Fashion retailers are keeping a close watch on the ongoing trade talks between US and Kenya which could lead to a free trade agreement between the two countries. According to a data, 99.7 per cent of US apparel imports from Kenya got all AGOA benefits between 2015 and 2019. Brands hope these benefits will continue with FTA.

Almost 100 per cent of these imports gained from ‘third country’ fabric facility wherein Kenya enjoyed duty-free access to US market for clothes made of yarn and fabric originating from anywhere else in the world. These will surely be the core areas of discussion before the FTA comes into effect. The agreement should not make any changes with respect to market access and duty-free treatment for apparels made in Kenya effective from the date of entry into force of the agreement, views fashion brand PVH.

However, many feel the FTA may help move to yarn-forward rule of origin in phases to help the development of the local textile industry in Kenya. Betty Maina, Cabinet Secretary for Industrialization, Trade, and Enterprise Development, also believes that the trade agreement will help Kenya foreign direct investment from the US.