本文是一篇英语毕业论文,本文认为AGOA是美国扩大其在SSA的利益和影响力的战略工具。资本主义经济体系内部的结构性差异对美国和SSA国家在AGOA下的利益产生了重大影响。AGOA在促进向美国利益趋同的同时,也制约了SSA国家的发展和利益。
1 The Development of AGOA: A Reinforcement of Core-periphery System
1.1 Readjustment of US Policy towards Africa
During the late Cold War, the rivalry between the United States and the Soviet Union was easing off, leading to a reduction in Africa's geopolitical value to the United States. In the early 1990s, the total amount of U.S. aid to Africa decreased, and Africa's status in U.S. decision-making institutions was marginalized (Shrader and Du 64). This decline in investment and aid reflected a significant contraction of U.S. strategic engagement in Africa.
In the mid-1990s, Africa garnered international attention as a region of both promise and peril. The wave of independence in the 1950s and 1960s profoundly influenced Africa, leading to successive independence movements in more African countries throughout the latter half of the 20th century. Namibia's final independence in 1990 marked a significant milestone, signifying the end of colonial rule in Africa. The independence of African countries brought about profound changes in the political landscape of the continent. Many countries committed themselves to advancing reform measures, in particular by promoting active participation in the democratic process. A more stable political environment also contributed to the reform and development of the region's economies, with countries during this period placing greater emphasis on growth, private sector development and greater openness to the global economy. African countries also endeavored to forge a united and cooperative Africa, ensuring that member states speak with one voice in major international affairs. This period witnessed the establishment and development of several integration organizations, particularly in the economic sphere, such as the Southern African Development Community (SADC), the West African Monetary and Economic Union, and the Eastern and Southern Common Market. These economic unions aimed to synergize African countries, enhancing their political and economic status on the global stage. However, alongside these positive developments, Africa was also beset by complex challenges. The end of the persistent Cold War confrontation and the subsequent waning interest from the United States exposed underlying tensions on the continent. Some areas were plagued by deep-rooted issues such as ethnic conflicts, religious unrest, and criminal violence, which often led to civil wars, political chaos, and hindered democratic and economic progress. Additionally, areas in anarchy risked becoming breeding grounds for terrorism. These unstable factors not only threatened U.S. global democratic interests but also international security. Given Africa's vulnerabilities, international intervention and assistance were deemed necessary.
1.2 AGOA and Its Amendments
AGOA, as a decisive economic act linking the United States and SSA for more than twenty years, is detailed in content and strict in requirements. It stipulates a set of conditions regarding the eligibility of beneficiary countries and products seeking access to the U.S. market under preferential treatment. Despite its detailed nature, AGOA is not set in stone. The expiration has been extended twice, and some provisions have also been revised several times based on its implementation.
AGOA stipulates that its expiration date is September 30, 2008, and sets forth fundamental rules. Firstly, to be eligible for AGOA benefits, a SSA country must have established an open market-based economy that protects private property rights and minimizes government interference. It must also advocate for the rule of law, political pluralism, and rights such as due process and equal protection under the law. Additionally, the country must eliminate trade and investment barriers with the U.S., protect intellectual property, and resolve disputes. It should adopt policies to reduce poverty, improve healthcare and education, develop private enterprise, and encourage capital markets through programs like micro-credit. Moreover, it must combat corruption and protect workers' rights.
Secondly, AGOA imposes requirements on a beneficiary country's foreign policy. Such a country should not engage in activities that undermine U.S. national security or foreign policy interests, support international terrorism, or engage in gross violations of human rights. The country should also cooperate in international efforts to eliminate human rights violations and terrorist activities.
2 AGOA Performance: the Interaction between Core and Periphery
2.1 The U.S.: the Core of Dominant
The United States, as the leading capitalist country globally, possesses a large economic volume and a powerful state machinery. It is also the only country belonging to the core area and playing roles within the framework of AGOA. The implementation of AGOA has expanded US trade engagements with SSA and has also facilitated its access to significant interests in various sectors, including the economy, oil, democracy, security, and others. As a result, the United States has emerged as the biggest vested beneficiary under AGOA, strengthening its core position in the world economic system.
(1) Economic expansion towards the periphery
The United States granted AGOA recipient status to 36 SSA countries in 2022. In spite of the previous claims of the United States that it had little economic interest in SSA, and it did run a trade deficit with the SSA as a whole form the yearly trade volume, the main reason was due to its heavy imports of crude oil and other raw materials in SSA. In reality, as the U.S. demand for SSA crude has declined in recent years, the trade deficit has also narrowed. At the same time, AGOA has helped expand the share of U.S. goods in the SSA market, with overall U.S. exports to SSA increasing and the export structure diversifying. First of all, Since AGOA came into effect, US exports to SSA have significantly increased, especially from 2003 to 2008, with an average annual growth rate of about 21%, approximately 2.6 times higher than before the Act. Although there was a short decline in US exports in 2009 due to the global financial crisis, exports quickly resumed growth the following year. In 2014, US exports to SSA exceeded $25 billion, reaching a peak since 2000. Despite subsequent sharp declines in 2014-2016 for the weak global trade and a small decline in 2019-2020 due to the global pandemic, US total exports have slowly recovered after both fluctuations, reaching $16.5 billion in 2021.
