Kenya calls for extension of Agoa treaty

By Luke Anami

Kenya could benefit more from the African Growth and Opportunity Act if it is extended, and the stringent requirements on exports by US Government were reviewed, Kenya’s Trade Minister has said.

"We know that the range of products available to us has not been utilised by ourselves," Chirau Ali Mwakwere said in an interview with The Standard. "Agoa should be extended or made permanent to fully realise its benefits."

His comments came as the US State Secretary Hillary Clinton officially closed the African Growth and Opportunity Act (Agoa) Forum in Lusaka, Zambia this week with calls for equal opportunities for women in business in Africa.

She also urged African governments to improve trade infrastructure and fight corruption, pointing out that corruption raised the cost of doing business.

"I thank all of you for being here because you are addressing the importance of what we can do together —it is about the future, and it is about the hard work that will take us from today until tomorrow." However, she failed to address the issue troubling the 38 Agoa eligible countries —the issue of extension.

Attract investors

"The short period of Agoa’s existence, as it is set to expire in 2015, may not attract investors who usually prefer long-term plans as opposed to short — and therefore unreliable investment— opportunities," Mwakwere said.

He blamed stringent requirements by the US as limiting the performance of the export sector in Kenya. "Agriculture products are accepted in Europe but not in the US. If they are accepted in Europe, where they consumed by Americans, why not in the US," Mwakwere asked. "Further, US Visa requirement prohibit exporters from eyeing the US market. They serve as a dis-incentive to our local business people."

But in a rejoinder, Constance Hamilton, Deputy Assistant United States Trade Representative for Africa urged Kenya should to move away from apparel to other products.

Vice chairperson of African Union, Erastus Mwencha, said US agriculture requirements are very stringent, making it difficult to export more products to the US market duty-free.