USTR Mike Froman encourages US-Africa economic expansion
Aggregated Bilateral Trade between AGOA Countries and the United States
Unit: $ million (rounded), YTD Data to MAY 2013 Current and past AGOA beneficiary countries
Business and government representatives from the United States and sub-Saharan Africa should work to expand their economies together, learning from their successes and from other trading partners, says US Trade Representative Michael Froman.
Speaking on the first day of the two-day forum on the African Growth and Opportunity Act (AGOA) in Addis Ababa, Ethiopia, Froman said forum representatives need to prepare for a new AGOA after the current law expires September 30, 2015. Representatives at the meeting include leaders from academia and civic groups.
Froman said discussions about renewing AGOA should begin with a review of where AGOA exports go and why, which noncommodity exports have the greatest trade potential and which exports can be part of global value chains. “What can be done to increase and diversify AGOA utilization?” he asked.
He also said African representatives should find out if every country eligible for AGOA trade preferences has an active export strategy and if every country is working within its regional economic community to realize a free-trade vision. The U.S. president may designate a sub-Saharan African country as AGOA-eligible if it is making progress in such areas as establishing a market economy, developing political pluralism and the rule of law, eliminating corruption and implementing polices to reduce poverty and uphold human and labor rights.
Froman said that as part of the AGOA review, the United States also should look at how it can better leverage technical assistance, restructure regional trade hubs in Africa and coordinate better with Africa’s other bilateral trade partners.
Together, the United States and African countries should “drill down into the thousands of duty-free tariff lines under AGOA” and ask which AGOA countries should qualify to export certain products, Froman said. They should ask if there should be a graduated system for sectors or for countries, and how globally competitive African sectors should be treated compared to new sectors.
Froman said the United States wants forum representatives to share their thoughts on such trade topics as country-of-origin and science-based regulatory measures. The United States also seeks comments about the high cost of getting goods to market in sub-Saharan Africa and about what can be done to improve regional trade through trade facilitation, customs harmonization, infrastructure development and other measures.
Froman said African countries can learn about development successes and about getting new trade and investment partners from countries in Asia, Latin American and Europe.
He said the United States and AGOA members need to look at how they can strengthen multilateral priorities “that will benefit developing countries even more than developed ones and that can help build momentum for further multilateral trade liberalization.”
Calling on forum representatives to look at AGOA as a “stepladder to Africa’s further growth, development and global economic integration,” Froman said they can learn about how Africa can fit into global production and value chains and how they can avoid common pitfalls like rigid localization requirements that act as trade barriers and hinder the development of industries.
Froman said that in coming months, the U.S. secretaries of commerce, energy and treasury expect to travel to Africa to discuss deepening U.S.-African economic ties. In addition, he said, AGOA’s future will be further discussed when President Obama hosts a meeting of African leaders in 2014 in Washington.
AGOA TRADE GROWTH
Since 2001, U.S. trade with sub-Saharan Africa has grown more than 250 percent to more than $72 billion in imports and exports in 2012. While petroleum products still account for the largest portion of U.S. imports, in 2012 non-oil trade totaled $4.8 billion, three times the amount in 2001. Those imports include vehicles and parts; fruits, nuts and seafood; and value-added products like apparel.
The African exports have generated “hundreds of thousands of new jobs that have helped African men and especially women to support their families in ways that once seemed impossible,” Froman said.
“Countless African workers whose jobs depend on AGOA are now able to purchase goods and services that were previously beyond their means,” he said.
“Without a doubt, AGOA has truly transformed the way the United States and Africa interact on trade and economic issues,” Froman said.
View related news articles
The AGOA Forum: Promoting sustainable growth in Africa through trade and technology
This week in Addis Ababa, Ethiopia, U.S. Trade Representative Mike Froman and senior members of the President's economic team joined trade ministers, civil society, and business leaders from across sub-Saharan Africa to focus on "Sustainable Growth through Trade and Technology" at the African Growth and Opportunity Act Forum. The Forum also kicked off the process leading to AGOA’s renewal in 2015. As the President highlighted on his trip to...
