Kenya is chasing time to conclude a crucial trade deal with the US and avoid falling back to square one once a new party takes power in Washington.
After the seventh round of negotiations last week, sources said none of the 11 chapters envisioned in the Strategic Trade and Investment Partnership (STIP) agreement are complete, making it a rush against time for Kenya. The US is due to hold presidential elections by November 5 this year, pitying Kamala Harris of the Democratic Party and Donald Trump of Republican Party.
And while a win for Kamala Harris may signal continuity for Democrats, she didn’t start the STIP as it was authorised by Joe Biden who will not be defending his seat.
Harris views on global trade are likely to be known once she is endorsed after the Democratic Convention on August 19. But she has in the past disagreed with Biden’s.
When she was senator in 2016, she expressed doubts about free trade and even opposed one trade pact endorsed by Barack Obama whose Vice-President was Joe Biden.
But she has also argued she is not a protectionist like Trump but vouches for trade deals that protect Americans and their standards.
Trump on his part has called for taxing imports and limiting control of investors from abroad, targeting Chinese ventures into the US, especially. With his ‘Make America Great Again slogan, he supported more bilateral deals than open global trade. During his first term as President, he had in fact launched talks with Kenya for a free trade agreement (FTA). Biden stopped that and launched talks for STIP in October 2022.
Now ahead of elections, Nairobi faces uncertainty on whether it would fall back to FTA talks or complete the STIP. Both leaders may yet change their mind and launch something completely new. “That one will be best answered by the team negotiator from the US side. Because that is not part of what we are doing,” said Alfred K’Ombudo, Kenya’s Principal Secretary for Trade.
He confirmed that none of the chapters have been completed, even though each round of talks has often focused on new areas of trade policy.
“We are negotiating the US-Kenya Strategic Trade and Investment Partnership under the ‘single endeavour principle’ where ‘nothing is complete until everything is complete,” said K’Ombudo.
“This is because certain things can develop in one chapter that can affect other chapters. So, the chapters are interrelated and therefore will only be concluded when all chapters are completed.”
Launched on July 2022, STIP was supposed to be a “high standard commitment” in a wide range of areas meant to increase investment; promote sustainable and inclusive economic growth; benefit workers, consumers, and businesses and support African regional economic integration.
The 11 chapters were to focus on agriculture, anti-corruption, digital trade, environment and climate action, good regulatory practices and micro, small, and medium size enterprises.
The STIP was also supposed to address worker’s rights and protections, participation of women, youth, and others in trade, standards collaboration, trade facilitation and customs procedures, and services domestic regulation. Kenya and the US held the seventh round of negotiations on August 5 under the US-Kenya Stip where eight chapters were discussed.
The negotiations are co-chaired by Assistant US Trade Representative Constance Hamilton and Kenya’s Trade Principal Secretary Alfred K’Ombudo. The United States and Kenya primarily exchanged views on the texts that concern eight chapters including agriculture; customs, trade facilitation, and enforcement; environment; good regulatory practices; inclusivity; and workers’ rights and protections.
