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2002 Comprehensive Report on U.S 2002 Comprehensive Report on U.S. Trade and Investment Policy Toward Sub-Saharan Africa and Implementation of the African Growth and Opportunity Act A Report Submitted by the President of the United States to the United States Congress Prepared by the Office of the United States Trade Representative The Second of Eight Annual Reports MAY 2002 2002 Comprehensive Report on U.S. Trade and Investment Policy Toward Sub-Saharan Africa and Implementation of the African Growth and Opportunity Act The Second of Eight Annual Reports May 2002 List of Frequently Used Acronyms ................................................. iii I. Executive Summary and Key Findings ......................................1 II. Introduction ............................................................9 III. The African Growth and Opportunity Act (AGOA) ...........................10 A. Implementation .............................................11 B. Outreach ..................................................12 C. African Government and Industry Views ..........................14 D. Country Eligibility ............................................15 E. Product Eligibility ...........................................16 F. Apparel Visa System and Related Customs Requirements .............17 G. Other Textile and Apparel Provisions .............................18 H. Proposed AGOA Enhancement Legislation .........................21 IV. Economic and Trade Overview............................................22 A. Economic Growth ...........................................22 B. Trade with the United States ....................................24 C. Investment Results ...........................................30 D. Economic Reform ..........................................31 E. Reforms Undertaken by AGOA Beneficiary Countries ................33 F. Regional Economic Integration ..................................35 G. Africa’s Integration into the Global Trading System ...................39 H. Debt Relief and the Heavily Indebted Poor Country Initiative ............41 I. International Financing including FDI and Capital Flows ...............42 V. Trade Capacity Building .................................................43 A. USTR Activities .............................................43 B. African Trade and Investment Policy Program .......................44 C. USAID Initiatives ...........................................45 D. Commercial Law Development Program ...........................46 E. U.S. Customs Service ........................................47 i F. U.S. Department of Agriculture .................................47 VI. Technical Assistance and Other AGOA-Related Initiatives ....................48 A. USAID Technical Assistance ...................................48 B. Sustainable Development, the Environment, and Labor ................50 C. Transportation and Communication Infrastructure Development ..........52 D. Energy Infrastructure Development ...............................57 E. HIV/AIDS .................................................60 F. Small Business Development ...................................65 G. Overseas Private Investment Corporation ..........................66 H. Export-Import Bank Initiatives ..................................67 I.. U.S. Department of Commerce Initiatives ..........................69 J. African Development Foundation ...............................70 VII. U.S.-Sub-Saharan Africa Trade and Economic Cooperation Forum ...............71 VIII. Potential Free Trade Agreements with Sub-Saharan Africa .....................72 IX. AGOA Country Reports .................................................73 X. Other Resources for Information on U.S. Trade and Investment Policy Toward Africa and AGOA Implementation ............................................137 Annexes A. AGOA Beneficiary Countries ...........................................139 B. AGOA Eligibility Criteria ..............................................140 ii List of Frequently Used Acronyms ADF ................................................African Development Foundation AGOA. ...........................................African Growth and Opportunity Act ATRIP ............................................ African Trade and Investment Policy BIC .................................................... Business Information Center CDC ................................................... Centers for Disease Control CITA ...............................Committee fo the Implementation of Textile Agreements CLDP ......................................... Commercial Law Development Program COMESA ............................... Common Market for Eastern and Southern Africa DCA ..................................................Development Credit Authority DOE .................................................... U.S. Department of Energy DOL .....................................................U.S. Department of Labor DOT .............................................. U.S. Department of Transportation EAC ..................................................... East African Cooperation EAFCA .......................................... East African Fine Coffees Association ECOWAS .................................. Economic Community of West African States EDDI ............................................. Education for Development Initiative EPA ............................................... Environmental Protection Agency EU .............................................................. European Union Ex-Im Bank .....................................Export-Import Bank of the United States FCC ............................................ Federal Communications Commission FDI ...................................................... Foreign Direct Investment FHWA .............................................. Federal Highway Administration FTA ....................................................... Free Trade Agreement GDP ...................................................... Gross Domestic Product GSP .............................................. Generalized System of Preferences GTN ................................................... Global Technology Network HHS .................................... U.S. Department of Health and Human Services HIPC ......................................... Heavily Indebted Poor Countries Initiative HRSA .....................................Health Resources and Services Administration IF ..........................................................Integrated Framework ILO ................................................. International Labor Organization IMF .................................................... International Monetary Fund IPEC ............................... International Program on the Elimination of Child Labor MGA .................................................. Master Guarantee Agreement MSED ........................................ Micro and Small Enterprise Development NCC ........................................... Nigerian Communications Commission NGO ................................................ Non-Governmental Organization NIH .....................................................National Institutes of Health NOAA .................................National Oceanic and Atmospheric Administration iii OPIC ........................................ Overseas Private Investment Corporation SACU ...............................................Southern African Customs Union SADC ....................................... Southern African Development Community SAEN ............................................ Southern Africa Enterprise Network SBA .................................................. Small Business Administration SME ......................................................Square Meter Equivalent SMME .......................................... Small, Medium, and Micro Enterprise SPS ......................................................Sanitary and Phytosanitary SWH ......................................................... Solar Water Heaters TDA ............................................ U.S. Trade and Development Agency TIFA ..................................... Trade and Investment Framework Agreements TPSC ................................................. Trade Policy Staff Committee TRADE ....................................Trade for African Development and Enterprise TRQ ........................................................... Tariff Rate Quota USAID ...................................... U.S. Agency for International Development USDA ................................................ U.S. Department of Agriculture USTR ................................... Office of the United States Trade Representative WAEMU ................................... West African Economic and Monetary Union WAIBL ..................................... West Africa International Business Linkages WAPP ..................................................... West Africa Power Pool WTO .....................................................World Trade Organization iv I. Executive Summary and Key Findings The African Growth and Opportunity Act (AGOA), Title I of the Trade and Development Act of 2000, requires the President to submit to Congress a comprehensive annual report on the trade and investment policy of the United States toward sub-Saharan Africa and on the implementation of AGOA. In addition to reporting on the impact and implementation of AGOA, this year’s report contains expanded country information on AGOA-related trade and investment activities
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