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Recovery in SA Car Exports to US Likely to Support Bilateral Trade Growth in 2006
Bilateral trade between South Africa and the world's largest economy, the US, would 'comfortably' exceed $10-billion in 2006, newly appointed Minister-Counselor for Commercial Services to South Africa Craig Allen reported.In the first nine months of the year, bilateral trade had reached $8,8-billion, with exports from South Africa rising 29,68% to $5,6-billion and imports from the US to South Africa increasing 7,68% to $3,2-billion. In 2005, South Africa exported about $6-billion of goods and services to the US and imported some...
Swaziland: Exporters Battle to Meet International Standards
The country’s inadequate capacity of meeting international standards has been identified as one of the barriers that limit export growth in AGOA eligible countries.A statement sourced from the African Growth Opportunity Act (AGOA) competitiveness report of July last year states that local producers usually report difficulties in producing output that meets European Union standards.One of Swaziland’s case was with the issue of beef exports to the EU where the latter stated that Swaziland was not meeting the required standards to allow...
Tanzania: Country Struggles to Benefit from Preferential Trade Opportunities
Tanzanian businesses have not exploited export potentials and trade opportunities that abound the country.A visiting Azania Holding Company delegate Ms Mymoena Davids,which is one of America's biggest commercial establishments, told the Daily News in Dar es Salaam yesterday that neighbouring countries were cheated by exporting Tanzania's products through their countries."You are surrounded by countries with businessmen who are experienced in export trade and international businesses," the delegate noted.She said Tanzania has abundant...
Rwanda: United States And Rwanda Hold High-Level Trade Talks
U.S. and Rwandan officials October 31 convened their first high-level meeting under the recently signed United States-Rwanda trade and investment framework agreement (TIFA).Deputy U.S. Trade Representative Karan Bhatia and Protais Mitali, the Rwandan minister of commerce, industry, investment promotion, tourism and cooperatives, led the talks.The meeting provided an opportunity for U.S. and Rwandan officials to review the full scope of trade and investment relations between the two countries and to identify opportunities for further...
Rwanda, US to further Trade Ties
Rwanda and the United States are set to develop and diversify trade between through the US-Rwanda Trade and Investment Council, New Times revealed on Saturday.Rwanda’s Minister of Commerce, Industry, Investment Promotion, Tourism and Cooperatives, Protais Mitali, and the Deputy US Trade Representative, Karan Bhatia sealed the deal on October 31.Rwanda and US pledged to collaborate in developing further the US-sponsored programme AGOA in a national workshop for Rwanda that will be held early 2007.The meeting, the first of its kind between...
Uganda: MPs blame AGOA Failure on President
Parliamentarians in Uganda claim President Yoweri Museveni's interference in the running of Africa Growth Opportunity Act (AGOA) has compromised the project.AGOA was enacted in 2000 by the United States of America to enable African countries access its market.Members of Parliament on the Public Accounts Committee (PAC) on Wednesday 1 complained that Museveni had interfered with the management of AGOA. The committee had summoned the Permanent Secretary (PS), Sam Nahamya, to respond to queries raised by the Auditor General in his 2004/05...
Botswana Has Potential For Commercial Agriculture
Rom Smet, Managing Director of Hortulus - a Gaborone-based vegetable farm - said on Friday that there is potential for commercial agriculture in Botswana despite the hostile climatic conditions."By using a technique suitable for Botswana, farming can bring money," Smet said at an agribusiness forum organised by the Botswana Development Corporation (BDC). He explained that vegetable and greenhouse agriculture, as carried out by his company, has never been done at the commercial level in Botswana before."But despite the climate and high input...
Uganda: Policy for Textiles needed
LACK of a clear policy on textile industry is the reason for poor performance of the textile sector, the Managing Director Phoenix Logistics, Mr Yuichi Kashiwada, has said.For this reason, Kashiwada said, Uganda has failed to favourably compete on the international market.Kashiwada was sharing his experience in the textile business to the visiting eight-man delegation of textile producers from the United States at Grand Imperial Hotel on October 25."All what the textile industry in Uganda needs is a quick implementation of a textile policy...
