It will also facilitate the growth of the oil sectors in many of these countries, as foreign multinationals will use access to efficient and reliable port services to bring in equipment and personnel, as well as supplies.
Trade Ties Expanding
Beyond the political necessities created by the current strain in U.S. and European relations with the Middle East, there are several other reasons for the West to increase trade with African states: cheaper labor, cheaper raw materials and fewer trade restrictions. Europe is already pushing for bilateral trade ties with North African
Trade Ties Expanding
Beyond the political necessities created by the current strain in U.S. and European relations with the Middle East, there are several other reasons for the West to increase trade with African states: cheaper labor, cheaper raw materials and fewer trade restrictions. Europe is already pushing for bilateral trade ties with North African
states and relocating many light-manufacturing and textile factories to the region.
Now Washington is trying to do the same. A U.S. bilateral trade deal known as the African Growth Opportunity Act, which gives producers from 35 eligible African countries zero-tariff access to the American market, is seen as a good first step for expanding trade, and it has already been used by U.S. textile producers to develop partnerships with producers in countries like Kenya and Uganda.
Though the lion's share of investment in Africa goes toward the petroleum sector,
Now Washington is trying to do the same. A U.S. bilateral trade deal known as the African Growth Opportunity Act, which gives producers from 35 eligible African countries zero-tariff access to the American market, is seen as a good first step for expanding trade, and it has already been used by U.S. textile producers to develop partnerships with producers in countries like Kenya and Uganda.
Though the lion's share of investment in Africa goes toward the petroleum sector,
and will continue to do so, investors are also looking at expanding trade in non-petroleum sectors in politically stable environments. That is why Washington is especially interested in promoting investment in Ghana.
Peter Watson, president of the U.S. Overseas Private Investment Corporation, visited Ghana, Nigeria and South Africa in April as part of an effort to encourage investment in those countries, and in May U.S. Treasury Secretary Paul O'Neil stopped in Ghana on the first leg of a four-nation African tour with U2 lead singer Bono to evaluate the positive and negative aspects of donor aid.
Peter Watson, president of the U.S. Overseas Private Investment Corporation, visited Ghana, Nigeria and South Africa in April as part of an effort to encourage investment in those countries, and in May U.S. Treasury Secretary Paul O'Neil stopped in Ghana on the first leg of a four-nation African tour with U2 lead singer Bono to evaluate the positive and negative aspects of donor aid.