Agoa Free Trade Agreement

While Lesotho has benefited from AGOA for two decades, other sectors and sectors are just beginning to benefit. Namibia has a large livestock sector, with more than 7.7 million cattle, sheep and goats. In 2019, Namibia was the first country in Africa to export beef to the United States after 15 years of working to comply with safety rules and logistics, and will export 860 tons of beef to the United States in 2020, reaching 5,000 tons by 2025. Exporting to the U.S. is a big market opportunity for Namibia — the U.S. is the largest consumer of red meat, with Americans consuming an average of 120 kilograms of meat per person per year, according to the U.S. Department of Agriculture. Namibia Meatco has benefited from AGOA`s duty-free access to the U.S. market – given the infancy of beef export relations with the U.S., a disruption to AGOA could jeopardize its sustainability and undermine capital investment in this sector. The United States has warned Kenya against manipulating the shilling against the dollar during ongoing talks on a bilateral trade pact. The United States is working to commit to Kenya, as part of the trade agreement, influencing market forces on the schilling exchange rate against the dollar.

This precondition for the Free Trade Agreement (FTA) reflects the Commission`s previous assertions. In recent months, the United States has begun negotiations for a bilateral free trade agreement with Kenya. These negotiations are consistent with the current government`s vision for a trade recession, not preferential trade programs. While these negotiations could lead to the first bilateral trade agreement between the United States and a sub-Saharan African country, the transfer of regional preferential agreements to bilateral free trade agreements could undermine the growth of small countries that may not be of sufficient economic interest to the United States. Bilateral agreements could also undermine efforts to create a regional economic bloc by Africa`s continental AfCFTA. While these negotiations are expected to give rise to the first bilateral trade agreement with a sub-Saharan African country, negotiators face a number of challenges, of which AGOA has had limited success in some countries. . .

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