... as unprepared exporters fail to make the most of it
Alan Peat
THE INCREASE in trade on the back of the US trade spur, AGOA (African Growth and Opportunities Act), has not been startling, according to Liz Whitehouse of trade consultancy, Whitehouse & Associates.
"Exports under AGOA have got off to a slow start," she told FTW. "This is probably a result of companies being unprepared for the increase in trade, ignorance about the provisions, and a "learning period" as SA companies come to terms with the red tape surrounding this agreement.
"A number of companies are also starting from scratch when it comes to the US market, and it is going to take time for them to establish relationships with US importers."
But the Whitehouse trade data base does reveal the first figures that FTW has seen related to AGOA-backed growth in SA exports to the US.
"In the year up to May 2001," said Whitehouse, "SA trade with the US increased by 25% - to US$1.9-billion, from the US$1.5-bn for the same period in 1999."
The total increase is not entirely due to AGOA preferences, she added.
"It is estimated that an additional US$100-million worth of goods were exported from SA to the US as a direct result of AGOA preferences, with vehicles and transport equipment accounting for 60% of this.
"Wine has also fared well, with exports increasing by 4% as a result of AGOA, while textile exports increased by 5% and qualifying metal products by 27%.
