Several agencies of the US
government support departments that have mandates to help you increase your
export sales and minimize risks with regard to the sales of products and
services to Africa. These departments exist within US
agencies such as the Export-Import Bank of the United
States, the Department of Commerce, and the
Overseas Private Investment Corporation. All are supported by a relatively
recent law called: The African Growth and Opportunity Act. The African Growth
and Opportunity Act (AGOA) was signed into law by President Bush on May 18, 2000 as Title 1 of The Trade
and Development Act of 2000. The Act offers tangible incentives for African
countries to continue their efforts to open their economies and build free
markets.
The African Growth and Opportunity Act (AGOA) has been
modified three times to increase exports to Africa.
In the first modification, AGOA was changed in to
substantially expand preferential access for imports from beneficiary
Sub-Sarahan African countries in several ways: 1) The term fabric was
previously interpreted by U.S. Customs as excluding components that are
knit-to-shape (i.e. components that take their shape in the knitting process,
rather than being cut from a bolt of cloth); now knit-to-shape apparel will
qualify for AGOA benefits. 2) The definition of hybrid cutting was broadened to
include cutting of fabric in the U.S.
and/or AGOA countries. 3) The volume cap on duty-free treatment for apparel
made from fabric made in AGOA regions or, for lesser developed beneficiary
countries from fabric made anywhere was doubled. 4) Botswana
and Nambia were specially designated as less developed countries.
In the second modification, AGOAs periods for preferential
treatment for African imports to the US
were expanded.
In the third modification, known as AGOA 1V was expanded
and liberalized again. In essence, US laws were created to increase US exports
to Africa and imports from Africa
to the US.
Pursuant to AGOA the US
organized a U.S.-Sub-Saharan
Africa Trade and Economic Forum hosted by the Secretaries of State, Commerce,
Treasury, and the U.S. Trade Representative. The Forum serves as the vehicle
for regular dialogue between the United States
and African countries on issues of economics, trade, and investment. This
fosters a unique cooperation between US agencies, African countries, and US
businesses that desire to increase export sales to Africa
with minimal risk.
