It's been four years since the implementation of the Africa Growth and Opportunity Act (AGOA), and while trade volumes between the U.S. and African countries had initially been relatively flat, latest figures are showing signs of a pickup.
One of the star performers has been the textiles and apparel sector. According to the U.S. Department of Commerce, eligible U.S. imports of textile and apparel imports more than doubled to $803 million in 2002.
Economic improvements have been noted in Kenya, Mauritius, Uganda, and Lesotho, where the AGOA has spurred the creation of new jobs and new production facilities. At the same time, improvements in areas such as regulatory and political reform have also occurred, as countries have worked to take advantage of the incentives associated with the trade pact.
Indeed, there are also consequences for non-compliance, as well. In January, Eritrea was dropped from AGOA eligibility following a coup that sacked the government. As of now, 37 Sub-Saharan countries comprise the AGOA.
Nonetheless, trade between the U.S. and Sub-Saharan Africa remains highly concentrated, with a small number of African countries accounting for an overwhelming share of both imports and exports. In particular, South Africa and Nigeria are the primary destinations for over 40 percent of the region's total imports.
Other than the U.S., the region's top trade partners include France, the U.K., Germany, Japan, and Italy.
Top 10 AGOA Countries for U.S. Exports
(US$ mil, 2003)
South Africa $2,821.20
Nigeria $1,029.00
Angola $491.90
Ethiopia $409.10
Ghana $209.40
Kenya $196.70
Cote d'Ivoire $102.80
Senegal $102.00
Cameroon $90.80
Congo $78.80
Top 10 AGOA Countries for U.S. Imports
(US$ mil, 2003)
Nigeria $10,393.60
South Africa $4,637.60
Angola $4,264.30
Gabon $1,969.50
Cote d"Ivoire $489.70
Congo $432.80
Lesotho $393.30
Madagascar $383.70
Mauritius $298.10
Kenya $249.20