The African Growth and Opportunity Act : a preliminary analysis of the possible opportunities and limitations to Botswana exporters

Abstract

The paper identifies products that have received substantial trade concessions as a result of the African Growth and Opportunity Act (AGOA) which would otherwise carry a tariff rate of 15% or more when exported to USA. It explores Botswana's exports for the period 1998 - 2000 and identifies AGOA qualified products already being exported to the USA. Main findings are that cheese, footwear and apparel products which cover a wide range of products have the greatest concessions. Apparel products dominate the list of Botswana's exports to the USA that are eligible for AGOA. An extension of Least Developed Country (LDC) status to Botswana would yield more profit from exporting apparel products. The LDC status would allow firms in Botswana to import raw materials and still qualify to export to the USA under AGOA. The utilization of AGOA highly depends on the private sector. Firms should improve their production and marketing capabilities. A strategy should be devised to alleviate supply constraints, improve market know-how (especially international demands and standards) and identify efficient and cost effective distribution and transport channels.