US President Donald Trump announced last week that he intends to broker a ground-breaking free-trade deal with Kenya following a meeting with his East African counterpart, President Uhuru Kenyatta, at the White House on Thursday.
Trump said that a deal between the US and Kenya would “probably” happen, with bilateral negotiations expected to commence soon.
“We’re going to start looking at that.”
This will be the first ever free-trade agreement between the US and a country in sub-Saharan Africa, as the US looks to increase their foothold throughout the continent. The US was replaced by China as Africa’s largest trading partner more than a decade ago.
In a statement last week, US trade representative Robert Lighthizer said that the agreement would help position Kenya as an important trading partner for the US, particularly with the upcoming African Continental Free Trade Area (AfCFTA).
“We believe this agreement with Kenya will complement Africa’s regional integration efforts, including in the East African Community and in light of the landmark AfCFTA.”
He said that the United States pledged its continued support to help the AfCFTA achieve its “fullest potential”.
Trade between the two countries currently sits at $1 billion per year, with over 70% of the products coming from the agricultural sector, entering the US from Kenya under the African Growth and Opportunity Act (Agoa).
Kenya imported $27mn worth of wheat from the US in 2019.
The announcement of the potential new deal came during the third instalment of the US-Kenya Trade and Investment Working Group in Washington last week. - Bjorn Vorster
