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Miami1155907315.Pdf (566.05 MIAMI UNIVERSITY—THE GRADUATE SCHOOL CERTIFICATE FOR APPROVING THE DISSERTATION We hereby approve the Dissertation of Keith E. Noble Candidate for the Degree: Doctor of Philosophy ______________________________ (Dr. John M. Rothgeb, Jr.), Director ______________________________ (Dr. Ryan J. Barilleaux), Reader ______________________________ (Dr. Abdoulaye Saine), Reader ______________________________ (Dr. Othello Harris), Graduate School Representative ABSTRACT The Complete Guide To Understanding The U.S.-sub-Saharan African Trade Relationship: Analysis and Opinions On The Ghanaian Implementation Of The African Growth & Opportunity Act (AGOA)—A Case Study By Keith E. Noble This dissertation examines the scope of trade relations between the United States and sub-Saharan Africa—a relationship that since 2000, has largely been shaped by the African Growth & Opportunity Act (AGOA). That is to say, the utility of this, the most ambitious trade agreement between both the U.S. and sub-Saharan Africa, will be analyzed in order to determine if AGOA has substantially diversified and has expanded the trade relationship between these two trading partners. Specifically, the research reported herein is divided into four parts. The first reviews the current academic literature on PTAs. The second examines the origins, structure, and the processes by which AGOA has been implemented throughout sub- Saharan Africa. The third examines the impact that AGOA has had on U.S.-sub-Saharan African trade relations. Lastly, the fourth explains (1) Ghana’s position in the world economy, (2) the history of Ghana’s trade relations with the U.S., and (3) the state of AGOA implementation in Ghana to date. The analysis of how AGOA has been implemented in Ghana was conducted by the use of a specially designed Ghanaian-AGOA survey. Interviews were conducted with U.S. and Ghanaian government officials and private industry representatives. The research revealed that the three most common problems cited by respondents explaining Ghana’s inability to successfully use AGOA as a means to reach the vast American market included low capacity, poor infrastructure, and the lack of Ghanaian expertise with regards to U.S. trade laws. The research also revealed that to a large degree, Ghanaians do not believe that that AGOA will substantially alter Ghana’s trade position with the U.S. in the near term. The dissertation concludes by recommending African nations to place capacity building as one of their highest priorities in terms of economic development. It also highlights several export-oriented sectors within the Ghanaian economy that have the potential to be competitive in international markets. The Complete Guide To Understanding The U.S.-sub-Saharan African Trade Relationship: Analysis & Opinions On The Ghanaian Implementation Of The African Growth & Opportunity Act (AGOA)—A Case Study A DISSERTATION Submitted to the Faculty of Miami University in partial fulfillment of the requirements for the degree of Doctor of Philosophy Department of Political Science By Keith E. Noble Miami University Oxford, Ohio 2006 Dissertation Director: Dr. John M. Rothgeb, Jr. TABLE OF CONTENTS LIST OF TABLES iv LIST OF TERMS v NAME INDEX ix DEDICATION xii PROVERB xii ACKNOWLEDGEMENTS xiv CHAPTER ONE Introduction 1 Literature Review 6 Research Design 24 Research Approach 25 Data Collection 26 Chapter Outlines 27 Chapter One Notes 29 CHAPTER TWO THE ORIGINS & IMPLEMENTATION OF AGOA 33 Implementation 36 Eligibility 49 Successes Stories 61 Dollars and Cents 68 Chapter Conclusion 74 Chapter Two Notes 79 CHAPTER THREE THE GHANAIAN IMPLEMENTATION OF AGOA—A CASE STUDY 85 Economic Outlook 86 U.S.-Ghanaian Trade Relations 95 Interview Results 101 Chapter Summary 117 Chapter Three Notes 123 CHAPTER FOUR CONCLUSIONS AND RECONMONDATIONS 126 Overview 126 Theoretical Implications 131 Policy Recommendations 138 Future Research 142 Chapter Four Notes 145 ii APPENDIX A. (Ghana) AGOA Survey 147 APPENDIX B. Ghana: Prime & Focused Investment Destination For AGOA (African Growth and Opportunity Act) 150 APPENDIX C. New Export Opportunities Under The African Growth And Opportunity Act (AGOA) 153 BIBLIOGRAPHY 157 iii LIST OF TABLES Table 1: Regional Trade Agreements In Effect Or Under Negotiation (As of May 2003) 2 Table 2: Developing-country participation in regional trade agreements (As of May 2003) 2 Table 3: Developing Regions With Least Developed Countries 3-4 Table 4: AGOA—Before and After 46 Table 5: Criteria For Eligibility Under GSP 52 Table 6: Discretionary Criteria For Eligibility Under GSP 52-53 Table 7: AGOA Eligibility Status 54-55 Table 8: AGOA Nations Eligible For Apparel Benefits 58-59 Table 9: Trade Between The U.S. and South Africa (Million) 63 Table 10: U.S. Trade