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African Growth and Opportunity Act

African Growth and Opportunity Act. Robert F. Godec Minister Counselor for Economic Affairs US Embassy Pretoria. US Commitment to Africa. Debt relief, aid to historic highs, HIV/AIDs, trade and investment

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African Growth and Opportunity Act

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  1. African Growth and Opportunity Act Robert F. Godec Minister Counselor for Economic Affairs US Embassy Pretoria

  2. US Commitment to Africa • Debt relief, aid to historic highs, HIV/AIDs, trade and investment • AGOA--Duty and quota free entry for African goods into the almost $10 trillion US market • AGOA is about helping Africa create wealth and prosperity

  3. AGOA: Country Eligibility • 35 countries • Eligibility requirements

  4. AGOA: Market Access--Apparel • clothing made from US fabric • clothing made from African fabric • for LDCs: clothing made from third country fabric • special provisions • visa system

  5. AGOA: Market Access--for all other goods • GSP • More than 1, 800 products added for Africa • certificates of origin

  6. Benefits for South Africa • Wide array of opportunities in a variety of sectors • duty advantages range • examples: handbags (17.6%), trunks (8%), sports footwear (over 32%), glassware (12.5%), watches (over 6 %), apparel (17.5%), benzyl alcohol (5.5%), chocolate milk drink (17%), blue veined cheese (20%), peach jam (7%), roses (6.8%), certain wine (22.4 cents/liter) • Job creation

  7. Impact of AGOA: Trade • S A exports rising rapidly • January through July 2001: value of all goods exported under AGOA : $191 million

  8. AGOA: Trade - Apparel • South Africa $15.5 million • Lesotho - $27.7 million • Kenya - $22 million • Madagascar - $20.2 million

  9. Impact of AGOA: South Africa • Investment • In a variety of sectors • From investors all over the world

  10. Impact of AGOA: The Region • Regional Investment • Regional Trade • Examples of products from SSA

  11. Impact of AGOA: Development • Support services for shipments • Customs development • Collective Services for SMMEs

  12. AGOA: Case Study • Ice Cream in Coconuts • contract with Sam’s Club • first shipment end of May • 20% duty advantage under AGOA

  13. AGOA: Case Study • Shirt producer in Durban • AGOA cut the 20% tariff to zero • Orders are up with more to come

  14. AGOA: Case Study • New Beginnings - Black Workers Cooperative • Starting to export wine to the US • Other firms also exporting - KWV

  15. AGOA: Next Steps • AGOA Forum • AGOA eligibility review

  16. AGOA: Next Steps • Revisions to AGOA? • Dying/finishing • Knit-to-shape • Expanding AGOA • Extending AGOA

  17. AGOA: Africa and the US We are just at the beginning. Even greater success should lie ahead.

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