16 August 2013
Remarks: AGOA’s future – Dialogue with members of Congress
Your excellences, distinguished and honored guests, good morning. It is wonderful to be with you today in Addis Ababa, at the headquarters of the African Union, and most importantly, at the 2013 AGOA Forum. Before I begin, I want to take a moment to acknowledge and thank Florie Liser for her leadership and stellar work she has done on AGOA for many years now. I for one am grateful for the assistance she has provided my office, and the...
14 August 2013
USTR Mike Froman's address at the AGOA Forum 2013
“Good morning. Welcome ministers and ambassadors, legislators and Members of Congress, private sector and civil society leaders, ladies and gentlemen. It is my great honor to be back for the AGOA Forum. Last year in Washington, I had the opportunity to share with you President Obama’s new U.S. Strategy toward Sub-Saharan Africa. President Obama’s Strategy for Sub-Saharan Africa “The Presidential Policy...
13 August 2013
US eyes competition with Europe for Africa trade
The United States is keeping a close watch on potential European trade deals with African nations as Washington reviews its own preferential trade initiative with the continent. African ministers and U.S. officials discussed trade relations at a forum Monday in the Ethiopian capital Addis Ababa. The U.S. is considering an extension to the popular African Growth and Opportunity Act, known as AGOA, an American law that allows sub-Saharan...
13 August 2013
Africa: AGOA not imperiled after all?
On July 31, 2013, the US Generalized System of Preferences (GSP) - a program established by the Trade Act of 1974 expired semi-surreptitiously; something that may not augur well for a more comprehensive American trade and investment program for Africa. Twin bills (download Bill H.R. 2709 alongside) in the House and Senate to extend GSP provisions until September 2015 simply did not come full circle, and anyone keen on an improved African...
12 August 2013
Kenya in AGOA 'hitch'
Kenya continues to benefit from the trade preferences to the US market in the African Growth and Opportunity Act (AGOA), but Americans are raising some concerns about corruption. "Part of our ongoing conversation with Kenya is addressing a host of issues in the business environment," David Renz, a counselor for Economic Affairs at the US Embassy in Nairobi said recently. This year's AGOA Forum is set for this week in Addis Ababa,...
12 August 2013
US seeks better access to Africa as part of AGOA review
The US will launch a review of its 13-year-old preferential trade agreement with sub-Saharan Africa on Monday that will consider asking the region to offer better commercial access to American companies. The African Growth and Opportunity Act (AGOA), originally crafted under President Bill Clinton in 2000 and renewed by George W Bush, has become a cornerstone of US-Africa economic relations worth $58bn for business on both sides of the...
12 August 2013
US seeks new trade deal with a changing Africa as AGOA talks kick off
It is a longstanding policy of the United States to grant preferential trade deals to developing countries, in order to promote good relationships and to support growth for smaller economies. But what happens when those developing countries begin picking up the pace, leveraging their resources as they benefit more and more from favorable export agreements -- possibly at the expense of their more developed trade partners? That's the question...
12 August 2013
AGOA: African Union perspectives on its future
The African Union Commission (AUC), on 12 August 2013, hosted the Ministerial Session of the 12th Annual AGOA Forum in Addis Ababa, Ethiopia, which was jointly organized by the Government of Ethiopia and the United States of America. Addressing the forum, the Deputy Chairperson of the AUC, Mr. Erastus Mwencha stressed the importance of the theme, “sustainable transformation through trade and technology”, which was carefully selected in...
12 August 2013
Africa makes a strong case for continued preferential trade with the US
Trade relations between the USA and African countries benefiting from the Africa Growth and Opportunity Act (AGOA) come under serious scrutiny at the 12th AGOA Forum that has started in the Ethiopian capital today, to run till Tuesday 13 August. This year's edition of the annual Forum focuses on Africa's sustainable transformation through trade and technology and will mark a milestone in the Africa-US trade deal initiated in the year 2000 to...
10 August 2013