2.2 SSA: the Periphery of Being Dominated
Africa is home to the largest number of least developed countries in the world, and even today, 33 of the world's 45 least developed countries are in this continent, with SSA being the most concentrated area. The lower level of development and lack of involvements in global economic activities define the peripheral statues of SSA. Thus, AGOA is often seen as a significant opportunity for SSA to attract foreign investment, develop the local economy, and escape poverty. There is no denying the stimulus provided by AGOA, as some SSA countries have shown positive trade performance with the Act in terms of trade data. However, trade volume reflects just one aspect of SSA's engagements with the core under AGOA. It remains questionable whether SSA, as the periphery, has truly improved in the world system and whether the benefits under the Act are sustainable. The inevitable attribute of being dominated determines the limits on the development of the periphery. As a result, the Act also promotes an outflow of benefits from SSA.
(1) Trade growth driven by oil exports
AGOA has promoted the growth of two-way trade between the US and SSA. According to the trade volume data since 2000 (see Fig. 2.3), the period from 2000 to 2008 revealed the golden age of trade relations between the two, with an average annual growth rate of 22.17%. Trade exceeded 100 billion dollars and reached its peak in 2008. In terms of trade contribution, SSA has shown its advantage in exports under AGOA, maintaining a trade surplus with the United States. Its export growth has exceeded that of the United States, becoming the main driving force behind the surge in the two-way trade. However, despite AGOA's positive incentives for the exports of beneficiary countries, their trade volume remains negligible for the United States, especially compared to its trade partners worldwide. SSA's trade with the United States has accounted for no more than 3% of total U.S. foreign trade since 2000, and even less than 1% after 2015, reaching the lowest level since the implementation of AGOA. SSA countries have continued to be ranked lower among US trading partners, with only five SSA countries—South Africa, Nigeria, Angola, Ethiopia, and Ghana—ranking within the top 100 in 2019. Moreover, AGOA has failed to bring about a sustained increase in SSA trade with the United States. The sharp decline in SSA exports from 2012 to 2015 led to a stagnation in trade growth, and the trade volume never recovered to the original level after that.
3 Comparative Study on Disparity in Effect under AGOA: Kenya and Chad ................. 40
3.1 Disparity in Trade Performance under AGOA between Kenya and Chad ........ 41
3.2 Influential Factors on the Capability in AGOA Utilization ................... 45
Conclusion ..................................... 55
Major Findings ................................. 55
Limitations ................................ 56
3 Comparative Study on Disparity in Effect under AGOA: Kenya and Chad
3.1 Disparity in Trade Performance under AGOA between Kenya and Chad
Both Kenya and Chad were among the first group of SSA countries designated as AGOA beneficiaries in 2000, and they have remained on the beneficiary list ever since. Kenya was declared eligible to receive AGOA textile and apparel benefits as of May 1, 2002, while Chad gained this eligibility in 2006.
Over the past two decades, the trade volume between Kenya and the United States has been growing incrementally. As shown in Figure 3.1, Kenya maintained a small trade deficit during the early years of AGOA, but this trend gradually shifted since 2016, with growing exports from Kenya surpassing imports. Two-way trade volume between them reached approximately $1.5 billion in 2022, with nearly 60% contributed by Kenya's exports. In addition to the increased trade volume, Table 3.2 reveals that Kenya has a relatively diversified export structure to the United States, and the utilization of AGOA preferences varies from sector to sector.
The textiles and apparel sector is undoubtedly the primary driver of Kenya's exports. Kenya has maintained its position as the top apparel exporter to the U.S. market among SSA countries for the last nine consecutive years, as of 2022 (EPZA 27). Not only did the textiles and apparel sector contribute the largest export volume in 2022, but it also had the highest AGOA utilization rate of 97.45%. The footwear sector also enjoyed higher preferential access under the Act despite its smaller volume. Moreover, the high duty advantage under AGOA promotes Kenya's capability in attracting investments. Statistically, in 2022, 38.9% of the enterprises in Export Processing Zones (EPZ) were foreign-owned, 18.5% were joint ventures, and 42.7% were wholly Kenyan (EPZA 23). Many major brands and U.S. retail outlets, including PVH and H&M, have expanded procurement in SSA and regard Kenya as a new sourcing location. Meanwhile, the sector is also a major contributor to employment.
Conclusion
Major Findings
AGOA, a non-preferential trade act designed by the United States for SSA, strengthens the interaction between the core country and the periphery in the world economic system. Generally speaking, AGOA has promoted the growth of trade engagement between the United States and SSA, particularly in SSA exports. However, the deepened structural inequality within AGOA mechanism has resulted in a more uneven distribution of benefits under AGOA.
AGOA originates from the demand of the U.S. to maintain and strengthen the core status in world economic system. The AGOA legislation aligns with the U.S. strategic adjustment towards Africa, symbolizing a transition from neglect to renewed emphasis and a shift in focus from politics and security to economy and development. Through a broader spectrum of tariff lines, particularly concentrating on garment manufacturing, AGOA provides opportunities for a wider array of products from SSA countries to access the U.S. market duty-free, especially those form the less developed SSA countries who are allowed benefit from the third-country fabric provisions. AGOA amendments have extends the original deadline and the key preferential treatment for several times and relaxed the limitations on certain products in this region, reflecting the intent of the U.S. to maintain business ties with SSA and the lasting interest in this region. In addition to the detailed requirements for preferential products, AGOA also imposes strict additional qualification conditions beyond economic criteria on SSA countries. Essentially, AGOA is domestic legislation that emphasizes the interests of the United States, thereby determining legal-level inequality between the U.S. and SSA.
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