Written By Lisa Murimi
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 negotiations will occur from Monday, August 5 to Friday, August 9, led by Assistant U.S. Trade Representative Constance Hamilton and Kenya’s Principal Secretary for Trade Alfred K’Ombudo.
Key issues on the agenda include agriculture, customs, trade facilitation, the environment, good regulatory practices, inclusivity, and workers’ rights and protections.
Both delegations aim to wrap up discussions by the end of the year, with a looming deadline 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, potentially leaving Kenya in limbo if no new deal is signed.
While Kenya has benefited significantly, particularly in the apparel sector, there are concerns that AGOA’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.
Launched on July 14, 2022, the STIP represents a significant shift from traditional trade agreements, emphasising investment, inclusive growth, and regional economic integration over mere market access and tariff reductions.