Ethiopia: US Market Promising for Ethiopian Made Hand Woven Clothing
Hand woven materials made by K Disign - a local midsize industry designing and producing traditional hand loomed clothing - have attracted a number of US buyers while debuting at the State's giant apparels trade show held in New York last month, Proprietor Rahel Zewde told The Daily Monitor.According to Rahel, K Design is on its way to cut some deal with potential US buyers, where eight of them have already ordered the company for sample products."With my first experience participating at a US trade show, I was able to witness the US market...
South Africa: Exports to the US soar to US$ 4.9bn
Growth in South Africa's exports to the US continues to accelerate.Figures released this month by the US International Trade Commission show that in the year to August, South Africa exported goods to the value of $4.9 billion (R37 billion) to the US. This represents growth of 29 percent from the same period last year, up from growth of 25 percent in the year to June.Of South Africa's total exports in the first eight months, $1.2 billion was exported under the African Growth and Opportunities Act (Agoa) trade programme launched in February...
Uganda: AGOA Factory Closes
After limping for about six years, the Tri-Star Apparels plant in Bugolobi, popularly known as Agoa has finally wound up .Information available to Daily Monitor indicates that the plant's management has suspended operations and sent workers home without any explanation.The Company's Managing Director, Mr Vellupilai Kanathan ,told Daily Monitor by telephone yesterday that the plant would resume operations in a month's time even as he admitted that "logistical hurdles" had hinted normal progress.He did not elaborate on the nature of the...
Mozambique, United States discuss Trade
Mozambique's Minister of Industry and Trade, Antonio Fernando, declared on Tuesday that the government is working hard to place the country in a more favourable position for attracting investment.Fernando was addressing the closing session of the first meeting on trade between the USA and Mozambique, following the signing of a Trade and Investment Framework Agreement (TIFA) between the two countries in 2005.The meeting aimed at assessing the advances in aspects related to trade, the trade environment and investment, and also the...
AGOA - Increasing Benefits For Cameroon
The second edition of the African Trade and Industrial Development Strategy Forum opened in Yaounde yesterday.There was every evidence at the Yaounde Conference centre yesterday that Sub-Saharan Africa wants to increase its determination to benefit from the opportunity offered by the African Growth and Opportunity Act (AGOA) voted into law by the American Congress to boost trade between the African continent and the United States of American. If all what was said in the six speeches delivered during the opening ceremony of the second edition...
Kenya: High Costs Hinder Manufacturing Sector
High taxation and prohibitive fuel costs are holding back the growth of the manufacturing sector, say industry players.Mr Steve Smith, the chairman of the Kenya Association of Manufacturers (KAM), says that the sector has grown in tandem with the economy over the last three years without improving its processes."A close examination reveals that this growth has been driven more by an increase in volume of output than by improvements in efficiency and productivity," he says.The increase in output is largely explained by large exports to the US...
Tanzanian Mill Eyes US Market under AGOA
Tanzanian firm Mwanza Textile Mills is eying the world market, including the trillion dollar market in United States, a spokesperson of the mills has said.The MTM Managing Director, Mr Amin Ladhan, told the visiting Deputy Minister for Industry and Trade, Dr David Mathayo David, that his mills would with effect from next fiscal year establish a knitting mill.The mill would produce various apparels stipulated in the US African Growth Opportunity Act (AGOA), which provides sub-Saharan African countries with an opportunity to export apparels...
Overview of Proposed Changes to AGOA
A flurry of activity has seen a number of Bills being considered by the US government that could see important amendments to the AGOA legislation. The most recent Bill, by Rep. Bill Thomas (one of the original architects of the AGOA legislation), was submitted a few days ago and is currently with the House Ways and Means Committee for consideration.The Bill, named the “Africa Investment Incentive Act of 2006” (or under its formal code HR6142), can be downloaded from AGOA.info’s archives by following this link. It deals with proposed...
Good Morning, Africa
Out of Africa, the headline news is usually related to the legendary four horsemen of the Apocalypse - pestilence, war, famine and death. No question, these horsemen run rampant on the continent; but there is another story worth hearing too.Take, for example, the recent World Bank report, "Doing Business," an annual survey of the countries it is easiest to do business in (Singapore is first, the United States is third). As a whole, sub-Saharan Africa does poorly. South Africa, the highest rated country, is 29th; eight of the bottom 10...
