USTR Issues Sixth Annual Report on AGOA
The Office of the U.S. Trade Representative (USTR) has submitted to Congress the Administration's sixth of eight annual reports, entitled "2006 Comprehensive Report on U.S. Trade and Investment Policy Toward Sub-Saharan Africa and Implementation of the African Growth and Opportunity Act (AGOA)."
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Highlights of the 2006 report include (partial list):
Burundi added, Mauritania removed from list of eligible AGOA countries. On January 1, 2006, Burundi was added to the list of eligible countries, and Mauritania was removed from the list. According to USTR, 37 of the 48 sub-Saharan African countries are currently eligible for benefits under AGOA, which provides them duty-free access to the U.S. market for virtually all products.
25 countries eligible for AGOA's apparel benefits, etc. As of April 2006, twenty-five sub-Saharan African countries are eligible to receive AGOA's apparel benefits. Fourteen of these countries also qualify for AGOA's provisions for handloomed and handmade articles. USTR states that only one country-Nigeria-currently qualifies for AGOA's ethnic printed fabric benefits.
115 percent increase in trade since inception of AGOA. Since its inception in 2000, USTR reports that AGOA has helped increase U.S. two-way trade with sub-Saharan Africa by 115 percent. In 2005, U.S. total exports to sub-Saharan Africa rose 22 percent from 2004, to $10.3 billion. U.S. total imports from sub-Saharan Africa increased by 40 percent to $50.3 billion. In 2005, over 98 percent of U.S. imports from AGOA-eligible countries entered the U.S. duty-free.
U.S. imports from AGOA countries totaled $38.1 billion in 2005. According to USTR's 2006 report, U.S. imports from sub-Saharan African countries under AGOA (including its Generalized System of Preferences (GSP) provisions) totaled $38.1 billion in 2005, up 44 percent over 2004-largely due to oil. In addition, several non-oil sectors experienced increases, including footwear, toys, sportswear, fruits, nuts and cut flowers.
U.S. and SACU work toward FTA. USTR reports that the U.S. and the Southern African Customs Union (SACU) remained committed to concluding a comprehensive free trade agreement (FTA). In April 2006, the U.S. and SACU agreed to establish a framework that would form the basis for pursuing the FTA over the longer term, develop a joint work program to address a broad range of FTA and other related issues, and seek to conclude concrete trade- and investment-enhancing agreements.
African Global Competitiveness Initiative. During the fourth annual meeting of the U.S.-Sub-Saharan Africa Trade and Economic Cooperation Forum held in Senegal in July 2005, President Bush announced a new Presidential Initiative-the African Global Competitiveness Initiative (AGCI)-which provides $200 million in funding over five years to support expanded African trade and improved African export competitiveness.
(See ITT's Online Archives or 05/27/05 news, 05052715, for BP summary of the USTR's fifth annual AGOA report, which included an extension of AGOA's authorization until 2015.)
USTR report (dated May 2006) available at http://www.ustr.gov/assets/Document_Library/Reports_Publications/2006/asset_upload_file236_9455.pdf
USTR press release (dated 05/18/06) available at http://www.ustr.gov/Document_Library/Press_Releases/2006/May/AGOA_Report_Shows_Increase_in_US-Africa_Trade.html