Kenya, US to start talks on new trade deal in three months

Talks on an FTA began in 2018. [iStockphoto]

Kenya and the United States are set to start talks within the next three months that are expected to lead to a trade deal between the two countries.

The two nations on Thursday launched a Strategic Trade and Investment Partnership (STIP), appearing to scrap negotiations that Kenya had started while former US President Donald Trump was still in office.

The countries had been evaluating possibilities of setting up a free trade area (FTA) but negotiations were not concluded before President Joe Biden came into office in January 2021.

In a statement, the US Trade Representative’s Office said the new STIP was launched by Kenya’s Trade and Industrialisation Cabinet Secretary Betty Maina and United States Trade Representative Katherine Tai at a July 14 virtual meeting.

At the meeting, which was a continuation of a meeting on June 13 in Geneva, Switzerland, Ms Maina and Ms Tai “agreed that their governments will pursue enhanced engagement leading to high standard commitments in a wide range of areas with a view to increasing investment; promoting sustainable and inclusive economic growth; benefiting workers, consumers, and businesses (including micro, small, and medium-sized enterprises); and supporting African regional economic integration”, the statement said.

The talks will cover 10 areas including agriculture, digital trade, environment and climate change, anti-corruption, small and medium enterprises and participation of women and youth in trade.

Talks on an FTA began in 2018 and after a meeting between President Uhuru Kenyatta and Mr Trump in February 2020.

The negotiations were opposed by several business lobby groups in East and West Africa, which said it could weaken the capacity of the region to trade with the West on an equal footing.