12.12.2012 Views

Factors Affecting Trade Patterns of - United States International ...

Factors Affecting Trade Patterns of - United States International ...

Factors Affecting Trade Patterns of - United States International ...

SHOW MORE
SHOW LESS

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

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!