Rev. Kishoka
JF-Expert Member
- Mar 7, 2006
- 4,526
- 1,529
Wait a minute, how come the economic down turn, credit crunch is affecting our exports and not imports from US? We have lost almost 50% of our exports and Kibwagizo is that Hali ngumu ya Uchumi wa Dunia and so is KUanguka kwa Uchumi wa Marekani, but American exports to us have nearly doubled!
What happened to all those trips to US to sell ourselves and our products? How come trade with US seems to be more beneficial to US and nt to us? Wasn't AGOA built specifically as a special preference to African countries to have a better trading with US?
May be with the Lukaza and Jeetu who were travelling with VDG on ziara za kuitangaza Tanzania kibiashara are now in jail with EPA, that is the reason our exports have gone down!
What happened to all those trips to US to sell ourselves and our products? How come trade with US seems to be more beneficial to US and nt to us? Wasn't AGOA built specifically as a special preference to African countries to have a better trading with US?
May be with the Lukaza and Jeetu who were travelling with VDG on ziara za kuitangaza Tanzania kibiashara are now in jail with EPA, that is the reason our exports have gone down!
AGOA trade trends worsens (Business Times)
.ExternalClass p.EC_MsoNormal, .ExternalClass li.EC_MsoNormal, .ExternalClass div.EC_MsoNormal{margin-bottom:.0001pt;font-size:11.0pt;font-family:'Calibri','sans-serif';}.ExternalClass a:link, .ExternalClass span.EC_MsoHyperlink{color:blue;text-decoration:underline;}.ExternalClass a:visited, .ExternalClass span.EC_MsoHyperlinkFollowed{colorurple;text-decoration:underline;}.ExternalClass p.EC_MsoAcetate, .ExternalClass li.EC_MsoAcetate, .ExternalClass div.EC_MsoAcetate{margin-bottom:.0001pt;font-size:8.0pt;font-family:'Tahoma','sans-serif';}.ExternalClass span.EC_EmailStyle17{font-family:'Calibri','sans-serif';color:windowtext;}.ExternalClass span.EC_small1{color:#999999;font-weight:normal;}.ExternalClass span.EC_BalloonTextChar{font-family:'Tahoma','sans-serif';}.ExternalClass .EC_MsoChpDefault{;}@page Section1{size:612.0pt 792.0pt;}.ExternalClass div.EC_Section1{page:Section1;}
Written by Administrator
Friday, 17 July 2009 08:50
Tanzania's total Agoa-covered sales to the US market have declined in recent years - from a modest $3.7 million in 2006 to just $2 million last year
ERIC TOROKA
The trade trends under the African Growth & Opportunity Act (AGOA) to Tanzania and its counterparts member states of East African Community (EAC) have massively dropped mainly due to the credit crunch spawned the global downturn.
The programme was conceived during the leadership of former US president Bill Clinton years as a way to facilitate Africa's economic development, in large measure by promoting the growth of textile and clothing production. The AGOA programme, has now been extended the programme to 2015.
A recent report show that the total AGOA covered sales from Tanzania to the US market has dropped tremendously from US$3.7 million in 2006 to just $2 million in last year.
While in Uganda, the trade trends under the AGOA exports have declined from $2.5 million in 2006 to just $1 million in 2008. In Kenya the gains have commenced to drop and therefore resulted into the loss of jobs, of which now, Kenya prepares to host a forum in August on the status of the US programme that permits duty-free imports of Africa goods.
Notwithstanding, the trade trends show that total US imports from both Tanzania and Uganda have increased during the same period, however - from $35 million to $54 million in the case of Tanzania and from $22 million to $53 million for Uganda.
According to the information from the US Embassy: Recent trend lines have not been positive. Africa's current share of agriculture in its total exports is about 9 per cent, down from more than 16 per cent in 1980. Of Africa's top ten agriculture exports in 2006, only one was a semi-processed product while the rest were primary commodities.
Nonetheless, it is said that Tanzania and Uganda could possibly generate significant farm-based exports to the United States. There is little sign of that happening, however Tanzania's total Agoa-covered sales to the US market have declined in recent years - from a modest $3.7 million in 2006 to just $2 million last year.
Uganda has followed the same downward path, with its Agoa exports dropping from $2.5 million in 2006 to $1 million in 2008.
Over recently the Executive Director for the East African Business Council (EABC), Charles Mbogori said that the private sector in East Africa is yet to fully benefit from trade with the US under the Africa Growth Opportunities Act (Agoa), almost ten years since it was endorsed.
Mbogori who was speaking during the EAC preparatory meeting for the 8th Sub-Saharan Agoa forum in Nairobi, said EA businesses have traditionally focussed on Europe and Asian markets"and are still not well informed of the US market, its nature and business environment."Adding, the situation is further worsened by the distance between US and EAC apart from the high cost of doing business in the region.
"The East African region has some of the highest energy, and transport costs in the world. This makes it difficult for firms in East Africa to compete with those in Asia and Latin America," he said.
Information on trade under Agoa in Sub-Saharan Africa shows that Mauritius, Botswana, Swaziland, Namibia, Nigeria and Kenya are just a few of the countries that have utilized the market better while Tanzania, Uganda, Rwanda and Burundi have performed poorly in comparison.