ZAMBIA/KENYA: Zambia gears up to host the 2011 African Growth Opportunity Act (AGOA) forum
Record ID:
739347
ZAMBIA/KENYA: Zambia gears up to host the 2011 African Growth Opportunity Act (AGOA) forum
- Title: ZAMBIA/KENYA: Zambia gears up to host the 2011 African Growth Opportunity Act (AGOA) forum
- Date: 7th June 2011
- Summary: LUSAKA, ZAMBIA (JUNE 04, 2011) (REUTERS) VARIOUS OF STREET SCENES IN LUSAKA VARIOUS OF SOUVENIRS IN A TRADITIONAL ZAMBIAN CRAFT SHOP VARIOUS OF ECONOMIC ANALYST, YUSUF DODIA WORKING IN OFFICE AFRICAN ARTEFACTS ON A SHELF (SOUNDBITE) (English) YUSUF DODIA, ECONOMIST SAYING: "The biggest challenge that Africa has found in terms of penetrating the US market is that Africa is a producer of food products mainly vegetables and other food crops and the United States has a very stringent import regime when it comes to vegetables unprocessed food products." EXTERIOR OF THE SUSTAINABLE DEVELOPMENT CATERING COMPANY SYLVA BANDA, MANAGING DIRECTOR OF THE CATERING SERVICES PACKET FOOD BANDA DRINKING BOTTLED WATER SYLVA BOTTLED WATER FOR EXPORT (SOUNDBITE) (English) SYLVA BANDA, MANAGING DIRECTOR, SYLVA PROFESSIONAL CATERING SERVICES SAYING: "We are expecting now to start working together say for instance if an order comes and I look at my market the vegetables which I have in Zambia I cannot execute that an order because its too small I have to go to Malawi if at all they are also in the same thing I have to go to Tanzania we put our heads together we put our order together and execute it." VARIOUS OF TINS OF CANNED GOAT MEAT (SOUNDBITE) (English) YUSUF DODIA, ECONOMIST SAYING: "Africa is the remaining continent of resources on this planet and therefore just as much as we want foreign markets I think foreign markets needs us. We are the producers of the most raw materials on the planet today and we have a lot to offer to the rest of the world."
- Embargoed: 22nd June 2011 13:00
- Keywords:
- Location: Kenya, Zambia
- City:
- Country: Zambia Kenya
- Topics: International Relations
- Reuters ID: LVA2JANG2J4P8BSKIPJH0A95MT2F
- Story Text: Zambia this week hosts the 2011 African Growth Opportunity Act (AGOA) forum, the centre-piece of the United States government's trade policy with sub-Saharan Africa.
The forum, set to run from June 08 to June 10 marks the 10th year that government officials, business leaders and members of civil society from African countries and the United States will convene to promote trade, business and investment opportunities that sustain economic development in Africa.
AGOA was signed into law on May 18, 2000 to offer tangible incentives to African countries. It granted sub-Saharan African countries that undertake economic reforms expanded duty-free access to U.S. markets.
While it has helped create jobs in some African countries, critics have said AGOA has not met its objectives, particularly as much of the growth has been in the oil sector, which traditionally creates few jobs, most of which go to skilled expatriates.
Zambian economist economist Yusuf Dodia says Africa is challenged to produce high quality goods in order to break into U.S markets.
"The biggest challenge that Africa has found in terms of penetrating the US market is that Africa is a producer of food products, mainly vegetables and other food crops and the United States has a very stringent import regime when it comes to vegetables and unprocessed food products," says Dodia.
Dodia says regulations aimed at preventing foreign pests from contaminating the American agricultural industry mean African producers have a lot of checks to go through before they can start trading with the US.
Zambia's Sylva Banda, who is one of the country's AGOA beneficiaries says there is need for those in business to work together. One way to boost trade between the two continents Banda says, is for African countries to harmonise their trade rules and activities.
"We are expecting now to start working together say for instance if an order comes and I look at my market the vegetables which I have in Zambia I cannot execute that an order because its too small I have to go to Malawi if at all they are also in the same thing I have to go to Tanzania we put our heads together we put our order together and execute it," Banda said.
AGOA comes to an end in 2015 but there are already calls for an extension.
Economist, Dodia says if AGOA is not extended America would be doing itself a disservice because Asia and Europe will ride on the opportunity to increase trade deals with Africa.
"Africa is the remaining continent of resources on this planet and therefore just as much as we want foreign markets I think foreign markets needs us. We are the producers of the most raw materials on the planet today and we have a lot to offer to the rest of the world," said Dodia.
President Barack Obama's administration has also said it is keen to extend the AGOA's trade preferences beyond the 2015 cut off, but said current legislation might need amending to relax regulations and encourage more trade.
US policy makers have expressed concern that they are loosing out on trade deals with Africa to the European Union, Brazil, China and India whose trade partnerships are less stringent.
But while investors and producers look forward to improving trade relations at the coming conference, several companies across the continent have been doing well out of the partnership.
A textiles factory outside the Kenyan capital Nairobi employs 1,500 workers and turns over 18 to 20 million US dollars a year.
The factory is one of 70 in Kenya to get special tax breaks to produce goods specifically for the international market.
All the knit-tops and wrinkle-free trousers that are produced at the factory are sold in the United States through AGOA.
It models like these that will form the back drop to discussions at this year's forum, themed "Enhanced trade through increased competitiveness, value addition and deeper regional integration."
Zambia will become the fifth African country to host the AGOA conference after, Kenya, Ghana, Senegal and Mauritius. - Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None