USTR Issues Eighth Annual Report on AGOA

The USTR notes that this last annual report required under AGOA looks back on the eight years since AGOA came into effect. The report also provides new and updated information on U.S. trade and investment policy toward sub-Saharan Africa, including the implementation of AGOA, the designation of AGOA beneficiary countries, the impact that AGOA has had on U.S. trade and investment with sub-Saharan Africa, and information on reforms being undertaken by AGOA beneficiary countries.

Highlights of the 2008 report include (partial list):

Mauritania, Togo added to list of 40 eligible AGOA countries. With the addition of Mauritania in June 2007, and Togo in April 2008, there are now 40 sub-Saharan African countries eligible for AGOA benefits, the highest number ever. As of May 2008, 27 of these countries are eligible to receive AGOA's apparel benefits.

Increase in trade since inception of AGOA. Since its inception in 2000, AGOA has helped increase U.S. two-way trade with sub-Saharan Africa. In 2007, U.S. total exports to sub-Saharan Africa totaled $14.4 billion, more than double the amount in 2001. U.S. total imports from sub-Saharan Africa more than tripled during this period to $67.4 billion. In 2007, over 98% of U.S. imports from AGOA-eligible countries entered the U.S. duty-free.

U.S. imports from AGOA countries totaled $51.1 billion in 2007. AGOA imports (including under the Generalized System of Preferences (GSP)) totaled $51.1 billion in 2007, more than six times the amount in 2001, the first full-year of AGOA. While petroleum products accounted for the largest portion of AGOA imports, non-oil AGOA trade totaled $3.4 billion in 2007; more than double the amount in 2001. Several non-oil sectors experienced sizable increases during this period, including apparel, footwear, vehicles, fruits and nuts, prepared vegetables, leather products, cut flowers, prepared seafood, and essential oils.

Increase in trade capacity building. The U.S. obligated $505 million to trade capacity building (TCB) activities in sub-Saharan Africa in fiscal year 2007, up 26% from FY 2006. Cumulative U.S. TCB to sub-Saharan Africa from FY 2001 to FY 2007 totaled $1.6 billion.

U.S-Rwanda BIT signed. In February 2008, President Bush and Rwandan President Kagame signed the U.S.-Rwanda Bilateral Investment Treaty (BIT), which will enter into force following approval by the U.S. Senate and the Rwandan Parliament, and the Administration is considering launching BIT negotiations with other sub-Saharan African countries.

U.S. leader of foreign direct investment in Africa. The U.S. was a leading provider of foreign direct investment to Africa at year-end 2006, at which the U.S. direct investment position rose 52% from 2001, to $13.8 billion.

Sixth U.S.-Africa trade forum held. The sixth annual meeting of the U.S.-Sub-Saharan Africa Trade and Economic Cooperation Forum was held in Ghana in July 2007. The official U.S. delegation, led by USTR Schwab, included senior representatives from more than a dozen U.S. government agencies. Ministers and senior officials from nearly all AGOA beneficiary countries participated, as well as private sector and civil society representatives from the U.S. and AGOA countries.

(See ITT's Online Archives or 05/22/07 news, 07052299 3, for BP summary of the USTR's seventh annual AGOA report.)

USTR report (dated May 2008) available at http://www.ustr.gov/assets/Trade_Development/Preference_Programs/AGOA/asset_upload_file203_14905.pdf

USTR press release (dated 05/16/08) available at http://www.ustr.gov/Document_Library/Press_Releases/2008/May/Report_Shows_AGOA_Continues_to_Grow_Diversify_US-Africa_Trade.html