United States-Kenya Strategic Trade and Investment Partnership
Posted on August 31, 2022
In mid-July, talks were underway between United States Trade Representative Katherine Tai and Kenya's Ministry of Industrialization, Trade and Enterprise Development Cabinet Secretary, Betty Maina, to launch the United States-Kenya Strategic Trade and Investment Partnership (STIP). The agreement was signed on July 14, 2022, and aims to increase investment, promote sustainable and inclusive economic growth, benefit workers, consumers, micro, small, and medium-sized enterprises, and support regional economic integrations in Africa.
A roadmap is underway for these key outcomes:
- Digital Trade
- Environment and Climate Change Action
- Good Regulatory Practices
- Micro, Small, and Medium Enterprises (MSME)
- Promoting Workers' Rights and Protections
- Supporting the participation of Women, Youth in Trade
- Standards of Collaboration
- Trade Facilitation and Customs Procedures
Overall, ND does have some trade with Kenya, totaling $1.4 million in 2021. Primarily in edible vegetables, roots & tubers, non-railway vehicles/parts, and industrial machinery. ND does export more than $13.9 million throughout the African continent, with primary exports in cereals, edible vegetables & tubers, non-railway vehicles, and industrial machinery. Some language in this new agreement shows an intention to include East Africa, and with the Prosper Africa Initiative forthcoming, looking into Africa as a trading partner may become easier.
ND may see some impact in sustainability and technology upgrades for Kenya as the country strives for food security. With some increased inflow of technology and modernization of farming practices, there could be some great strides in these areas.
MSMEs will also be a focus from both sides to increase integration for these smaller businesses and help make it possible for them to participate on a global scale. In a similar vein, incorporating opportunities for women and youth into trade policy is being examined. Information sharing and best practices exchanges are being discussed to infuse new energy and ideas into these businesses.
Simplification of trade procedures is also being addressed to aid in the pandemic and supply chain recovery. Streamlining border procedures and accelerating WTO Trade Facilitation Agreement implementation are also up for discussion.
If you are interested in commenting on the United States-Kenya Strategic Trade and Investment Partnership (STIP) the comment docket is open until September 16, 2022. To access the docket, visit the Federal Register. To comment and see all the areas that will be covered in negotiations, visit www.regulations.gov and search for "USTR_FRDOC_0001-0770".
This agreement with Kenya does align with the US's Prosper Africa Initiative and will be useful in furthering connections and relations for bilateral trade throughout the continent. Such agreements, as they come into fruition, will hopefully benefit both sides and create more opportunities for trade with their desired focus areas.
NDTO will monitor updates and keep you informed as they become available.
Office of US Trade Representative: United States and Kenya Announce the Launch of the U.S.-Kenya Strategic Trade and Investment Partnership
Federal Register: U.S.-Kenya Strategic Trade and Investment Partnership
Global Compliance News: Kenya: Shared prosperity – the United States and Kenya sign Strategic Trade and Investment Partnership