Ghanaian Official Makes Bold Proposals, Recommendations for....

...Implementation of AGOA at U.S. Forum

Ghana’s Minister of Trade, Dr. Kofi Konadu Apraku has made a number of requests and recommendations on behalf of Ghana and the rest of Africa for enhancing implementation of United States’ Africa Growth and Opportunity Act, AGOA.

In his remarks at a session of United States-Africa Trade and Co-operation Forum, Apraku on Mon., Oct. 29, told conference participants and attendees that Ghana and Africa “need the support of the United States to translate economic statistics into improved well-being and development.” Dr. Apraku, an economist by training, co-chaired the session on “Strengthening Commercial Linkages Between the U.S. and Africa.”

AGOA, signed into law May last year by Pres. Bill Clinton, permits about 2,000 commodities from Africa to be imported duty-free into the United States. The on-going Forum is a requirement under the AGOA provisions.

Despite the window of opportunity for Africa to penetrate the lucrative United States market, Apraku noted, “Ghana, like most African countries, has problems with export supply capacity, which continue to hinder efforts at export buoyancy, even under AGOA.” Reading from his prepared statement, Apraku said, “We are committed to reversing this unhealthy trend through policies and incentives, which will not only expand our supply base but also intensify our efforts at processing.”

To overcome the limitations of the conditions necessary for export promotion in Africa, Apraku indicated, “that the U.S. could assist in removing barriers to bilateral trade between African countries and the U.S.” In this regard, Apraku proposed to United States to review its regulations that are too discretionary in their interpretation; provide “technical assistance aimed at enhancing the understanding of African countries in respect of regulations, which affect market access in the area of food additives, labeling, quality and standards, and alcohol products, among others”; and support improved “development of information and technology and e-commerce.”

Apraku proposed further that “U.S. Agencies, such as the Overseas Private Investment Corporation (OPIC) and EX-IM Bank, should increase their involvement in Africa in respect of funds set up under AGOA like the Infrastructure Fund, and Modern African Fund.” He suggested, “The proposed Millennium Fund should also be supported to be established. It should be made easier for African countries to access U.S. funds for investments under AGOA.”

Apraku proposed also that the U.S. could “support Africa to undertake institutional development that would sustain the growth of democracy and private sector development to make Africa a safe place to invest.” He requested that universities and business institutions in the U.S. increase linkages and exchange programs with their counterparts in Africa, “to help upgrade the managerial expertise of the African private sector.”

Collaboration between U.S. Food and Drugs Administration, FDA, and African Standards Agencies is needed “in the areas of sanitary and phyto-sanitary measures which continue to confront some of our exportable products to the U.S. market,” according to Apraku. He indicated that Ghana has submitted regulatory framework documents to the U.S. government to be considered for textiles and garments export to the United States under AGOA.

According to Apraku, Ghana has taken specific steps to make AGOA operational. He listed four measures Ghana has initiated to help the takeoff of AGOA implementation: a training center “for garment manufacturers to acquire the requisite skills to produce for the U.S. market;” an Export Development and Investment Fund, EDIF, is to be established “to assist private sector exporters with some financial support to develop new products and expand existing facilities;” re-organization of the existing Export Promotion Council “to play a more effective role” in the AGOA participation process; and the launching of “A Special Presidential Initiative targeted to provide support for production and export of textiles, garments and cassava/industrial starch.”

Apraku indicated Ghana has set up a 14-member AGOA Implementation Committee “to co-ordinate various efforts under AGOA and to support the implementation of specific activities under the Presidential Initiative for AGOA.” He advised that “African countries need the support of the United States to set up National AGOA Secretariats such as we have set up in Ghana, to help Implementation Committees and Advisory Sub-Committees,” to help the initiative effectively.

Apraku listed 10 areas in which Ghana seeks to focus under the AGOA initiative. These areas include fish and fish products, tropical fruits and juice, canned vegetables, handicrafts and cocoa processing.

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