The United States and five East African countries signed a Cooperation Agreement that paves the way for increased U.S. trade and investment in the region and beyond.
The inaugural meeting of the U.S.-EAC Commercial Dialogue with the U.S. and East African private sectors immediately followed today’s signing in Washington, D.C.
The Cooperative Agreement will build capacity in Tanzania, Kenya, Uganda, Rwanda and Burundi in three key areas: trade facilitation, sanitary and phytosanitary measures, and technical barriers to trade. The five countries will cooperate with the United States in implementing critical customs reforms, easing red tape at borders, and harmonizing trade standards. For its part, Washington will provide training on food safety, animal and plant health standards and international regulations, setting the stage for more agricultural exports to U.S. consumers.
The agreement marks a milestone for the Obama Administration’s Trade Africa partnership between the United States and sub-Saharan Africa that seeks to increase internal and regional trade within Africa, and expand trade and economic ties between Africa, the United States, and other global markets. It follows news earlier this month that the United States saw a surplus in overall its trade with the continent in 2014, the first in decades.
U.S. exports of goods and services to Africa in 2014 totaled just under $38 billion, up from $35 billion in 2013. Imports totaled $34 billion, down from $50 billion in the same period, a drop attributable to the falloff in oil imports. Trade in goods between the United States and the East African bloc alone grew by 52 percent from 2013 to $2.8 billion in 2014, with U.S. exports to the region at $2 billion, while imports from the region totaled $743 million, led by agricultural and textile products.
“By tackling tasks in important areas, this agreement will help us lift the burdens that trade barriers impose, unlocking opportunity on both our continents,” U.S. Trade Representative Michael Froman said at the signing in Washington. “We see this agreement and all our work with the EAC to date as an important steppingstone, not the final destination. The global economy is evolving and the U.S.-Africa economic relationship must evolve, too. Together, we can tackle more tasks, support more jobs, and unlock more opportunities for the American and African people alike.”
Discussions following the signing focused on the strategic way forward for the U.S.-East African Community trade and investment relationship, including the need for a seamless renewal of the Africa Growth and Opportunity Act (AGOA) granting African countries duty-free access to U.S. markets. The program is set to expire later this year and both Africans and U.S. proponents of closer U.S.-Africa are mounting a vigorous campaign for its renewal.
The discussions also covered a regional strategy to help the East African countries take better advantage of AGOA.
Today’s agreement comes just over a week after Kenya abandoned its hold out against the European Union’s Economic Partnership Agreements that allow East African countries duty-free and quota-free access to EU markets. In all, the EU has free-trade agreements with 33 African countries.
That, coupled with China’s foray that has made it Africa’s largest trading partner since 2009, is fueling a push for more spirited U.S. commercial activity on the continent.
