African business leaders say that the United States can do more to encourage investment on the continent. Obama administration is in agreement. US Secretary of State Hillary Clinton should close a meeting in Zambia on U.S. trade preferences.
The African Growth and Opportunity Act has been the cornerstone of the investment on the American continent for over ten years. But the vast majority of goods imported duty-free is textiles and oil.
African producers met in Zambia want to diversify exports and that the Government of the United States can do more to help.
Chungu Mwila, the Director for the development of the private sector in the common market for Eastern and southern Africa, says the trade preferences known as AGOA would be more valuable with the more direct U.S. investment.
"If American companies to invest in Africa and to strengthen our production capabilities, and then, in our view, AGOA would become more significant,"said Mwila.
With most U.S. foreign direct investment still go in Latin America and Asia, Mwila said that the Obama administration should do more to bring American companies in Africa.
"I think that there is much more that the United States, the strongest economy in the world, can make by assisting in the strengthening of the capacities of our industries, by ensuring that certain US companies come and look around." "After all, Africa is no longer a place of risk," said Mwila.
The Obama administration accepts and asks Congress to extend trade preferences of AGOA for ten years. Assistant American Secretary of State for African Affairs Johnnie Carson, said that there should be a greater tax incentives for compensation of U.S. from investments of AGOA.
He said "the AGOA already provides savings substantial tariff business U.S. importers of eligible products from Africa, but there is not other types of tax incentives provided under the law,". "We recommend that the Government of the United States support to eliminate U.S. tax on revenues in returnees from us companies that invest in factories in Africa who manufacture eligible products to the AGOA.".
Carson, said he is encouraged by the progress of Africa, but the rest of the continent economically challenged and continues to need programs like the AGOA to provide incentives for greater growth.
"Although AGOA has reached a certain amount of success, it has not solved the challenges economic, financial and trade in Africa and the region has not undergone fundamental economic transformation that we seek for Africa as a whole," he said. "" "". Africa continues to struggle to compete in an increasingly competitive global economy. »
Carson, says the Obama administration wants U.S. legislators to extend beyond the next year a provision allowing nations AGOA eligible materials materials textile source of third countries.
Mwila says that this extension and renewal of AGOA as a whole, will bring more business to a continent which is more attractive for investors.
"We have very liberal economic regimes," Mwila said. "Our fundamental economic macro is implemented." For example, the rate of inflation fell. Exchange rates are stabilizing. And the economic growth rate is among the highest in the world, around five or six per cent. You will not even to the United States. »
US Secretary of State Hillary Clinton to close this forum of AGOA Friday before the meeting with Zambian President Rupiah Banda.
Source : Click Here
No comments:
Post a Comment