Seek education on AGOA before exporting - local companies urged
An International Consultant, Mrs Jan Forest, has urged manufacturers in the export trade business to seek education on the customs and regulations of the United States of America (U.S.A) before exporting goods through the African Growth and Opportunity Act (AGOA) trade initiative.
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She explained that the education would enable the local companies to realise the full potential in the AGOA programme, as well as position them well to be competitive to penetrate other international markets.
“Companies in the country have not been able to maximise the opportunities under the AGOA trade initiative due to their lack of education of the U.S. customs and regulations. So the companies must ensure proper classification of their goods in order for them to access the U.S. market,” Mrs Forest who is a consultant on U.S.A Customs and International Trade said at an AGOA workshop in Accra.
The workshop was organised by the Ghana National Chamber of Commerce (GNCC) in collaboration with the USAID West Africa Trade and Investment Hub.
It was on the theme; “The U.S. Customs and Regulations for AGOA Eligible Products.”
Duty free
The AGOA accords duty-free treatment to virtually all products exported by beneficiary sub-Saharan Africa countries to the U.S.
It provides beneficiary countries with the most liberal access to the U.S. market compared to any country or region that has not negotiated a free trade agreement with the U.S.
Its benefits are currently extended to 37 SSA countries and to more than 1,800 tariff line items, in addition to the 4,600 items already enjoying duty-free status on the U.S. Generalised System of Preferences programme.
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AGOA has added items to the list of duty-free products, including major import-sensitive items such as apparel, footwear, luggage, handbags and watches.
The programme also promotes export diversification in AGOA countries through its provision of duty-free and quota-free benefits to virtually all products.
AGOA encourages expanded regional integration and product sharing among beneficiary countries and provides job creation and economic growth within those countries.
Despite this initiative, AGOA beneficiary countries contribute a small share of one per cent to total U.S. imports and are mainly dominated by energy-related products based on the Congressional Research Service report in 2015.
Apparel remains the top export among non-energy products for a number of AGOA countries, including Lesotho, Kenya and Mauritius. Since its inception in 2000, Ghana has had access to the U.S. market and with the 10-year renewal due 2025, AGOA eligible countries continue to have access to the U.S. market.
Utilising AGOA initiative
For her part, the Chief Executive Officer (CEO) of the GNCC, Mr Mark Badu-Aboagye, indicated that the workshop was aimed at equipping stakeholders in export trade on customs and regulations of the U.S.A.
He said Ghana was yet to maximise its utilisation of the AGOA trade initiative due to the limited information and lack of clarity, particularly on customs and regulations, in accessing the market.
“The need to encourage private businesses through business advisory services, as well as financial and technical assistance for the purposes of capacity development is imperative,” he said. —GB