Bill on Generous Rules of Origin for Africa and Haiti Postponed in US Congress?
A proposed emergency trade law introduced recently to US Congress appears to have been suspended. The bill which would have extended and amended rules of origin for sub-Sahara African countries came under pressure from influential textile lobbyists. The groups were also concerned over a controversial addition that would allow Haiti to use fabric and yarn from countries in Asia.A trade bill last week introduced to the US Congress extending and modifying the existing duty-free access for AGOA and ATPDEA countries looks set to be suspended...
Proposed Amendments to AGOA Legislation
US Democratic representatives have introduced a Bill known as “The Emergency Trade Program Extension Act of 2006” to extend the Generalized System of Preferences, the Andean trade preference program and African Growth and Opportunities Act (AGOA) for another two years. Below follows a transcript of the proposed legislation, with further explanatory notes provided by AGOA.info in parenthisis.Emergency Trade Program Extension Act of 2006 (Introduced in House)HR 6076 IH 109th CONGRESS2d SessionH. R. 6076To extend the generalized system of...
Tanzania: Mission to America
A high powered Tanzanian business delegation led by President Jakaya Kikwete is in the United States on a historic mission to promote the country’s image internationally, boost trade ties and parade investment opportunities.“Tanzania is endowed with many resources, including vast arable land, wildlife, beaches and minerals. The country is, however, little known internationally for various reasons including lack of publicity.“We have now aggressively embarked on the promotional drive. Gone are the days when good things were said to be...
African Investment Conference to Focus on Improving Infrastructure
Development specialists say Africa’s economic potential can not be tapped until the continent has a well-developed infrastructure. The conference is designed to mobilize American investors in the effort. It’s being organized by the Washington-based Corporate Council on Africa, the CCA, and will be held in a Washington suburb. Among the many sponsors are General Electric, and the US Department of Transportation.Stephen Hayes is the president of the CCA. He says there are a number of opportunities for US investors – a point that will be...
Mauritius, US sign Trade and Investment Agreement
The United States and Mauritius signed an agreement September 18 that is intended to strengthen and expand trade ties between the two countries.The agreement, called a trade and investment framework agreement (TIFA), will provide a formal mechanism to address bilateral trade issues and help enhance trade and investment relations."Mauritius' experience demonstrates how trade and investment can fuel economic growth and development," said Deputy U.S. Trade Representative (USTR) Karan Bhatia, who signed the agreement in Washington along with...
US: Extension of Trade Acts, AGOA?
Fall elections, a lame-duck congressional session and the final legal paperwork on one agreement are the remaining puzzle pieces affecting when Washington might ratify trade accords with Peru and Colombia.''We think these agreements are great,'' Everett Eissenstat, assistant U.S. Trade Representative for the Americas, told participants at The Miami Herald's Americas Conference.''Will these agreements happen?'' Eissenstat asked during the final day of the event at the Biltmore Hotel in Coral Gables. ``We think [they] will.''But he added that...
AGOA Supporters in US Fighting to Extend AGOA
American advocates of increased trade with Africa are warning that Kenya’s clothing-export sector will soon be devastated if Congress fails to amend the Africa Growth and Opportunity Act (AGOA). At issue is a section of Agoa that ends preferential access to the US market next year for African clothing exporters who continue using fabrics made in Asia or in "third parties" apart from the US or Africa.US clothing importers are thought likely to begin shifting orders away from Kenya and other Agoa-eligible countries in the coming months...
Building on AGOA for African Agricultural Trade Expansion
On the final day of the annual forum on the Africa Growth and Opportunity Act (Agoa) last month, the United States and Rwanda signed a bilateral agreement aimed at increasing trade flow between the two countries.The Office of the United States Trade Representative (USTR) valued Rwanda's exports to the United States at $6.3 million in 2005, up by 17 percent from 2004.By many projections, Agoa has been a positive outcome for participating countries like Rwanda, but there are still many implementation issues that impede its effectiveness and...
