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Americans Push for Extension of Agoa
- By Williams Ekanem
- Published February 7th, 2011
- Washington File
- Unrated
WITH the expiration of the African Growth and Opportunity Act (AGOA) mandate, 10 years after its formation, the programme is likely to be extended by the United States Congress.
Indications to this emerged when top administration officials at the Department of States in Washington D.C said recently that “we would very much like to see AGOA continue.”
While addressing the media on the administration’ plans for Africa in the years to come, deputy assistant secretary at the Department of State, Bruce Wharton commented on the programme saying, “We believe that it has delivered benefits – not as great as we would have wished. I think if you look critically at the data from AGOA, it’s pretty clear that oil and petroleum dominates African exports to the United States.”
Wharton however warned that “iIt’s going to take a concerted effort to persuade people in this country that AGOA remains a good investment for the United States. I think especially as we face our own economic challenges here at home, it’s important for people like me to make the case that AGOA ultimately translates into American jobs as well as African jobs.”
“ But it is our intent at this point to work with members of Congress, interested members of civil society, African allies, to seek an extension of AGOA,” he indicated.
In his comments on the programme, United States Ambassador to Nigeria, Terence McCulley told a group of women entrepreneurs, African Women’s Entrepreneurship Program, that ten years on, it is clear that the situation varies from on African country to another.
According to the Ambassador, “some African countries are leveraging successfully AGOA’s trading advantages, but I believe that all could do more in selling their local products in U.S. markets, thereby increasing trade and helping improve their own nation’s general economic situation.
So Agoa remains very much a work in progress, and while the United States is convinced of the program’s potential, most sub-Saharan African exports to the U.S. still consist of basic commodities like crude oil and minerals, and concentrated in a relatively few countries like Nigeria, Angola, the DRC, and South Africa, he added.
McCulley then spoke of AGOA in Nigeria saying, “consider Nigeria’s exports to the United States. In 2009, 99.45 percent involved crude oil, and most of the remaining 0.55 percent consisted of unprocessed agricultural products. It is clear that Agoa benefits Nigeria in the sector involving it’s most valuable export commodity, but I would encourage entrepreneurs in Nigeria to take better advantage of the law’s generous provisions to diversity the country’s economy, create jobs, raise incomes, and improve the overall living standards of Nigeria’s citizens.” We do recognize that it is often difficult for small and medium-sized businesses to overcome the financial, marketing, transportation, and standards challenges of exporting to a large and well-established market like the U.S.
The African Growth and Opportunity Act was signed into law by President Clinton in May 2000, to expand U.S. trade and investment with Sub-Saharan Africa, to stimulate economic growth, to promote a high-level dialogue on trade and investment-related issues, to encourage economic integration, and to facilitate sub-Saharan Africa’s integration into the global economy. As of January 2010, 38 sub-Saharan African countries were eligible for AGOA benefits.
The U.S. Government provides assistance — most notably through four regional trade hubs — to African governments and businesses that are seeking to make the most of AGOA and to diversify their exports to the United States.
The U.S. Congress requires the President to determine annually whether sub-Saharan African countries are eligible for AGOA benefits based on progress in meeting certain criteria, including progress toward the establishment of a market-based economy, rule of law, economic policies to reduce poverty, protection of internationally recognized worker rights, and efforts to combat corruption.
Indications to this emerged when top administration officials at the Department of States in Washington D.C said recently that “we would very much like to see AGOA continue.”
While addressing the media on the administration’ plans for Africa in the years to come, deputy assistant secretary at the Department of State, Bruce Wharton commented on the programme saying, “We believe that it has delivered benefits – not as great as we would have wished. I think if you look critically at the data from AGOA, it’s pretty clear that oil and petroleum dominates African exports to the United States.”
Wharton however warned that “iIt’s going to take a concerted effort to persuade people in this country that AGOA remains a good investment for the United States. I think especially as we face our own economic challenges here at home, it’s important for people like me to make the case that AGOA ultimately translates into American jobs as well as African jobs.”
“ But it is our intent at this point to work with members of Congress, interested members of civil society, African allies, to seek an extension of AGOA,” he indicated.
In his comments on the programme, United States Ambassador to Nigeria, Terence McCulley told a group of women entrepreneurs, African Women’s Entrepreneurship Program, that ten years on, it is clear that the situation varies from on African country to another.
According to the Ambassador, “some African countries are leveraging successfully AGOA’s trading advantages, but I believe that all could do more in selling their local products in U.S. markets, thereby increasing trade and helping improve their own nation’s general economic situation.
So Agoa remains very much a work in progress, and while the United States is convinced of the program’s potential, most sub-Saharan African exports to the U.S. still consist of basic commodities like crude oil and minerals, and concentrated in a relatively few countries like Nigeria, Angola, the DRC, and South Africa, he added.
McCulley then spoke of AGOA in Nigeria saying, “consider Nigeria’s exports to the United States. In 2009, 99.45 percent involved crude oil, and most of the remaining 0.55 percent consisted of unprocessed agricultural products. It is clear that Agoa benefits Nigeria in the sector involving it’s most valuable export commodity, but I would encourage entrepreneurs in Nigeria to take better advantage of the law’s generous provisions to diversity the country’s economy, create jobs, raise incomes, and improve the overall living standards of Nigeria’s citizens.” We do recognize that it is often difficult for small and medium-sized businesses to overcome the financial, marketing, transportation, and standards challenges of exporting to a large and well-established market like the U.S.
The African Growth and Opportunity Act was signed into law by President Clinton in May 2000, to expand U.S. trade and investment with Sub-Saharan Africa, to stimulate economic growth, to promote a high-level dialogue on trade and investment-related issues, to encourage economic integration, and to facilitate sub-Saharan Africa’s integration into the global economy. As of January 2010, 38 sub-Saharan African countries were eligible for AGOA benefits.
The U.S. Government provides assistance — most notably through four regional trade hubs — to African governments and businesses that are seeking to make the most of AGOA and to diversify their exports to the United States.
The U.S. Congress requires the President to determine annually whether sub-Saharan African countries are eligible for AGOA benefits based on progress in meeting certain criteria, including progress toward the establishment of a market-based economy, rule of law, economic policies to reduce poverty, protection of internationally recognized worker rights, and efforts to combat corruption.
