Kenya-US first round of the Strategic Trade and Investment Partnership (STIP) talk has come to a close, establishing a foundation for future bilateral interactions.
The delegation from Kenya, headed by Trade Principal Secretary Alfred K’Ombudo, is optimistic that the results of the five-day discussions on the free trade agreement will be productive.
The government has been searching for opportunities to boost foreign direct investment, foster sustainable and equitable growth, and bolster the participation of women and small and medium enterprises.
During the meetings, the two sides exchanged views on the key concepts to be addressed in almost all of the areas outlined in the 14th July 2022 joint statement announcing the initiative.
The Kenyan government actively seeks collaboration opportunities to boost foreign direct investment, spur sustainable and inclusive growth, and aid women and small and medium-sized enterprises. In July 2022, Kenya and the US released a joint statement announcing their initiative, and their subsequent meetings focused on outlining the key concepts to be addressed.
The partnership aims to attract investment, advance sustainable economic expansion that benefits workers, consumers, and businesses of all sizes, and support African regional economic integration. Kenya and the US initiated their talks in July 2020 under the leadership of former Presidents Donald Trump and Uhuru Kenyatta. After the US elections in 2020, President Joe Biden’s administration took some time to review the agreement before resuming negotiations.
In a joint statement released after one such meeting, the two delegations acknowledged a list of initial issues on which they both share the goal of negotiating high-standard commitments for economically significant outcomes. These initial areas include agriculture, anti-corruption, digital trade, environment and climate action, good regulatory practices, micro, small, and medium-sized enterprises, workers’ rights and protections, and services domestic regulation.
The partnership will also support the involvement of women, youth, and other groups in trade, standard collaboration, trade facilitation, and customs procedures. Kenya aims to capture at least 5% of the US market, potentially bringing in over 2 trillion Kenyan shillings in export revenues annually.
In 2021, the nation’s exports to the US increased to KES 59.5 billion, up from KES 49.3 billion in previous years, driven by the export of macadamia nuts and apparel and clothing accessories. The US is the largest export destination for Kenya’s apparel, accounting for over 90% of garment exports annually. A favourable trade environment under the Free Trade Agreement (FTA) would greatly benefit this sector.
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