Wednesday, September 11, 2024 - Kenya and the United States are gearing up for the eighth round of negotiations under the Strategic Trade and Investment Partnership (STIP), as time runs out for the long-delayed free trade agreement.
This comes as President William
Ruto prepares for his visit to the United States later this month for the
United Nations General Assembly (UNGA).
The Biden administration,
nearing its final months, appears eager to cement its legacy by resolving the
trade pact, originally initiated under Donald Trump’s presidency.
Meanwhile, Ruto’s government is
keen to secure a deal before the African Growth and Opportunity Act (AGOA)
expires in 2025.
AGOA allows Kenya and other
Sub-Saharan African nations to export products to the US without facing tariffs
or quotas.
The next round of talks, set for
September 16–27, 2024, in Washington, will be led by Principal Secretary for
Trade Alfred K’Ombudo on the Kenyan side, and Assistant U.S.
Trade Representative Constance
Hamilton for the US. Seven key areas are on the agenda, including agriculture,
trade facilitation, and workers’ rights.
According to sources familiar
with the talks, both nations are under pressure to finalise the agreement amid
growing geopolitical concerns.
The looming expiration of AGOA
adds another layer of pressure. The programme has been a critical element of
Kenya’s export strategy, with over Ksh50 billion in exports to the US annually.
A new trade deal would ensure
continued access to the US market and prevent economic disruptions.
However, the path to an
agreement has not been smooth. When Biden took office, he sought to shift away
from traditional free trade deals, focusing instead on non-tariff measures to
promote trade and investment.
This shift created delays and
uncertainty, leaving Kenya in a vulnerable position.
The Kenyan DAILY POST
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