As the countdown to the US elections intensifies, Kenya and the United States are gearing up for a pivotal seventh round of negotiations under the Strategic Trade and Investment Partnership (STIP), set to take place in Nairobi next week.
The urgency of the talks reflects both countries' desire to finalise a deal before the expiration of the African Growth and Opportunity Act (AGOA) next year.
The talks will take place from Monday, August 5 to Friday, August 9.
This upcoming round of negotiations, steered by Assistant U.S. Trade Representative Constance Hamilton and Kenya’s Principal Secretary for Trade Alfred K’Ombudo, will address critical issues such as agriculture, customs, trade facilitation, the environment, good regulatory practices, inclusivity, and workers' rights and protections.
Both delegations aim to wrap up the discussions by the end of the year, a deadline looming large as November's US elections approach.
The strategic importance of this trade deal cannot be overstated. AGOA, which has facilitated duty-free access to the US market for various African products since its enactment in 2000, is set to expire next year. This could leave Kenya in limbo if no new deal is signed.
While Kenya has benefitted, particularly in the apparel sector, there are concerns that the Act’s expiry might jeopardise broader trade interests within regional blocs like the Common Market for Eastern and Southern Africa (COMESA) and the East African Community.
The previous round of negotiations revealed stringent proposals concerning labour rights. Under the new STIP framework, Kenyan companies that violate international labour standards could face significant legal and trade repercussions.
The American side, championed by Hamilton, insists on incorporating internationally recognised labour rights into the national laws of both countries, aiming to ensure robust enforcement and compliance.
“The proposed text seeks to uphold labour rights by mandating adherence to effective enforcement mechanisms and non-derogation from existing labour laws,” stated the U.S. Trade Representative Office (USTR) in June.
This move signals a clear push from Washington to embed high standards of corporate accountability into the agreement.
Former Cabinet Secretary for Investment, Trade, and Industry, Rebecca Miano, alongside U.S. Trade Representative Katherine Tai in March, pledged to work towards concluding the agreement within the set timeframe, focusing on high standards and shared values.
This commitment points to the broader goals of the STIP, which seeks not only to boost investment but also to foster sustainable and inclusive economic growth, benefiting workers, consumers, and businesses alike.
The STIP, launched on July 14, 2022, represents a significant shift from traditional trade agreements. Unlike typical deals that revolve around market access and tariff reductions, the STIP emphasises investment, inclusive growth, and regional economic integration.
