Kenya, US to reduce trade deficit
KENYA AND the US have identified key trade issues that will play a central role in their trade and investment relationship, amid concerns that the country has not benefited from the African Growth and Opportunity Act (Agoa), which expires in 2025.
Agoa creates a foundation for establishing strong trade ties with the US, regardless of the new trade regime that comes after the pact.
The need to deepen ties informed the formation of the Us-kenya Trade and Investment Working Group last year. This past week, Kenya's Trade Principal Secretary Chris Kiptoo chaired the preparatory meeting for the inaugural working group forum to be held in the US in February, chaired by US Trade Representative Robert Lighthizer.
“Kenya is eyeing a bigger slice of the pie in the lucrative US market following the establishment of a mechanism for the two countries to engage in bilateral talks aimed at deepening trade and investment ties,” said Dr Kiptoo.
Increased trade will narrow the trade deficit, which stood at $118 million in 2017.
Ministry of Trade data shows that Kenya ranks poorly as a trading partner of the US, currently at position 92, with two-way trade at $1 billion in 2017.