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NEWS RELEASE 02-011; JANUARY 24, 2002
January 24, 2002
News Release 02-011
Inv. No. 332-415
ITC RELEASES SECOND ANNUAL REPORT ON U.S. TRADE AND INVESTMENT
WITH SUB-SAHARAN AFRICA
The U.S. International Trade Commission (ITC) today released U.S. Trade and Investment with
Sub-Saharan Africa, the second report in a series of five intended to assist the President in
developing a comprehensive trade and development policy for the countries of Africa.
The ITC, an independent, nonpartisan, factfinding federal agency, conducted the investigation for
the United States Trade Representative (USTR). As requested, the ITC's study is limited to the
48 countries of sub-Saharan Africa. The current report provides an update for 2000 on
U.S.-Africa trade and investment flows in major sectors; an identification of major developments
in U.S. trade and economic policy and commercial activities that significantly affect bilateral
trade and investment with the region; information on changing trade and economic activities
within individual countries; and an update on progress in regional integration in Africa. The
report also contains an economic profile for each of the countries of sub-Saharan Africa. In
addition, the ITC posts updated data from the report periodically on the ITC website. Data on
quarterly U.S. trade with sub-Saharan African countries as well as sectoral trade with those
countries can be accessed at www.usitc.gov/tradereports/africa/. The website contains trade data
relating to the new African Growth and Opportunity Act (AGOA).
Following are some highlights of the report:
- In 2000, a very large increase in U.S. imports from, and a small increase in exports to, sub-
Saharan Africa resulted in a 97.8 percent increase in the long-standing U.S. trade deficit
with the region. The 2000 deficit measured $16.7 billion, with much of its increase due to
an 88 percent increase in U.S. imports of oil and energy-related products. Excluding trade in
petroleum, the U.S. trade deficit with the region increased by 134 percent from $1.6 billion
in 1999 to $3.8 billion in 2000.
- U.S. merchandise exports to sub-Saharan Africa increased from $5.3 billion in 1999 to
$5.6 billion in 2000. The largest U.S. exports to sub-Saharan Africa were transportation
equipment (32.4 percent share), electronic products (12.6 percent), agricultural products
(13.8 percent), and chemicals and related products (12.8 percent). The largest increases in U.S.
exports to the region were in transportation equipment ($101 million) and chemicals and related
products ($99.6 million). U.S exports of electronic products to the region decreased by
$64.6 million in 2000.
- Total U.S. merchandise imports from the region increased 61.5 percent to $22.2 billion. This
increase was mainly due to a $7 billion (87.7 percent) increase in U.S. imports of energy-related
products from the region. Nigeria alone contributed $5 billion to the increase in U.S. imports with
a 134 percent increase in sales of Nigerian oil and energy-related products to the United States.
- Major U.S. import sectors from the region include energy-related products (67.6 percent share),
minerals and metals (14.4 percent), and chemical and related products (6.5 percent). Total U.S.
imports from the region increased in all major categories, with the exception of footwear,
transportation equipment, and miscellaneous manufactures.
- Imports from sub-Saharan Africa that entered the United States under the Generalized System of
Preferences (GSP) increased by 45.2 percent in 2000 to $3.9 billion. The largest share of GSP
imports from the region came from Angola (72.4 percent share, or $2.8 billion) in part due to a
measure implemented in 1997 that made crude oil imports from least developed beneficiary
countries GSP-eligible. Angola especially benefitted from this change. In 2000, GSP imports
also increased 29.8 percent from South Africa and 52.7 percent from the Democratic Republic of
the Congo (DROC).
- The first U.S. imports the AGOA were in January 2001. During the first half of 2001, the U.S.
imports covered under AGOA totaled $3 billion. The principal suppliers under AGOA were
Nigeria ($2.3 billion), Gabon ($448.5 million), and South Africa ($135.5 million). Other AGOA
suppliers imports in the first half 2001 included Ghana ($18.9 million), Cameroon ($16.2
million), and Kenya ($16.1 million).
- U.S. imports under AGOA consisted primarily of energy-related products. U.S. imports of
energy-related products during the first half 2001 totaled $2.8 billion, 94.2 percent of the AGOA
total. The remaining AGOA imports consisted of much smaller quantities of textiles and apparel,
minerals and metals, agricultural products, transportation equipment, and footwear.
- U.S. direct investment flows to the region totaled $77 million in 2000, or less than 0.1 percent of
total U.S. direct investment abroad. In 2000, U.S. direct investment flows to sub-Saharan Africa
decreased by 92.3 percent. The decline is mainly due to a 91.6 percent decrease in flows to South
Africa, and a 73.9 percent decrease in flows to Nigeria. The largest recipients of U.S. direct
investment in sub-Saharan Africa in 2000 were Angola (32.5 percent) and South Africa
(20.7 percent). U.S. holdings are principally in the petroleum sector in Angola and Nigeria, and in
the mining and manufacturing sector in South Africa.
U.S. Trade and Investment with Sub-Saharan Africa (Investigation No. 332-415, USITC Publication
3476, December 2001) will be available on the ITC's Internet server at www.usitc.gov. A printed copy
may be requested by calling 202-205-1809 or by writing the Office of the Secretary, U.S. International
Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to
ITC general factfinding investigations, such as this one, cover matters related to tariffs or trade, and are
generally conducted at the request of the U.S. Trade Representative, the Senate Committee on Finance
or the House Committee on Ways and Means. The resulting reports convey the Commission's
objective findings and independent analyses on the subjects investigated. The Commission makes no
recommendations on policy or other matters in its general factfinding reports. Upon completion of
each investigation, the ITC submits its findings and analyses to the requestor. General factfinding
investigation reports are subsequently released to the public, unless they are classified by the requestor
for national security reasons.
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