#AGOA Forum

[mariacallous]

This month, Chinese President Xi Jinping pledged more than $29 billion in new lending commitments at the triennial Forum on China-Africa Cooperation. Washington has once again misunderstood this as a symbol of Chinese economic strength.

Like a deer caught in the headlights, the United States has spent the past few years responding to China’s vast lending programs in Africa and beyond by constructing its own equivalents, mostly lending through institutions such as the International Development Finance Corp. (DFC) and Export-Import Bank with tweaks to their efficiency here and there.

But trying to outmaneuver China by being more like China is a mug’s game. Chinese banks can easily out-lend U.S. equivalents because they are better structured toward this goal. And perhaps more importantly, they need to lend money to whoever will buy Chinese goods and services because China’s economic growth is now precariously dependent on sustaining a positive trade balance.

The best way to offer a real economic alternative to China is for the United States to play to its own strengths. For instance, if the United States is serious about strengthening U.S.-Africa economic relations, it should instead focus on African economic needs and the United States’ own domestic economic drivers. Rather than parroting Chinese lending practices, it could more easily expand popular trade agreements such as the African Growth and Opportunity Act (AGOA) or the Generalized System of Preferences (GSP) to benefit both African exporters and American households.

But before U.S. lawmakers can get behind these more positive forms of engagements, they may need to recognize that China’s addiction to credit is not in fact a reflection of strength but rather the symptom of a serious economic problem.

The driving economic reality for China today is that it has very low levels of consumer demand, its domestic investments are oversaturated with debts and falling investments, and its economic growth prospects have become heavily reliant on maintaining a positive trade balance. As a result, China’s export credit agencies are under huge pressure to stoke demand internationally by lending to anyone who will buy China’s exports. This vulnerability is compounded by the trade tariffs imposed on Chinese exports by several high-income countries. In many ways, China is more dependent on the markets it lends to than those markets are on China.

While many authors have focused on the overall decrease of Chinese lending to Africa and Latin America since 2016, China’s Ex-Im Bank has published tallies that show global overseas lending increases from $98 billion in 2016 to more than $134 billion in 2023. Meanwhile, China Ex-Im’s domestic loans to Chinese exporters have increased from roughly $34 billion to $92 billion in that same period. This vast flow of credit for exports is driven by China Ex-Im’s access to a much broader and deeper pool of finance than the DFC or U.S. Ex-Im as well as their greater financial independence.

Just like China Development Bank (CDB), China Ex-Im mostly issues international credits in U.S. dollars that it gets from China’s State Administration of Foreign Exchange—a financial powerhouse that is constantly looking to invest or lend the trillions of U.S. dollars that China has amassed in the four decades since it launched its export-led growth model. But China Ex-Im and CDB also borrow dollars on Chinese capital markets by issuing domestic bonds. China’s strict capital controls make it difficult for investors to do much with surplus U.S. dollars, so there is a strong demand for these bond issuances.

By contrast, export credits are a burden for the United States. U.S. export credit agencies (DFC and U.S. Ex-Im) have very little financial independence, and they depend on congressional appropriations of taxpayers’ money. In other words, their financing is approved through political consensus every single year—an unreliable process at the best of times.

More importantly, though, the United States does not need to go toe-to-toe with China on debt when it has a far better economic proposition.

One of the ways in which many African countries earn enough to service their debts is to export masses of raw materials to China. But very few of them export finished goods and services to China, and—due to China’s overdependence on exports—there are strong economic incentives for China to overpower any such possibility. In some cases, there is even concern that African textile exporters are suffering a “premature deindustrialization” due to their trade with China.

Conversely, the United States can afford to sustain trade imbalances precisely because its economy is structured very differently from China’s. In the United States, economic growth is largely driven by consumer demand, with a healthy balance of investment from domestic and international sources. It’s these forces that mean the United States can post 3 percent growth in GDP while sustaining persistent trade deficits.

In practice, this means that unlike Beijing, Washington can offer Africa the export markets it needs to develop its nascent industries of finished goods and create more sustainable trajectories for economic development. More broadly, industrialization means that low-income countries are less dependent on the vicissitudes of commodity markets to service their national debts and make provisions for their people.

