ambassador Marquardt's speeches

Remarks by U.S. Ambassador Niels Marquardt

AGOA Workshop

As delivered
February 26, 2007
Akwa Palace Hotel
8:45am

Excellency, the Minister of Small and Medium Enterprises, The Assistant Secretary of State of Trade,
Honorable President of the Chamber of Commerce,
Assistant U.S. Trade Representative Liser,
Distinguished visitors from Washington and the W.A. Trade Hub in Accra,
Ladies and Gentlemen of the Private Sector,
Dear Participants and Members of the Media,

On behalf of the United States Mission to the Republic of Cameroon, I want to welcome you all to the Central African AGOA Workshop here in Douala, gateway to, and the economic capital of, the CEMAC sub-region.  

I am very pleased to be here to open this important event with Minister of Small and Medium Enterprises. Not only is it an honor to have him here, but I also believe that the private sector commercial activities facilitated by his ministry will drive growth and economic development in Cameroon.

This workshop is an important tool in our ongoing efforts to strengthen the capacity of African exporters to fulfill the promise of AGOA.  AGOA offers tremendous things for companies and countries that take advantage of it, but to date we see that AGOA has been under-utilized. 

We hope this workshop will change this.  Trade is growing substantially between the United States and sub-Saharan Africa, and our goal is to maximize the trade potential of AGOA of all eligible countries.

Trade is an essential component in our partnership for economic development.  The United States supports trade as a means of increasing economic stability and prosperity, and as a means of supporting democratic political reform.

More importantly, trade and business are what drive growth and economic development in transition economies.  Aid has its place, but it is fleeting.  Aid tends to focus on building human infrastructure: food, health and education.  These are all important, but they are all things that governments should provide.  Aid is a stop-gap measure, not intended to be indefinite, and thus does not provide the lasting employment and development that trade and business do.

This is why a broad consensus exists that increased trade is key to achieving economic growth.  Economic growth is best achieved when economies are expanding and creating jobs, when hardworking entrepreneurial citizens are free to compete and trade in open markets, and when governments can ensure the political conditions conducive to prosperity, including transparent and accountable governance, the rule of law, property rights and investment in their citizenry.

The United States’ support for African economic development reflects our shared belief in the right of every person to flourish in freedom and to determine his own destiny.

The African Growth and Opportunity Act, or “AGOA,” is based on the virtuous link between trade, economic growth, good governance, and poverty reduction.

AGOA is a partnership between the United States and Africa and is a commitment to creating an environment that encourages Africans to secure their own prosperity.  AGOA’s principles have been embraced by the vast majority of countries in sub-Saharan Africa; 8 of the 10 countries in Central Africa are currently AGOA-eligible.

AGOA is unique in that it encourages value-added exports to the U.S. market, compared with traditional exports of raw commodities.  

In the old African economy, raw materials were extracted by some of the world's lowest-paid workers and then shipped abroad for processing.  In the new African economy, African workers are employed in higher-paying jobs in modern facilities producing more sophisticated products, including specialty food items such as gourmet coffee and tea, cosmetics containing shea butter, and home décor and furniture items that are sold in America’s largest department stores.

In Cameroon, among other things, we are looking for ways to increase exports of handicrafts and home decor items.  This spring, our Commercial Section will lead a trade delegation to the United States to exhibit in national handicraft and gift shows.  In addition to seeing some of Cameroon’s beautiful wood products in U.S. stores, we also look forward to seeing coffee, dried fruit and even tropical fruit jams and jellies for sale in American markets.

Nonetheless, challenges remain.  Outside of exports of oil, the countries of Central Africa have not been able to take significant advantage of the market access offered by AGOA.  There are hundreds of products and many product sectors that remain untapped under AGOA.

Some of the reasons for this include deficient infrastructure, corruption, and an inadequate legal structure, which makes African products 25% more expensive than they should be, according to the World Bank.  Imagine how much exports would increase, and how many more jobs would be created, if producers and exporters could significantly reduce that margin.

With this in mind, President Bush announced the African Global Competitiveness Initiative, or AGCI, in July 2005 to enhance sub-Saharan Africa’s ability to competitively trade in global markets.  Through this initiative, the U.S. Government collaborates with African governments, regional organizations, and private-sector partners to identify and address the constraints to growth.  

These constraints include the policy environment for trade and investment, the market knowledge of private sector enterprises, access to financial services, and public investment in infrastructure.

We are implementing AGCI through the USAID Trade Hubs, including those in Dakar, Accra and Nairobi, which cover Central Africa countries represented here today.  These Hubs serve as a central point for information and technical assistance on trade and investment. 

The Hubs help export-ready firms improve their business practices so they can meet the rigorous standards of the international market.  They help select firms to attend trade shows in the United States, where they meet buyers and continue to learn what it takes to be major players on the global stage.

The Hubs also work with regional organizations to implement policies that encourage the efficient movement of goods across borders, such as technology-driven customs initiatives and efforts to galvanize public support against bribes and delays along regional corridors.

Africa is a bountiful continent, full of talented people and endless possibilities.  Our aim is to help Africa more fully realize its own prosperity by helping unlock its potential.  One does not have to go far to witness the entrepreneurial spirit that thrives here.  The marketplaces of Douala and Yaounde are teeming with enthusiasm and creativity.

You are the leaders of a new African economy that rightfully takes its place in the global marketplace.  We are hosting this workshop precisely because we want our trading relationship with Africa to be much stronger.  The new products you create can find markets in the United States.  These exports will bring jobs and income to your countries, and help develop the capabilities of your workforce, which will be using more advanced equipment and production techniques.

We hope that in the sessions of this workshop, you will gain the tools you need to be able to participate actively in our marketplaces, and that at the same time you will help us understand what we need to do in the United States to make our markets more accessible for your products.

After almost three years here promoting AGOA, let me add one final observation. AGOA is an invitation and an opportunity to compete in the world’s largest, most competitive market. But it is not a guarantee of success. To succeed, after your governments have done their jobs, African exporters under AGOA need to both understand our market and     build their capacity to meet both its quality and quantity demands. This is not easy and no one should suggest that it is. But it is possible and it is extremely rewarding for those who master these challenges. We are all here today because we believe that you can master them and that you can complete successfully in our market.

Again, I am very pleased to welcome you here, and I hope the workshop will be as interesting and useful as it promises to be.

Thank you.