Error processing SSI file
NEWS RELEASE 03-002; January 6, 2003
January 6, 2003
News Release 03-002
Inv. No. 332-415
ITC RELEASES THIRD 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 third in a series of reports intended to assist the President in developing
a comprehensive trade and development policy for the countries of sub-Saharan Africa.
The ITC, an independent, nonpartisan, fact-finding federal agency, conducted the investigation
for the United States Trade Representative (USTR). As requested by USTR, the ITC's study is
limited to the 48 countries of sub-Saharan Africa (SSA).
The current report provides an update for 2001 on U.S.-SSA trade and investment flows in major
sectors; information on the African Growth and Opportunity Act (AGOA); a discussion of major
developments in trade and economic policies that significantly affect U.S.-SSA bilateral trade
and investment; an update on progress in regional integration in sub-Saharan Africa; and a
compilation of multilateral assistance, U.S. bilateral assistance and trade-related initiatives
related to sub-Saharan Africa. The report contains economic profiles for each of the 48 countries
of sub-Saharan Africa and sector profiles for five major SSA export sectors: agricultural,
fisheries, and forest products; chemicals; petroleum and energy-related products; minerals and
metals; and textiles and apparel. Following are highlights of the report:
U.S.-Trade and Investment with Sub-Saharan Africa (Investigation No. 332-415, USITC Publication
3552, December 2002) will be available on the ITC's Internet server at www.usitc.gov. A CD of the
report 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 202-205-2104.
- In 2001, a decrease in U.S. imports from, and an increase in exports to, sub-Saharan Africa
resulted in a 13.9 percent decrease in the long-standing U.S. trade deficit with the region.
The 2001 deficit measured $14.3 billion, with much of its decrease due to a 58.8 percent
increase in U.S. exports of transportation equipment and a 20 percent rise in machinery
products. Excluding trade in petroleum, the U.S. trade deficit with the region decreased by
73.7 percent from $3.8 billion in 2000 to $1 billion in 2001.
- U.S. merchandise exports to sub-Saharan Africa increased from $5.6 billion in 2000 to
$6.8 billion in 2001. The largest U.S. exports to sub-Saharan Africa were transportation
equipment (42.4 percent share), chemicals and related products (11.6 percent), electronic
products (10.4 percent), and machinery (9.9 percent). The largest increases in U.S. exports to
the region were in transportation equipment ($1.1 billion) and machinery products
($110.9 million). U.S. exports of agricultural products to the region decreased by
$111.7 million in 2001.
- Total U.S. merchandise imports from the region decreased slightly from $22.2 billion in 2000
to $21.1 billion in 2001. This decrease was mainly due to a $793.5 million (54.6 percent)
decrease in U.S. imports of chemicals and related products from the region. Most of the
decline was accounted for by petrochemicals from Nigeria.
- Major U.S. import sectors from the region included energy-related products (67.8 percent
share), minerals and metals (14.6 percent), and textiles and apparel (4.7 percent). Total U.S.
imports from the region increased in footwear, transportation equipment, machinery and
textiles and apparel, and decreased in chemicals, forest products, electronics and energy-
- The first U.S. imports under the African Growth and Opportunity Act (AGOA) were in January
2001. U.S. imports covered under AGOA (including its GSP provisions) totaled $8.2 billion in
2001. The principal suppliers under AGOA (including GSP) were Nigeria ($5.7 billion or
70 percent), Gabon ($938.8 million or 12 percent), and South Africa ($923.2 million or 11 percent).
- AGOA (including GSP) imports were dominated by U.S. purchases of energy-related products in
2001. The remaining AGOA (including GSP) imports comprised smaller quantities of textiles
and apparel, minerals and metals, and transportation equipment.
- U.S. direct investment flows to the region totaled $798 million in 2001, or less than 0.1 percent
of total U.S. direct investment abroad. In 2001, despite large net inflows to Nigeria, U.S. direct
investment flows to sub-Saharan Africa decreased by 30.7 percent, compared with a decline of
30.9 percent in total U.S. direct investment abroad. The decline was mainly due to a reversal of
capital flows between the United States and South Africa. A drop in the rand and uncertainty in
the region, compounded by events in Zimbabwe, could have contributed to the flight of
investment capital from South Africa. Nevertheless, U.S. direct investment position in Africa
increased by 10.1 percent in 2001, to $15.9 billion. South Africa hosted $3 billion or
18.6 percent of U.S. assets in Africa, Angola $1.5 billion or 9.4 percent, and Nigeria $1.3 billion
or 8.1 percent. U.S. holdings were principally in the petroleum sector in Angola and Nigeria, and
in the mining and manufacturing sectors in South Africa.
- During FY 1999 through FY 2001, U.S. government agencies' funding for trade capacity-building
initiatives in sub-Saharan Africa totaled $192 million. USAID contributed more than 50 percent
of the total funding during this period. U.S. government agencies provided assistance through a
number of funding channels, with the largest share (25.9 percent) falling under the "trade
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 requester.
General factfinding investigation reports are subsequently released to the public, unless they are
classified by the requester for national security reasons.
-- 30 --