$44 mil­lion

CityPress - - Busi­ness -

Source: UN Com­trase as they might have ap­peared.

“Most of the rent from ap­parel pref­er­ences goes to the Asian in­vestors and im­porters in the US,” said the re­port.

The largest ben­e­fi­ciary is Kenya, but Kenya’s grow­ing cloth­ing ex­ports to the US have been matched dol­lar for dol­lar by im­ports of the tex­tiles be­ing used (see graphic).

The US Govern­ment Ac­count­abil­ity Of­fice stud­ied Agoa’s ef­fects in the run-up to the US Congress’ re­newal of the pro­gramme last year.

It con­cluded that the eco­nomic im­pact was “dif­fi­cult to iso­late”.

The most re­cent study of Agoa came from the Univer­sity of Ne­braska’s Ad­disalem Zenebe et al, pub­lished in the Jour­nal of In­ter­na­tional Agri­cul­tural Trade and Devel­op­ment last year.

Zenebe and co-au­thors found Agoa’s ef­fect on agri­cul­tural trade “sta­tis­ti­cally in­signif­i­cant”.

“In gen­eral, Agoa pref­er­ences are only ap­plied to agri­cul­tural prod­ucts that do not com­pete with goods pro­duced in the US.”

– De­wald van Rens­burg


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