Ghana to Host 2007 AGOA Forum
Ghana would host the sixth African Growth and Opportunity Act (AGOA) conference probably in June next year, Mr Alan Kyerematen, Minister of Trade, Industry and President's Special Initiative (PSI), announced on Friday in Accra.It is expected that 1,000 to 1,500 participants from 37 African countries that are eligible in having unprecedented liberal access to the US market, since 2001 after the Act was signed in May 2000, would attend the conference.Ghana is the third African country to host the annual conference after Washington had hosted...
South Africa’s Agriculture Exports to the US Growing
Based on the latest trade data recently released by US authorities, South Africa is showing solid growth in its agriculture sector exports, with a 16% rise in the year to June. This continues a recent trend whereby the sector’s exports to the US have grown from US$ 208mn in 2003 to US$ 250mn in 2005.Two thirds of South Africa’s US-bound agriculture exports fall under AGOA and are thus able to enter the US duty-free (view the US-SA bilateral trade profile here). Segments in the AGOA category that have shown good growth this year include...
Zambia Strugges to Benefit from AGOA - US expert
Access by Zambian goods to the US market under the African Growth Opportunity Act (AGOA) has not succeeded because of the uncompetitiveness of Zambian products, an American trade expert Amanda Hilligas has said. Hilligas who is AGOA trade advisor for the Southern Africa Global Competitive Hub said there were few Zambian products that could compete with other products on the American market.Speaking during a seminar on the theme ‘Doing business with the US’ at the American Centre in Lusaka yesterday, Hilligas explained that there were...
Uganda: Cotton Sector Tempts Investors Globally
Ugandans cotton sector is attracting substantial private investment since its liberalization and with rejuvenation continuing rapidly again in one of the nation's most important industries, investors from across the world, including China, are now re-evaluating their options in view of the sector's much-improved prospects for manufacturing in Uganda to export directly to Asia.A doubling of ginning capacity between 1993 and 2001 reflects the renewed confidence in cotton production, while liberalization of the sector provided extra incentives...
Namibia: Ramatex, Govt. hold Meetings
A veil of secrecy has been thrown around meetings between Ramatex Executive Director Albert Lim and Government in Windhoek this week.Lim reportedly slipped into the country at the beginning of week.He is said to have held closed-door meetings with Government representatives during the week.For the past two days, no Government official has wanted to comment on Lim's visit, or the talks.Unionists appeared to be unaware of the Ramatex director's visit.Ramatex employees spoken to this week suspect that Lim's visit has to do with speculation that...
Africa Urged to Spread Export Product Range under AGOA
Ghana has expressed worry about the uneven nature of product lines and countries exporting items to the United States under the African Growth and Opportunity Act (AGOA) and called for a broader product base in order to satisfy the demands of the US market.Addressing a workshop of business operators from 18 West African countries in Accra, Mr Allan Kyerematen, Minister of Trade, Industry and President's Special Initiative (PSI) argued that statistics derived from the West African Trade Hub (WATH) showed that 85 per cent of all AGOA exports...
Lesotho: Global Changes Impact Negatively
The efforts of global nongovernmental organisations to get rich countries to open their markets could have unintended negative consequences for many developing countries. ComMark says Lesotho’s textile industry still faces serious challenges, none of which are under its direct control:Major changes to the US African Growth and Opportunity Act (Agoa), affecting Lesotho, are in the pipeline for September next year. After this date, should Lesotho firms use third-country fabrics to make garments, these exports will not qualify for duty free...
Opportunities Abound as World Woos Africa
Washington recently hosted the annual African Growth and Opportunity Act (Agoa) forum, an annual event mandated by the Agoa legislation which brings together stakeholders from Africa and the US.Agoa — often misunderstood to be a free-trade agreement between African countries and the US — is in fact a piece of US legislation enacted six years ago which scrapped import duties on about 7000 qualifying tariff lines sourced from (currently 37) eligible sub-Saharan African states.There are two obvious benefits: enhanced competitiveness for...
