Kenya hopes for an extension of the African Growth Opportunity Act (AGOA) deal as it seeks to push more exports of textile and apparel to the US market.
The country together with other beneficiaries is lobbying to have the deal that expires in 2025 extended by 10 more years. The US Congress enacted AGOA in 2000.
Kenya is among 36 countries that are beneficiaries of AGOA; it provides duty-free access to the US market for over 1,800 products.
This is in addition to the more than 5,000 products that are eligible for duty-free access under the Generalised System of Preferences program.
In 2015, Congress passed legislation modernising and extending the program to 2025.
For countries to meet AGOA’s rigorous eligibility requirements, they must establish or make continual progress toward establishing a market-based economy, the rule of law, political pluralism, and the right to due process.
Additionally, countries must eliminate barriers to US trade and investment, enact policies to reduce poverty, combat corruption, and protect human rights.
Industry Principal Secretary Juma Mukhwana said his trade counterpart Alfred K'Ombudo is in the USA to take part in the talks to allow smooth trade between the two countries under the trade arrangement.
He spoke during a media briefing on the International Textile Machinery Exhibition (ITME) Africa and Middle East 2023, which runs from November 30 to December 2, 2023.
“My colleague is in the USA to continue with the discussions on the deal extension. We have participated in the USA market under the AGOA for a long time," said Mukhwana.
"The opportunity has led to the continued growth of textile and apparel industry among other sub-sectors. Talks are at an advanced stage and there is positive indication of us being granted the 10-year extension, " he said.
According to the Kenya Association of Manufacturers (KAM), the country's textile industry is exporting goods worth Sh34 billion annually. Currently Kenya is the leading textile exporter to the USA.
A report by the Kenya Institute for Public Policy Research and Analysis (KIPPRA) shows that the value of Kenya exports to the US increased from Sh2.8 billion in 2000 to Sh51.9 billion in 2019.
This translates to 1,754 per cent growth. Imports also increased from Sh10.08 billion in 2000 to Sh62.3 billion in 2019, translating to a 518 per cent growth.
The international textile machinery and engineering exhibition organised by India ITME Society comes at a time when the country is fast tracking to expand her share in the international market.
Ketan Sanghvi, India ITME society chairman said the event is aimed at transforming the textile industry of Africa and the Middle East in the coming decades.
This, he said, will be through opening up unlimited opportunities for business, sourcing, collaboration, and investment in the textile, textile engineering, ancillary, and allied industry.
“Along with promoting trade, investment and creating a business-friendly environment and vibrant private sector, this exhibition focuses on working in partnership with the government, business community and other stakeholders,” Sanghvi said.
