AN EVALUATION OF THE SIGNIFICANCE OF AGOA ON NIGERIA-US ECONOMIC RELATIONS, 2000-2015
ABSTRACT:
International trade relations between Nigeria and U.S. are strategic because the former is the largest economy among the Sub-Sahara African countries (SSA) that are a party to the U.S. AGOA initiative. But while the aggregate study of the impact of U.S trade relations with SSA countries is replete in the literature, a country-by-country study to examine in detail the individual state peculiarities effects on the interaction, more importantly looking beyond the preferential regime is missing. Therefore, this study interrogates the trends and issues emanating from the Nigeria-U.S. trade agreement with its
implications for the post-AGOA era. Using factor endowment theory as a framework, the work explores credible secondary data sources alongside recent reports and studies to prosecute the research. It discovers that U.S. oil import from Nigeria dominates as the commodity for trade intensity excluding agriculture and manufactures products, making the trading to be imbalanced and deprived of mutual benefit. The study hence suggests that Nigeria should transform her political, education and socio-economic environment for proper positioning for maximization of her potentials both for AGOA and beyond U.S. trade partnership while the U.S. is to take deliberate steps toward ensuring sincerity of her interest in growing African economy amongst others.
CHAPTER 1 – INTRODUCTION
1.1 BACKGROUND OF THE STUDY
International trade has been a leading and long connecting link between and amongst states in the world. Moreover, Trade relations across societies within and beyond geographical regions pre-date the modern era. Hence, Brewer (1980, cited in Aja 2002:20) maintains that trade among nations is the oldest element of interdependence among nations. In light of this assertion, it suggests that virtually every country has partaken in international trading in one way or the other. For example, agriculture was the main-stay of the Nigerian economy in the 19th-century pre-colonial era (Aghalino 2006, cited in Audu and Oshewolo, 2014:23). Thus,
by implication, Nigeria’s domestic and international trade in goods constituted largely of agro and its allied products during this period and largely before the independent economy. However, Nigeria–United State (U.S.) economic relations within this period were not
captured in the literature until the post-independent era which according to Ajinde and Aleyomi (2014) gained a limelight in 1961, in the official quarter, a year after Nigeria attained her political independence from the British colonialist, when U. S. President, John F.
Kennedy, announces a $225 million as long-term development aid for Nigeria which was incorporated within her first National Development Plan (1962-1968). As such, it marked thebeginning of the economic side of both countries’ diplomatic relationship. It is noteworthy that Nigeria–U.S. relations was facilitated by the midwifery of Britain, the former colonial master of both countries, and the US policy towards Nigeria post-independent flourished
because of the declining presence of its close ally, the United Kingdom (UK), in the country alongside Britain important intermediary role in the Nigeria-US relations (Ate 1986). Consequently, trade and other bilateral relations between Nigeria and the U.S. appear to have progressively started gaining momentum with significance. Not only has the volume of trade
between both countries soared but also foreign investment from the U.S. equally increased, almost exceeding that of Nigeria’s traditional countries’ trading partners. This might account for Ate (2000) averment that Nigerian economy provides the largest market in Africa for U.S. companies such that it is the largest foreign investor in Nigeria. Nonetheless, the trading relation is strategic to Nigeria and U.S. but the trends of benefit between both states’ investment activities was seem not highlighted. Furthermore, the U.S. government, in her quest to intensify and increase her trade relationship with the Sub-Sahara African (SSA) countries, enacted special legislation christened African Growth and Opportunity Act (AGOA). Moreover, varied bases were identified by scholars as purposes behind the AGOA trade relations. Edun , Khikmatullo, Bah, Oji-okoro and Abba, (2012), maintain that AGOA is aimed to build on existing U.S. trade programs by expanding the duty-free benefits that were previously available exclusively under the general system of preferences program (GSP) while Mahabir, Fan, and Mullings (2018) posit that the objectives are to deepened and expand investment trade relations between the US and SSA countries. Implicitly, AGOA was a move by the U.S. to enhance
SSA states economic prospect in the global arena via mutual-beneficial and inter-dependent investment trade. But the experience, in terms of its impact on the former, in spite of the
opportunity outlined, remains a controversial issue within the academia, government, and practitioners. Also, there are diverse opinions, some premised on the empirical basis, on the impact of
AGOA on SSA economy generally. Although both positive and negative effects are identified by scholars on African states, yet there has been little research emphasis on the individual country in SSA especially as regards a country relational benefit (on national
aggregate) assessments premised on her peculiar economic features as the countries making up SSA are often analysed on the sub-group aggregate. Likewise, it becomes more important because AGOA agreement is bilateral and not multilateral based bringing necessity for individual SSA states fairing to the fore. And, because Nigeria is the largest economy among the SSA eligible countries, then, to what extent has AGOA objectives been realized with its
implications for her domestic socio-economic development and relations with the U.S., other trading countries or continents?
Moreover, since AGOA has been extended to 2025 from 2015 with the unlikelihood of its renewal (Mahabir, Fan, and Mullings (2018), what are the commodities occupying the current or that supposed to, and are sustainable beyond the preferential trading era? Hence,
the work is pertinent to both U.S., Nigeria and, by extension, SSA countries strategic planning for the optimization of AGOA’s benefits, underscoring areas demanding adjustment in the act and the individual’s country trade policy before and after its expiration
Therefore, this research examines the Nigeria-U.S. trade relations under AGOA regime to ascertain the trends of benefits, and emanating issues since inception till date with a view to not only draw lessons but implications for both countries as individuals and trade-investment relations.
To get the complete project or material
Pay #3000 (10 Dollars) for Project material
Pay #5000 (30 Dollars) for complete project.
BANK TRANSFER OR DEPOSIT
PAYMENT DETAILS:
- ACCOUNT NAME : SAMUEL CHARLES
ACCOUNT NO. : 2009884029
BANK : FIRST BANK
ACCOUNT TYPE: CURRENT ACCOUNT
(2) ACCOUNT NAME : SAMUEL CHARLES
ACCOUNT NO. : 2078806476
BANK : UBA
ACCOUNT TYPE: SAVINGS ACCOUNT
AFTER PAYMENT SEND YOUR PERSONAL DETAILS AS FOLLOWS –
NAME
TOPIC
DEPARTMENT
MOBILE NUMBER
AMOUNT PAID
TO +2348077215645 , +2348176196229 AS SMS OR WHATSAPP MESSAGE OR
E-MAIL: distinctvaluedproject@gmail.com