Africa's Opportunities 'Lie Close to Home'
Officials from the US and African diaspora yesterday urged African countries to look inwards to find economic breakthroughs and much-needed investments.Florizelle Liser, a senior official in the US trade representative office, said African nations had advantages they could learn to exploit. "Africa has a comparative advantage in agriculture. All it needs to do is to follow all the necessary steps, do its homework well to get its products marketable in the US," Liser told the seventh Leo Sullivan H summit in Abuja.The four-day investment...
'Africa Open to Business'
Stressing gains in financial stability and democratisation, African heads of state meeting with hundreds of foreign business leaders called on Monday for stepped-up investment in the continent.Nigerian foreign minister Ngozi Okonjo-Iweala said: "Africa is changing. Both economic and political landscapes are improving."Economic fundamentals in most countries are looking good and are improving each year," she told the Leon H Sullivan Summit, the seventh since 1991.Themed "Africa: A Continent of Opportunities - Building Partnerships for...
AGOA Enhancing Africa's Economy But More Can Be Done
The historic African Growth and Opportunity Act (AGOA) is helping to stimulate economic growth and investment in sub-Saharan Africa, but it is "not succeeding enough," said Florizelle Liser, assistant U.S. trade representative for Africa.AGOA is a U.S. law that provides duty-free access to wide range of some 6,400 products - including textiles - into the U.S. market for African nations willing to reform their economies along free-market lines. The landmark trade legislation - the first of its kind with Africa - was passed by Congress in 2000...
US Rekindles Scramble for Africa as China Pulls in
Following years of playing hardball during the failed SACU-US FTA negotiations, it seems as if the United States is engaging in a new push for Africa. The latter was hardly on the US policy agenda a decade ago when the original African Growth and Opportunity Act (AGOA) legislation was introduced to Congress in the late 1990’s; since then, AGOA (through clever marketing often seen on the continent as the panacea for Africa’s disproportionately low participation in international trade) has not only changed the way in which the private...
Extension to AGOA Likely According to Kenya's Trade Minister
A trade agreement permitting duty-free imports of Kenya-made textile and clothing made by extended beyond next year.The extension of the African Growth and Opportunity Act (Agoa), which has helped textile industries thrive, would be a welcome relief to firms at the Export Processing Zones. The companies have seen their exports drop after the removal of preferential quotas favouring poor countries.Trade and Industry minister Mukhisa Kituyi said that three of the four countries which were against an application to the World Trade Organisation...
Making a Travesty of Free Trade
As the “development round” of trade talks moves into its final stages, it is becoming increasingly clear the goal of promoting development will not be served and the multilateral trade system will be undermined. Nowhere is this clearer than in a provision that is supposed to give the least developed countries almost duty-free access to developed countries’ markets. A year ago, the leaders of the world’s richest countries committed themselves to alleviating the plight of the poorest. At Doha, in November 2001, they pledged to give...
Cameroon: Businessmen Seek Government's AGOA Assistance
Francophone and Lusophone African countries are mobilising to reap the maximum trade benefits offered by the Africa Growth and Opportunity Act (AGOA) that sets out to facilitate the sell of African products in American markets. In order to realise the objective, Francophone and Lusophone African countries after observing that they did benefit from the business opportunities offered by the US, in 2004 created a network called "AGOA-net".Members of the delegation of AGOA-net yesterday held talks with Prime Minister Ephraim Inoni during an...
Sierra Leone: Take Advantage of AGOA
The Minister of Trade and Industry, Dr. Kadie Sesay has said in Freetown that the West Africa Trade Hub (WATH), a USAID Africa trade development project based in Accra, Ghana and Dakarr Senegal, is made up of experts who help countries and businesses to take advantage of the US Africa Growth and Opportunities Act (AGOA). She was speaking at the end of a three-day national workshop on Sanitary and Photo-sanitary (SPS) Regional Harmonization, which was held at the Miatta Conference Hall, Youyi Building. The workshop was organized by Standard...
Lesotho: Positive News from the Textile Industry
Lesotho's single largest employer, the textile industry, has made a remarkable comeback, setting an example for the region and giving thousands back their jobs."All the factories that were closed have been reopened - the number of jobs that had shrunk from just over 50,000 to below 40,000 have now climbed back to around 47,000," Andy Salm, Regional Textile and Apparel Specialist at ComMark Trust, an NGO that monitors the industry in Southern Africa, told IRIN.Lesotho was an early victim of cheap Chinese exports to the key US market when the...
