Kenya and US governments issue end-of-year deadline for STIP deal conclusion
Kenyans.co.ke | 9 June 2024
Kenya and US governments issue end-of-year deadline for STIP deal conclusion
by Hellen Njoroge
The Kenya and United States governments have issued a deadline to members in the respective negotiations teams to ensure that the Strategic Trade and Investment Partnership (STIP) is concluded by the end of the year.
STIP is a trade pact which seeks to set new regulations and bilateral trade agreements between Kenya and the US. It was set up in 2022 by former Presidents Donald Trump and Uhuru Kenyatta.
In a statement issued by the Department of Foreign Affairs, on Saturday the Kenyan government through the Foreign Affairs Ministry confirmed the issuance of the request for the trade deal to be fast tracked.
“Further, the Prime Cabinet Secretary (Mudavadi) informed that Kenya and the US Governments have tasked their negotiations teams to ensure that the Strategic Trade and Investment Partnership (STIP) is concluded by the end of the year,” read the statement in part.
Speaking during the 248th anniversary of the USA Independence Day at the United States Embassy, Ambassador Meg Whitman remarked that Kenya and the United States had achieved major milestones in their relations.
She further pointed to the country’s growing influence, coming hot in the heels of the United States designating Kenya as a major non-NATO ally becoming the first Sub-Saharan African country to partner with the US at this level as a major milestone.
Further, Whitman stated that the agreement seeks to cement further Kenya’s trade relations following the conclusion of the President William Ruto’s State visit to the United States.
STIP
Since being established, trade negotiations between the US and Kenya have been conducted over several rounds with the conclusion of the fifth round of negotiations being in May 17 2024.
The United States delegation was led by Assistant U.S. Trade Representative Constance Hamilton and included representatives from several other U.S. government agencies.
On the other hand, the Kenyan delegation was led by Principal Secretary for Trade Alfred K’Ombudo.
However, a previous analysis of the deal revealed that If the pact is not signed before the US elections, Kenya may find itself in a difficult position if President Joe Biden is not reelected
Additionally, the Congressional Research Service had expressed several concerns about the deal citing that the US government may seek to negotiate commitments close to those in comprehensive FTAs with relatively more developed countries, which could disadvantage Kenya given its lower middle-income status.
