Kenya-USA completes first round of Trade and Investment Partnership
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Kenya-USA concludes the first round of the Strategic Trade and Investment Partnership (STIP) that will form a basis for future bilateral engagements
Kenya-USA concludes the first round of the Strategic Trade and Investment Partnership (STIP) that will form a basis for future bilateral engagements.
The five days of negotiations for the free trade agreement are expected to produce results, according to the delegation from Kenya, led by Trade Principal Secretary Alfred K’Ombudo.
The government of Kenya has been looking for areas of cooperation that will boost foreign direct investment, encourage inclusive and sustainable growth, and support small and medium-sized enterprises run by women and other underrepresented groups.
“During the meetings. the two sides exchanged views on the key concepts to be addressed on almost all of the areas outlined in the 141h July 2022 joint statement announcing the initiative,’ a statement from the ministry read.
The Partnership aims to boost investment, enhance regional economic integration in Africa, and advance sustainable and inclusive economic growth for the benefit of workers, consumers, and businesses (including micro, small, and medium-sized firms).
Talks between Kenya and the US began in July 2020 during former Presidents Donald Trump and Uhuru Kenyatta’s tenures.
Before starting a new round of talks after the US elections in November 2020, Joe Biden’s administration took some time to review a portion of the agreement.
In a joint statement released after the meeting, the delegations identified a set of initial issues on which Kenya and the US share the goal of negotiating high-standard commitments in order to achieve economically meaningful outcomes.
Among the initial areas identified are agriculture, anti-corruption, digital trade, environment and climate action, good regulatory practices, micro, small and medium-sized enterprises, protecting workers’ rights and protections, and services domestic regulation.
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The partnership will also support the participation of women, youth, and others in the trade, standards collaboration, and trade facilitation and customs procedures.
With a bilateral deal, Kenya is keen to tap at least five percent of the US market, which has the potential to earn the country more than Sh2 trillion in export revenues annually.
In 2021, Kenya’s exports to the US grew to Sh59.5 billion, up from Sh49.3 billion in previous years, with increases in the exports of macadamia nuts and articles of apparel and clothing accessories.
The US is the largest export destination of Kenya’s apparel, accounting for over 90 percent of garment exports every year, a sector that stands out as the biggest beneficiary in an improved trade environment under the FTA.
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