Magister Legum - LLM / Over the past decade countries have embraced globalisation. The depth and influence of globalisation has grown significantly since the 19th century. Globalisation has accelerated mainly due to increased integration in trade with bilateral, regional and multilateral trade negotiations on the rise. Multinational companies have also enlarged which enable production to be done seamlessly in different countries, increase in capital flows such as purchase of assets and bonds has also contributed. Furthermore, the surge on technological innovations and advancement cannot be ignored when one speaks of globalisation this era has been dubbed the technological era additionally there is also the role of migration which enhances labor movements. The world has rapidly shrunk to one global economy. After the World War II countries began to move away from protectionism to liberalised trade and this resulted in the formation of the General Agreement on Tariffs and Trade (GATT) then the World Trade Organisation (WTO) which is comprised of 164-member states. The WTO regulates trade and promotes free trade. Over the years the organisation has been evolving to deal with issues such as climate and technical assistance. Global trade presents challenges which may give rise to the need for countries to protect their domestic industries for political and economic reasons.

Magister Legum - LLM / The World Trade Organisation (WTO) is the only global international organisation dealing with the rules of trade between nations.1 The WTO agreements uphold certain principles; one such principle is the rule of the most-favoured-nation (MFN) obligation. This obligation requires WTO members, who grant certain favourable treatment to any given country, to grant that same favourable treatment to all other WTO members.2 However, there are several exceptions, three of which include:  actions taken against dumping (selling at an unfairly low price);  subsidies and special ‘countervailing’ duties to offset the subsidies; and  emergency measures, to limit imports temporarily - thus designed to ‘safeguard’ domestic industries. These exceptions serve as remedies both against fair - and unfair trade practices. An example of remedies against fair trade practices are safeguards, and examples of remedies against unfair trade practices are dumping and countervailing duties. Anti-dumping actions are trade remedies/mechanisms available to members of the WTO in facilitating the protection of the industries under certain circumstances. The WTO agreement, which sets out the anti-dumping remedy, is the agreement on the implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (GATT 1994), also known as the ‘Anti-dumping Agreement’.4 Article VI permits countries to take action against dumping and the ‘Anti-dumping Agreement’ clarifies and expands on Article VI. The two operate together. Dumping is viewed as price discrimination between the domestic and export markets and take place where the export price of a product is lower than the normal value of such product. The normal value is usually determined with reference to the domestic selling price in the exporting country. Adjustments have to be made to the normal value and export price for differences that affect prices at the time that such prices are set, including differences in terms and conditions of sale, taxations, levels of trade and quantities.

Exporting is a popular mode of internationalisation for a variety of reasons. For instance, many enterprises prefer exporting because it permits them to learn from competition with minimum resources committed by the enterprise. However, it is noted in literature that enterprises face various constraints when exporting. Earlier studies, mostly conducted in developed countries, have documented several exporting constraints. The studies do not agree on the grouping of factors constraining exporting and elements that form such groupings. Also, it is acknowledged in literature that generalising findings from developed countries to developing countries would not necessarily be appropriate, hence studies in developing countries such as Lesotho are necessary and, to the researcher’s knowledge, this study is the first to be conducted in Lesotho. This formal study, therefore, was carried out to test the hypotheses developed from literature regarding factors that constrain exporting. Lesotho is land locked, being completely surrounded by the Republic of South Africa. It is believed that Lesotho’s setting can bring insights into exporting as the country becomes a popular destination for export-oriented investors. Although enterprises operating in Lesotho had been exporting prior to 2000, there was a major boost of exports at the beginning of 2000 when Lesotho became eligible for exports to the United States, Canada and European