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Is the US Farm Bill undermining the objective of AGOA?Conradie, C. F. G. 03 1900 (has links)
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.
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Strenghts and weaknesses of AGOA from a Southern African point of view and lessons to be learnt for future trade agreementsKlopper, Annette 12 1900 (has links)
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.
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The AGOA : assessing the opportunities'Toich, Peter January 2002 (has links)
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
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