16 May 2011
African countries have been advised to improve their productivity for commodities intended for export to the United States of American (USA) to maximise on the market and trade preferences provided by the African Growth and Opportunity Act (AGOA).
According to recommendations by the experts and senior officials from the AGOA eligible countries in Sub-Saharan Africa, countries in the region need to raise their productive capability and improve their production base if they are to reap from AGOA.
The report from the just-ended AGOA mid-term review meeting in Lusaka states that with the help of the USA, the African countries needed to overcome a number of challenges which included infrastructure development to help diversify the commodities exported to that country under AGOA.
“In order to enhance market access with the support of the US, AGOA eligible countries should improve their productivity capability, as well as diversify and expand their production base, including that of infrastructure development,” the report states.
This comes in the wake of most African companies facing the problem of accessing the huge US market due to lack of capacity to produce enough eligible products to consistently meet the demand.
The technocrats recommended that the USA should help African countries build on the capacity by investing in Africa to boost sectors in which the products are catered for under AGOA.
The report also calls on Africa to push for the AGOA treaty to relax the rules of origin clause for fisheries so that the fish and fish products from islands like Mauritius could have effective access to the US market.
On fears that AGOA may not be extended beyond 2015, the United National Economic commission for Africa (UNECA) and the Africa Union (AU) have been commissioned to carry out a study on the possible options of the post-2015 AGOA scenario.
“There is need for specific case studies on the impact of AGOA withdrawal on countries which were once beneficiaries,” says the report.
AllAfrica – All the Time
Continued here:
‘African Countries Get Tips On Agoa Market’