EXPLORING OPPORTUNITIES

AGOA extension top agenda in Ruto US trip

The deal waived restrictions and tariffs, allowing goods from African countries special access to the US market

In Summary
  • Agoa provides duty-free access to the US for approximately 6,400 tariff lines
  • A handbook by the Ministry of Trade says Kenya is among the first Sub-Saharan countries to qualify for trade preferences under Agoa
President William Ruto and First Lady Mama Rachel Ruto with US President Joe Biden in New York on September 22, 2022.
President William Ruto and First Lady Mama Rachel Ruto with US President Joe Biden in New York on September 22, 2022.
Image: PCS

President William Ruto will seek to save the Agoa deal set to expire in June next year as he starts a four-day state visit in the US.

The African Growth and Opportunity Act  is a law enacted by US Congress in May 2,000 to assist the economies of Sub-Saharan Africa, including Kenya.

The deal waived restrictions and tariffs, allowing goods from African countries special access to the US market.

After completing its initial 15-year period of validity, the legislation was extended on June 29, 2015 by a further 10 years, to 2025.

Foreign Affairs Principal Secretary Korir Sing’oei and State House Spokesperson Hussein Mohamed said Ruto will meet top congressional leaders on Wednesday.

During the meeting, he will make a case on why the law should be enhanced and extended.

Agoa provides duty-free access to the US for approximately 6,400 tariff lines.

A handbook by the Ministry of Trade says Kenya is among the first Sub-Saharan countries to qualify for trade preferences under Agoa.

Some of the benefits include, duty-free treatment for apparels made in Kenya, permission to use third-country fabric under the special rule for apparel and the ability to cumulate product value across Agoa-eligible countries.

Sing’oei said, the President will leverage on the strategic trade and investment partnership framework to push a case for preferential treatment of Kenya in the Agoa deal.

The framework is still under negotiation between the two countries.

“The president will implore congressional leaders to not only extend the Agoa deal, but also allow Kenya a special leeway under the STIP arrangement that is still under robust discussion,” the PS said.

The agreement that is still under discussion, has a whole chapter on labour migration that if signed, will grant Kenyans H1 or H2 visas.

He said the president will also meet multilateral bank bosses to discuss loans and lending rates to Kenya and Africa.

Today, Ruto visit to the Carter Presidential Library and Museum in Atlanta, Georgia.

He will then visit legendary Ebenezer Baptist Church to pay homage to the civil rights struggle and emphasise on how religion can be a force for good.

His third engagement will focus on the US Kenya Health Partnership of the Centre for Disease Control CDC headquarters. Several partnerships between the CDC and Kenya will be announced. 

Ruto and the First Lady Rachel Ruto will also be hosted by Kenyans in Atlanta.

"We focus on the diaspora as a force multiplier in national transformation, as envisioned in the Bottom-up Economic Transformation Agenda," Mohamed said.

On Tuesday, the president will be at Spelman College, where he will discuss the critical role of higher education, particularly science and technology in enhancing Kenya's human capital development.

He will then visit Tyler Perry Studios to explore opportunities within the creative economy.

The President will then visit Coca-Cola headquarters, where a new investment partnership will be unveiled.

He will also launch Kenyan retail fashion brand, Vivo's inaugural store in the US.

Ruto will also be hosted by the Mayor of Atlanta and the Atlanta CEOs Council.

On Wednesday, the President and First Lady Rachel Ruto will arrive in Washington DC's St Andrews Air Force Base, where he will be received with full ceremonial state honours.

He will then have extensive engagements at Capitol Hill, the country’s political nerve center that houses its federal legislature.

Here, he will meet a bipartisan congressional delegation, the Black Congressional Caucus and the bipartisan caucus of the Senate.

On Thursday, which is the main day of the visit, Ruto and Rachel will lay a wreath at Arlington National Cemetery to honour American soldiers and other historic figures.

He will then hold bilateral meetings with President Joe Biden and delve deeper into the Kenya-US economic, health and security partnerships.

They will also discuss regional developments on the African continent, as well as opportunities.

Ruto and Biden will then hold a joint press briefing at White House.

The President will also deliver a keynote speech on shared climate solutions at the Smithsonian and discuss global environmental challenges and collaborative efforts.

The day will end with a state dinner.

On Friday, Ruto have breakfast at the US Chamber of Commerce. He will also hold a digital roundtable discussion with Vice President Kamala Harris and explore the potential for expanding the US Kenya digital partnership.

He will also pay a visit to the Pentagon, where the President will highlight Kenya US defence partnership in the fight against terrorism, extremism and other emerging areas such as cybersecurity.


WATCH: The latest videos from the Star