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A close ally of US President Joe Biden has expressed support for the proposed free trade agreement (FTA) between Kenya and the US.
Congressman Richard Neal exuded confidence that the negotiations for the trade pact between the two countries, which started under the Trump administration, will be concluded.
Neal, who heads the Ways & Means Committee of Congress, which is responsible for US trade, spoke during an online forum hosted by the Washington International Trade Association. He was responding to a question about trade talks with Kenya and the UK.
“I’m hopeful that they can be completed, moving on to a bilateral trade agreement with the UK makes a good deal of sense. We also have had extensive discussions with Kenya,” he said.
The US Chamber of Commerce recently urged Biden’s administration to fast-track the negotiations, arguing that the sealing of the trade deal will pave the way for uptake of business and investment opportunities.
“The Chamber supports the negotiation of a high-standard free trade agreement with Kenya, which may serve as a model for future trade and investment engagement with Africa,” the lobby stated.
“These initiatives deserve a favorable assessment by the Biden administration, which can easily continue these negotiations where the Trump administration has left off.”
There were fears that the change of guard at the White House could cause further delays on the new trade agreement between the two nations.
The discussions commenced in July 2020, with a view of drafting a comprehensive agreement that will act as a model for similar pacts between the US and other African countries.
Kenya is keen on signing the agreement ahead of the expiry of the Africa Growth and Opportunity Act (Agoa) in 2025. AGOA gives Kenya and 40 other sub-Saharan African countries duty-free access to the US market for over 6,000 products.
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The secret to chinese wealth ,in my view, has been its access to the big markets. Eg their ability to sell goods at big box stores in the US. Opening the american market to Kenya will open the door to business opportunities in the US. We have a very educated youthful population that is set to take advantage of the opportunities that open up. I am optimistic.
Kim, what can Kenya sell to the US, other than agricultural products? Maybe some apparel, but....
@Ex Diasporan. When we talk about increasing revenue, how are we going to increase revenue unless we can compete in these big markets? We should look to get into value addition and manufacturing. Some goods may be produced in Kenya at cheaper prices than they can be produced elsewhere leading to competitive prices in the markets and revenue for Kenyan enterprises.
I wish you luck with that!! You can produce clothes in Kenya at low costs, but Ethiopians and Chinese can even produce at lower costs than Kenyan costs.... Why have the Chinese developed? They manufacture at low costs... What do Kenyans do? They buy land. Let Kenyans export land to America..
This will destroy agriculture. It should not happen. What will kenya export to the US? FTZ clothes made by by Sri Lankan copanies that then repatriate to their countries 90% of the proceeds.