International TradeNewsletter - January 9, 2002
In this Issue...
Africa Update
January 9, 2002
- The White House has announced the list of 35 countries that will be
eligible to receive preferential trade benefits in 2002 under the African
Growth and Opportunity Act (AGOA). The naming of these countries as AGOA-eligible
beneficiaries signifies that the U.S. has no major issues with the countries’
progress toward a market-based economy, the rule of law, free trade,
economic policies to reduce poverty, and the protection of workers’
rights. Notably absent from the list are Angola and Zimbabwe. While the
announcement does not give the reasons for these countries’ absence, the
government of Zimbabwe is widely criticized for its use of violence against
white farmers and Angola for its continued failure to hold elections.
- In order to access AGOA apparel benefits, eligible countries are required
to develop an effective visa system and related procedures to prevent
unlawful transshipment with respect to textiles and apparels. In early
December the USTR announced that Namibia has implemented an effective
system. This announcement brings to 11 the number of countries eligible for
the AGOA apparel benefits.
- Zimbabwe: A new law, the Zimbabwe Democracy and Economic Recovery
Act of 2001, aims to undercut the Mugabe regime, which is widely viewed as
perpetuating violence in the country. The law, among other things, authorizes
the United States to vote against future loans to Zimbabwe by multilateral
financial institutions, and authorizes the President to initiate consultations
with the European Union, Canada and other states on ways to impose travel and
economic sanctions against the individuals responsible for the violence in
Zimbabwe. In general, these sanctions should not affect companies with
investments in or doing business in Zimbabwe. However, President Mugabe and
other individuals in his government will most likely be targeted by such
sanctions. Therefore, any entity doing business with these individuals could
be negatively affected.