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USA/Africa: Trade Profile
AfricaFocus Bulletin
Jul 21, 2009 (090721)
(Reposted from sources cited below)
Editor's Note
"In 2008, U.S. imports under the African Growth and Opportunity Act
(AGOA) were $66.3 billion, 29.8 percent more than in 2007. ...
Petroleum products continued to account for the largest portion of
AGOA imports, with a 92.3 percent share of overall AGOA imports.
... The top five AGOA beneficiary countries in 2008 were Nigeria,
Angola, South Africa, Chad and the Republic of Congo." - U.S.
International Trade Administration, July 2009.
This AfricaFocus Bulletin contains a press summary and excerpts
from the latest report on U.S.-Africa trade published by the U.S.
International Trade Commission this month. The prominence of oil in
shaping these current economic links is a striking contrast with
the aspiration for more diversified development expressed in the
sole mention of oil in President Barack Obama's speech in Ghana:
"In Ghana, for instance, oil brings great opportunities, and you
have been responsible in preparing for new revenue. But as so many
Ghanaians know, oil cannot simply become the new cocoa. From South
Korea to Singapore, history shows that countries thrive when they
invest in their people and infrastructure; when they promote
multiple export industries, develop a skilled workforce, and create
space for small and medium-sized businesses that create jobs."
Another AfricaFocus Bulletin sent out today features excerpts from
a variety of commentaries following the July 11 speech.
For previous AfricaFocus Bulletins on U.S.-Africa relations, see
http://www.africafocus.org/country/usa-africa.php
For previous AfricaFocus Bulletins on trade issues, see
http://www.africafocus.org/tradexp.php
++++++++++++++++++++++end editor's note+++++++++++++++++++++++
U.S.-Africa Trade Increased 28 Percent in 2008
Charles W. Corey
14 July 2009
http://www.america.gov/world/africa.html
http://allafrica.com/stories/200907160447.html
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.
[Editor's note: but see below, petroleum products, at 92.3%, still
overwhelmingly dominate AGOA imports.]
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.
U.S.-African Trade Profile, July 2009
Selected Excerpts
Full 17-page report available at
http://agoa.gov/resources/US_African_Trade_Profile_2009.pdf
U.S. imports from the oil producing countries grew in every case
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
9.9 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 over 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).
...
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 non-energy product
increase was due to a 224.8 percent increase in imports of AGOA
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.
...
The top five AGOA beneficiary countries included Nigeria, Angola,
South Africa, Chad, and the Republic of Congo. Other leading AGOA
beneficiaries included Gabon, Cameroon, Lesotho, Madagascar,
Kenya, Swaziland, and Mauritius.
...
Africa's Global Trade
[figures in this section refer to 2007, the latest full year
available, not to 2008]
Sub-Saharan Africa's total merchandise exports were $244.6 billion
in 2007, a 17.2 percent increase, approximately the same increase
as in 2006. In 2007, South Africa and Nigeria accounted for 50.2
percent of Sub-Saharan Africa's total exports. South Africa's
exports grew by 21.1 percent to $63.5 billion, a positive shift
from the virtually zero growth in exports in 2006. Nigeria's
exports grew by 12.2 percent to $59.4 billion, somewhat lower than
the 21.6 percent growth in exports in 2006.
Sub-Saharan Africa's 17.2 percent increase in exports outpaced
total world exports, which grew at 15.6 percent, and grew on par
with developing country exports, which grew at 17.3 percent.
Sub-Saharan Africa, however, accounted for only 1.83 percent of
world trade in 2007, slightly higher than its 1.74 percent share in
2006.
