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.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/50000 |
| Date | 03 1900 |
| Creators | Conradie, C. F. G. |
| Contributors | Breytenbach, W. J., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Format | 204 p. : ill. |
| Rights | Stellenbosch University |
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