Mozambican exports to the United States have the potential to increase from US$76m a year to US$500m over the next two years thanks to market access offered through the African Growth and Opportunity Act (Agoa). Trade between the two countries has been growing since the signing of the United States-Mozambique Trade and Investment Framework Agreement (TIFA) in June 2005. Mozambique was one of the first of the 38 African countries that became eligible to export to the US around 6 500 products which are exempt from customs taxes as part of Agoa. US exports to Mozambique include energy products, wheat, trucks and tractors while US imports from Mozambique are mainly of titanium and tantalum, cashew nuts and gemstones. The forecast of strong growth in Mozambican exports to the US was made by Mozambican trade and industry minister Armando Inroga during a summit meeting between invited African leaders and the United States government held in Washington in August this year. During the conference it was announced that the United States would be reviewing the list of products that are exempted from tariff protection through Agoa. The programme provides dutyfree access for 97.5% of all tariff lines. However, there are 316 tariff lines – most covering agricultural products – that are not currently included. “While these products have historically been import sensitive, it is important to examine whether any products can now be added to Agoa,” says the statement issued after the summit. Opening up the United States to agricultural exports would benefit Mozambique, which has a largely agricultural economy. CAPTION Cashew nuts, titanium and tantalum and gemstones are the main exports to the US.
