Background

Top Democrats on the Senate Finance Committee and the House Ways and Means Committee are urging the Biden administration to upgrade its current trade discussions with Kenya into negotiations on a “comprehensive, enforceable trade agreement.” Ways and Means Committee Chair Jason Smith, R-Mo., is also calling on the administration to negotiate with Kenya a “model free trade agreement to set a high standard for U.S. engagement in sub-Saharan Africa, including new access for U.S. agriculture.”

U.S. and Kenyan officials met recently as part of the fifth round of talks on a U.S.-Kenya Strategic Trade and Investment Partnership, and significant progress was reported in such areas as anticorruption; micro-, small-, and medium-sized enterprises; services domestic regulation; and the first tranche of the agriculture text. However, lawmakers from both sides of the aisle are looking for the administration to upgrade the scope and ambition of these discussions into talks on a fully-fledged FTA.

Senate Finance Committee Chair Ron Wyden, D-Ore., and Ways and Means Ranking Member Richard Neal, Mass., said in a May 21 letter to USTR Tai that, while they look forward to renewing and reforming the African Growth and Opportunity Act program, “unilateral preferences can only go so far to increase development and ensure sustainable and inclusive economic partnerships.” The U.S. should do more, according to the lawmakers, including by negotiating an FTA with Kenya with high-standard commitments on labor and the environment as well as “a strong dispute settlement chapter”. Wyden and Neal believe a robust FTA with Kenya “will help to create a standard for engagement with African nations moving forward.”

Chairman Smith, meanwhile, stressed the importance of reengaging with Kenya “to show leadership on the African continent and counter China’s malign influence.” In his mind, only a comprehensive FTA “can address the substantial tariffs facing U.S. exports, including agricultural products, with meaningful enforcement mechanisms – something that frameworks, partnerships, and dialogues cannot accomplish.” Smith said he looks forward to working with Kenyan President Ruto and other African leaders as Congress considers next steps to renew and reform the AGOA.

For more information on these and other U.S. trade negotiations and how your company could benefit, please contact Nicole Bivens Collinson at (202) 730-4956 or via email.

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