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.

Study project (MBA)--University of Stellenbosch, 2002. / ENGLISH ABSTRACT: The African Growth and Opportunity Act was signed into law in May 2000 to allow qualifying SSA countries to export eligible products duty free to the US. The act is a non-reciprocal "agreement" designed solely by the US, with the objective of promoting increased trade and investment between the US and SSA. The US insist that trade will lead to development on the African continent if SSA countries liberalise their markets and become integrated into the global economy. The theory behind trade liberalisation is that it promotes allocative efficiency by exploiting comparative advantage. I however argue that trade liberalisation can realise its potential only if the US start dismantling the protectionist barriers that have been described in this report. The AGOA does reduce tariff barriers for a number of African products. However new non-tariff barriers have been erected which are less transparent, but just as effective as tariff barriers. The report documents the significance of existing trade barriers that seek to protect the US industries from harm, and evaluates the problems that are created in spite of the intentions of the AGOA. A number of specific issues that will be significant for the future outcomes of the Act were also dealt with. These included: the anti-dumping steel duties, US Farm Bill, NEPAD and the textiles and apparel debate. The problems found with the AGOA included: • Protectionism that is sector specific, involving the cases of the antidumping steel duties and the Farm Bill. • The unfavourable terms of trade associated with the Act, caused by the non-negotiable, non-reciprocal and temporary nature of the AGOA. • The eligibility conditions of the Act, which serve to bind African countries to the rules of the World Trade Organisation and exclude some countries on the African continent from obtaining benefits. • Internal reform problems within the SSA countries involving government departments, infrastructure and the macroeconomic environment. The evidence over the short time since it was enacted reveals that the SSA countries will not gain much from the extended trade benefits of the AGOA, unless their capacity to produce and supply the US market is enhanced. Furthermore, most of the AGOA benefits have gone to oil exporting countries and SA, who is the only non-oil country benefiting from a number of sectors at present. The Act has failed to increase trade flows from eligible countries to the US, as most of the SSA countries are not at the economic development to take advantage of the preferences that have been provided under the AGOA. Furthermore the liberalisation of many of the African economies has not been reciprocated by the US. The actions of many interest groups in the US indicate that they are "yes" to free trade but "not" at the expense of jobs and profits. This is evident, as the AGOA provides no exceptions to any of the US retaliatory measures and the fact that interest groups in the US influence many of the product decisions when domestic market share is threatened. One of the positive outcomes of the AGOA is the joint US Africa Trade and Economic Co-operation Forum that will provide future avenues for beneficial US-Africa trade relations. / AFRIKAANSE OPSOMMING: geen opsomming