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Mauritians on the Move, American Style

AGOA Forum in Washington assesses 10 years of U.S.-Africa Trade

By Pamela de St. Antoine

Washington Correspondent

The 10th anniversary of the African Growth and Opportunity Act (AGOA) - the U.S. trade law that has helped Mauritius greatly expand its textile and apparel exports to the United States - was celebrated last week at the AGOA Forum.

At their annual meeting to assess U.S.-Africa trade links, African and American leaders recognized this milestone but also looked ahead to an uncertain future, as the AGOA law is set to expire in five years.

This year's Forum was held in Washington, D.C. and Kansas City, Missouri from Aug. 2-6. Arvin Boolell, Minister of Foreign Affairs, represented Mauritius, and chaired one of the plenary sessions.

Much has been accomplished during the past decade, as African nations including Mauritius have expanded their trade and opened new factories that export an array of goods to the United States, including footwear, seafood, flowers, jams and rum.

Two-way trade between the United States and Africa has more than doubled, with African exports to the U.S. reaching almost $47 billion in 2009. The global recession has slowed trade, but in the first part of 2010, "we are seeing a rapid recovery of Africa's exports to the United States," U.S. Trade Representative Ron Kirk told the Forum.

Although 90 percent of AGOA's trade is in oil and related minerals, Kirk said, AGOA has brought about a greater diversity of African products exported to the U.S. market. Kirk specifically mentioned the export of sunglasses from Mauritius in his speech.

But Kirk and others acknowledged that AGOA has not reached its full potential, and there is still a lot of room for improvement.

Kirk called for a redoubling of efforts to expand the diversity of AGOA trade that would utilize all the product lines available to African exporters under the law. It was noted at the Forum that Africans are exporting less than 200 products to the United States of the more than 6,000 that are eligible for duty-free, quota-free trade under the law.

The United States, he noted, has made large investments to help African countries build the capacity for increased trade to take full advantage of AGOA. Since 2001, the U.S. trade capacity-building assistance to the region has exceeded $3 billion. Some of these funds have been used in trade promotion programs which have helped private exporters in Mauritius promote their products at trade shows. Additionally, Kirk said, President Obama has pledged through the G8 group of industrialized nations more than $3.5 billion over three years for investment in sustainable agriculture development.

But Africa, Kirk said, also needs to do its part by reducing bureaucratic interference and red tape that hampers investment and trade. He also called for respect for the rule of law, elimination of corruption and developing regional markets. "Trade must be a central part of African nations' development and economic strategies," he said, again urging African countries to take full advantage of AGOA rather than asking for more preferences. He has called this approach "tough love."

African ministers are seeking permanent renewal of AGOA beyond its 2015 expiration date, permanent renewal of AGOA's third-country fabric provision beyond the 2012 expiration, and additional trade capacity building and technical assistance.

Kirk said that Congress will likely extend AGOA beyond 2015, but would probably not make it permanent. Officials are concerned that making AGOA permanent would eliminate incentives for African countries to open their markets to exports of U.S. good and services.

Kirk said that President Obama is committed to a strong US trade relationship with the continent. "There is much evidence today of Africa's rising star and excitement about its promising future. Many of your countries are experiencing improved governments and democratic leadership. Many deadly conflicts have been resolved in several countries, and through economic reforms and improving business environments, the continent is experiencing a surge in economic growth."

Secretary of State Hillary Clinton also addressed the Forum and underscored the Obama administration's confidence in economic and political change in Africa. She mentioned the signing of the Bilateral Trade Agreement with Mauritius in her speech.

Overall, attendance at this year's Forum was disappointing, with only 22 African ministers traveling to Washington, according to Paul Ryberg, a Washington lawyer who heads the Mauritius-U.S. Business Association. One likely reason is the poor economic conditions in many countries.

