Kenya’s cabinet secretary for Investment, Trade and Industry Rebecca Miano has hinted at the nearing completion of trade negotiations between Kenya and the US, suggesting the possibility of a finalised pact by year-end.
This development comes amidst US confidence in the renewal of the African Growth and Opportunity Act (AGOA), set to expire next year, ensuring continued preferential export terms for Sub-Saharan nations to the US market.
The fifth round of in-person talks between Kenyan and US trade experts follows the conclusion of the fourth round in Washington DC. Miano indicated that negotiations are advancing, aligning with the commitment made by Presidents William Ruto and Joe Biden in October last year.
Speaking at this year’s American Chamber of Commerce in Kenya (AmCham) 2024 Business Summit, Miano emphasised progress in the discussions, suggesting a potential deal before the US November elections.
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Key topics during recent talks in Washington included agriculture, environment, workers’ rights, anticorruption measures, and support for Micro, Small, and Medium-sized Enterprises (MSMEs).
Assistant United States Trade Representative (USTR) Constance Hamilton led the US delegation, while Kenya was represented by principal secretary for Trade Alfred K’Ombudo.
Concerns have been raised regarding potential delays due to the US presidential elections, prompting efforts to expedite negotiations.
The US has advocated for transparent procurement processes and protection of intellectual property rights in Kenya, aiming to secure market access for US companies and agricultural goods.
Additionally, Kenya has secured technical assistance from the US to strengthen public procurement processes.
Miano highlighted efforts to enhance transparency in government procurement and urged US companies to invest in Kenya, emphasising the government’s commitment to facilitating business operations.
The AmCham Summit aims to facilitate deals in various sectors, surpassing last year’s $700 million worth of agreements.
US commerce secretary Gina Raimondo affirmed AGOA’s priority for the Biden administration and discussed modalities for its renewal during her visit to Kenya. Both African states and US officials are working towards AGOA’s extension by a further ten years.
Negotiations for the Strategic Trade and Investment Partnership (STIP) aim to boost investment and economic growth, with Kenya targeting at least five per cent of the US market, potentially generating significant export revenues annually.
Key sectors poised to benefit include agriculture, manufacturing, textiles, and mining, as Kenya seeks to bolster SMEs and establish economic zones to enhance exports and reduce imports.
Fibre2Fashion News Desk (DR)
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