African Growth and Opportunity Act and trade performance in Nigeria (original) (raw)
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African Growth and Opportunity Act (Agoa): Impact on Small Businesses and Export Revenue in Nigeria
International Journal of Business & Management Studies
The African Growth and Opportunity Act (AGOA), bipartisan trade legislation and a cornerstone of US commercial policy towards Sub-Saharan Africa (SSA), was enacted on 18 May 2000. The non-reciprocal initiative granted unprecedented duty-free access to more than 1800 eligible exports of SSA. The ultimate objective of this initiative is to create small businesses, boost exports and enhance economic growth in SSA. This study, therefore, analyzed available trade data from 2000 to 2019 to ascertain whether or not Nigeria’s non-oil exports to the US have increased as a result of AGOA. We undertook a descriptive and non-technical analysis of the impact of AGOA, which revealed that Nigeria’s non-oil exports to the US had not shown any discernable or notable increase since 2000. Excluding oil exports, the US has experienced a trade surplus with Nigeria since the inception of AGOA. Hence, the expected positive impact of AGOA on small businesses remains elusive. Policy recommendations on how N...
The African Growth and Opportunity Act and Marketing Implications for Nigeria
2017
The topic of study is on Agoa with a specific focus on the implications of marketing for Nigeria. Agoa was a great window for SSA countries to improve their exports to America with a provision to meet the prerequisites of standards and phyto standards of products. A survey of the export markets of agriculture and non-agricultural or non-energy exports from Nigeria to the United States was conducted among various groups, farmers, corporate organizations, export promotion embassies and others responsible for exports. The methodology was to review the extensive literature of the exports conditions for the exports and selected interview of individuals in some of the groups and government agencies responsible for export. The findings showed the gap was greatly influenced by poor quality products, non-production of the right products, lack of capacity and capability to produce the right products, zero percent or less than one percent was achieved, no utilization of marketing principles and practices, product grading, good packaging, little or no value added to raw products, poor market information (marketer and consumer) research, and weak or poor entry strategy to US market. Nigeria should adopt the marketing practices of entry strategy using available intermediaries in US market, collaboration with customers in US market, proper product package, preparation etc.
Interrogating the growth of Africa through the opportunity act and the Nigerian textile industry
Zenodo (CERN European Organization for Nuclear Research), 2023
The study examined the impact of AGOA on the textile industry in Nigeria between 2000 and 2015. The African Growth and Opportunity Act (AGOA) was signed into law on May 18, 2000 as Title 1 of The Trade and Development Act of 2000. The Act offers tangible incentives for African countries to continue their efforts to open their economies and build free markets. This paper attempts to answer the question: Did the preferential access to the U.S. market under AGOA increase the volume of textile export from Nigeria to U.S. between 2000 and 2015? Secondary data were used and data collected were analysed using tables and content analysis. The study adopted the Complex Interdependence theory as its preferred framework of analysis and argued that the letter and spirit of AGOA were both in consonance with the neoclassical model of growth for SSA designed by the U.S. We remarked that this liberalised trade introduced by United States in Sub-Saharan Africa through AGOA was equally deepened to strengthen U.S. involvement capacity to this under developed markets in Sub-Saharan Africa. The study found out that the preferential access to U.S. market under African Growth and Opportunity Act did not increase the volume of textile export from Nigeria to the U.S. between 2000 and 2015. Finally, the study made profound recommendations aimed at maximizing the benefits inherent in the Nigeria-United States trade relationship.
This study attempts to provide a nuanced perspective on the promise and perils of the African Continental Free Trade Agreement on Nigeria's developmental aspirations. It is anticipated that the trade agreement's adoption and implementation will boost intra-African trade and create local and regional value chains, opening up new business opportunities for investors and giving them access to a population of 1.7 billion people whose combined spending on goods and services will reach $6.7 billion by 2030. But how will these projections impact the continent's largest economy and most populated country, Nigeria? This study tackles this pertinent question employing a desk research method, drawing data from secondary sources and synthesising relevant literature. The research adopts Dependency Theory and Institutional Economics model to provide useful insights into the dynamic relationship between AfCFTA and Nigeria's development goals. Results indicate that in line with Nigeria's economic development aspirations, the AfCFTA would promote economic growth in addition to the push for competitiveness in a variety of local industries and the reduction of poverty. However, this study identifies significant vulnerabilities relating to economic hazards. Nigeria's current trajectory falls short of the requisite standards in terms of strategic policymaking to leverage on opportunities and reduce risks. This paper thus recommends amongst other, evolving solutions and international cooperation to enable AfCFTA catalyse development in Nigeria.
Impact of African Free Trade Policy (Agreement) on the Socio-Economic Development of Nigeria
2021
The signing of the agreement that established the African Continental Free Trade Area (AfCFTA) in the year 2019 is believed to be an African-based growth strategy that is self-reliant and is expected to be the world’s largest free trade area after the World Trade Organization (WTO). The agreement is an attestation to the fact that African countries cannot continue to rely solely on the global trading system and global economy of the world economic powers, probably because they are increasingly becoming unpredictable. However, there is an assumption that the aggregate consumer and business spending on the continent could rise if AfCFTA is implemented successfully. This assumption therefore calls for a research like this to evaluate the likely economic impacts of the free trade agreement on different African countries particularly Nigeria which is the giant of Africa and the focus of this study. To achieve the objectives of the study, descriptive statistical approach was utilized to e...
