Liberalisation under AGOA - Agriculture

1
The Initial and Potential Impact of Preferential
Access to the US Market under AGOA Paul
Brenton Trade Department, World Bank
2
Impact of AGOA Tariff Lines Liberalised
- In Agriculture
Little impact for LDCs
AGOA adds only 26 lines/products for duty free
preferences
Potential impact for non-LDCs much greater
AGOA adds 626 lines (about 1/3rd of total
agricultural products)
Significant number of products excluded from
preferences
Around 220 products excluded from AGOA
preferences (meat, dairy, sugar, chocolate,
prepared food products)
Excluded products have high duties
Average duty on GSP agricultural products 3.5
Average duty on AGOA agricultural products 6.7
Average duty on excluded agricultural products
30.7
3
Impact of AGOA Tariff Lines Liberalised
- In manufacturing
Key distinction between those eligible or not for
apparel benefits
For those not eligible main impact on non-LDCs
For LDCs AGOA liberalises 199 products(2 of
total manufacturing lines)
For non-LDCs, AGOA adds 1249 tariff lines for
preferences
Around 1500 lines remain excluded from preferences
For those eligible for apparel benefits
AGOA adds a further 542 lines for preferential
treatment
Around 950 (high duty) lines remain excluded from
preferences (Textiles, headgear, glass and
glassware)
Excluded products have high duties
Average duty on GSP products 3.8
Average duty on AGOA products 6.1 (apparel
12.1)
Average duty on excluded products 10
4
Impact of AGOA
Impact on individual countries depends upon
Importance of preference receiving products in
exports
Utilisation of available preferences
Margin of preference and costs to firms of
obtaining preferences
Extent to which export diversification is
encouraged
Summary of trade coverage of AGOA in 2002 (mill)

Total Exports
GSP
AGOA
Non-LDCs
8050
26
6686
Non-Oil Non-LDCs
627
25
131
LDCs
277
146
0
Non-LDCs Apparel
5092 (666)
586 (25)
1238 (342)
LDCs Apparel
686
17
437 (406 apparel)
?
Excl Mauritius S.Africa
5
The Extent of Preferences
6
Utilisation of Preferences
7
The Value of Preferences
8
AGOA Issues for the Future
1. How to deepen and broaden impact across a
larger number of countries?
Extend apparel preferences to all
Include all products
Identify and address reasons for
under-utilisation of preferences
2. Whither rules of origin for apparel?
Extend special rule in time and coverage