Ryberg also observed that despite the theme of the conference being "AGOA at 10: New Strategies for a Changing World," U.S. government officials offered "few new ideas for how to reinvigorate AGOA." Officials continuously suggested expanding agricultural exports but there are few reasons for U.S. importers to buy from Africa because duties on agricultural products are typically low, he said.

Next year's meeting will be held in Zambia. Mauritius hosted the Forum in 2003.

African apparel trade with U.S. falls

The U.S. Commerce Department reports that U.S. imports of textiles and apparel from Africa continues to drop. Newly released statistics show that during January-April 2010, there was a 27.23 percent decrease compared to the same period in 2009, following a trend that started in 2004 after expiration of the Multi-Fiber Arrangement (MFA) system of quotas. At the same time, imports from China surged 23 percent in 2009; apparel imports from Vietnam, Cambodia, Bangladesh, Pakistan, and India were also up.

Apparel imports from Mauritius have been hit hard, falling more than half, according to the Mauritius-U.S. Business Association (MUSBA), which tracks this data. Renewal of the Mauritius third-country fabric provision in 2008 produced a small spike in trade in 2009 by volume (up .24 percent) but down .67 percent by value. Overall, imports during January-April 2010 were up 11.8 percent.

Mauritius continues to have by far the highest value-to-volume ratio of all AGOA exporters, according to MUSBA. The fact that the value of Mauritius' apparel exports is

consistently disproportionately greater than the volume of such exports, compared to other AGOA countries, demonstrates the success of the efforts by Mauritius to move "up-market" by focusing on higher value-added products. This strategy is intended to capitalize on the sophistication of the Mauritian industry and workforce.

A sailboat, a family of five and lots of courage produce an amazing sail around the world

An American family that gave up all of its possessions, routines and lifestyle to spend seven years sailing around the world is now back on solid ground. In a fascinating story recounting the journey in the Washington Post, the Crafton family lived in a cabin the size of a hotel bathroom as they sailed to exotic places onboard their sailboat, the Nueva Vida.

They left Maryland in 2003 on a journey that lasted 83 months and covered some 30,000 miles. They traveled through some of the most challenging oceans and met and mingled with some of the world's most interesting cultures. The family of five - including three children who essentially grew up on the boat - crossed the Panama canal, climbed mountains in Papua New Guinea and spent 18 months in a New Zealand harbor.

At sea, they lived on fish and canned goods, and ashore, they frequented markets, living like the locals. Often, upon dropping anchor in an island harbor, they would trade fresh food from canoes that surrounded them, receiving bananas and fish for an empty plastic bottle. They didn't use a credit card for seven years.

Their shore-side stops included Mauritius and Reunion, but they didn't much like the conditions they found for sailors in the Indian Ocean. They listed the Indian Ocean as their least favorite, calling it a "washing machine" due to the ocean's turbulent waves.

The Mauritius embassy in London: hello, is anyone there?

On Friday, July 9, my daughter, who studies in the U.K., frantically tried to reach the office of the Mauritius High Commission in London with an urgent question about using her Mauritian passport for travel outside the U.K. She dialed the number in London and fell on a recording. For passport inquiries, the recording instructed her to press a certain number to be connected to assistance. She did, and was promptly told that the "mailbox was full" and no further messages could be left. She called back and tried in vain to get a real person to answer, despite the recorded message telling callers that the office was open at certain hours for passport inquiries, from 10am -12:30pm, and for other inquiries 10am- 5pm. She called repeatedly between 10 am and noon, hoping to speak to someone.

Frustrated, she gave up and had to figure out another way to get her question resolved.

But it made us wonder: how common was our daughter's experience? And why was this happening? Is the High Commission in London understaffed? Is the Foreign Affairs Ministry aware that this is the kind of service Mauritian citizens are receiving?

By contrast, we had excellent service for passport renewals at the Mauritius Embassy in Washington, D.C.

a m e r i c a n   s c e n e

WEEK-END --- dimanche 29 août 2010