To those who fear increasing imports from low-income countries, it is important to remember that U.S. industries still need affordable inputs and U.S. consumers enjoy cheaper goods. Moreover, low-income countries’ nascent industries pose no real threat to U.S. industries that graduated out of low-tech manufacturing some time ago. Indeed, U.S. firms have spent the past 30 years sourcing billions of dollars’ worth of textiles and low-tech goods from China, so there should be no concern about shifting these supply chains to Africa or elsewhere. This would also align with current “friendshoring” initiatives.

But the best part is that the United States already has the infrastructure to make this the cornerstone of its economic engagements with Africa and beyond.

AGOA was created in 2000 at a time when the U.S. focus on Africa was unencumbered by the global war on terrorism or strategic competition. The technical jargon states that AGOA is a nonreciprocal preferential trade agreement, or PTA, but put simply, it is a U.S. trade policy designed to promote African industrialization, African jobs, and preferential access to U.S. consumers.

The agreement’s nonreciprocal nature is also its greatest strength. This means that unlike GSP, a PTA that expired in 2021, it does not place quotas on the sourcing of U.S. inputs or make the tariff exemptions overly complicated.

Expanding and internationalizing AGOA would offer a powerful alternative to China’s lending programs. It could be rebranded to the “International Growth and Opportunity Act” and target other low-income regions such as Latin America and Southeast Asia. It could also incorporate other advanced economies that have a similar economic structure to the United States. For want of a better analogy, it could be Washington’s answer to China’s Belt and Road Initiative.

More broadly, the United States could create more diplomatic engagements around PTAs like it. Biennial or triennial forums could be hosted under their umbrella, where more senior political and trade representatives are brought together in order to ensure they are maximizing the agreement’s opportunities. These forums could also be used to announce other engagements such as scholarships and training.

Lastly, a focus on PTAs could also flip the debate on the “race to the bottom” over standards. Whenever the United States has promoted loan-backed business competition with Chinese equivalents, there has often been pushback that Washington should relax its ethical and environmental principles so that U.S. firms can be more competitive. But the appeal of trade agreements for African markets means that U.S. officials can maintain the same standards they would apply within their own markets.

But regardless of all this, perhaps the most important reason that the United States should avoid competing with China for more borrowers is that many low-income countries are now reaching their limits to repay debts. We’ve been here before, when debt for economic growth was lauded as foolproof in the 1960s and ’70s, only to become a punishing burden on the world’s poorest in the 1980s and ’90s. The United States should not be so easily tempted to repeat these mistakes of the past.

Nowadays, Washington seems primarily motivated to lend due to its fear of Beijing’s dominance. But if (as expected) China’s economy eventually rebalances in the medium term—and thereby relies less on maintaining a positive trade balance—then Beijing would likely reduce its export credits, which could leave the United States holding a bunch of debts it may never have issued absent its competition with China.

Granted, some forms of infrastructure such as ports and telecommunications may be considered a security concern, and the United States can leverage its export credit agencies toward those specific competitions. But for most Chinese projects involving sports stadiums, highways, and school buildings, there is no obvious reason to worry. More concretely, the United States needs to have a clear understanding of why it wants to go toe-to-toe with Chinese loan-backed projects. For instance, if the goal is simply to develop stronger diplomatic relations, then deploying poor imitations of Chinese programs is hardly a recipe for success.

This all points to the fact that the United States needs to run its own race and play to its own strengths.

AGOA is coming up for renewal in 2025. This is the best opportunity the United States has had in a long time to redesign and build out a truly meaningful platform for economic engagement with countries in Africa, Latin America, and beyond—and crucially one that plays to U.S. strengths.

It would mean that when Beijing once again says to African leaders, “We’ll lend you money to buy our goods and services,” Washington can say to those same leaders, “We’ll drop tariffs so you can sell us your goods and services.”

But more to the point, it would mean that U.S. economic policy is driven by what works best for the United States and its partners in the long term and not the false hope of what seems to be working for its competitors for now.