markets under the agreement in the African Growth Opportunity Act (AGOA). The AGOA agreement brought a flow of Asian export-oriented investors into Lesotho. Lesotho’s exports are concentrated in the apparel and textile industries and are destined to a few countries, predominantly South Africa and the United States. The literature review covers the globalisation of the business environment. Further, the international entry modes are discussed along with the theories that explain the decision of the enterprises to initiate the internationalisation process. Finally, the exporting mode of internationalisation is discussed detailing the constraints that enterprises face when engaging in exporting. A questionnaire was used to collect data. The instrument first underwent a rigorous evaluation by experts who are knowledgeable about the subject. The experts proposed changes that were adopted prior to conducting a pilot study. A judgemental sampling approach was used where manufacturing enterprises located in seven of ten industrial areas in Lesotho, who agreed to participate in the study, were issued one questionnaire each. The questionnaires were distributed to key informants who were regarded as managers directly responsible for international operations. Alternatively, chief executive officers were approached in situations where enterprises did not employ international operation’s managers. A response rate of 94.7 percent was obtained. The study revealed that exporting constraints are internal to the enterprises and that three factors, as opposed to the five that were hypothesised, constrain exporting. The study further revealed that perceived exporting constraints varied according to the size of the enterprise as well as the ownership structure thereof. Recommendations were made relating to actions aimed at minimizing exporting constraints. Lastly, future areas of research were identified. The study will be beneficial to enterprises as they will be able to adopt suitable measures to overcome or reduce the impact of exporting constraints. Also, the study will inform policy makers in Lesotho with regards to areas where appropriate assistance should be provided. In addition, the study would inform business educators regarding areas of training for exporters, which will address the training needs of exporters. Lastly, researchers interested in exporting will find other avenues that can be researched in order to build the field of exporting. / Thesis (PhD)--University of Pretoria, 2012. / am2013 / Business Management / unrestricted

It has been over sixty (60) years since decolonization in Africa. In years gone by, a pattern has emerged of former French colonies being marginally worse off than their British counterparts. Britain and France as the two most dominant colonial powers in Africa allows for these comparisons in growth and development to be made. Using a case study of Cote D’Ivoire, this study argues the continuous existence of neocolonialism in former French colonies through cooperation agreements as an explanation to this divergence in growth. The research question posed is: “To what extent was the Cooperation Agreements signed between France and Cote D’Ivoire in 1960 a pivot from France colonial to neocolonial rule in Cote D’Ivoire?” In order to answer this question a conceptual framework focusing in particular on colonialism, extractive political and economic institutions, neocolonialism, dependency, and the structural theory of imperialism were chosen. The methods employed were secondary literature review, content analysis of the cooperation agreements signed between France and Cote D’Ivoire in 1960, and a conducted survey of Ivorians. This study concludes that these Agreements cede to France indirect and subtle control in all aspects of Ivorian statehood: economy, finance, military, foreign policy, diplomacy, trade, judiciary, education, natural resources, and even internal security. This has resulted in Cote D’Ivoire being politically and economically dependent on France. Arguably, the most detrimental to Ivorian growth and development is its lack of monetary control through the continuous use of the colonial currency of the CFA franc and membership in CFA Zone. As a currency, the CFA franc is pegged to the French franc and now Euro. This study argues that the currency is overvalued and incongruent to growth and development in an agricultural export-based economy like Cote D’Ivoire. And being political dependent on France renders Ivorian leaders reluctant to opt their country out from the CFA Zone, thus perpetuating a cycle of exploitation and inhibiting growth. The result of this study contributes to studies on growth divergence in Africa, and towards understanding relations between former colonies and colonizers, and its impact on global wealth divides and dependency.

