TRALAC - Trade Law Centre

Comesa Seeks Extra Time Before New AGOA

Tuesday, 10 February 2004

Source: The East African Standard (Nairobi)

The African Growth and Opportunity Act (Agoa) fabric window is likely to get a two-year extension, according to Trade and Industry minister Mukhisa Kituyi.

The preferential Agoa term is due to end in September 2004. The lapse of the facility would mean Kenya starts using locally produced cotton for the manufacture of textiles and garments destined for the American market.

However, Kenya's weak cotton sub-sector cannot satisfactorily meet the domestic demand for cotton, thus her decision to lobby for an extra four-year extension.

Speaking at his Teleposta offices yesterday, Kituyi confirmed that top American partners were lobbying for "the extension of the third country fabric sourcing by two-years."

The minister made the remarks when he received visiting Iranian Chamber of Industry delegation led by its President, Ali Khamoushi. The delegates are on a fact-finding mission.

Khamoushi said his country was eager to establish trade ties with Kenyan companies in the small and medium sized food sub-sector and agro-based industries.

Khamoushi said members of his organisation were contemplating setting up a tractor manufacturing plant in either Kenya or Uganda, from where they can distribute the same to the regional market.

Earlier, the Iranian delegation had met officials of the Kenyan Chamber of Commerce and Industry, where Khamoushi said Kenya was Iran's most active trading partner in the East African region.

During the period 2001, he said, Iran's exports to Kenya stood at Sh103 million (US$1,326,261), while Kenya exported goods Sh158 million (US$2,038,127).

Iran mainly exports paraffin, wax, and Sodium hydroxide oil products. While Kenya exports tea, rolled iron and steal and propylene.

 

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