Address by H.E. John Agyekum Kufuor, at the Opening of the Sixth AGOA US-Sub-Saharan Africa Trade and Economic Cooperation Forum

Hon. Ministers, Hon. Members of Parliament,
Your Excellencies, Members of the Diplomatic Corps,
Distinguished delegates,
Our Esteemed Traditional Rulers,
Distinguished Ladies and Gentlemen,

It is my greatest pleasure to address the sixth US-Sub-Saharan Africa Trade and Economic Cooperation Forum, or AGOA, as it is popularly known.

Because of the great opportunities that AGOA promises to its stakeholders, this Conference has been slated as one of the key events marking the 50th Anniversary of Ghana's Independence which we are celebrating throughout this year.

It is in this light that I welcome all Ministers from AGOA-eligible Sub-Saharan countries who have met here to advance the continent's trade and development agenda.

I am honoured to acknowledge Ambassador Susan Schwab, United States Trade Representative, and all other Ambassadors and High Commissioners here, especially, Ambassador Bridgewater who, in a way, is co-host of this programme.

An important feature of the AGOA Meetings is the active interaction it promotes among all stakeholders of trade and development - namely government agencies, private sector operators, NGOs and Civil Society Organisations. Their representatives here are welcome.

"As Trade Grows, Africa Prospers: Optimizing Benefits under AGOA" is the theme for this conference. It is most appropriate and timely. All of us gathered here have one objective - to use the AGOA Initiative to develop and diversify trade, to promote the growth and competitiveness of Africa, for mutual benefit.

This conference provides an opportunity to bring to global attention the tremendous changes that have taken place in Africa since 2000 when coincidentally the AGOA initiative was inaugurated. Over the past decade, the conflicts and strife which beset the continent and hinder trade are consistently and progressively giving way to peace and reconstruction.

Many African countries now boast of democratically elected leaders as well as policies and programmes for reforms which aim firstly at growth and poverty reduction, and secondly, at making these countries a part of the multilateral arrangements which govern global trade.

As many as 39 countries are now eligible for AGOA benefits having subjected themselves to rigorous requirements for qualification including adherence to good governance, the rule of law, political pluralism, market-based economies, elimination of barriers to US Trade and Investment, Protection of Intellectual Property and the establishment of structures to fight corruption.

Ladies and gentlemen, what is required now is for Africa to develop capacities in terms of human resource with cutting-edge skills and competencies, financial and material resources and appropriate infrastructure in transportation, energy and telecommunication, the combination of all of which should enable the eligible countries to access effectively the opportunities provided by AGOA.

As you may be aware, Africa has already taken initial steps towards this goal. The erstwhile OAU, which championed the political liberation of the continent, has been transformed into the African Union. The Union's aims include promoting accelerated socio-economic development of the continent through deepening democracy and the creation of a business-friendly atmosphere. The New Partnership for Africa's Development (NEPAD) is the paradigm to advance this cause. This should lead to total integration under a union government to benefit from economies of scale and also to facilitate the continent's mainstreaming into globalization.

Just two weeks ago, the 9th Summit of the African Union was held here in Accra to discuss this single item agenda dubbed the Grand Debate on a Continental Government for Africa. The pragmatic exploitation of this potential should leave little imagination as to the benefits awaiting the nations on the continent and their global partners including the United States of America. This is why the AGOA Initiative which imports capacity development for consummating international trading partnerships should be welcomed as a critical and happy coincidence on the continent.

But ladies and gentlemen, the AGOA Initiative expires in the year 2015. this means there are only 8years left to take advantage of the opportunity to export about 6400 items to the US market estimated at more than $10.0 trillion without reciprocity. Given the time constraint and the very serious capacity challenges, Africa, we must admit can hardly exploit the benefits of this huge Initiative anywhere near to the full.

I will therefore appeal first to the US government to extend the time span of AGOA to 20 years and then to the countries in Africa as well as our development partners in the US to design and implement efficacious specific vehicles targeted at empowering African nations in terms of capacity building. This will be the surest way to render Africa competitive with other countries on the US market to grow our economies.

Ladies and gentlemen, there is a tendency to see the benefits of AGOA from only the perspective of the African. But, while signing the AGOA Acceleration Act in 2004, President Bush reminded his countrymen in words to the effect that, when America sells to Africa, it means employment for somebody in America.

AGOA should therefore work both ways to everyone's advantage. I will therefore encourage operators in the American Private Sector to increase their investments in Africa to cover more areas than just the extractive industries of oil and precious minerals. Venturing into agriculture, processing, manufacturing and tourism are some of the ways in which technology transfer and Africa's capacity building must be given a boost. Relocation of factories and outsourcing ICT contracts to Africa could also add to capacity building to make Sub-Saharan Africa effective partners in trade.

Happily, Distinguished Ladies and Gentlemen, you have worked hard to produce the Strategic Framework for Accelerating the Implementation of the African Growth and Opportunity Act (AGOA), which is indeed geared to capacity-building, diversification of the product range that can be exported from the region, improved market access and supply capacity, all of which should enhance our chances of attracting investments. These are laudable objectives, supported by detailed programmes which are to inform the preparation of country-specific AGOA Response Strategies and Implementation Plans.

From what I have seen of your programmes for this conference, I am confident that this forum will address these challenges. I am very hopeful that your deliberations will enable you achieve substantially the objectives set out in the strategic framework.

Ladies and gentlemen, at this juncture, let me commend the United States for coming out with this globally far-reaching landmark legislation which has given us a structured framework within which Sub-Saharan Africa can engage the United States in the area of trade and economic cooperation. The AGOA Act complemented by the MCA, assures us of America's goodwill towards Africa. Africa greatly appreciates the gesture.

I wish to reiterate my commendations to the organisers for structuring this Forum as an integrated event with joint or concurrent participation of US and African Government officials, as well as Private Sector and Civil Society representatives. This all inclusive arrangements will certainly deepen consultation and dialogue among us.

Hon. Ministers, Your Excellencies, Ladies and gentlemen, I welcome all of you once more to this important event which forms part of Ghana's Jubilee celebrations. I wish you a successful deliberations.

Thank you and may God bless us all.