Africans should not be worried about Donald Trump's policies as trade agreements between the US and Africa do not pose a threat to American jobs. Mark Bohlund, Africa and Middle East economist at Bloomberg Intelligence, said that although it remains unclear what the US President-elect's policy to Africa will be, the continent might not be high on his priorities. Mr Bohlund noted that agreements such as the Africa Growth and Opportunity Act (Agoa), which gives duty-free access to the US for a range exports from Kenya and Africa, "are unlikely to be top priority for the incoming US administration". This, he said, was because the impact of Agoa on US jobs was "minimal". AGOA INITIATIVE Kenya exports mainly apparel and garments to the world's largest economy under the Agoa initiative.
n 2015, Kenya's exports to the US under Agoa were valued at Sh34.6 billion, up from Sh30.2 billion in 2014.
"In addition, the $4 billion in non-oil shipments to the US under the programme (Agoa) equates to less than one per cent of sub-Saharan Africa's total exports," said Bohlund. In his campaigns, the real-estate mogul was quoted to have said that he would tear down trade deals between the US and Africa which he deemed to be of less benefit to the US. Trump is also said to have threatened to stop the flow of donor aid to Africa when he ascended to power. However, the Bloomberg economist does not think Trump will make good his threats. Moreover, Africa seems to have cultivated deeper trade relations with Europe and China more than the US, with Kenya exporting most of its agricultural and manufactured products to the European Union.
Trump's proposal to slap Chinese exports with higher tariffs may hurt the demand for Africa's exports.
source-www.standardmedia.co.ke
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