Factors Affecting Trade Patterns of - United States International ...
Factors Affecting Trade Patterns of - United States International ...
Factors Affecting Trade Patterns of - United States International ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
several multinational companies to invest in shea processing in Ghana and<br />
Burkina Faso.<br />
Infrastructure Improvements Contributed to Increased<br />
Exports<br />
Some SSA governments, as well as international lenders such as the World Bank,<br />
improved infrastructure or production facilities to assist domestic industries.<br />
Infrastructure and transportation services improvements were especially<br />
beneficial to exports <strong>of</strong> shea butter, certain tropical fruit, aviation services, and<br />
communication services. Côte d’Ivoire, Ghana, and Cameroon export the<br />
majority <strong>of</strong> their fresh pineapples and bananas to the EU, so proper cold storage<br />
facilities and appropriate tracking and handling equipment are key components<br />
for the industry. Also, expansion and upgrades <strong>of</strong> the fruit wharf at the port <strong>of</strong><br />
Abidjan were key in Côte d’Ivoire’s increasing banana sector exports. Several<br />
landlocked countries in West Africa require adequate road and rail networks to<br />
transport goods primarily to Senegal and Ghana for export by freight or air.<br />
Improved roads in Ghana and railroads and air transport in Senegal facilitated<br />
increased SSA exports <strong>of</strong> shea butter. Improved airport facilities and more direct<br />
routes contributed to increased aviation services exports.<br />
SSA Regional Integration Facilitated Exports<br />
Strengthened ties among members <strong>of</strong> the Common Market for Eastern and<br />
Southern Africa (COMESA) and the formation <strong>of</strong> the East African Customs<br />
Union (EAC) also improved efficiencies and increased regional trade. The<br />
establishment <strong>of</strong> the EAC between Kenya, Uganda, and Tanzania in 2005 likely<br />
contributed to the increased level <strong>of</strong> footwear trade, particularly between Kenya<br />
and Uganda, in 2005 and 2006 by liberalizing tariffs on intra-EAC trade while<br />
establishing a common external tariff.<br />
Tariff Preferences Boosted SSA Exports<br />
Tariff preferences provided a boost to SSA exports <strong>of</strong> footwear and textiles. For<br />
example, the Cotonou Agreement, which requires the use <strong>of</strong> regional fabric in<br />
apparel receiving duty-free treatment to the EU, and South Africa’s elimination<br />
<strong>of</strong> tariffs from Southern African Development Community (SADC) partner<br />
members both contributed to increased intra-SSA textile exports during 2002−06.<br />
For footwear, the elimination <strong>of</strong> tariffs under the African Growth and<br />
Opportunity Act (AGOA) contributed to increased exports <strong>of</strong> footwear from<br />
South Africa to the <strong>United</strong> <strong>States</strong> during 2002−06.<br />
Sector and Market Liberalizations Increased SSA Exports<br />
Liberalizations in the c<strong>of</strong>fee, communication services, and aviation services<br />
sectors in several SSA countries helped to facilitate greater exports. Reduced<br />
government intervention in the c<strong>of</strong>fee sectors <strong>of</strong> several SSA countries allowed<br />
producer prices to be linked to higher prices. The introduction <strong>of</strong> competition and<br />
xiv