Thesis (MBA)--Stellenbosch University, 2004. / ENGLISH ABSTRACT: This study investigates both the African Growth and Opportunity Act (AGOA) that was signed into US law in May 2000 and the subsequent US Farm Bill, signed in May 2002. AGOA is a temporary, non-negotiated, non-reciprocal law by the USA to allow dutyfree and quota-free access to almost all products produced in Sub-Saharan Africa (SSA). Many people in SSA are dependant on agriculture to provide employment and livelihood. In the agricultural sector The Farm Bill is a unilateral law by the USA granting enormous subsidies to its farmers for a wide variety of products. It is the purpose of this study to investigate both these laws and to determine whether or not the Farm Bill undermines the objectives of AGOA. AGOA was studied and the real reasons for US interest in SSA determined. The main reason found for the inception of AGOA was US interest in the oil resources of SSA as well as other commodities like precious metals and textiles. The USA is also interested in SSA to find new markets for its own products as it can produce far more food and fibre than it can utilise in its domestic market. The study investigated the potential benefits of AGOA for SSA as well as the real benefits that were realised in the first two and a half years since its inception. It was found in the study that the real benefits were far less than the potential benefits and several reasons are offered for this phenomenon. The trade data between the USA and SSA was analysed to determine the effect of AGOA on trade and the major products traded. It was found that by far the largest product group was in the petroleum sector. The Farm Bill was investigated to determine the provisions of the Bill, the products involved and the conditions for subsidy payments. The payments include direct payments, counter-cyclical payments and marketing loan gains or loan deficiency payments. The detail of the calculation methods for the payments and a sample calculation of the subsidies are given, other provisions of the Farm Bill that apply to specific commodities like sugar and dairy products are also listed as these are important commodities for SSA. The Farm Bill was investigated in terms of AGOA and it was found in the study that the Farm Bill does indeed undermine the objectives of AGOA by reducing commodity prices. Both AGOA and the Farm Bill were further investigated in the context of the World Trade Organisation (WTO) to determine their consistency with the rules of the WTO. It was found that AGOA is consistent with the WTO rules, but the subsidies of the Farm Bill are trade distorting and therefore not consistent with these rules. There is a WTO limit set for the US support programmes and it is expected that the payments would exceed the limit during times of low commodity prices. / AFRIKAANSE OPSOMMING: In hierdie studie word beide die 'African Growth and Opportunity Act' (AGOA) wat in Mei 2000 deel van die Amerikaanse wetgewing geword het sowel as die daaropvolgende 'US Farm Bill' wat in Mei 2002 goedgekeur is, ondersoek. AGOA is 'n tydelike, eensydige, nie-wederkerige wet deur Amerika wat tariefvrye en kwotavrye toegang tot die Amerikaanse mark toelaat vir bykans alle produkte wat in Afrika Suid van die Sahara (SSA) geproduseer word. Baie mense in SSA is afhanklik van landbou vir werk om vir hulle families te kan sorg. Dit is juis in die landbousektor waar Amerika die 'Farm Bill' as eensydige wet goedgekeur het wat enorme landbousubsidies vir 'n wye reeks produkte aan sy boere toeken. Die doel van die studie is om beide hierdie wette te ondersoek en vas te stel of die 'Farm Bill' die doelwitte van AGOA ondermyn, al dan nie. AGOA is eerste ondersoek en die werklike redes vir Amerika se belangstelling in SSA is bepaal. Daar is bevind dat die hoofrede vir die ontstaan van AGOA die strategiese belangstelling van Amerika in SSA se olie en ander kommoditeite soos edelmetale en tekstiele is. Amerika stel ook belang in SSA om nuwe markte te vind vir sy eie produkte omdat Amerika baie meer voedsel en vesel kan produseer as wat sy plaaslike mark kan absorbeer. Die studie het die potensiele voordele van AGOA vir SSA asook die werklike voordele wat in die eerste twee en 'n half jaar gerealiseer het, ondersoek. Die studie het getoon dat die werklike voordele baie minder as die potensiele voordele was en verskeie redes word vir die verskynsel aangevoer. Die handelsdata tussen Amerika en SSA is ondersoek om die effek van AGOA op handel asook die hoofhandelsprodukte vas te stel. Die data het getoon dat by verre die grootste produkgroep wat verhandel is, olie en verwante petroleumprodukte is. Die 'Farm Bill' is ondersoek om die bepalings van die wet vas te stel, watter produkte betrokke is en onder watter voorwaardes subsidiebetalings van toepassing is. Hierdie betalings sluit direkte betalings aan boere, wederkerige betalings en bemarkingslenings in. Die detail van die berekeningsmetodes van die verskillende dele van die subsidies asook 'n voorbeeld-berekening word getoon. Ander bepalings van die wetgewing wat van toepassing is op spesifieke kommoditeite soos suiker en suiwel word ook gelys omdat hierdie produkte baie belangrik vir SSA is. Die 'Farm Bill' is ook met betrekking tot AGOA ondersoek en daar is getoon dat die 'Farm Bill' inderdaad die doelwitte van AGOA ondermyn deur die pryse van kommoditeite te laat daal. Beide AGOA en die 'Farm Bill' is verder ondersoek in die konteks van die Wereldhandelsorganisasie (WHO) om vas te stel of elkeen van hierdie wette voldoen aan die handelsreels van die WHO. Daar is bevind dat AGOA wel voldoen aan die WHO reels, maar dat die subsidies van die 'Farm Bill' handel verwring en daarom nie voldoen aan die vereistes van die WHO nie. Daar bestaan 'n WHO-beperking vir Amerika op die hoeveelheid ondersteuning wat aan die boere toegestaan mag word en daar word verwag dat die beperking oorskry kan word in tye van lae kommoditeitspryse.