[bikekokin24]

Renforcement du partenariat commercial entre la RDC et les USA : le ministre du Commerce extérieur au 21ème Forum-AGOA

Le ministre du Commerce extérieur de la République démocratique du Congo se prépare à participer au 21ème Forum de coopération économique et commerciale de l’AGOA, aux États-Unis-Afrique, dans le but de renforcer le partenariat commercial entre Washington et Kinshasa. L’AGOA représente une opportunité de croissance économique pour la RDC, et le ministre Julien Paluku Kahongya présentera une…

[thxnews]

Hisense South Africa: Shaping a Legacy

  The AGOA Forum's Resounding Success

The recently concluded 20th US-sub-Saharan Africa Trade and Economic Cooperation Forum (AGOA Forum) proved to be a remarkable success, uniting nations, industries, and leaders who shared a common vision of reshaping Africa's economic landscape. At the heart of this year's event was Hisense, the proud South African company that is making a lasting impact across the continent.   Hisense - Building in Africa for Africa The centerpiece of this year's AGOA Forum was the 'Made in Africa Exhibition,' where regional value chains took the spotlight. Hisense, a global technology leader, epitomized the essence of "Built in Africa for Africa." Their products aren't merely embraced by South African consumers; they are treasured not only in South Africa but also in countries like Tanzania, Zambia, and Botswana, where Hisense plays a pivotal role in bolstering local economies.   Hisense's Commitment to Africa Central to Hisense's dedication to Africa, the Atlantis factory, an innovative powerhouse, churns out thousands of high-quality products tailored to meet the specific needs of African consumers. Simultaneously, Hisense's Cape Town warehouse plays a critical role, ensuring that these exceptional products are readily available to countries across Africa, thus facilitating their reach and impact.  

Showcasing Excellence: Hisense's Innovations

Hisense's legacy of excellence at the AGOA Forum was highlighted by a range of groundbreaking innovations: - 100L9H, U7K, U8K, U7H: Hisense's Laser TVs and television sets set new standards for picture quality, sound, and immersion, providing viewers with exceptional viewing experiences. - H750FSB-IDS: This smart fridge redefines refrigeration, going beyond mere cooling to become an integral part of modern homes, enhancing convenience and energy efficiency. - H670SDK-WD: Inspired by art, this refrigerator combines exceptional performance with a touch of color and vibrancy, becoming a statement piece in any kitchen. - U5120G: Elevating the audio experience, Hisense's soundbar delivers crystal-clear sound and takes home entertainment to new heights.   Hisense's Legacy: Shaping Africa's Future For Hisense, their presence at AGOA 2023 was more than just a product showcase; it was a strong reaffirmation of their commitment to Africa's growth and development. As a company deeply rooted in South Africa, Hisense extends its impact well beyond its borders, reaching far and wide. With thousands of local jobs created and a range of products meticulously designed to meet the needs of African consumers, Hisense embodies the spirit of "Built in Africa for Africa."   Sources: THX News & Hisense. Read the full article

[investmart007]

U.S. Department of State News: African Growth and Opportunity Act Forum 2018

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U.S. Department of State News: African Growth and Opportunity Act Forum 2018

WASHINGTON – U.S. Depart of State today released the following statement:

The United States will host the seventeenth annual U.S.-sub-Saharan Africa Trade and Economic Cooperation Forum, commonly known as the AGOA Forum, on July 11-12, 2018, at the U.S. Department of State.

The annual AGOA Forum is the premier platform that brings together African Trade Ministers with U.S. counterparts to discuss how we can work together to enhance our trade and investment relationship, including through AGOA Implementation.  The 2018 AGOA Forum theme is “Forging New Strategies for U.S.-Africa Trade and Investment.”  The AGOA Forum Ministerial will foster discussion of best practices for increasing AGOA utilization, addressing supply-side constraints on trade and investment, and preparing for a more reciprocal trade and investment relationship.

As in previous years, the AGOA Forum will include a number of events on the margins of the ministerial.  This year’s side events, incorporating private sector, civil society, and African Women’s Entrepreneurship Program (AWEP) stakeholders, will take place on July 9-10, 2018.

Deputy Secretary of State John J. Sullivan and U.S. Trade Representative Robert E. Lighthizer will deliver opening remarks at the 2018 AGOA Forum at 9:00 a.m. on Wednesday, July 11.  These remarks and the entire opening session are open to the press and will be livestreamed at www.state.gov.

Plenary remarks by AGOA Forum Co-Chairs, U.S. Trade Representative Lighthizer and Kenyan Secretary for Ministry of Industry, Trade, and Cooperatives Adan Mohamed, will begin at 10:00 a.m. and are open to the press.  Press coverage will close following remarks of the Co-Chairs.

