KENYA PROVIDES PROPOSED AGOA FORUM AGENDA; MISSION

UNCLAS NAIROBI 000372

STATE PASS USTR CONNIE HAMILTON, PATRICK DEAN COLEMAN, AND WILLIAM
JACKSON

STATE FOR AF/FO, AF/E, AND AF/EPS ANN BREITER, GABRIELLE MALLORY,
MARY B. JOHNSON, AND TAWANNA DAVIDSON

STATE ALSO FOR AF/EX SYLVIE MARTINEZ AND SONJA WRAY-BROWN

AF/PD FOR CLAUDIA ANYASO

STATE ALSO FOR EEB/TPP/BTA AMY HOLMAN

STATE PLEASE PASS USAID/EA AND USAID/AFR/SD BRUNO CORNELIO AND JEFF
MALLICK

TREASURY FOR DAN PETERS AND REBECCA KLEIN

COMMERCE FOR KEVIN BOYD, ALICIA ROBINSON, AND BECKY ERKUL

AGRICULTURE FOR DON EVANS AND CATHY MCKINNELL

LABOR FOR SUDHA HALEY AND MAUREEN PETTIS

SIPDIS

E.O. 12958: N/A
TAGS: ASEC AMGT ECON ETRD AGOA PGOV PREL KE
SUBJECT: KENYA PROVIDES PROPOSED AGOA FORUM AGENDA; MISSION
RECOMMENDS INTERAGENCY VISIT IN LATE MARCH 2009

REFS: (A) 02-24-09 MALLORY-YOUNG EMAIL
(B) 02-23-09 BREITER-YOUNG EMAIL
(C) NAIROBI 325 AND PREVIOUS
(D) 02-11-09 AGOA INTERAGENCY TELCON WITH MISSION
KENYA AGOA COMMITTEE


1. This cable is not/not for internet distribution.


2. Following receipt of ref B, mission AGOA committee has
determined that an interagency visit during the week of March 16
would be difficult to support. Key logistics personnel will be out
of Kenya during proposed TDY. Mid-March is also spring break,
indicating that key Kenyan contacts may be out of the office as
well. Mission AGOA committee recommends that an interagency visit
be scheduled for the either the week of March 23-27 (Mission's and
the Government of Kenya's first preference) or March 30-April 3.

--------------
Kenyan AGOA Forum Preparations
--------------


3. On February 24, Lina Ochieng, senior Ministry of Trade official
chairing the Government of Kenya's (GOK) AGOA Forum technical
committee, provided ECON/C with the GOK's revised draft agenda for
the Africa-United States Ministerial (revised from para 9 of Nairobi
177),which she explained had been vetted with AGOA-eligible African
missions in Washington, DC. Note, the agenda still uses Kenya's
proposed theme "Realizing the Full Potential of AGOA: Bridging the
Gap." ECON/C presented and negotiated on behalf of the USG-approved
theme provided in ref A at the February 26 meeting of Kenya's AGOA
Forum preparatory committee (septel). At that meeting, the Kenyan
private sector representatives, supported by the GOK, reiterated
their view that they would like August 4 to be the private
sector/civil society day. A full three-day program has been drafted
and will be forwarded to Washington via septel.


4. The following is Kenya's proposed draft agenda for the
Africa-United States Ministerial:

Theme: "Realizing the Full Potential of AGOA: Bridging the Gap"

Introduction: The Africa Growth and Opportunity Act (AGOA)
constitutes the most significant legislative initiative by the
United States of America to spur economic development, alleviate
poverty and encourage trade with the Sub-Saharan region. However
eight years down the line, AGOA beneficiary countries have not been
able to fully benefit from AGOA. The 8th AGOA Forum therefore seeks
to examine in depth why this has been the scenario with a view to
bridging the gap.

