Transcript AGOA and U.S.- African Trade

U.S.-AFRICAN
TRADE AND INVESTMENT
Becky Erkul
Senior International Economist
Office of Africa
U.S. Department of Commerce
T: (202) 482-5148
[email protected]
www.agoa.gov
African Growth and Opportunity Act
• Cornerstone of the U.S. Government’s trade and
investment policy toward Sub-Saharan Africa, which is:
– promoting free markets
– expanding U.S.-African trade and investment
– stimulating economic growth
– facilitating Sub-Saharan Africa’s integration into the
global economy
What is AGOA?
• AGOA was signed into U.S. law May 18, 2000 as part of the
Trade and Development Act of 2000
• Duty-free, quota free entry to the United States for most
goods
• Extends GSP program: allowing duty-free entry of 4,650
products until 2015 for AGOA-eligible countries
• Expands GSP: adds 1,835 new tariff line items
AGOA Supports U.S. Business
• AGOA offers tangible incentives for African countries to
continue their efforts to open their economies and build
free markets
• There are currently 40 AGOA-eligible countries, with 23
eligible to receive apparel benefits
• More information on the AGOA program is available at
www.agoa.gov
What is AGOA III and IV?
• The AGOA Acceleration Act of 2004 (AGOA III) extended
the length of the program until 2015
• AGOA IV made the extension applicable to textiles and
apparel as well
• AGOA IV seeks to promote investment in all areas of
infrastructure
• Also calls for customs cooperation
2008 Eligible Countries
Angola
Benin
Botswana
Burkina Faso
Burundi
Cameroon
Cape Verde
Chad
Congo-Brazzaville
Congo (DRC)
Djibouti
Ethiopia
Gabon
Gambia
Ghana
Guinea
Guinea-Bissau
Kenya
Lesotho
Liberia
Madagascar
Malawi
Mali
Mauritania
Mauritius
Mozambique
Namibia
Niger
Nigeria
Rwanda
Sao Tome &
Principe
Senegal
Seychelles
Sierra Leone
South Africa
Swaziland
Tanzania
Togo
Uganda
Zambia
Fostering Business Opportunities in Africa:
Strategic Alliance Program
• Commercial Service’s Strategic Alliance Program:
- coordinates business contacts between African host
country government agencies, local industry
associations, and multiplier organizations that focus on
business opportunities of interest to American
companies
• Contacts forwarded to American companies interested in
taking advantage of these business opportunities
BuyUSA
• A one-stop e-marketplace for small and medium-sized U.S.
enterprises to identify potential international partners and
connect with them on-line
• Identifies potential local business partners from AGOA
seminars and workshops for American firms
• Identified firms are pre-qualified for financing with Ex-Im
Bank, which in turn makes them more attractive as
business partners for American firms
U.S.-Sub-Saharan Africa Trade and Economic Forum
• The AGOA Forum is hosted by the Secretaries of
Commerce, State, Treasury, and the U.S. Trade
Representative
• The 7th AGOA Forum will take place in Washington, D.C.
on July 14-16, 2008 with a focus on private investment
• Companies interested in participating may contact me for
more information.
African Growth and Competitiveness Initiative (AGCI)
AGCI’s Key Areas of Activity:
1. Improving the policy, regulatory and enforcement
environment for private sector-led trade and investment
2. Improving the market knowledge, skills, and abilities of
workers and private sector enterprises
3. Increasing access to financial services for trade and
investment
4. Facilitating investment in infrastructure
Current Trade Statistics
• Two-way trade between the United States and SubSaharan Africa rose by 15 percent in 2007, as both exports
and imports increased
• U.S. exports to SSA grew by 19 percent in 2007 to $14.4
billion
• U.S. imports from SSA grew by 14 percent to $67.4 billion,
while AGOA imports increased by 15 percent, to just over
$51.1 billion
Opportunities
• According to the 2008 World Development Report,
agriculture in Sub-Saharan Africa employs 65% of the
labor force and generates 32% of GDP growth
• Developing high value and specialty foods and diversifying
SSA’s textile and apparel products are key to improving to
improving Africa’s agri-business competitiveness
• Tourism, ICT, and infrastructure also are best prospects
for U.S. investment throughout the continent
Common Challenges in Africa
– Weak rule of law
– Endemic corruption
– Lack of enforcement of property rights, including
intellectual property rights
– Preponderance of burdensome regulations
– Poor infrastructure
STOP – Strategy Targeting Organized Piracy
– Helping U.S. businesses obtain and enforce intellectual
property rights (IPR) abroad
– Raising the stakes for counterfeiters & pirates
– International cooperation to block bogus goods
– Keeping fakes out of global supply chain
Contact: 1-866-999-HALT or www.stopfakes.gov
Office of Africa
• Mission: Champion American businesses and workers by
eliminating foreign barriers to trade, investment and
business operations and enforcing trade agreements.
• The Office of Africa also administers www.agoa.gov, which
serves as a resource to better understand AGOA, its
procedures, and resources to facilitate business linkages.
For More Information
Office of Africa
1401 Constitution Avenue, NW
Room 2037
Washington, D.C. 20230
Phone: (202) 482-4928
Fax: (202) 482-5198
www.agoa.gov