Ask the Ambassador - March 2010

03/29/2010 - 12:19pm

We recently received a question about the African Growth and Opportunity Act (AGOA).  Frank from Texas asks:

"Ambassador Kirk, I just found out the AGOA benefits will be over starting January 1, 2010. Why? This has been a great benefit for countries such as Madagascar. Are there any plans in the future to reverse this? Has this been implemented already?"

Ambassador Kirk responds:

"Thank you for the question, Frank.  The African Growth and Opportunity Act (AGOA) will not expire until 2015.  However, AGOA requires the President to annually designate countries as eligible to receive the benefits of the Act, if they meet the Act's eligibility criteria.  These criteria include, among other things, progress on rule of law and political pluralism.  The March 2009 undemocratic transfer of power in Madagascar, and the subsequent failure to establish concrete steps toward re-establishing a constitutional democratic government and rule of law led to the termination of Madagascar's AGOA benefits in January 2010.  The United States joined the international community, including the African Union and the southern African Development Community in condemning the March 2009 coup.  According to the AGOA legislation, all nations will once again be up for review at the end of 2010.

For the 38 countries that meet the eligibility criteria, the combination of most favored nation rates (MFN), Generalized System of Preferences (GSP), and AGOA means that almost all their goods enter the United States duty-free.  Africa accounts for only two percent of global trade and it is an initiative like AGOA that can bolster Africa's capacity to trade internationally, while also opening new business opportunities for American workers and firms.  Two-way trade between the United States and AGOA nations has more than doubled since the AGOA legislation was signed in 2000.  AGOA increases trade opportunities on both sides of the Atlantic, like the molded fiber-glass home manufacturer from Mississippi shipping their low-maintenance and energy-efficient structures to Nigeria and other AGOA members.  AGOA has also played an important part in generating dialogue and brokering partnerships between American and African entrepreneurs- expanding opportunities for both trade and investment.  We look forward to a year of growth and recovery with our African trading partners, as American businesses expand into new markets, and bring the benefits of trade back home to our workers and families."

03/15/2010 - 2:37pm

We recently received a question about our trading partners in the Pacific. Joe from Missouri asks:

"Will the negotiations between the US and New Zealand (and the others in the "P-4") resume soon? I followed the AUSFTA in the early 2000s and am eager to see what comes of the NZ negotiations. I'm particularly interested to see a framework developed that would promote and allow the mutual recognition of qualifications in professional services. I believe the AUSFTA encouraged this but to what extent that was successful, I do not know."

Ambassador Kirk responds:

"Thank you for your question, Joe. New Zealand is an important trading partner for the United States, with U.S. exports totaling more than $4.3 billion in 2008. American businesses have already seen the potential in markets across the Pacific, and are exporting machinery, electronic equipment and other goods.

For example, one small, high-tech firm from Pleasanton, California, is exporting its innovations, selling robotics and software to New Zealand and other Asia-Pacific countries.

Businesses and workers will continue to see the benefits of trade with a comprehensive and high-standard agreement linking the economies of the Asia-Pacific region.

Last year President Obama announced his intentions to enter into negotiations of a regional, Asia-Pacific trade agreement, known as the Trans-Pacific Partnership (TPP). USTR currently has senior staff in Australia for the first round of negotiations, and they are working toward an agreement that will increase American exports, enhance our competitiveness abroad and support job opportunities for American workers. The current TPP includes Australia, Brunei, Chile, New Zealand, Peru, Singapore, and Vietnam. A successful TPP agreement will expand trading opportunities with New Zealand and other Asia-Pacific economies - an effort vital to America's economic future.

We are working with Congress and stakeholders to develop a TPP agenda that reflects our priorities and provides the greatest benefit for American families and workers. Be sure to check out USTR.gov this week for updates from the TPP negotiations in Australia."

03/05/2010 - 11:58am

We recently received a question about our trading relationship with Mongolia.  Roger from Indiana asks:

"Are we in negotiations with Mongolia to develop a free trade agreement? I think they would be a good partner."

Ambassador Kirk responds:

"Thank you for your question, Roger.  While we are not currently in negotiations with Mongolia for a free trade agreement, we continue to pursue trade initiatives with Mongolia through the U.S.-Mongolia Trade and Investment Framework Agreement (TIFA), established in 2004.  Since launching the agreement, U.S. exports there have more than doubled, as American-made vehicles, machinery, electronic equipment and other goods have made their way to Mongolian markets.  Through this forum we have been able to address a wide-range of trade and economic issues to help strengthen our trading relationship in areas like intellectual property rights, labor, environmental matters, non-tariff barriers, and transparency.  USTR continues to take steps in enhancing our trade relationship so that American businesses can have more open access to markets in Mongolia and increase exports there.

In an effort to boost trade, last year we launched negotiations for a United States-Mongolia Transparency Agreement, designed to establish mutual commitments on transparency in trade and investment.  Once completed, this agreement should lead to increased clarity for businesses trying to export.  A completed Transparency Agreement, complemented by continuing bilateral dialogue on other issues, should make it possible for more and more U.S. businesses and workers to benefit from our growing trade relationship with Mongolia. "

Thank you for continuing our dialogue on trade. Please keep submitting your questions and comments for the Ambassador.

Thank you for continuing our dialogue on trade. Please keep submitting your questions and comments for the Ambassador.