Companies based in the United States (US) have reportedly suspended all their investment plans in Kenya. The decision is as a result of the growing uncertainty surrounding the new free trade deal between the East African nation of Kenya and the United States (US).
A significant amount of companies based in America had already starting making numerous investments in Kenya as a result of the anticipation of a brand new investment and bilateral trade agreement between the United States (US) and Kenya.
The conversations regarding the free trade agreement were however affected by the departure of the Donald Trump administration in late 2020.
The President of the US-Africa Business Center at the US Chamber of Commerce; Scott Eisner, acknowledged the current complication for American firms even though the administration of President Joe Biden is actively looking to assess the proposed trade agreement between both countries.
According to Reuters the President of the US-Africa Business Center at the US Chamber of Commerce; Scott Eisner stated that, “Many companies had begun investing in Kenya in the wake of the Trump administration’s talks with Kenya on a bilateral free trade agreement, but that those plans were on ice until the Biden review of that policy was completed.”
Conversations regarding a free trade agreement between Kenya and the United States (US) experienced another significant setback in July of 2021 due to the expiration of a very important law referred to as the Trade Promotion Authority (TPA) that would have significantly accelerated the trade agreement’s approval by Congress.
Negotiators involved had been anticipating that a Trade Promotion Authority (TPA) would be enacted by Congress to adequately speed up the conversations before its eventual expiration on the 1st of July 2021.
According to the news publication; The East African, the President of the United States (US); Joe Biden allowed the expiration of the Trade Promotion Authority (TPA) so as to provide his administration with much more time to properly assess the proposed agreements whose negotiations had been kickstarted by the previous administration.
A Trade Promotion Authority (TPA) acts as a guide for administrations in the United States (US) with regards to the sealing of trade agreements which would get rid of hindrances in foreign markets while also boosting domestic job creations and the setting up of rules which would prevent the occurrence of unfair trade.
Congress through the Trade Promotion Authority (TPA) reserves the power to assess and decide whether or not any proposed trade agreement with the United States (US) will, be carried out.
The administration of President Joe Biden made known on the 27th of July 2021 its plan for a new move to further expand the business relationships between companies from the United States (US) and companies from Africa with a renewed focus on health, clean energy, transportation infrastructure, and agricultural businesses on the continent of Africa.
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