Shares of Africa's Import and Export Markets4
Sub-Saharan Africa accounts for slightly more than one percent of
U.S. merchandise exports, and slightly more than three percent of
U.S. merchandise imports, of which about 81 percent are petroleum
products. Similarly, Sub-Saharan Africa accounts for a little more
than one percent of both EU merchandise exports and imports. The
United States is Africa's largest single country market,
purchasing 28.4 percent of the region's exports in 2007. China
came in second at 13.4 percent, and the United Kingdom was third
at 5.6 percent. The EU purchased 31.4 percent of Sub-Saharan
Africa's exports, down from 32.1 percent in 2006. China, however,
increased its share of African exports by almost one percentage
point to a 13.4 percent share.
...
In 2007, China continued to be the largest individual country
exporter to Sub-Saharan Africa with a growing market share of 9.8
percent and $26.5 billion in exports to the region. China's
exports to the region continued to grow rapidly by 39.4 percent
from 2006. Increased shipments of electrical and other machinery,
vehicles (mainly motorcycles and trucks), woven fabrics, iron and
steel products, woven and knit apparel, and low-end footwear
comprised the largest share of China's growth in shipments to
Sub-Saharan Africa.
...
Africa's Economic Growth
According to the World Bank, the world economy decelerated in 2008
with an estimated 2.5 percent growth, compared to 3.7 percent
growth in 2007. Global growth slowed with the onset of the global
economic crisis which has intensified since fall 2008. Developing
country economies slowed to 6.3 percent growth in 2008, compared to
7.9 percent in 2007. Several factors contributed to a slowdown in
growth for developing countries including: slowing growth in
developed countries, declining equity markets and capital flows,
and a sharp rise in inflation due to an increase in commodity
prices which helped lower consumer spending. Leading this decline
were China with a sharp falloff in industrial production growth
and India with a reduction in output growth. The increasingly
severe global recession will push developing country growth down
even more in 2009.
In 2008, Sub-Saharan African economies followed the global trend
with growth slowing to an estimated growth of 5.4 percent,
compared to 6.3 percent in 2007. Economic growth in Sub-Saharan
Africa in 2008 was lower than average developing country growth,
but above average world growth. With South Africa being a notable
exception, the effect of the global crisis will likely be
transmitted to African economies more indirectly through a decline
in external demand and lower commodity prices. ...
Even with the worsening of the global economic crisis, Sub-Saharan
Africa's growth in 2008 represents the first time in more than 45
years that Africa’s growth exceeded five percent for five years
straight. The World Bank notes that economic growth in 2008 has
been broad-based and less volatile than in past years across
regions and includes both oil- importing and oil-exporting
countries. The IMF emphasizes that many of the Sub- Saharan African
countries that have sustained economic growth have followed
consistently strong macroeconomic policies with a proactive role by
the government.
Growth in oil-exporting countries remained strong, growing by more
than 7.5 percent for a second year in a row. Of note, is the
strong growth in the non-oil sectors in some of the major oil
exporting countries. Despite continued unrest in the Niger Delta
causing a drop in Nigeria's oil output, Nigeria experienced strong
growth in agriculture, trade, and telecommunications helping
Nigeria to maintain a positive growth of 6.3 percent in 2008.
Non-oil sector growth in Angola was even higher at nearly 20
percent in 2008 driven by growth in construction, agriculture and
communication sectors.
As Sub-Saharan Africa's largest economy, South Africa drives much
of the growth among the oil-importing countries. As the most
integrated African economy into the global financial system, South
Africa has felt the effects of the global economic crisis more
severely than other African countries. In the fall of 2008,
economic growth forecasts for South Africa predicted growth of as
high as three percent in 2009. As the global crisis worsened and
the effects on South Africa became more apparent with a weakening
Rand, falling demand for South Africa's exports, slowing domestic
demand, and a steep drop in commodity prices, forecasts by January
2009 predicted a growth of one percent or less for South Africa in
2009. By April 2009, the IMF was predicting a 0.3 percent
contraction in South Africa for 2009.14 A steeper decline in South
Africa will likely have negative repercussions for overall growth
in Sub-Saharan Africa.