Thesis (MBA)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: This study sets out to analyse the trade performance of the African Growth and Opportunity Act (AGOA) to determine the lessons that can be learnt from it strengths and weaknesses with the purpose to assist future trade negotiations - and specifically the current free trade negotiations between the United States of America (USA) and the Southern Africa Customs Union (SACU). A short overview of AGOA's content is given with specific reference to the many rules and regulations governing the arrangement. AGOA's trade performance over the past four years is analysed by country and sector to determine the main recipients of its benefits with specific attention to the performance of SACU countries. AGOA's strengths and opportunities are discussed by looking at the impact that AGOA had on investment and job creation in Southern Africa. The study takes a closer look at new markets that benefited from AGOA and how well SACU made use of the non-reciprocal nature of AGOA by looking at the trade balance with the USA. The weaknesses of AGOA are analysed by looking at its nature - the fact that it is a nonnegotiated arrangement with benefits that can be terminated at any point. The failure of AGOA to address non-tariff barriers is discussed by looking at the impact of subsidies, quotas, threat of anti-dumping actions and its restrictive rules and regulations. The unsustainability of the substantial growth that the clothing and textile industries experienced under AGOA is considered by looking at the Multi-Fibre Agreement and the impact that its termination had up to now on especially SACU countries. The analysis of AGOA's trade performance highlighted the fact that only a few countries and products benefited from AGOA. The study deliberates AGOA's failure to liberalise Southern Africa's exports. The knowledge gained by analysing AGOA, its trade performance with specifically SACU, and its strengths and weaknesses are applied by looking at the current US free trade proposal with SACU. The study looks at the motivations for the free trade agreement from both a US and SACU point of view and continues to analyse the content of the proposed agreement. The analysis includes the various problem areas within the proposed agreement as well as the potential benefits that such an agreement can bring about. The study concludes with a summary of the lessons learnt from AGOA and how they apply to the proposed US free trade agreement as well as future trade negotiations. / AFRIKAANSE OPSOMMING: Hierdie studie poog om die resultate van die "African Growth and Opportunity Act" (AGOA) oor die afgelope vier jaar te ontleed met die doel om die sterk en swakpunte van die handelsverdrag te beklemtoon as basis vir toekomstige handelsooreenkomste. Daar word spesifiek verwys na die handelsooreenkoms wat tans beding word tussen die Verenigde State van Amerika (VSA) en die "South African Customs Union" (SACU). Die studie gee 'n kort opsomming van die inhoud van AGOA met spesifieke verwysing na die verskeie reëls en regulasies wat die ooreenkoms onderskryf. Die resultate van die afgelope vier jaar word ontleed per land en sektor om vas te stel watter lande en produkte die meeste voordeel getrek het onder AGOA. Weereens word daar spesifiek na SACU se resultate verwys. AGOA se sterkpunte word bespreek deur na die impak te kyk op investering en werkskepping in Suider Afrika. Die studie kyk na nuwe marksgeleenthede wat voordeel getrek het onder AGOA. Daar word ook gekyk hoe goed SACU van die nie-wederkerige natuur van AGOA gebruik gemaak het deur te verwys na die handelsbalans tussen SACU en die VSA. Die swakpunte van AGOA word bespreek deur te kyk na AGOA se inherente kenmerke, byvoorbeeld dat die "ooreenkoms" nie onderhandel is nie en dat voordele te enige tyd opgeskort mag word. Daar word ook gekyk na AGOA se gebrek om nie-tarief gedrewe