Kenya and US Set to Restart Free Trade Agreement Negotiations

New Tariff Regime Sparks Renewed Interest in Bilateral Trade Deal

Kenya and the United States are preparing to revive negotiations for a Free Trade Agreement (FTA) following the recent tariff adjustments announced by President Trump. US Trade Representative Jamieson Green confirmed this development during a congressional hearing, signaling a potential breakthrough in trade relations between the two nations.

Impact of New Tariffs on Kenyan Exports

While Kenya faces a relatively modest 10% tariff – lower than most affected countries – the new trade policies have prompted nations worldwide to seek bilateral agreements with the Trump administration. This trend could negatively impact Kenya’s textile and apparel exports to the US market, which currently dominate the country’s trade with America.

Ambassador Green revealed that he recently met with Kenyan Trade Minister Lee Kinyanjui in Washington DC, where both parties expressed willingness to resume FTA discussions. This meeting marks a significant step toward strengthening economic ties between the two countries.

Political Roadblocks and Missed Opportunities

Republican Congressman Adran Smith, chair of the Trade Subcommittee, criticized the Biden administration for stalling progress on the Kenya-US FTA negotiations. Smith emphasized that Kenya had positioned itself as a model for other African Growth and Opportunity Act (AGOA) beneficiary countries, demonstrating how to establish effective bilateral trade agreements.

The “Kenya and America First” approach, initiated by former Trade Minister Moses Kuria and former US Trade Representative Katherine Tai, could have served as a blueprint for other African nations. Congressman Smith lamented that this promising initiative was allowed to fade without reaching its full potential.

Related Trade Developments

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