U.S.-AFRICAN TRADE AND INVESTMENT

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U.S.-AFRICAN TRADE AND INVESTMENT

• Becky Erkul
• Senior International Economist Office of Africa
• U.S. Department of Commerce
• T [phone]
• becky.erkul_at_mail.doc.gov
• www.agoa.gov

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African Growth and Opportunity Act

• Cornerstone of the U.S. Governments 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 Africas integration
  into the global economy

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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

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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

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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

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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
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Fostering Business Opportunities in
AfricaStrategic Alliance Program

• Commercial Services 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
•  

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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

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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.

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African Growth and Competitiveness Initiative
(AGCI)

• AGCIs Key Areas of Activity
• Improving the policy, regulatory and
  enforcement environment for private sector-led
  trade and investment
• Improving the market knowledge, skills, and
  abilities of workers and private sector
  enterprises
• Increasing access to financial services for
  trade and investment
• Facilitating investment in infrastructure

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Current Trade Statistics

• Two-way trade between the United States and
  Sub-Saharan 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

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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 SSAs textile and apparel products
  are key to improving to improving Africas
  agri-business competitiveness
• Tourism, ICT, and infrastructure also are best
  prospects for U.S. investment throughout the
  continent

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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

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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

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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.

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For More Information

• Office of Africa
• 1401 Constitution Avenue, NW
• Room 2037
• Washington, D.C. 20230
• Phone [phone]
• Fax [phone]www.agoa.gov