Excluding South Africa, growth among oil-importers in Sub-Saharan
Africa remained positive at 5.2 percent in 2008, down slightly
from 5.8 percent in 2007. Political instability, however, caused
a sharp decline in Kenya's growth in 2008 with growth falling from
7.1 percent in 2007 to an estimated 3.3 percent in 2008. Renewed
conflict in the Democratic Republic of Congo could also dampen
growth prospects into 2009. Even with many African countries
experiencing continued economic growth, the World Bank notes that
many African countries are coming up against "capacity constraints
stemming from inadequate investment in energy, roads, railways, and
ports over the past decades." This capacity constraint coupled
with high global food and fuel prices (at least in the first half
of 2008) contributed to a rise in inflation in Sub-Saharan Africa
in 2008.16 In fact, almost half of Sub-Saharan African countries
experienced double-digit consumer price inflation with median
inflation rising to 13 percent through September 2008. The IMF
predicts that inflation will begin to fall in 2009 as commodity
prices and global demand both decline.
...
The IMF has continued to revise downward its predictions for global
growth in 2009. In a World Economic Outlook Update in late January
2009, the IMF predicted a global growth of 0.5 percent for 2009.21
By April 2009, the IMF had an even more dire prediction of a
global economic contraction of 1.5 percent in 2009.22 The IMF
predicted that Sub-Saharan Africa would be more negatively
affected than originally predicted, though not as severely as in
other regions with the IMF still predicting low positive growth
for Sub-Saharan Africa. The IMF expressed concern that Africa's
economic gains described above could "slip away" as a result of
the global economic crisis. ...
Leading U.S. Export Markets in Sub-Saharan Africa
U.S. exports to Sub-Saharan Africa remained highly concentrated
among a small number of countries. The top three markets – South
Africa, Nigeria, and Angola - remained the same from 2007 and
accounted for 68.3 percent of U.S. sales in 2008, with South Africa
claiming 35.1 percent, Nigeria 22.2 percent, and Angola 10.9
percent. ...
Leading U.S. Exports to Sub-Saharan Africa
U.S. exports to Sub-Saharan Africa in 2008 were concentrated in
motor vehicles, agricultural commodities, petroleum and coal
products, and aircraft. The top three U.S. exports in 2008 were
motor vehicles accounting for 11.9 percent of exports, oilseeds and
grains (mostly wheat) 8.7 percent, and petroleum and coal products
7.6 percent. Other leading export categories included: aircraft;
oil and gas field machinery and equipment; construction and
general purpose machinery; industrial chemicals; navigational,
measuring, electromedical and control instruments; grain and
oilseed milling products; and communications equipment.
...
Leading Sub-Saharan African Suppliers to the United States
U.S. imports from Africa remained highly concentrated among a small
number of suppliers. Four countries - Nigeria, Angola, South
Africa, and Republic of Congo - accounted for 83.7 percent of U.S.
purchases in 2008. ...
U.S. Imports from Major Sub-Saharan Africa Trading Partners, 2008
Nigeria 44.2%
Angola 22.0%
South Africa 11.6%
Congo 5.9%
Equatorial Guinea 3.9%
Chad 3.9%
Gabon 2.6%
Other 5.9%
Source: U.S. Dept. of Commerce, Bureau of Census
Oil imports (crude and non-crude) continued to dominate imports
from Sub-Saharan Africa with $71.2 billion in oil imports in 2008,
accounting for 82.8 percent of all U.S. purchases. Platinum
remained the second leading U.S. import with a 3.5 percent share.
Motor vehicles and parts replaced diamonds as the third leading
U.S. import, accounting for 2.3 percent of purchases. Other
leading imports included: diamonds; iron and steel; woven and knit
apparel; ores, slag and ash; cocoa; organic chemicals; and
petroleum gases and other gases.
AfricaFocus Bulletin is an independent electronic publication
providing reposted commentary and analysis on African issues, with
a particular focus on U.S. and international policies. AfricaFocus
Bulletin is edited by William Minter.
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