The Initial and Potential Impact of Preferential Access to the U.S. Market under the African Growth and Opportunity Act
The ability to export clothing products under preferences with liberal rules of origin is the key factor currently determining whether the African Growth and Opportunity Act (AGOA) has a significant impact on non-oil exporting African countries. At...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, D.C.
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2004/04/3336098/initial-potential-impact-preferential-access-market-under-african-growth-opportunity-act http://hdl.handle.net/10986/14758 |
| Summary: | The ability to export clothing products
under preferences with liberal rules of origin is the key
factor currently determining whether the African Growth and
Opportunity Act (AGOA) has a significant impact on non-oil
exporting African countries. At present only a small number
of countries receive substantial benefits and least
developed countries that do not receive preferences for
clothing have yet to see an impact of AGOA on their overall
exports. However, the benefits from exporting clothing under
AGOA appear fragile in the face of the removal of quotas in
the United States on major suppliers, such as China, at the
end of 2004, and the planned removal of the liberal rules of
origin that allow for the global sourcing of fabrics from
least-cost locations. To entrench and enhance the benefits
of AGOA, it is important that the scheme be extended over a
much longer period, if not made permanent, and the special
liberal rules of origin for clothing products be extended
considerably beyond 2004. The effective inclusion of textile
products and a number of high-duty agricultural products
would also help to broaden the range of opportunities for
African exporters in the U.S. market. Nevertheless it is
important that the opportunities created by AGOA are
integrated into a broader framework for promoting trade and
that it be recognized that if the opportunities offered by
more open trade are to be exploited, there must be concerted
efforts to improve the environment for investment countries
covered by AGOA. |
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