U.S.-AFRICAN TRADE AND INVESTMENT Becky Erkul Senior International Economist Office of Africa U.S. Department of Commerce T: (202) 482-5148 [email protected].

U.S.-AFRICAN TRADE AND INVESTMENT

Becky ErkulSenior International Economist Office of AfricaU.S. Department of CommerceT: (202) [email protected]

African Growth and Opportunity Act

• Cornerstone of the U.S. Government’s trade and investment policy toward Sub-Saharan Africa, which is:

– promoting free markets

– expanding U.S.-African trade and investment

– stimulating economic growth

– facilitating Sub-Saharan Africa’s integration into the global economy

What is AGOA?

• AGOA was signed into U.S. law May 18, 2000 as part of the Trade and Development Act of 2000

• Duty-free, quota free entry to the United States for most goods

• Extends GSP program: allowing duty-free entry of 4,650 products until 2015 for AGOA-eligible countries

• Expands GSP: adds 1,835 new tariff line items

AGOA Supports U.S. Business

• AGOA offers tangible incentives for African countries to continue their efforts to open their economies and build free markets

• There are currently 40 AGOA-eligible countries, with 23 eligible to receive apparel benefits

• More information on the AGOA program is available at www.agoa.gov

What is AGOA III and IV?

• The AGOA Acceleration Act of 2004 (AGOA III) extended the length of the program until 2015

• AGOA IV made the extension applicable to textiles and apparel as well

• AGOA IV seeks to promote investment in all areas of infrastructure

• Also calls for customs cooperation

2008 Eligible Countries

AngolaBeninBotswanaBurkina FasoBurundiCameroonCape VerdeChadCongo-BrazzavilleCongo (DRC)DjiboutiEthiopiaGabon

GambiaGhanaGuineaGuinea-BissauKenyaLesothoLiberiaMadagascarMalawiMaliMauritaniaMauritiusMozambiqueNamibia

NigerNigeriaRwandaSao Tome & PrincipeSenegalSeychellesSierra LeoneSouth AfricaSwazilandTanzaniaTogoUgandaZambia

Fostering Business Opportunities in Africa:Strategic Alliance Program

• Commercial Service’s Strategic Alliance Program:

- coordinates business contacts between African host country government agencies, local industry associations, and multiplier organizations that focus on business opportunities of interest to American companies

• Contacts forwarded to American companies interested in taking advantage of these business opportunities

BuyUSA

• A one-stop e-marketplace for small and medium-sized U.S. enterprises to identify potential international partners and connect with them on-line

• Identifies potential local business partners from AGOA seminars and workshops for American firms

• Identified firms are pre-qualified for financing with Ex-Im Bank, which in turn makes them more attractive as business partners for American firms

U.S.-Sub-Saharan Africa Trade and Economic Forum

• The AGOA Forum is hosted by the Secretaries of Commerce, State, Treasury, and the U.S. Trade Representative

• The 7th AGOA Forum will take place in Washington, D.C. on July 14-16, 2008 with a focus on private investment

• Companies interested in participating may contact me for more information.

African Growth and Competitiveness Initiative (AGCI)

AGCI’s Key Areas of Activity:

1. Improving the policy, regulatory and enforcement environment for private sector-led trade and investment

2. Improving the market knowledge, skills, and abilities of workers and private sector enterprises

3. Increasing access to financial services for trade and investment

4. Facilitating investment in infrastructure

Current Trade Statistics

• Two-way trade between the United States and Sub-Saharan Africa rose by 15 percent in 2007, as both exports and imports increased

 • U.S. exports to SSA grew by 19 percent in 2007 to

$14.4 billion

• U.S. imports from SSA grew by 14 percent to $67.4 billion, while AGOA imports increased by 15 percent, to just over $51.1 billion

Opportunities

• According to the 2008 World Development Report, agriculture in Sub-Saharan Africa employs 65% of the labor force and generates 32% of GDP growth

• Developing high value and specialty foods and diversifying SSA’s textile and apparel products are key to improving to improving Africa’s agri-business competitiveness

• Tourism, ICT, and infrastructure also are best prospects for U.S. investment throughout the continent

Common Challenges in Africa

– Weak rule of law

– Endemic corruption

– Lack of enforcement of property rights, including intellectual property rights

– Preponderance of burdensome regulations

– Poor infrastructure

– Helping U.S. businesses obtain and enforce intellectual property rights (IPR) abroad

– Raising the stakes for counterfeiters & pirates

– International cooperation to block bogus goods

– Keeping fakes out of global supply chain

Contact: 1-866-999-HALT or www.stopfakes.gov

STOP – Strategy Targeting Organized Piracy

Office of Africa

• Mission: Champion American businesses and workers by eliminating foreign barriers to trade, investment and business operations and enforcing trade agreements.

• The Office of Africa also administers www.agoa.gov, which serves as a resource to better understand AGOA, its procedures, and resources to facilitate business linkages.

For More Information

Office of Africa1401 Constitution Avenue, NW

Room 2037Washington, D.C. 20230

Phone: (202) 482-4928Fax: (202) 482-5198www.agoa.gov