The African Growth and Opportunity Act, exports, and development in Sub-Saharan Africa
2006
The African Growth and Opportunity Act (AGOA) is the flagship of US commercial and development policy with Sub-Saharan Africa. This paper looks at the impact of the trade preferences, the central element of AGOA, on African countries' exports to the US and puts them in the perspective of the development of the region. The paper finds that, while stimulating export diversification in a few countries, AGOA has fallen short of the potential impetus that preferences could otherwise provide African exporters. The impact of AGOA would be enhanced if preferences were extended to all products. This means removing tariff barriers to a range of agricultural products and to textiles and a number of other manufactured goods. There also needs to be a fundamental change in approach to the rules of origin. Given the stage of development and economic size of Sub-Saharan Africa, nonrestrictive rules of origin are crucial. For all countries in Africa, those that have and those that have not benefited from preferences, there are enormous infrastructure weaknesses and often extremely poor policy environments that raise trade costs and push African producers further away from international markets. Effective trade preferences (those with non-restrictive rules of origin) can provide a limited window of opportunity to export while these key barriers to trade are addressed. But dealing with the barriers is the priority.
PSL Quarterly Review, 2018
This paper evaluates the impact of the US African Growth and Opportunity Act (AGOA) trade arrangement on the growth of exports from Sub-Saharan African (SSA) countries. Using several variants of propensity score matching techniques, results show that the impact of AGOA on SSA exports is generally negative and statistically significant. The same conclusion is reached using the difference in differences (DID) method. Further, descriptive statistics show that the proportions of Africa’s exports going to the EU and the US since 2011 have been declining and the export shares of the three largest exporters to the US, namely, South Africa, Nigeria and Angola, are falling. JEL codes : F13, F14 Keywords : AGOA, SSA, propensity score matching
AFRICAN GROWTH AND OPPORTUNITY ACT (AGOA) AND EXPORT DIVERSIFICATION: AN ANALYSIS
A Journal of the Nigerian Political Science Association, 2020
The African Growth and Opportunity Act (AGOA) is a piece of American legislation passed by the U.S. Congress in May 2000 under George W. Bush's administration. It aims to diversify sub-Saharan African economies; increased access to the U.S. market; and consolidate sound economic policies through the elimination of tariffs on eligible African countries' products entering the U.S. market. The AGOA has gone through series of amendments (AGOA II, III, IV and V). The current AGOA V was renewed from 2015 to 2025 by Barrack Obama's administration. This study, therefore, examined the AGOA policy; and in doing so, Immanuel Wallerstein's World System theory was adopted as theoretical framework. The study relied mainly on secondary source of data. The study revealed that energy related products (crude petroleum, oil and gas) dominate African exports to the U.S. under AGOA; AGOA is U.S. trade weapon against Chinese influence in Africa. The programme inter alia further (re)integrates African economies into global capitalist system thereby deepening the disarticulation, distortion, disruption, of African economies. Furthermore, AGOA is bedeviled with plethora of problems such as capacity constraints and the cost of doing business; infrastructural challenges; economic challenges; institutional issues; the nature of the AGOA legislation; etc. In order to overcome these problems, it is recommended that there is need to reduce the cost of doing business in Africa. AGOA should be integrated into countries' national emergence and development plans; sub-Saharan African countries should restrategise and make AGOA a sub-regional issue; sub-Saharan African should embark on long-term economic growth and development in order to realise robust economic transformation among others.
Africa Growth and Opportunity Act: New Path to Africa’s Economic Recovery?
Most Sub-Saharan African countries attained political independence with populations faced with a myriad of problems. Among them were diseases, poverty, illiteracy, ethnic strife and political upheavals. Seeking solutions to these problems has not been a concern not only for African leaders and policy makers. The Bretton Woods institutions, and leaders from developed nations have been involved in this search. Several development theories and approaches have been formulated by scholars and leaders geared toward a diagnosis and treatment of the problems of underdevelopment in Africa. Some of the theories developed and prescribed for Africa include modernisation, post modernism, post structuralism, and dependency. As a result of unimpressive performance of these development strategies, a new neo-liberal theory seeking to bring about economic development in Sub-Saharan Africa has emerged. Africa Growth and Opportunity Act (AGOA), the United States’ trade rule that came into force in October 1, 2000 is in line with the neo-liberal theory. AGOA was designed to facilitate socio-economic growth in selected Sub-Saharan African countries through trade rather than aid. Through this initiative, African exporters in countries that meet eligibility criteria can access the U.S. manufactured products market such as the apparel, duty free. While AGOA is a practical approach of the neo-liberal theory, however, it is an externally driven initiative that lacks deep involvement of the recipients