Africa, Latin America and Trade

D. Daniel SokolInternational Trade & Competition Group

Steel Hector & Davis LLP

Miami • West Palm Beach • Tallahassee • Naples • Key West • Buenos Aires • Caracas • London • Rio de Janeiro • Santo Domingo • São Paulo Miami • West Palm Beach • Tallahassee • Naples • Key West • Buenos Aires • Caracas • London • Rio de Janeiro • Santo Domingo • São Paulo Miami • West Palm Beach • Tallahassee • Naples • Key West • Buenos Aires • Caracas • London • Rio de Janeiro • Santo Domingo • São Paulo

www.steelhector.com

www.steelhector.com

Miami • West Palm Beach • Tallahassee • Naples • Key West • Buenos Aires • Caracas • London • Rio de Janeiro • Santo Domingo • São Paulo

Growing Importance of Latin America and Africa

• FTAA

• Sub-regional FTAs

• Millennium Challenge

• Bono-O’Neil Africa Tour

• Recent Bush trip to Africa

www.steelhector.com

Miami • West Palm Beach • Tallahassee • Naples • Key West • Buenos Aires • Caracas • London • Rio de Janeiro • Santo Domingo • São Paulo

Trade & Development

• Importance for developing countries• Trade promotes economic equality and

reduces poverty– Creates jobs– Increases real income– Decreases prices– Creates consumer choice– Increases consumer welfare

www.steelhector.com

Miami • West Palm Beach • Tallahassee • Naples • Key West • Buenos Aires • Caracas • London • Rio de Janeiro • Santo Domingo • São Paulo

Trade & Development

• Increases competition– Private sector restraints

– Public sector restraints

• Increases the standard of living in absolute terms within countries

• Trade promotes human rights

www.steelhector.com

Miami • West Palm Beach • Tallahassee • Naples • Key West • Buenos Aires • Caracas • London • Rio de Janeiro • Santo Domingo • São Paulo

US Efforts to Integrate Africa into World Economy

• African Growth and Opportunity Act (AGOA)– Creates incentives to promote free markets

• Reforming old economies

• Attracting new investment

• Creating new jobs

www.steelhector.com

Miami • West Palm Beach • Tallahassee • Naples • Key West • Buenos Aires • Caracas • London • Rio de Janeiro • Santo Domingo • São Paulo

US Efforts to Integrate Africa into World Economy

• AGO Exports to U.S. $9 billion

• Negotiations underway to extend AGOA beyond 2008 expiration date

www.steelhector.com

Miami • West Palm Beach • Tallahassee • Naples • Key West • Buenos Aires • Caracas • London • Rio de Janeiro • Santo Domingo • São Paulo

US Efforts to Integrate Africa into World Economy

• United States and Southern Africa Customs Union Free Trade Area (US-SACU) – South Africa, Botswana, Lesotho, Namibia, and

Swaziland– Negotiations currently underway

• Special and Differential Treatment (especially with Agriculture)

• Asymmetry• Trade capacity building

www.steelhector.com

Miami • West Palm Beach • Tallahassee • Naples • Key West • Buenos Aires • Caracas • London • Rio de Janeiro • Santo Domingo • São Paulo

US Efforts to Integrate Africa into World Economy

• Bush Administration’s Current Efforts– “U.S.-Africa partnership”

• Peace and Security

• Health, Famine, and Literacy

• Aid and Trade

www.steelhector.com

Miami • West Palm Beach • Tallahassee • Naples • Key West • Buenos Aires • Caracas • London • Rio de Janeiro • Santo Domingo • São Paulo

Africa and the FTAA

• Free Trade Area of the Americas (FTAA)– General Overview of FTAA

• Largest trading block in the world– 34 countries

– 800 million people

– Combined GDP of US $14 trillion

www.steelhector.com

Miami • West Palm Beach • Tallahassee • Naples • Key West • Buenos Aires • Caracas • London • Rio de Janeiro • Santo Domingo • São Paulo

Africa and the FTAA

• FTAA Agreement Issues– Intellectual Property– Government Procurement– Investment– Market Access– Dispute Settlement– Services

www.steelhector.com

Miami • West Palm Beach • Tallahassee • Naples • Key West • Buenos Aires • Caracas • London • Rio de Janeiro • Santo Domingo • São Paulo

Africa and the FTAA

– Competition Policy– Agriculture – Subsidies, Anti-Dumping, and Countervailing

Duties– E-Commerce– Implementation of Business Facilitation

Measures

www.steelhector.com

Miami • West Palm Beach • Tallahassee • Naples • Key West • Buenos Aires • Caracas • London • Rio de Janeiro • Santo Domingo • São Paulo

Africa and the FTAA

• How Africa can benefit from FTAA

www.steelhector.com

Miami • West Palm Beach • Tallahassee • Naples • Key West • Buenos Aires • Caracas • London • Rio de Janeiro • Santo Domingo • São Paulo

Africa and the FTAA

• FTAA as a model for an African free trade area agreement