NAIROBI- US Ambassador to Kenya Meg Whitman fears unpredictable global developments might interrupt the bilateral Strategic Trade and Investment Partnership negotiations that are set to be concluded by December 2023.
Speaking to the media during July 4 Independence Day celebrations in Nairobi, Ambassador Whitman said the Strategic Trade and Investment Partnership is an important trade deal between Kenya and the US, and would be one of a kind in Africa.
She noted that the negotiations could be done by the end of December but warned there is a lot going on in the world that could potentially disrupt the conclusion.
“You know a lot is going on in the world right now and you never know what will interrupt that rhythm,” the envoy said.
Whitman. however, remained positive that the deal would be done by the end of the year.
“Something may happen but that’s the objective of both governments,” she added.
The negotiations for the deal started in 2020 under the administration of former President Donald Trump, seeking a full free trade agreement with Kenya to lower tariffs between the two states.
However, with the election of President Joe Biden, the Democrats opted for talks about a non-tariff partnership focused on boosting labour and production standards in Kenyan economic sectors such as agriculture and digital services in ways that facilitate American trade and investment.
In July 2022, US Trade Representative Katherine Tai and then Kenya Industrialization and Trade Cabinet Secretary Betty Maina, launched the negotiations for the deal, building on their June 13, 2022 meeting in Geneva.
The agreement seeks to increase investments, promoting sustainable and inclusive economic growth, benefiting workers, consumers, and businesses (including micro-, small-, and medium-sized enterprises); and supporting African regional economic integration. Â
Among the new conditions presented by the US in the agreement include transparency and understanding of the application of science- and risk-based Sanitary and Phytosanitary measures in agriculture; commitment to prevent and combat bribery and other forms of corruption; fostering consumer, business, and worker trust in the digital economy, ensuring access to information, promoting the development and use of resilient and secure digital infrastructure; environment and climate change action; good regulatory practices; promoting workers’ rights and protections and supporting participation of women, youth, and others in trade, among other provisions.
Follow up meetings were held in February and April 2023.
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In March this year, Trade and Industry Cabinet Secretary Moses Kuria said Kenya expected to finish the talks for the trade deal by the end of this year and to sign by April 2024. This is ahead of the expiry of the Africa Growth and Opportunity Act (AGOA), a preferential trade programme, in 2025.
“It is full steam ahead for both the Kenyan and US sides. By the close of this year, we will have finalised the actual negotiations to pave way for a signing probably by April next year,” Kuria said.
In her address, Ambassador Whitman said she is bullish on Kenya and on increasing bilateral trade and investment and economic opportunities for Americans, and that as noted during this year’s AmCham Business Summit, she believes Kenya is on the brink of an economic breakthrough.
“Kenya is the regional and financial hub of East Africa, continues to attract significant amounts of venture capital, and produces more than 90% of on-grid electricity from renewable sources. The Silicon Savannah is expanding and growing, the pyrethrum industry has been revived, the apparel sector is booming, and US pharmaceutical upstart Moderna agreed to build a vaccine production facility here in Nairobi, their first outside of the United States anywhere in the world. As I like to say, there is something happening here,” she said.
The envoy added that with the highlighted developments, and several ease of business reforms in the recently signed Finance Bill, which has been controversial and unpopular among Kenyans, she believes more US companies will have
their eye on Kenya, and for good reason.
