Kenya plans to review trade strategy to raise its exports to US

YarnsandFibers News Bureau 2018-01-23 11:00:00 – Nairobi

Kenya plan to conduct an in-depth review of the current trade strategy in order to take stock of its implementation and success as well as to suggest interventions to boost exports to the United States, Chris Kiptoo, Principal Secretary in the Ministry for Trade.

The first African Growth and Opportunity Act (AGOA) strategy for Kenya was developed in 2012. Under the trade agreement, most of sub-Saharan African countries are allowed to export some products duty free to the U.S. market. Kenya’s exports to U.S. comprise mainly textiles and apparels made in the export processing zones.

During the validation workshop on the national AGOA strategy review, he said that within the new dispensation of devolved system of government, the strategy will collaborate with the county governments, as appropriate, to exploit the potential market.

AGOA is a preferential market access system given to specific countries in Africa and the Caribbean by the United States. Since it was put in place by the U.S. in May, 2000, AGOA that mainly caters for textile and apparels trade, has been extended four times, the latest being in June, 2015, when it was extended for a further ten years to 2025.

Kiptoo said that Kenyan exports to the United States have grown from 110 million dollars in 2000 to 551.5 million dollars in 2016. Ministry of Trade data indicates that the United States is currently Kenya’s third largest export destination.

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