Africa-Press – Kenya. The Kenya-US trade talks this week moved to stakeholder’ engagement with the former pushing for a possible deal in the second half of this year.
This comes as President William Ruto prepares for an official visit to the US later this month, in what is expected to be a catalyst for a speedy process and conclusion of a deal, before the US goes into the November elections.
Those that have weighed in on the Strategic Trade and Investment Partnership (STIP) include the Central Organisation of Trade Unions (COTU), the Institute of Economic Affairs, sugarcane farmers, the Kenya Association of Manufacturers and seed traders.
Others involved in the process include pesticide manufacturers, cooperatives, fashion traders, dairy farmers, poultry breeders, among others.
According to Kenya’s Trade PS Alfred K’Ombudo, key issues that have been addressed include digital trade and e-commerce, tax, digital infrastructure, protections and other matters.
Issues on Sanitary and Phytosanitary (SPS) are also among areas of focus.
During last week’s American Chamber of Commerce summit in Kenya, President Ruto the process will be hastened.
Ruto and US President Joe Biden had in October last year agreed to a speedy process to conclude the deal that started during their predecessors-Uhuru Kenyatta and Donald Trump.
According to Ruto, STIP will help strengthen trade between the two countries.
“There is acceleration of negotiations so that we can unlock the potential that it has. Outstanding issues will be conducted in a few months, to enable us start implementing, hopefully in the second half of this year,”Ruto said.
This comes 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-Saharan nations continue to enjoy preferential export terms to the US market.
Kenya is seen to be keen to have a deal in place before the US goes into the November elections.
There have been concerned that this year’s US Presidential elections could further derail the process, with a possibility of pushing talks into 2025 when Agoa expires.
“With campaigns in the US heating up, there are concerns this process could slow down,” a ministry official familiar with the trade talks, told the Star, “We hope a way forward is reached by the time the US goes into elections.”
The US has been pushing for transparent and competitive procurement in Kenya’s public government.
It also wants effective protection of intellectual property rights, favourable sanitary and phytosanitary measure among other interests.
This, as it seeks to secure business for US companies and a comprehensive market access for agricultural goods in Kenya, by reducing or eliminating tariffs.
Kenya has since entered into a grant deal with the US securing approximately Sh198 million in technical assistance towards strengthening the country’s public procurement.
Kenya’s Investments, Trade and Industry CS Rebecca Miano has since said the government is working on a common portal that will hold all government tenders, allowing companies easy access to information and application.
This, even as she called on US companies to invest more in the country, where the government has put in place and continues to put in place measures to ease processes and cost of doing business.
“We want to promote transparency and competitiveness in government procurement to allow American firms take up tender opportunities in Kenya,” CS Miano said.
US Commerce Secretary Gina Raimondo, who was last week in the country on official visit, said the US is working on modalities for the possible renewal of Agoa.
“Agoa is a priority for President Biden’s administration. We are working with the members of congress to ensure that happens (renewal),” Raimondo, who also held talks with President Ruto, said.
African states wants Agoa extended by a further 10 years.
US ambassador to Kenya Meg Whitman also confirmed that renewal of Agoa was being worked on.
While Kenya enjoys duty free access to the US market under Agoa, which gives up to 6,400 product lines access to the US market, it is keen on the STIP whose talks kicked off in July 14, 2022, to increase investment, promote sustainable and inclusive economic growth, benefit workers, consumers, and businesses and support African regional economic integration.
It had targeted to have a deal by December last year.
The change in administrations in both countries has had a significant impact on the process which was mooted in 2020, with the Covid-19 pandemic equally having its fair share of stalling the process.
Negotiations began back in July 2020 during former Presidents Donald Trump and Uhuru Kenyatta’s tenures.
After the US elections in November 2020, Bidens’s administration took time to review part of the pact before initiating a fresh round of talks.
Kenya then went into an election in August 2022, which saw then Deputy President William Ruto ascend to power, with his administration taking over the negotiations as the two administrations agreed on seek a Strategic Trade and Investment Partnership.
With a bilateral deal, Kenya is keen to tap at least five per cent of the US market, which has the potential to earn the country more than Sh2 trillion in export revenues annually.
More than half of Kenyan exports to the US are comprised of textile and apparel, macadamia, coffee, titanium ores and concentrates, and black tea.
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