Kenya is hoping some adjustments will be made to the African Growth and Opportunity Act (AGOA) following an address by US secretary of state, Hillary Clinton, today.
Concerns have been voiced over moves within the US Congress to extend trade preferences to other countries such as Bangladesh and Cambodia. The AGOA currently covers around 40 nations and gives market access to sub-Saharan nations committed to democracy and free markets.
Kenya is able to sell more than 6,000 product types to the US under the act. However, 96% of its exports to the US currently consist of textiles and apparel, an already crowded and highly competitive sector. The country hopes it will be able to make better use of the quota-free and duty-free act for other products to which it holds the rights under the AGOA, including leathergoods, animal products and crafts.
The AGOA appears to have reaped positive rewards for Africa as a whole so far, with exports under the act up 30% year-on-year in 2008 to $66.3 billion.