--------------
Ministerial Program
--------------

Opening Session - Plenary I

AGOA Eight Years On: Reexamining the objectives of AGOA and
developing benchmarks and targets to realize meaningful economic
development for SSA countries. The session should focus on

Successes, Challenges and Strategies towards utilizing the full
potential of market access provided by this initiative.

Tea Break

Breakout Sessions

Session 1 -Trade and Investment in Agriculture

The session will look into:

-- The challenges of exporting agricultural products case for value
addition and focus on agribusiness outlining opportunities in the US
market.

-- Challenges and opportunities for investment in agribusiness in
Sub Saharan Africa.

Session 2 - Trade and Investments in Textiles and Apparel

This session will look into:

-- AGOA Challenges, i.e., the reasons for declining textile exports
under AGOA; impact of removal of China safeguard measure.

-- Category 9, the status of utilization of this category vs.
others; challenges that have been encountered; steps that SSA
countries can take to enjoy this facility as well as improve
utilization.

-- Vertical Integration, specifically barriers to investment and
remedial measures.

-- Strategies to safeguard and increase market share in the United
States.

Session 3 - Enhancing SMES Programs and Access to Finance

SMES play an important role in the economic development of African
countries. The session will therefore look at what programs the
African governments have put in place to promote SMES. It will also
attempt to identify financing gaps/shortfalls in addition to seeking
possible options for increased access to finance.

(Case study from a successful SME from sub-Saharan Africa)

Session 4 - Trade and Investment in the Energy Sector

The session will look at:

-- Alternative source of energy - focusing on expanding and
exploiting the full potential of renewable energy sources for
sustainable development in Africa.

-- Oil exploration and trade.

Lunch Break

Harnessing the objectives of AGOA in order to realize its full

potential - Plenary II

The US Policy and Regulatory Regimes - Plenary III

The session will look at the US regulatory regimes and their effects
on AGOA. Presentation from APHIS Regional hubs and FDA among
others, e.g. USDA, USAID, and USTDA on the following will be quite
vital:

-- Quality standards

-- SPS

Enhancing Competitiveness in the productive capacity - Plenary IV

The session will look at:

-- Supply side constraints

-- Regional Integration

-- Human and technical capacity building

-- Necessary government incentives

Breakout Sessions

Session 1 - Enabling Private Investment

The session will look at:

-- Private-public partnerships for enhanced trade and investment
under AGOA.

-- Conducive investment environment, in particular, the importance
of creating an enabling policy framework for private investments
including the one stop shops for investors.

-- Attracting US FDI flows and proposals for policy based
incentives

Session 2 - Market Development

This session will look at:

-- Product/regional promotion, notably the need for strategic and
joint marketing programs for SSA; existing support programs (e.g.
the hubs).

-- Product development and importance of branding and image.

Session 3 - Investment in Infrastructure

This session will look at what governments have done in this sector
which is crucial for trade facilitation and challenges for direct
commercial transport between SSA and US particularly

-- Transport - roads, railway, airports and ports

-- ICT

Tea Break

Session 4 - Contemporary Global Challenges

The session will look at the following and how they affect trade and
investment:

-- Global economic recession and its impact on Africa's development
priorities.

-- Security - bio terrorism, piracy and efforts to secure borders to
promote trade and investment flows to Africa.

-- Global Warming - strategies and policies for environment
protection and areas for cooperation with the US.

Technical Assistance and the role of Aid for Trade in enhancing
trade and investment - Plenary V

-- Update on WTO negotiations

-- The future of AGOA (NPDA bill)

-- Impact of the US farm bill

Breakout Session

Session 1 - Summary of conclusions and adoption of Report

-- Group Reports from Breakout Sessions

-- Summary Report and Adoption

-- Closing Statements

-- Joint Communique


5. Post would welcome USG interagency team reaction on this
proposed agenda. Doing so would allow us to discuss the agenda at
the March 12 meeting of the GOK's AGOA Forum preparatory committee
meeting.

Ranneberger