Trump Administration notifies Congress of intent to negotiate trade agreement with Kenya

Trump Administration notifies Congress of intent to negotiate trade agreement with Kenya

18 Mar 2020

At the direction of President Donald J. Trump, United States Trade Representative Robert Lighthizer today (17 March) notified Congress that the Trump Administration will negotiate a trade agreement with Kenya.

“Under President Trump’s leadership, we look forward to negotiating and concluding a comprehensive, high-standard agreement with Kenya that can serve as a model for additional trade agreements across Africa. Kenya is an important regional leader, a strategic partner of the United States, and a commercial hub that can provide substantial opportunities for U.S. trade and investment,” said Ambassador Lighthizer.

In officially notifying Congress, the U.S. Trade Representative is following the procedures set out in the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 – often referred to as Trade Promotion Authority (TPA) – which requires ongoing consultations with Congress. These consultations ensure that USTR develops negotiating positions with the benefit of Congress’ views. USTR will also publish a notice in the Federal Register requesting the public’s input on the direction, focus and content of the trade negotiations.

In accordance with TPA, the U.S. Trade Representative will publish objectives of the negotiations with Kenya at least 30 days before formal trade negotiations begin.

Key Trade and Investment Statistics

  • Two-way goods trade between the United States and Kenya: $1.1 billion in 2019, up 4.9% from 2018.

  • Top U.S. goods exports to Kenya in 2019: aircraft ($59 million), plastics ($58 million), machinery ($41 million), and cereals (wheat) ($27 million).

  • Top U.S. imports from Kenya in 2019: apparel ($454 million), edible fruit & nuts (mostly nuts) ($55 million), titanium ores and concentrates ($52 million), and coffee ($34 million).

  • U.S. foreign direct investment (stock) in Kenya stood at $405 million in 2017 (latest data available).

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Fact sheet: U.S.-Kenya Trade and Investment Relationship

  • Africa is growing rapidly and presents enormous opportunities for U.S. commercial and economic interests. It is undergoing a transformative change toward greater regional integration, has among the highest growth rates globally, and will account for nearly a fifth of the world’s consumers by 2030.

  • Kenya is an important regional leader and strategic partner of the United States. There is enormous potential for us to deepen our economic and commercial ties. It is a gateway to East Africa and beyond, and a major commercial hub that can provide substantial opportunities for U.S. consumers, businesses, farmers, ranchers, and workers.

  • A trade agreement between the United States and Kenya will complement Africa’s regional integration efforts, including the landmark African Continental Free Trade Area (AfCFTA). In August 2019, the United States and African Union signed a joint statement concerning the development of the AfCFTA, which reflects our common goal to deepen trade and investment relationships across the continent. The United States pledges its continued support to help the AfCFTA achieve its fullest potential. 

  • In August 2018, President Donald J. Trump and President Uhuru Kenyatta established the U.S.-Kenya Trade and Investment Working Group to explore ways to deepen the trade and investment ties between the two countries and lay the groundwork for a stronger future trade relationship.

  • Under the Working Group, the United States and Kenya initially agreed to work together in the following areas:

    • Pursue exploratory talks on a future bilateral trade and investment framework;

    • Maximize the remaining years of the African Growth and Opportunity Act (AGOA);

    • Strengthen commercial cooperation; and

    • Develop short-term solutions to reduce barriers to trade and investment.

  • The inaugural meeting of the Trade and Investment Working Group was held in April 2019 in Washington and the second meeting was held in November 2019 in Nairobi.

Source USTR
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Date 18 Mar 2020
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