United States Pleased With COMESA
The United States Assistant Trade Representative for Africa, Florizelle Liser, has said that her country is pleased with COMESA work.
"What COMESA is doing is really important. It is one of the most impressive and best run regional organisations," Liser said, while recognizing the COMESA leadership for its focus determination and vision.
Liser, who deliberated on preferential market access, said that COMESA countries have over 98% duty free access to the USA market because of the African Growth and Opportunity Act (AGOA). She however, advised the member countries to deal with the constraints such as energy, production facilities, transportation, in order to reap more from AGOA.
"If you can't get into an open door, then it's not worth knocking,"Liser pointed out.
She revealed that 13 out of the 19 COMESA countries are eligible for AGOA and over US $ 2.3 billion, which is about 200% of 2003 exports realised in 2004.
She disclosed that non-oil exports accounted for 48% of AGOA exports, while diversification in exports such as cereals and beverages from Ethiopia, fruits and nuts from Malawi and, ceramics and pyrethrum from Uganda were also realised on the US market.
Liser also dwelt on the importance of apparels in as far as industrialisation is concerned.
"Apparel has always been the gateway for industrialisation and Africa has the opportunity of an 11 trillion dollar market in the USA," Liser told the delegates.
She noted that because of AGOA, Africa has improved from a 1% market share to 2.7% market share in the US. She also said that Africans are not a threat to the USA market 'because the entire Africa ranks 18th in export of apparels to USA'.
"The percentage might seem small but if you can secure a small portion of the market, the benefits such as creation of employment and development are very evident," Liser counselled adding that: "what needs to be done is to focus on what can be done to improve Africa's competitive advantage."
Liser also noted that for Africa to benefit from AGOA it has to identify particular products where it has higher duty free.
"It would be a mistake for Africa to compete with China in t-shirts because t-shirts are at the lower end of duty free and thus they have a greater advantage," Liser explained.
She also called for enhanced private sector participation and advised the continental stakeholders to exploit AGOA, which she said, was extended to 2015.
Liser reiterated that there was need for more investors from the US in Africa, and 'more partnerships with businesses and better regulatory policies'.
"This is something that is possible. Let us (USA) know what we can continue to do, not just opening the door but letting Africa get through the door,"Liser concluded.