handelsstruikelblokke in die vorm van subsidies, kwotas, die bedreiging van aksies teen handelsstorting en die impak van die vele reëls en regulasies aan te spreek. Die onvolhoubaarheid van groei binne die tekstiel en kledingsbedryf (wat merkbare sukses onder AGOA bereik het) as gevolg van die terminasie van die "Multi-Fibre Agreement" word bespreek - met spesifieke verwysing na die impak op Suider Afrika. Die analise van AGOA se handelsresultate het uitgewys dat slegs 'n handjie-vol lande en produkte by AGOA baat gevind het. Die studie oorweeg die moontlike redes wat gelei het tot hierdie verskynsel. Die kennis wat opgedoen is deur na AGOA se handelsresultate te kyk, asook sy sterk- en swakpunte te ontleed, word aangewend deur na die huidige VS handelsooreenkoms met SACU the kyk. Die studie oorweeg die motiverings vir so 'n handelsooreenkoms van beide 'n VS en SACU oogpunt en maak ook 'n ontleding van die inhoud van die ooreenkoms. Die ontleding kyk nie net na die verskeie probleme wat na vore kom nie maar ook na die voordele wat SACU te beurt kan val as gevolg van die oorkoms. Die studie sluit af deur 'n opsomming te maak van die lesse wat geleer is deur die ontleding van AGOA en hoe dit van toepassing is op die huidige VS ooreenkoms asook toekomstige ooreenkomste.

Thesis (MBA)--Stellenbosch University, 2006. / The African Growth and Opportunity Act (AGOA) was signed into law in May 2000 by President Clinton to allow sub-Saharan countries to export designated products duty-free into the US. AGOA is a temporary measure that is non-reciprocal and not negotiated by the participating parties. The initiative was launched to liberalise the markets of developing countries on the road to become integrated in the global economy. The initial success of AGOA was limited, with only a few countries making use of AGOA to increase their exports into the US markets. Problems encountered were high levels of protectionism from the US and the existence of technical trade barriers (including sanitary measures in agriculture) and nontariff barriers (including quotas). African countries are using shipment as the main transport for exports, and the US barred transshipment due to corruption that occurred in the past. The AGOA also made provision for 'special provisions' measures to enable AGOA eligible countries to export apparel and textile to the US. The export of apparel was very successful until the Multifibre Agreement expired in 2005, leading to relocation of apparel factories to lower cost bases. The real beneficiaries from AGOA are oil-exporting countries that make up more than 90% of total AGOA benefits. South Africa is the only country who succeeded in diversified AGOA exports. AGOA has been supplemented by AGOA II (extending the product range) and AGOA III (extending the expiry date to 2015). After the EU-SA Free Trade Agreement has been concluded in 1999, the US started with FTA negotiations with the South African Customs Union (SACU) to improve the exposure of US products to the SACU market and to decrease the trade deficit. However, the agenda of the FTA negotiations included second generation issues of intellectual property rights, trade in services, investment and government procurement. The SACU negotiators learnt some lessons from the EU-SA FTA and progress was slow. The extension of AGOA to 2015 saw a decrease in the urgency of striking a SACU-US FTA. Negotiations slowed down and the decision was made in April 2006 to conduct talks on a lower level. This breathing time can be used by the SACU negotiators to develop an aggressive offensive strategy for future negotiations, and to build competency against the efficient and offensive US negotiators. The US-SACU FTA must still be pursued to ensure that the benefits of AGOA are locked in. It will be beneficial for SACU if the different needs for all the SACU countries are addressed and the negotiations are done in incremental steps .