Uganda: More AGOA Jobs May Be Lost
The imminent expiry of third country fabric sourcing under the African Growth and Opportunity Act (AGOA) poses a great challenge to African countries, including Uganda that are exporting apparels to the US market under the quota and tariff-free initiative.The third country fabric sourcing expires on September 30, 2007. The extension of this critical provision would determine the survival of the few textile factories on the continent and the retention of the remaining 200,000 jobs. Up to 100,000 jobs have already been lost across the...
Kenya: Textiles Won't Save Exporters
Overdependence on textile exports is partly to blame for the woes now facing Kenya two years before a key trade treaty with the United States runs out.The African Growth and Opportunity Act (AGOA) purports to offer textile producers from the continent preferential access to the United States market.But now the Export Promotion Council (EPC) is advising producers to begin diversifying if they wish to be cushioned against competition from Asian textile producers before the treaty ends in 2008.PromotionEPC chief executive Matanda Wabuyele said...
Namibia: New Markets for Grape Industry
Namibia's grape markets are set to increase with the likelihood that the country will start exporting grapes to the USA through the Africa Growth and Opportunity Act (AGOA) from next year.With the oversupply of traditional grape markets, namely Europe and UK, the move will improve the prices that Namibia gets at present."We never had a market to the USA. If a market can open for us we will be able to get rid of excess fruit," said André Vermaak, General Manager: Group of Companies of the Grape Value Management Company in Noordoewer.Getting...
Mauritius: Country Eyes Southern Africa As US, EU Textile Exports Flounder
Mauritius is shifting attention to southern Africa as it seeks to revive the fortunes of its key textiles sector affected by the 2005 removal of export privileges into the United States and European Union (EU).A mountainous island on the Indian Ocean to the east of Madagascar, Mauritius is one of the countries negatively affected by the 2005 removal of a quota system that had protected European, American and Canadian textile industries from cheap Asian imports while guaranteeing easy access to African textile and apparel producers.The new...
US Seeking New Trade Pacts With Africa
After calling off negotiations on a Free Trade Agreement (FTA) with five Southern African countries last month, the US has indicated its intentions to negotiate new trade arrangements with several African countries including Kenya, Mauritius, Mozambique and Ghana.The last two, which are significant recipients of US aid in Africa, have already approached Washington, confirming the seriousness of their intention.The new strategy signals a radical shift in US approach towards Africa, which has previously not featured significantly in the US...
South Africa: Clothing Sector Urged to go Niche, not Fight China
South African clothing manufacturers and designers should concentrate on producing high quality, "distinctively South African" clothing that could capture niche markets which were not in direct competition with the efficient Chinese, Free Market Foundation director Eustace Davie and economist Jasson Urbach said.In an article released on Wednesday entitled "Strengthening strategic ties with China" in the context of the visit of Premier Wen Jiabao of China to President Thabo Mbeki on Thursday, the two said: "South African manufacturers should...
AGOA Forum 2006: Stakeholders Seek Ways To Broaden AGOA Opportunities
When the African Growth and Opportunity Act (AGOA) was enacted in 2001, the legislation "changed U.S. political discourse with African countries from begging bowl to business partner," David Beckman, president of Bread for the World, told a gathering of non-governmental organizations convened to examine Agoa's impact on economic growth and poverty reduction on the African continent.Over the past five years, the law has reduced trade barriers and stimulated job creation and opportunities for private enterprises in those African countries that...
Corporate Coucil on Africa: Assessment of the AGOA Private Sector Forum
On Monday, June 5th, 2006, the Corporate Council on Africa (CCA) held a highly successful one-day African Growth and Opportunity Act (AGOA) Private Sector Forum in Washington, D.C. CCA’s Private Sector Forum complemented the 2006 AGOA Ministerial hosted by the U.S. Department of State from June 6th to 7th, 2006, the AGOA Civil Society Forum hosted by Bread for the World also on June 6th and 7th, and the AGOA Investment Summit hosted by The Whitaker Group on June 7th. Two hundred and seventy-five U.S. and African public and private sector...