with sub-Saharan Africa (Billions) 69 Table 11: Sub-Saharan Africa’s Principle Trading Partners (2003) 69-70 Table 12: Leading U.S. Imports from sub-Saharan Africa 72 Table 13: U.S. Exports to Major sub-Saharan African Trading Partners (2004) 73 Table 14: U.S. Imports from sub-Saharan African Trading Partners (2004) 73-74 Table 15: Ghana Leading Exports (1993, 1999, and 2003) 88-89 Table 16: Ghana: Leading Export Markets 90 Table 17: Ghana: Business Environment 91-92 Table 18: Ghana: Economic Freedom 92-93 Table 19: Ghana: Infrastructure-Related Indicators 94-95 Table 20: Trade Between The U.S. and Ghana (1999-2004) 96 Table 21: Ghanaian Barriers To Trade With The U.S. 99-100 iv LIST OF TERMS ACP Africa, Caribbean, and Pacific nations ACT African Coalition for Trade, Inc. AIDS Acquired Immune Deficiency Syndrome APEC Asia-Pacific Economic Cooperation APHIS Animal and Plant Health Inspection Service ASAP Apparel Sourcing Association Pavilion AU African Union AGOA African Growth & Opportunity Act APD AGOA Professional Development Program BISF Boston International Seafood Fair CGD Center for Global Development CCA Corporate Council on Africa EC European Community ECA Hub East and Central Africa Global Competitiveness Hub ECOCAS Economic Community of Central African States ECOWAS Economic Community of West African States EFTA European Free Trade Association EGAT Bureau of Economic Growth, Agriculture and Trade EU European Union FAGE Federal Association of Ghanaian Exporters FDI Foreign Direct Investment FSU/CIT Former Soviet Union and other countries in transition v FTA Free Trade Area and/or Agreement FTAA Free Trade Agreement of the Americas GATT General Agreement on Tariffs and Trade GIPF Ghana Investment Promotion Forum GMTI Ghana Ministry of Trade and Industry GNCCI Ghana National Chamber of Commerce and Industry GSP Generalized System of Preferences GNP Gross National Product HIV Human Immunodeficiency Virus IIC Institute for International Economics IGO Intergovernmental Organization IMF International Monetary Fund IPPC International Plant Protection Convention IRB Institutional Review Board for the Use of Human Subjects in Research ITC International Trade Commission LDC Least Developed Country LDBC Lesser Developed Beneficiary Countries MERCOSUR Mercado Común del Sur (Southern Common Market) MFN Most Favored Nation MNC Multinational Corporation NAFTA North American Free Trade Agreement NKFL Network Knitwear Fabrics Limited vi NEPD New Partnership for Africa’s Development NGO Non-Governmental Organization NOIC-AGOA National Oversight and Implementation Committee on AGOA OAS Organization of American States OECD Organization for Economic Co-Operation and Development PSI President Special Initiatives PTA Preferential Trade Agreement RTA Regional Trade Agreement RTAA Reciprocal Trade Agreements Act SACU Southern African Customs Union SAP Structural Adjustment Program SAIBL South Africa International Business Linkages SME Small and Medium-sized Enterprises TCBP Trade Capacity Building Project TPSC Trade Policy Staff Committee UN United Nations UNCTAD United Nations Conference on Trade and Development UNIDO United Nations Industrial Development Organization USAID United States Agency for International Development USCAD United States Connection for Aid to African Development USCBTPA United States-Caribbean Basin Trade Partnership Act USCC United States Chamber of Commerce USD United States Dollar vii USDA United Dairy Association USITC United States International Trade Commission USTR United States Trade Representative VER Voluntary Export Restraints WB World Bank WTO World Trade Organization viii NAME INDEX Kofi K. Apraku Former Ghanaian Minister of Trade and Industry Tawia Akyea Executive Secretary of the Ghana Exports Promotion Council Ken Ofori-Atta Chairman of DATABANK Erik Autor Vice-President of the National Retail Federation Charlene Barshefsky Former United States Trade Representative Ron Brown Former U.S. Commerce Secretary George H.W. Bush Former President of the United States of America George W. Bush President of the United States of America William R. Cline Center for Global Development Vicky Cooper President of the U.S. Chamber of Commerce (Ghana) Jaya K. Cuttaree Minister of Trade & Industry for the Republic of Mauritius John Danilovich Chief Executive Officer of the Millennium Challenge Corporation J.E. Essomba President of Blaz Design Management & Investment Donald Evans Former U.S. Secretary of Commerce Godfried Funkor Research and Training Specialist with The Ghana National Chamber of Commerce and Industry James K. Glassman Washington Post columnist J.E.B. Haizel Ghanaian Trade Specialist (Sigma One Corporation) Jon Hunstman Deputy U.S. Trade Representative Jesse Jackson, Jr. U.S. Congressman (D-IL) Walter H.
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