobi, signaling the possibility of a comprehensive free trade deal between the two nations.
Moses Kuria, the cabinet secretary for trade in Kenya, had stated in March that he anticipated the discussions to be concluded in December, opening the door for the agreement to be signed by April 2024. Also, the National Assembly Committee on Trade, Industrialization, and Cooperatives reported in June that the Trade Ministry expected the negotiations to be concluded by December.
The first round of negotiations on the proposed trade agreement, which would serve as a model for the rest of the sub-Saharan African nations, took place between April 17 and 20 in Nairobi. Ms. Tai said continued negotiations on STIP were on the agenda for her visit to Nairobi. She co-led a meeting of the US-East African Community (EAC) Trade and Investment Framework Agreement (TIFA) Council on Tuesday.
“The large part of my being here is to enhance engagements and conversations on this strategic and investment partnership,” the US trade representative said. “Progress is going very well. I had good conversations with my counterparts and it was part of discussions with President Ruto as well,” she added. The top trade official for the US, however, did not meet Mr. Kuria.
The US exported commodities worth Sh93.43 billion to Kenya in 2022, while importing items worth Sh79.9 billion from Kenya. This trade imbalance favors the US. Under the Agoa deal, Kenya mostly exports clothing while purchasing pharmaceuticals and airplanes from the US.
The current discussions are a build-up to the bilateral agreement, whose parameters Kenya and the US began putting together in July 2022, just before the expiration of the term of former President Uhuru Kenyatta. To replace the two-decade-old Agoa, Kenya has long wanted a comprehensive free trade deal with the US, but progress has been slowed by administration changes in both nations.
Read related news articles
Kenya-US trade talks inching closer to completion – Cabinet Sec Miano
Kenya and the US are inching closer to reaching a trade deal, Investments, Trade and Industry CS Rebecca Miano has hinted, meaning a pact could be in place by end of this year. This, even as the US expresses confidence that the African Growth and Opportunity Act (Agoa), set to expire next year, will be renewed to allow Sub-Sharan nations continue to enjoy preferential export terms to the US market. The in-person talks between Kenya and US...
25 April 2024
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