US President Joe Biden signs executive orders at the Oval Office of the White House in Washington, DC, after his inauguration as the 46th President of the United States on January 20, 2021. PHOTO | REUTERS
The United States Chamber of Commerce has seized the initiative early to lobby the new Joe Biden administration for the conclusion of talks on a new trade pact between the US and Kenya.
The political transition from former President Donald Trump’s regime to that of his successor Biden has come with uncertainty on whether the ongoing negotiations for a free trade agreement (FTA) between the two nations would proceed.
The United States Chamber of Commerce has seized the initiative early to lobby the new Joe Biden administration for the conclusion of talks on a new trade pact between the US and Kenya.
The political transition from former President Donald Trump’s regime to that of his successor Biden has come with uncertainty on whether the ongoing negotiations for a free trade agreement (FTA) between the two nations would proceed.
While Biden’s administration is under no obligation to carry on with the negotiations for a new trade deal with Kenya, it would be proper if the talks were sustained to conclusion because the immense trade and investment opportunities that are likely to be realised.
Kenya and the US are key trade and security allies and this relationship should be maintained.The present main trade and investment framework between the US and Kenya-- the Africa Growth and Opportunity Act (Agoa) will lapse in just a few years. The arrangement, which allows sub-Saharan African countries to export thousands of products to the US without tariffs or quotas, expires by 2025.
Agoa grants 40 African States including Kenya quota and duty-free access to the US market of more than 6,000 product lines. Official data shows that two-way goods trade between the US and Kenya totalled Sh118 billion in 2019, up 4.9 percent from 2018.
Clearly, the trade partnership between Kenya and the US is an important one and the two nations should strike a deal for furtherance.
President Biden’s administration should keep an eye on the bigger picture and embrace the ongoing negotiations irrespective of the fact that they began under Mr Trump’s rule.
Trade is a huge economic enabler and political ideologies should be put aside for the sake of maximising on opportunities that may present themselves.
Both Kenya and US negotiators should reach out to the Biden administration and present their case for a new trade deal between the two countries. This would help to address concerns that the new administration may be having, paving way for progression in talks.
Transparency is important in attracting goodwill and negotiators must stay open to Mr Biden’s administration.
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