Kenya and the US are eager to reach a free trade agreement after Biden leaves office

The outgoing Biden and Ruto administrations are working to finalize a long-delayed free trade agreement first signed during the Donald Trump era. standard Already learned it.

The two countries will conclude the seventh Today’s round of negotiations (August 9) India and the European Union signed the Strategic Trade and Investment Partnership (STIP) agreement, and both countries hope to speed up the progress of the agreement.

President Biden abandoned his reelection bid last month amid growing pressure from fellow Democrats and endorsed Vice President Kamala Harris as the party’s nominee to face Republican Donald Trump in the November election.

The joint statement said Biden’s delegation will be led by Assistant U.S. Trade Representative Constance Hamilton and the Kenyan delegation will be led by Alfred Kombudo, principal secretary at the Ministry of Trade.

The statement said the two sides will also hold stakeholder hearings during this round of negotiations. The United States and Kenya launched the Science, Technology and Innovation Policy Program in July 2022 to increase investment, promote sustainable and inclusive economic growth, and support regional economic integration in Africa.

Economic ties

The long-delayed trade talks come as the Biden administration seeks to strengthen security and economic ties with its largest ally in East Africa in the face of China’s growing influence in the region.

One of the largest and most influential U.S. business lobbying groups and a top U.S. trade lawmaker urged the Biden administration to speed up Trump-era trade talks with Kenya. Putting pressure on Washington End the negotiations.

They also want Washington to engage in dialogue with Nairobi, building on the model of the original or preliminary proposal for a free trade agreement with Kenya initiated by Biden’s predecessor.

They said such a trade deal would have numerous benefits not only for the United States but also for Kenya and would pave the way for business and investment by American companies and their local counterparts.

Kenya and the United States formally launched negotiations on a bilateral trade agreement in July 2020, and the two countries hope that the agreement can serve as a model for other agreements in Africa.

However, a proposed free trade agreement between Nairobi and Washington has been plagued by delays and uncertainties, casting doubt on the Biden administration’s commitment to reaching the deal.

The Biden administration has previously called for a reshaping of the goals of the original bilateral agreement signed during the Trump administration, and some of the negotiating goals set by the Trump administration may be canceled.

The Biden administration has instead launched negotiations for an “investment partnership” with Kenya, seeking to boost trade through non-tariff means.

His officials said earlier that President Biden wants to “move beyond the old free trade agreement model and focus more on today’s economic realities and the lessons of the past 30 years.”

Susanna Clark, president of the U.S. Chamber of Commerce, has previously lamented the U.S.’s lack of performance in FTA negotiations, saying that FTAs ​​like the Kenya FTA are “better for allies and better for national security.”

“The United States is falling behind. A lot of ‘Made in America’ goods want to be exported abroad,” she said.

Kenya hopes to reach a new trade deal with the United States before the African Growth and Opportunity Act (Agoa) expires.

The African Growth and Opportunity Act allows Sub-Saharan AfricaSeveral countries, including Kenya, will export thousands of products to the United States duty-free and quota-free until 2025.

The push for a trade deal with Kenya comes as the U.S. works toward what will be sub-Saharan Africa’s first free trade agreement. It comes amid growing concerns about Chinese investments on the continent. President Biden is trying to cut China’s share of global trade. U.S. companies are also vying for a share of Kenya’s potential genetically modified organism (GMO) market.

Recently, the United States has been putting pressure on the Kenyan government to allow Kenya to export genetically modified food and crop products, which provides huge market opportunities for American companies.

Kenya has lifted a decades-old ban on genetically modified crops in response to East Africa’s worst drought in 40 years, a move authorities hope will boost crop yields and food security.

But the lifting of the ban has been met with skepticism by farmers and health advocates.