Mauritius: Business Leaders Encouraged to Take Full Advantage of AGOA

Enterprise Mauritius and the United States Agency for International Development (USAID) jointly organised yesterday a workshop aimed at sensitising business community leaders in the textile, agro-industry and jewellery sectors on opportunities available under African Growth and Opportunity Act (AGOA) for exportation to the US market.

The main focus was on the current situation regarding AGOA and discussions centred on the key issues facing the private sector, strategies for Mauritius and the US market and plans for the coming year with regard to the US market. The workshop was conducted by two resource persons from USAID Competitiveness and Trade Expansion Programme (USAID-COMPETE), Mr Finn Holm-Olsen, Director, East & Central Africa Global Competitiveness Hub; and Mr Jean Claude Mazingue, Senior Apparel Trade Advisor.

Participants were encouraged to increase Mauritian exports to the US under the AGOA initiative so as to diversify their markets and reduce their dependence on the euro while increasing their exports to the US market. AGOA offers tangible incentives for African countries to continue their efforts to open their economies and build free markets.

In his address, the Chief Executive Officer of Enterprise Mauritius, Mr Dev Chamroo, exhorted the participants to export their products to the US. While the European economy is uncertain, the US economy has recorded sustained growth, he said. He recalled that the USAID is very helpful in promoting Mauritian products to the US and appealed to the business community leaders to take advantage of the support offered by the Agency in terms of technical assistance, market linkages, buyer missions and matchmaking sessions.

For his part, Mr Troy Fitrell, Chargé d’Affaires of the US Embassy, said that no country in Africa has taken advantage of AGOA as Mauritius. Figures reveal that Mauritian performance in 2011 was USD 156,768 million for AGOA apparel exports as compared to USD 100, 688 million in 2009. He said that since the past decades the Mauritian brand has been exceptionally good at building value, trust and quality.

The resource persons outlined that local companies can export their products to the US in small quantities and that they can target only a niche market, that is, a State in the US. Following a decision of the United States to extend AGOA till September 2012, it was necessary to sensitise Mauritian enterprises to export more to the US.

AGOA

Promulgated in May 2000, the objective of AGOA is to increase trade between the US and Sub-Saharan Africa and American investments in the sub-region. It also aims to stimulate growth on the continent; assist African countries to improve their economy; transform US-Africa relationships from aid dependency to commercial partnership; foster a high-level dialogue on issues relevant to trade and investment; promote economic integration and facilitate the integration of sub-Saharan Africa into the global economy.

Under AGOA, the trade benefits are considerable and allow almost all products exported to countries eligible under AGOA to enter the US market duty free. The bilateral trade flow between the US and the countries of sub-Saharan Africa has reached a value of USD 82 billion. Imports entering the AGOA totaled USD 44.2 billion.

Under AGOA, 37 countries including Mauritius are eligible to export their products to the US duty free. Almost 6 500 products are concerned. Through AGOA, USAID provides assistance to enterprises and advises governments to improve the environment for trade. The Agency further assists African countries to overcome infrastructure constraints and work to expand access to finance to enhance competitiveness in African trade and investment.