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Note: This is a cross post from the White House blog. To see the original post, please click here.
This week in Addis Ababa, Ethiopia, U.S. Trade Representative Mike Froman and senior members of the President’s economic team joined trade ministers, civil society, and business leaders from across sub-Saharan Africa to focus on “Sustainable Growth through Trade and Technology” at the African Growth and Opportunity Act Forum. The Forum also kicked off the process leading to AGOA’s renewal in 2015.
As the President highlighted on his trip to Senegal, South Africa, and Tanzania this summer, Africa is experiencing historic growth. Six of the ten fastest growing economies in the world are in Africa. The continent has enormous economic potential, and it’s in our interest to help African countries expand trade and investment to fuel their development.
AGOA has transformed the way the United States and Africa interact on trade and economic issues. Since 2001 – the first full year of AGOA trade -- U.S. total trade with sub-Saharan Africa has more than doubled, from $28.2 billion to $72.3 billion in 2012. AGOA enabled U.S. exports to the region to more than triple from $6.9 billion in 2001 to $22.6 billion in 2012. At the same time, AGOA imports (including GSP) to the United States have climbed to $34.9 billion in 2012, more than four times the amount in 2001. That increase in trade has created thousands of new jobs in Africa.
By providing new market opportunities for African exports, especially for non-traditional and value-added products, AGOA has helped African firms become more competitive both in the United States and internationally. Many African businesses that had never previously considered the U.S. market are attending trade shows and getting orders - for Ugandan organic cotton T-shirts, Mauritian seafood, Ghanaian cocoa powder, Ethiopian shoes, and a whole range of products.
AGOA has also been good for the United States. U.S. exports to sub-Saharan Africa have more than tripled as Africa’s growing middle class is increasingly able to buy high-quality products Made in America. African businesses have sought more U.S. inputs, expertise, and joint partnerships, and U.S. investment in Africa is creating good jobs and higher incomes for workers on both sides of the Atlantic.
The challenge now is to expand AGOA’s impact even further. At this week’s Forum, our team focused on further expanding our economic engagement with Africa, paving the way for AGOA’s renewal in 2015, and building a stepladder that furthers Africa’s growth, development and global economic integration. This is the vision we and our partners share, and this week’s discussions at the AGOA Forum will help chart our way forward.
President Obama delivered a video message to the Forum. Check it out below: