Kenya Eyes Year-End US Trade Deal, Pushes for AGOA Extension at UN General Assembly

Kenya Seeks Trade Deal with US, Pushes for AGOA Extension

Kenyan President William Ruto announced on Wednesday that Kenya expects to sign a trade deal with the United States by the end of the year. He also stated his intention to urge Washington to extend the African Growth Opportunity Act (AGOA) for at least five years during discussions at the United Nations General Assembly in New York.

AGOA Extension: A Key Priority

Ruto emphasized the importance of extending AGOA, a 25-year-old act granting qualifying African nations duty-free access to the U.S. market, which is set to expire this month. He is scheduled to meet with U.S. Secretary of State Marco Rubio to discuss the matter.

"I will be asking him for the U.S. to consider seriously renewing and extending AGOA for at least a minimum of five years, because it is a platform that connects Africa and the U.S. in a very fundamental way, and it can go a long way in solving some of the trade deficits and challenges that exist at the moment," Ruto said.

He expressed optimism that the U.S. administration has increased its appreciation for AGOA, which provides significant opportunities for both Africa and the United States to expand and deepen trade.

Bilateral Trade Agreement with the US

Kenya and the U.S. have reportedly made "good progress" on a bilateral trade agreement, with Ruto anticipating a deal before the end of 2025. This agreement is particularly significant given the 10% tariff imposed on Kenyan goods in April. Kenya is seeking access to the U.S. market for its apparel, textile, and agricultural products, including tea, coffee, and avocados, and hopes to explore new areas like mining and fishing.

If finalized, this agreement would mark the first of its kind between a sub-Saharan African nation and Washington.

Trade Relations with China

While Kenya has robust trade agreements with several partners, including China, which has removed all tariffs on the East African country's agricultural products, Ruto noted a trade deficit with China. He also mentioned that trade with the U.S. is fairly balanced.

"We have a trade deficit in favor of China, but the one for the U.S. is fairly balanced, so we are still looking at avenues on how to balance trade with all our trading partners."

Conflicts in DRC and Haiti

Addressing international conflicts, Ruto highlighted a proposal for the U.S., Qatar, the East African Community, and the South African Development Community to convene next month to discuss the situation in the eastern Democratic Republic of the Congo (DRC). He noted that a U.S.-mediated peace deal with Rwanda has not calmed fighting.

Regarding Haiti, Ruto stated that while Kenya has stepped up to lead an international force to combat armed gangs, the mission lacks the necessary logistical and financial support.

"We need more numbers," Ruto told Reuters. "We need more logistics, we need more equipment, and we need more financial support to be able to carry this through."