International Trade

AGOA: Market Opportunity and Supply Capacity in capital coast Elizabeth A. Asante, Simon Bawakyillenuo, and Clemente Ahiadeke* G hana has enjoyed access to the U.S. market place chthonic the African Growth and Opportunity Act since its bloodline in 2000. AGOA presents a significant opportunity for gold coast to augment its manufacturing competency and diversify its exportations. However, after 11 years, it has become spare that despite early success, gold coast has not been up to(p) to turn the trading opportunities afforded by AGOA. Ghanas exports to the U.S. change magnitude from $116 million in 2002 to $222 million by 2008.1 The majority of the collys exports to the U.S. are raw materials, with cocoa, wood and ores being among the enlighten export products. A lack of supply capacity, lack of fiscal resources and AGOAs ad hoc implementation has led to its beneathutilization. The generous preferences offered to African countries under AGOA were initiated at a crucial time of plastered world-wide industrial competition and productive efficiency. The removal of import tariffs and quotas on a large variety of local products presented a massive opportunity for Ghana to expand its exports to the United States. AGOA had the positive kernel of encouraging the different sectors of the Ghanaian economy to collaborate.

AGOA was expected to instigate industrialization as domestic firms grow and diversified in order to add value to local products for export. It was also judge that the ensuing industrialization would increase employment by enthrallin g surplus labor. To date, however, these ex! pectations have not been met. Approaches to Implementing AGOA AGOA Opportunities: Free Access to U.S. Markets Upon the impersonation of AGOA, the government of Ghana, under the leadership of the New Patriotic Party, readily began to take down groundwork to position the country to exploit the benefits extended by the act. particular(prenominal) products were identified for preferential access under AGOA,...If you want to agitate a full essay, order it on our website: OrderCustomPaper.com

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