Stalled trade talks between Kenya and the United states are expected to kick off after the swearing in of President elect William Ruto next Tuesday.
This is the second election hitch, he first being when their was change of administration in the US upon the exit of the Donald Trump led Republican administration after losing to Democrat Joe Biden.
The talks started during Trump's presidency but have never been finalised. They slowed down slowed down in the run to the August 9 polls but Kenya maintains its is remains committed to the process.
However with a new regime in Kenya, trade experts predict a fresh round of negotiations similar to what happened when Biden took office in January last year.
Biden’s administration took time to review the initial deal initiated by his predecessor Donal Trump.
“As the general elections approached, things slowed down and we will not be surprised if the new administration initiates a fresh conversation,” a private sector official privy of the negotiations told the Star yesterday.
The talks were also disrupted by the Covid-19 pandemic before the US elections.
With the ongoings, Kenya and US traders might wait until 2024 to have a complete deal that defines fresh trade terms between the two countries.
According to trade experts at the Industrialisation, Trade and Enterprise Development ministry, it takes up to two years to have a complete Free Trade Agreement (FTA).
Industrialisation, Trade and Enterprise Development Cabinet Secretary Betty Maina has been Kesnya'slead negotiator in the talks which impetus in June after the team met US Trade Representative ambassador Katherine Tai at the World Trade Organisation's 12th Ministerial Conference in Geneva.
The two countries agreed to finalise a list of areas for cooperation to deepen economic engagement.
In July, the US Trade Representative’s Office said the two countries would start within three months embark on developing a roadmap for engagement in 10 areas, including agriculture, digital trade, action on climate change, and trade facilitation and customs procedures.
Ruto’s new trade Cabinet Secretary will take up the conversation from there when he forms his government.
The US has indicated readiness to work with the Ruto’s administration to deepen ties, with Biden congratulating the President-elect after the Supreme Court upheld his win.
The US has been pushing for favourable terms among them a duty free market access for its goods, including agricultural and industrial, in a move aimed at taming the growing dominance of China’s trade with Kenya.
The US is also pushing for a competitive procurement space in government, eradication of corruption, adequate and effective protection of intellectual property rights, removal of non-tarrif barriers, favourable sanitary and phytosanitary measure among other interests.
Kenya on the other hand seeks to protect its local industries and sectors even as it pushes for favourable terms to grow its exports.
Last year, China remained the single leading source of Kenya’s imports, accounting for 20.5 per cent of the total imports valued at Sh441.4 billion, the Economic Survey 2022 shows.
Imports from the US were valued at Sh84.2 billion in the year, which was an increase from Sh56.3 billion.
Last year, Kenya's exports to the US grew to Sh59.5 billion, up from Sh49.3 billion previous year, 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.
It is among the biggest beneficiaries under the African Growth and Opportunity Act (AGOA) which eliminates import tariffs on goods from eligible African nations.
More than 70 percent of Kenya's exports are duty-free under AGOA which lapses in 2025.
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