African%20Growth%20and%20Opportunity%20Act

1
African Growth and Opportunity Act

• Robert F. Godec
• Minister Counselor for Economic Affairs
• US Embassy Pretoria

2
US Commitment to Africa

• Debt relief, aid to historic highs, HIV/AIDs,
  trade and investment
• AGOA--Duty and quota free entry for African goods
  into the almost 10 trillion US market
• AGOA is about helping Africa create wealth and
  prosperity

3
AGOA Country Eligibility

• 35 countries
• Eligibility requirements

4
AGOA Market Access--Apparel

• clothing made from US fabric
• clothing made from African fabric
• for LDCs clothing made from third country fabric
• special provisions
• visa system

5
AGOA Market Access--for all other goods

• GSP
• More than 1, 800 products added for Africa
• certificates of origin

6
Benefits for South Africa

• Wide array of opportunities in a variety of
  sectors
• duty advantages range
• examples handbags (17.6), trunks (8), sports
  footwear (over 32), glassware (12.5), watches
  (over 6 ), apparel (17.5), benzyl alcohol
  (5.5), chocolate milk drink (17), blue veined
  cheese (20), peach jam (7), roses (6.8),
  certain wine (22.4 cents/liter)
• Job creation

7
Impact of AGOA Trade

• S A exports rising rapidly
• January through July 2001 value of all goods
  exported under AGOA 191 million

8
AGOA Trade - Apparel

• South Africa 15.5 million
• Lesotho - 27.7 million
• Kenya - 22 million
• Madagascar - 20.2 million

9
Impact of AGOA South Africa

• Investment
• In a variety of sectors
• From investors all over the world

10
Impact of AGOA The Region

• Regional Investment
• Regional Trade
• Examples of products from SSA

11
Impact of AGOA Development

• Support services for shipments
• Customs development
• Collective Services for SMMEs

12
AGOA Case Study

• Ice Cream in Coconuts
• contract with Sams Club
• first shipment end of May
• 20 duty advantage under AGOA

13
AGOA Case Study

• Shirt producer in Durban
• AGOA cut the 20 tariff to zero
• Orders are up with more to come

14
AGOA Case Study

• New Beginnings -
• Black Workers Cooperative
• Starting to export wine to the US
• Other firms also exporting - KWV

15
AGOA Next Steps

• AGOA Forum

• AGOA eligibility review

16
AGOA Next Steps

• Revisions to AGOA?
• Dying/finishing
• Knit-to-shape
• Expanding AGOA
• Extending AGOA

17
AGOA Africa and the US

• We are just at the beginning.
• Even greater success should lie ahead.