1. Trade Africa Feed the Future Regional Conference APRIL 11-12 2016
MAKING BETTER USE OF AGOA
Trade Africa Feed the Future Regional Conference APRIL
Presentation by:
Emmanuella hakizimana
Senior export promotion officer, eac

2. Outline Past AGOA utilization by the EAC Region
The unrealized potential
Challenges
EAC-AGOA Strategy 2015 – 2025
Going Forward

3. PAST AGOA UTILIZATION BY THE EAC REGION
AGOA = Africa Growth and Opportunities Act
It is an initiative of US Government which offers duty and quota free access to the US Market for over 7,000 products from SSA
It is non-reciprocal aimed at spurring growth and development
Started in 2000 and renewed several times.
In September 2015, AGOA was re-authorized together with Third Party Provisions to Year 2025
All the EAC Partner States are AGOA eligible (Burundi has been suspended).
EAC Partner States have exported good that are of low complexity and lack local value addition

4. Past utilization of AGOA by EAC Region Cont..
 Total two-way trade between the EAC and U.S. has increased from U.S. $ 514 million in 2000 to U.S. $ 2,775 million in
Exports to U.S. from the EAC increased from U.S. $ 186 million to U.S. $ 743 million
imports increased from U.S. $ 328 million to U.S. $ 2,007 million
Balance of Trade has remained in favour of the US
EAC Exports under the AGOA (including the GSP) peaked at U.S. $ 768 million in 2014
Overall the utilization of the AGOA by the EAC is far below the anticipated levels.
Country
% Contribution
Kenya
96%
Tanzania 3%
Uganda
0.4%
Rwanda
0.2%
Burundi 0%

5. The unrealized potential
Data shows that though all the EAC Partner States have been trading with the US, utilization of the AGOA Program has been very poor.
A study by the Center for International Development, Harvard University has identified a combined potential of US $ 8 billion worth of exports to the US under AGOA
There is a huge unexploited gap

6. CHALLENGES FACING EAC EXPORTS TO THE US
 High transportation costs to the U.S. market
High transaction costs
Stringent Sanitary and Phytosanitary (SPS) measures esp for agricultural products
Low flows of US investments into the region
Existence of tariff and TRQs on some agricultural products in which EAC
Limited availability of affordable trade finance for the SMEs and rural farmers.
Limited information to stakeholders about AGOA
Under-utilization of networking mechanism between US and EAC business community in relation to AGOA opportunities
Continued preference erosion of EAC products into the U.S market by well- established and globally competitive countries
Lack of regional AGOA policy and implementation strategy

7. EAC-AGOA Strategy 2015 – 2025 Why an EAC-AGOA Strategy?
EAC views AGOA as a special vehicle to reduce poverty and stimulate economic growth
Utilization of AGOA by EAC Partner States over the last fifteen years has been lackluster at best.
There is need to convert the AGOA potential into concrete advantage.
All the Partner States have formulated (or are in the process of formulating) country AGOA strategies
The EAC has completed the process of formulating an AGOA strategy to complement the country strategies
Through this strategy EAC Partner States will take a proactive common approach in engaging the US on the AGOA Program
The strategy will take advantage of the additional provisions contained in the AGOA Act 2015, including focus on regional integration, women and youth

8. Highlights of the EAC-AGOA Strategy
VISION: “To become a region that is competitive and dynamic exporter to the US market and globally.”
MISSION: “To position EAC as the leading competitive exporter of diversified and value added goods to the USA and globally”
OVERALL GOAL: to maximize utilization of the AGOA Program for the benefit of the EAC economies, businesses and people

9. The Strategy Highlights Cont…
PRIORITY SECTORS
 Agricultural products and foodstuffs,
Leather and leather products,
Textiles and apparel,
Extractive natural resource products, and
Home and fashion accessories
PRIORITY AREAS OBJECTIVES
To increase production and export of tradable products – 6 Strategies
To diversify products exported to the USA from the region EAC – 7 Strategies
To intensify value addition - 3-Strategies
To promote and attract investment – 6 Strategies

10. GOING FORWARD Approval of the Strategy by EAC organs
Setting up implementation mechanisms
Engagement of stakeholders
Roll out

11. SALUTATION Thank you very much, Merci, Asante Sana
Happy to receive questions/comments