Understanding AGOA and Where the Opportunities Are Michael J. Blakeley Nathan Associates Inc. Trade an Investment with the AGOA Countries in Africa Conference.

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Presentation transcript:

Understanding AGOA and Where the Opportunities Are Michael J. Blakeley Nathan Associates Inc. Trade an Investment with the AGOA Countries in Africa Conference

1 Understanding AGOA Basic principles: ―Preferential trade arrangement ―Duty-free access for products made in qualifying countries/ GSP+ ―Sub-Saharan African countries which must be evaluated against rigorous criteria ―Products must meet ROO requirements* ―Development tool

2 Review of Trade Arrangements Bilateral Trade Agreements in Force Preferential Trade Arrangements Free Trade Agreements Negotiated or Approved but not in Force Morocco Israel Singapore Australia Jordan NAFTA Bahrain Chile CAFTA-DR Peru Oman GSP AGOA APTDEA CBI Colombia South Korea Panama Malaysia Thailand UAE SACU

3 Performance review: AGOA/GSP Imports-Value (1,000) AGOA including GSP provisions 2008 YTD Agricultural products250,214 Forest products6,762 Chemicals and related products 428,269 Energy-related products61,154,766 Textiles and apparel1,138,837 Footwear712 Minerals and metals1,263,964 Machinery23,189 Transportation equipment1,911,828 Electronic products16,941 Miscellaneous manufactures63,346 Total66,258,828 Imports-% AGOA Benefit AGOA including GSP provisions 2008 YTD Agricultural products18.19 Forest products4 Chemicals and related products Energy-related products85.26 Textiles and apparel96.21 Footwear36.88 Minerals and metals17.38 Machinery6.46 Transportation equipment93.17 Electronic products17.82 Miscellaneous manufactures45.16 Total76.97

4 What Opportunity does AGOA Provide? Manufacturing in Africa becomes more attractive due to duty benefits; Sourcing finished products also attractive; Selling to firms producing for the US; More U.S. government support available for investment or exports.

5 Best Sourcing Opportunities Apparel Footwear Vehicles Fruits and nuts Prepared vegetables Leather products Cut flowers Prepared seafood

6 Success Stories U.S. Side: ―Food Emporium New York ―Apparel companies/GAP Africa Side: ―Malian handicrafts/Hallmark ―Botswana furniture maker

7 Ranking Business Opportunities 1.Manufacturing for U.S. Market 2.Competitive Import Sourcing 3.Export to Manufacturers Serving U.S. 4.Investment