African Growth And Opportunity Act Case Study
EXECUTIVE SUMMARY
The African Growth and Opportunity Act was signed into law by President Clinton in May 2000 in order to promote the US and African trade relations and to promote economic development on the African continent through export-led growth. To expand trade and investment in South Africa. To help grow economic and encourage economic integration.
The report examines the impact of the AGOA during the past years. It has benefited South Africa's economics. The report provides incentives to continue their commercial relationship and should be extended. AGOA has had success in creating jobs and promotes export in AGOA countries through its provision of duty- and quota-free benefits to almost all products. It offers opportunities for …show more content…
It has been particularly beneficial to South African automobile, wine and fruit exports.
Increasing investment and exports is important for job creation. American companies have played a role in South Africa's economy and the creation of jobs. It has created 100 000 jobs in the US and in South Africa, AGOA created 62 000 jobs. US companies directly employ nearly 70 000 South Africans and indirectly employ another 75 000 people throughout the economy. The companies spend money on training and skills development. Automotive trade between South Africa and the US has shown consistent growth. The South Africa's automotive sector employs 36 000 people and supports another 274 500 intermediate jobs. It contributes to economic growth and employment. (United States-South Africa Trade &Economic …show more content…
The US market consists of 25-30% of exported citrus products", said Piet Smit, the CGA's Western Cape vice-chairman. The US market is their biggest export. South Africa has an "anti-dumping" duty in place on chicken portions coming from the US. In developed countries, they eat only the chicken white meat, brown meat products are not for sale in those countries. They were being sold at below the cost of production in South Africa. US poultry providers pay 37% import duty of bone-in-chicken, along with an extra anti-dumping duty of R9,80 a kilogram. There has been the strong stream of American investment into South Africa and there is an optimism about future economic relations between the US and South Africa. There are trade and investment potential in the areas of energy, logistics and information and communication technology. AGOA has offered opportunities
The African Growth and Opportunity Act was signed into law by President Clinton in May 2000 in order to promote the US and African trade relations and to promote economic development on the African continent through export-led growth. To expand trade and investment in South Africa. To help grow economic and encourage economic integration.
The report examines the impact of the AGOA during the past years. It has benefited South Africa's economics. The report provides incentives to continue their commercial relationship and should be extended. AGOA has had success in creating jobs and promotes export in AGOA countries through its provision of duty- and quota-free benefits to almost all products. It offers opportunities for …show more content…
It has been particularly beneficial to South African automobile, wine and fruit exports.
Increasing investment and exports is important for job creation. American companies have played a role in South Africa's economy and the creation of jobs. It has created 100 000 jobs in the US and in South Africa, AGOA created 62 000 jobs. US companies directly employ nearly 70 000 South Africans and indirectly employ another 75 000 people throughout the economy. The companies spend money on training and skills development. Automotive trade between South Africa and the US has shown consistent growth. The South Africa's automotive sector employs 36 000 people and supports another 274 500 intermediate jobs. It contributes to economic growth and employment. (United States-South Africa Trade &Economic …show more content…
The US market consists of 25-30% of exported citrus products", said Piet Smit, the CGA's Western Cape vice-chairman. The US market is their biggest export. South Africa has an "anti-dumping" duty in place on chicken portions coming from the US. In developed countries, they eat only the chicken white meat, brown meat products are not for sale in those countries. They were being sold at below the cost of production in South Africa. US poultry providers pay 37% import duty of bone-in-chicken, along with an extra anti-dumping duty of R9,80 a kilogram. There has been the strong stream of American investment into South Africa and there is an optimism about future economic relations between the US and South Africa. There are trade and investment potential in the areas of energy, logistics and information and communication technology. AGOA has offered opportunities