U.S.-Africa Trade Increased 28 Percent in 2008

14 July 2009

By Charles W. Corey
Staff Writer

Documents & Texts from America.gov

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Washington — U.S. trade with sub-Saharan Africa, exports plus imports, increased 28 percent in 2008 and U.S. imports under the African Growth and Opportunity Act (AGOA) are becoming increasingly diversified, according to a just-released profile of U.S.-Africa trade trends.

The report, compiled by the International Trade Administration at the U.S. Department of Commerce, was released as a preview of major U.S.-Africa trade trends that will be discussed at the eighth annual United States-Sub-Saharan Africa Trade and Economic Cooperation Forum to be held August 4–6 in Nairobi, Kenya.

U.S. exports, the report explains, increased by 29.3 percent to $18.6 billion, driven by growth in several sectors including machinery, vehicles and parts, wheat, non-crude oil, aircraft and electrical machinery (including telecommunications equipment).

U.S. imports in 2008 increased by 27.8 percent to $86.1 billion, the report states. This growth is due to a significant increase of 31.9 percent in crude oil imports (accounting for 79.5 percent of total imports from sub-Saharan Africa).

Of the top five African destinations for U.S. products, exports to South Africa rose by 17.6 percent, to Nigeria by 47.7 percent, to Angola by 65.4 percent, to Benin by 192.4 percent (due to a large increase in the export of non-crude oil and vehicles and parts), and to Ghana by 46.2 percent.

U.S. imports from the oil-producing countries grew in every case, the report says, with imports from Nigeria growing by 16.2 percent, from Angola by 51.2 percent, from the Republic of Congo by 65.2 percent, from Equatorial Guinea by 89.5 percent, from Chad by 55.4 percent, and from Gabon by 4.4 percent.

U.S. imports from South Africa grew by 10.2 percent. Declines in the import of platinum and diamonds from South Africa were more than balanced by strong growth in the import of ferroalloys and extremely high growth of more than 350 percent in the import of passenger vehicles (caused by a surge in imports from South Africa as new car lines produced in South Africa came on the market at the end of 2007).

In 2008, U.S. imports under the African Growth and Opportunity Act (AGOA) were $66.3 billion, 29.8 percent more than in 2007. This figure includes duty-free imports from AGOA-eligible countries under both the U.S. Generalized System of Preferences (GSP) and the expanded AGOA GSP, plus textile and apparel items imported duty-free and quota-free under AGOA provisions.

Petroleum products continued to account for the largest portion of AGOA imports, with a 92.3 percent share of overall AGOA imports. With these fuel products excluded, AGOA imports were $5.1 billion, increasing by 51.2 percent. Much of this product increase was due to a 224.8 percent increase in imports of transportation equipment, virtually all from South Africa as mentioned above.

AGOA minerals and metals also increased by 58.8 percent and AGOA chemical and related products by 38.7 percent. AGOA textiles and apparel imports declined by 10.4 percent and AGOA agricultural products by 7.9 percent.

U.S. imports under AGOA are becoming increasingly diversified. Some of the more significant products include: jewelry and jewelry parts; fruit and nut products; fruit juices; leather products; plastic products; and cocoa paste.

The top five AGOA beneficiary countries in 2008 were Nigeria, Angola, South Africa, Chad and the Republic of Congo. Other leading AGOA beneficiaries included Gabon, Cameroon, Lesotho, Madagascar, Kenya, Swaziland and Mauritius.

The U.S. merchandise trade deficit with sub-Saharan Africa continued to widen in 2008 to $67.5 billion, from $53.0 billion in 2007. Nigeria, Angola, the Republic of Congo, South Africa, Chad, and Equatorial Guinea accounted for 97.2 percent of the U.S. trade deficit with sub-Saharan Africa in 2008.

The full report can be found at http://www.agoa.gov/.

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