1. The African Growth and
Opportunity Act (AGOA)-
Using AGOA to be more competitive in the
handcrafts industry
2. AGOA – Un aperçu
• A comprehensive program of trade preferences unilaterally applied by
the United States
– The law was signed May 2000 as part of the Law on Commerce and Development
of 2000
• Eliminates import tariffs on more than 6,400 products
– 4,600 of these qualify for elimination of tariffs under the General System of
Preferences (GSP) of the U.S.
– 2,000 additional products that would qualify under GSP are now included within
AGOA.
• “AGOA III” extends the law to 2015.
– The exception for textiles from the Third World has been extended until 2012
• Led to the creation of four trade hubs financed by USAID in Botswana,
Ghana, Kenya and Senegal to provide technical assistance.
3. AGOA – Guide Pratique
Country « A »
(Not AGOA eligible)
Produit
Similar characteristics
(quality, price)
$ 2 FOB
United
States
Exports under the Normal
Commercial Relations framework
(RCN)
According to the HS codes,
tariffs vary from 5 to 32%
Under AGOA, tariffs are
eliminiated – 0%
Price (RCN) ≈
$ 2.1 to $
2.64
Country « B »
(AGOA eligible)
Produit
Exports under AGOA
Prixce
(AGOA) =
$ 2
5. An HS Code example
(Leather sacks)
Tariffs under AGOA = 0% (eliminated)
HS Code
Product
description
Tariff paid by importer
under Normal
Commercial Relations
framework (NTR) Forgiven for
AGOA eligible
countries (D)
6. AGOA Resource Centers (ARCs)
• 15 ARCs (Bénin, Burkina Faso, Cameroun,
Cape Vert, Gabon, Gambie, Ghana, Guinée
Bissau, Liberia, Mali, Nigeria, Sao Tome e
Principe, Sénégal, Sierra Leone, Tchad)
ARCs are focal points in countries managed with local partner
institutions with the following goals:
◦ To increase awareness and understanding among the private sector of
the advantages set by AGOA
◦ To increase access to resources and capacity of exporters:
The centers identify export‐ready companies and refers them to the Trade Hub
for eventual participation in international trade shows and market linkages
activities.
◦ To work strategically with the public and private sectors to define and
implement national export strategies.
9. • Sense of urgency: Time is truly money!
• Punctuality (deliveries, communications)
• Save time, get to the point
• Regular and frequent communication, particularly
regarding problems
• Reliability, quality (quantity, size, color…)
• Consistent quality
• Price (quality relative to price)
• Change in products, trends and markets. Change is
constant!
• Once established, the price should not change unless
there is an important change
• No surprises
The American Market… Business Culture
10. Is your company ready to export to the U.S.?
Preparatory work/study
A proven business model
Export experience
Health of the business
Export budget
Strategic vision/Export strategy
Human resources
Competitive advantage
Production capacity
Product quality
Certifications (i.e. ISO, Fair Trade) or
applicable registrations (i.e. USFDA)
Communications/IT/E-mail
Expertise
Commitment
Finance
Marketing
Rapid access to the market
Transport efficiency
International norms
