Post by Trade facilitator on Apr 7, 2017 20:31:09 GMT 1
The Nigerian export promotion council (NEPC) has charged non-oil exporters to maximize the full potential of African Growth and Opportunity Act (AGOA) saying it will help the federal government to achieve its diversification goal and improve the economy.
Essentially under its extension, African countries would be engaged in the rules of origin to engender value-addition of raw materials as they could now include the cost of direct processing, as they share production from one country to another on their way to the US market.
Indeed, the United States (US) had one year ago, revalidated the AGOA by 10 years, to elongate the flagship trade deal with the continent till September 30, 2025.
The new window may have re-opened vista for Nigeria and other countries in the region to grow their present 4.8 billion dollar worth of non-oil exports to the United States to over 8 billion dollar within the next 9 years, under the extended trade deal.
An experienced hand in the business at a two-day workshop on the documentation and procedures of AGOA, Babatunde Faleke, who decried the low patronage of the act, said Nigeria’s non-oil export potential has not been fully exploited. ``I am surprised people don’t know about AGOA and its benefits. The business is easy to mainstream, AGOA gives duty-free, which is minimal for every non-oil exporters. We discovered that the main issue is documentation. At the council, we do a lot of product development and packaging to make sure our non-oil exporters conform and produce in line with international best practices. We want to start doing well under AGOA,’’ he said.
He noted that the council has concluded arrangement to sign an agreement with American sea cargo, which would help non-oil exporters’ network with their counterparts and serve as an off taker of goods.
Essentially under its extension, African countries would be engaged in the rules of origin to engender value-addition of raw materials as they could now include the cost of direct processing, as they share production from one country to another on their way to the US market.
Indeed, the United States (US) had one year ago, revalidated the AGOA by 10 years, to elongate the flagship trade deal with the continent till September 30, 2025.
The new window may have re-opened vista for Nigeria and other countries in the region to grow their present 4.8 billion dollar worth of non-oil exports to the United States to over 8 billion dollar within the next 9 years, under the extended trade deal.
An experienced hand in the business at a two-day workshop on the documentation and procedures of AGOA, Babatunde Faleke, who decried the low patronage of the act, said Nigeria’s non-oil export potential has not been fully exploited. ``I am surprised people don’t know about AGOA and its benefits. The business is easy to mainstream, AGOA gives duty-free, which is minimal for every non-oil exporters. We discovered that the main issue is documentation. At the council, we do a lot of product development and packaging to make sure our non-oil exporters conform and produce in line with international best practices. We want to start doing well under AGOA,’’ he said.
He noted that the council has concluded arrangement to sign an agreement with American sea cargo, which would help non-oil exporters’ network with their counterparts and serve as an off taker of goods.