Thesis (MBA)--Stellenbosch University, 2007. / ENGLISH ABSTRACT: The SACU bloc, which accounts for one-half of the subcontinent's GDP, is the largest market for the US exports in SSA (Langton, January 2005). Wide differences exist among the economies of SACU - while SA has developed a significant manufacturing and industrial capacity, the other countries remain dependent on agriculture and mineral extraction. The grouping is dominated by SA, which accounts for 87% of the population, and 93% of the GDP of the customs area. SACU member states had a combined real GDP of $201bn in 2003. Services made up 65% of SA Trade in 2003 and had become a major player. In 2003, SACU was the 32nd largest trading partner of the US with two-way trade equivalent \ $7.3bn. Merchandise imports from SACU totaled $5.6bn in 2003, a 17.3% increase from 2002 and a 126% increase from 1996. They were composed of minerals such as platinum, diamonds, and titanium, textiles and apparel, vehicles, and automotive parts. Major US exports to the region include aircraft, vehicles, computers, and construction and agricultural equipment. Services trade between the US and SA has increased dramatically for both countries, with US exports increasing 154% and service imports from SA increasing by 383% respectively since 1992. The stock of US FDI in SA totaled $3.9bn in 2003 and was centered around manufacturing chemicals and services. The main economic objective of FTAs is to reduce trade barriers between member countries and liberalize trade and investment rules (Kanoute, November 2005). This improves market access which is the key to foreign export earnings and investment. But market access is a door that swings both ways, opening local markets to a flood of imports. This can undermine domestic production and employment, and thus exacerbate poverty. Some US civil society organizations have expressed concern that a SACU FTA could have negative consequences for poor Southern Africans, citing potential adjustment costs for import-competing farmers, poor enforcement of labour rights, privatization of utilities, and increased restrictions on importing generic drugs to treat HIV/AIDS (Langton, January 2005). The proposed FTA is ambitious, especially given the tight deadline and the broad range of topics on the negotiating table (Zunckel, Tralac). These include not only tariffs on goods, as is traditional in trade talks, but the wider global economic panoply of agriculture, rules of origin intellectual property, trade in services, investment, government procurement, trade remedies, labour, environmental standards and trade dispute settlement. The US gains reciprocity by gaining improved access to the SACU market than it currently enjoys under AGOA. The IP and "TRIPS plus" provisions are of particular concern to consumers (www.tralac.org.) Ongoing developments at the multilateral level bode against the advisability of entering into binding bilateral agreements with less favourable provisions on essential medicines. Foreign investment could lead to greater industrialization within SACU and competition within local industry, boosting efficiency. But safeguards and industrial policy must be utilized effectively to protect the region's developmental goals. Reliance on domestic courts as the forum of first instance (and state-to-state dispute settlements should those fail) is preferable, as it allows greater possibilities of defending the public interest of SACU citizens over investors' interests (Langton, January 2005). Reaching consensus on negotiating strategy in SACU is no easy feat. Formal negotiations began in June 2003, but talks have made little progress over the past years. The interests of the five different countries, at differing stages of development, have to be reconciled (Draper. 2004). No doubt SA, with its diverse array of interests relative to its BLNS partners in the customs union, will drive this. SACU negotiators, in common with those in many developing countries, have great difficulty in understanding, let alone mobilizing, their services sectors. Hence they have adopted a defensive posture, favouring liberalization only in those (few) sub-sectors that are well understood. SACU has formally accepted an offer made by the US to progress a so-called trade and investment cooperation agreement (TICA). Prior negotiation will be needed among SACU countries, who clearly have an interest in coordinating its negotiation with other US bilateral negotiating partners (Whalley & Leith, December 2003).

Abstract not available. / Thesis (MBA)-University of KwaZulu-Natal, 2005.