US looks past delayed free trade deal in trade relationship with Kenya

Economy
US looks past delayed free trade deal in trade relationship with Kenya
Monday, May 30, 2022
US President Joe Biden. PICTURES | SHUTTER
The US government is looking beyond a delayed trade deal with Kenya to expand trade ties between the two countries amid growing frustration in Nairobi over Washington’s slow pace to close the deal.
In a new report submitted to the US Congress by Joe Biden’s top trade diplomat, Katherine Tai, the US government has revealed that it will pursue “other means” to deepen trade engagements with Kenya in the absence of free trade agreement (FTA).
“(We will) engage with Kenya to deepen bilateral trade, possibly through an FTA or other means, to spur Kenya’s development and promote fairer, worker-centred trade with Kenya,” the United States Office of Trade Representative (USTR) said in the report seen by Business Daily outlining its goals for this year.
Ms. Tai, who heads the USTR, is the U.S. Trade Representative, a member of the U.S. cabinet who is President Biden’s top trade adviser, negotiator and spokesperson on the trade agenda.
ALSO READ: US trade lobby slams Biden’s delay in sealing Kenya deal
The US government and Kenya held another round of trade talks earlier this month, raising hopes for a new direction after the Biden administration froze Trump-era talks on the ‘free trade Agreement.
Missing deadlines
But a statement issued from Washington by the US government following the long-awaited new talks held in Nairobi between US and Kenyan officials provided no time frame for the talks to conclude, signaling a lingering stalemate.
“U.S. Trade Representative for African Affairs Constance Hamilton led a delegation of U.S. officials to Kenya May 3-6 and held several productive meetings with Kenyan government officials,” Washington said in a statement amid of this month.
“Discussions covered a wide range of topics and identified key areas of convergence that deepened mutual understanding between [these] country,” the memo from USTR spokesman Adam Hodge added, without disclosing further details about the future of the pact.
The proposed trade deal has faced delays after the Biden administration asked for more time to review the pact brokered by Donald Trump.
The Biden administration has instead focused on dialogues with business partners.
Kenya wanted to strike a deal with Washington before the expiry of the African Growth and Opportunity Act (Agoa), which allows countries in sub-Saharan Africa to export thousands of products to the United States without customs duties. customs or quotas until 2025.
Agoa grants 40 African states quota and duty-free access to the US market for over 6,000 product lines.
ALSO READ: Start of new round of trade talks between Kenya and the United States
Kenya is currently the 96th largest trading partner of the United States, according to Washington.
Closest Allies
Earlier this month, the United States Chamber of Commerce denounced the perceived delay by President Biden’s administration in concluding the new trade agreement with Kenya, which was initiated by his predecessor Trump more ago. two years.
Calling the Kenya deal a low-hanging fruit that should have been done by now, the lobby, which is the largest and most influential US business group, accused the Biden administration of having delayed in signing the pact.
“As other economies rush to sign new deals, the United States has not had a deal with a trading partner in a decade,” House Speaker Suzanne Clark said in an update. up to date.
“And the current administration consumed by caution and internal reviews is doing little to change that. In fact, it has yet to reap even the lowest fruits, such as trade deals that were already underway the UK and Kenya, some of our closest allies.
Kenya and the United States officially launched negotiations for the bilateral trade agreement on July 8, 2020.
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