Pre-set time for video cameras: 8:00 a.m. from the 23rd Street entrance.

Final access time for journalists and still photographers: 8:30 a.m. from the 23rd Street entrance.

Media representatives may attend this event upon presentation of one of the following: (1) A U.S. government-issued identification card (Department of State, White House, Congress, Department of Defense or Foreign Press Center), (2) a media-issued photo identification card, or (3) a letter from their employer on letterhead verifying their employment as a journalist, accompanied by an official photo identification card (driver’s license, passport).

For a detailed schedule of events open to the press or inquiries, or to register for the event, please contact AF Press at AF-Press@state.gov.

_______

SOURCE: news provided by STATE.GOV

[magaratimes]

#LeMonde: "In Lomé, the first AGOA forum of the Donald Trump era "

#LeMonde: “In Lomé, the first AGOA forum of the Donald Trump era “

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The US president has not yet shown much interest in sub-Saharan Africa, which represents less than 1% of USA.

                                     <img width="768" data-lazyload="false" src="http://img.lemde.fr/2017/08/09/290/353/972/486/768/0/60/0/1e5fa13_25380-8bz14b.ddlyds4i.jpg" alt=" The American president, Donald Trump, on June 1, 2017, in Washington. The American President, Donald…

[statedept]

The theme of this year’s Forum is “The United States and Africa: Partnering for Prosperity through Trade.” The 2017 Forum will explore how countries can continue to maximize the benefits of AGOA in a rapidly changing economic landscape, and highlight the important role played by women, civil society, and the private sector in promoting trade and generating prosperity.

[annafricatv]

2019 AGOA Forum To Explore New Tools Developed In US And Africa

The African Growth and Opportunity Act, AGOA, 2019 is taking place in Abidjan, Ivory Coast.

The African Growth and Opportunity Act, AGOA, 2019 is taking place in Abidjan, Ivory Coast.

AGOA, which enhances access to the U.S. market for products of qualifying Sub-Saharan African countries, has been the cornerstone of the U.S. government’s trade policy with Sub-Saharan Africa since 2000.

Thirty nine African countries are attending the summit with the U.S. Deputy trade representative Curtis…

[utopiedujour]

Les Etats-Unis et l'Afrique veulent relancer leurs échanges commerciaux

Les Etats-Unis et l'Afrique subsaharienne veulent relancer leurs échanges commerciaux, en berne depuis plusieurs années malgré les larges exemptions douanières offertes à 39 pays du continent par les Américains grâce au programme Agoa. C'est l'objectif du 18e Forum Agoa qui réunit à Abidjan jusqu'à mardi 39 pays africains, les Etats-Unis et des entités régionales: l'Union africaine et la Communauté économique des Etats d'Afrique de l'ouest (Cédéao). Lancé en 2000 sous la présidence de Bill Clinton, l'Agoa (Loi sur la croissance et les opportunités en Afrique) "n'a pas changé la donne pour de nombreux pays africains, comme nous l'espérions", a déclaré la représentante adjointe des États-Unis au commerce extérieur pour l’Afrique, Constance Hamilton, lors d'un point de presse. from Challenges en temps réel : Économie https://ift.tt/2ZCVg7c via IFTTT

[78682homes]

Les Etats-Unis et l'Afrique veulent relancer leurs échanges commerciaux 78682 homes

http://www.78682homes.com/les-etats-unis-et-lafrique-veulent-relancer-leurs-changes-commerciaux

Les Etats-Unis et l'Afrique veulent relancer leurs échanges commerciaux

Les Etats-Unis et l’Afrique subsaharienne veulent relancer leurs échanges commerciaux, en berne depuis plusieurs années malgré les larges exemptions douanières offertes à 39 pays du continent par les Américains grâce au programme Agoa. C’est l’objectif du 18e Forum Agoa qui réunit à Abidjan jusqu’à mardi 39 pays africains, les Etats-Unis et des entités régionales: l’Union africaine et la Communauté économique des Etats d’Afrique de l’ouest (Cédéao).Lancé en 2000 sous la…

homms2013

#Informationsanté

[myzacoza]

Hundreds protest at US Consulate - demand ceasefire in Gaza

Hundreds of people protested outside the US Consulate in Sandton to demand a ceasefire in Gaza. Hundreds of protesters gathered outside the United States consulate in Sandton on Saturday, demanding action be taken to terminate the ongoing war in Gaza. Earlier in the day, there was also a protest against doing business with the US under the African Growth and Opportunity Act (AGOA) Forum, which…

[lesothowire]

SOUTH AFRICAN TRADE MINISTER LEAVES FOR AGOA FORUM IN WASHINGTON D.C.

http://dlvr.it/Qb99DD

[belafrika]

AGOA 2017 Interview exclusive du Porte parole de la langue française du département d’Etat des USA Brian NEUBERT

LIEN VIDEO CLIQUEZ ICI

La 16e édition du Forum AGOA 2017 qui s’est tenue au Radisson Blue hôtel à Lomé s’est achevée le jeudi 10 août dernier avec plusieurs recommandations et autres  nouvelles opportunités économiques à explorer pour la croissance et les possibilités économiques entre les Etats-Unis et l’ Afrique.

En tant que directeur du « Africa Regional Media Hub» du département d’Etat des Etats-Unis, le centre pour les médias africains, Brian Neubert relaie la politique étrangère américaine sur l’ensemble du continent africain.

Interview exclusive du Porte parole de la langue française du département d’Etat des USA Brian NEUBERT – vidéo

Le Forum AGOA 2017 de cette année qui avait pour thème «Les Etats-Unis et l’Afrique: un partenariat pour la prospérité à travers le commerce»  a réuni de hauts fonctionnaires des États-Unis et de 38 pays d’Afrique subsaharienne qui ont discuté des moyens pour renforcer la coopération économique et le commerce entre les États-Unis et l’Afrique. L’Union africaine et les communautés économiques régionales ont également participé aux travaux de ce Forum en identifiant certains domaines clés sur lesquels leur attention sera portée lors de la prochaine édition qui se tiendra dans une ville américaine. Parmi les points ciblés, on peut citer la sauvegarde des politiques économiques et industrielles africaines, la réalisation d’une analyse du marché  propre à chaque pays, le dialogue sur les politiques d’engagement des institutions américaines entre autres.

Le Togo  se réjouit, d’ores et déjà des résultats de ce forum puisque dans le cadre des réformes économiques structurelles des entreprises, le pays obtient le droit et le visa pour l’exportation du textile vers les USA.

Le premier ministre togolais SEM Komi Selom Klassou qui a assisté à la cérémonie d’ouverture du forum 2017 de la Loi sur la Croissance et les Possibilités Economiques en Afrique (AGOA)  a affirmé dans son allocution que  « Les pays de l’Afrique subsaharienne doivent miser sur le commerce pour créer la croissance et les opportunités ».

Les femmes entrepreneures togolaises ont participé activement à ce forum AGOA 2017  via le programme d’entrepreneuriat des femmes africaines ( AWEP )  qui est une initiative de sensibilisation qui cible les femmes africaines entrepreneures.

Pour information, l’African Growth and Opportunity Act a été institué par une loi adoptée en mai 2000 par le congrès américain et a pour but de soutenir l’économie des pays africains en leur facilitant l’accès au marché américain tout en respectant les principes de l’économie libérale et mondiale.  C’est l’ancien président américain Barack Obama  qui a signé le dernier le renouvellement jusqu’en 2025 de l’AGOA.

Rappelons que la Côte d’Ivoire s’est portée candidate pour accueillir le 18e Forum de l’ AGOA en 2019.

Crédit Photos : AWEP TOGO

K.A.

Editeur responsable Bel’Afrika Média TV

Interview : Andréa de Souza H. envoyée spéciale de BAM-TV à Lomé

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#AGOA 2017 : Interview exclusive du Porte parole de la langue française du département d’Etat des USA Brian NEUBERT – vidéo AGOA 2017 Interview exclusive du Porte parole de la langue française du département d'Etat des USA Brian NEUBERT…

[textilenewsworld]

US committed to Africa, Lighthizer tells AGOA forum

from Free Textile News - Textiles RSS XML Feeds - Fibre2fashion.com http://ift.tt/2fMRVjD via Yuichun