NIGERIA: AGOA FOCUS PRODUCTS CHOSEN

UNCLAS ABUJA 002446 SIPDIS DEPT PASS TO USTR-AGAMA TREASURY FOR PETERS AND HALL DOC FOR 3317/ITA/OA/KBURRESS AND 3130/USFC/OIO/ANESA/DHARRIS USDA/FAS FOR SIMMONS AND MCKINNELL E.O. 12958: N/A TAGS: ETRD ECON EAGR EINV EAID PGOV NI SUBJECT: NIGERIA: AGOA FOCUS PRODUCTS CHOSEN REF: A. ABUJA 2340 ¶B. ABUJA 2302 ¶C. ABUJA 2295 ¶D. ABUJA 2278 ¶E. ABUJA 2223 ¶F. ABUJA 2197 ¶G. ABUJA 2177 ¶H. ABUJA 2146 ¶I. ABUJA 1977 ¶J. ABUJA 1925 ¶1. Summary. As part of the Government of Nigeria's (GON) Seven Point Agenda, it plans to promote sustainable growth in the real sector of the economy and expand its investments in agriculture. It further plans to focus on key sectors in which it has a comparative advantage. The GON's export focus sectors include agriculture, textiles and garments, leather, handcrafts, and solid minerals. In order to increase exports under AGOA the GON will require USG support in developing a strategy for the focus sectors and products and technical assistance. End Summary. ¶2. During a meeting on November 17, Laurie-Ann Agama, Director for African Affairs at the Office of the United States Trade Representative met with Elizabeth Emuren, Permanent Secretary, of the Ministry of Commerce and Industry (MCI),and Agama informed Emurren that the USG wants to support Nigeria to maximize its benefits under AGOA but the starting point would be to know what sectors and specific products the GON would focus on in its drive towards increasing its exports to the U.S under AGOA. On December 12 DepEconOff received from Badeji Abikoye, MCI Director of Trade a list of Nigera's AGOA focus sectors and products. . Nigeria's AGOA Focus Sectors/Products -------------- . ¶3. Abikoye told DepEconOff that the GON selected sectors it believes it has comparative advantage in and could improve export performance within a short time. The GON's AGOA focus sectors include agriculture, textiles and garments, leather, handcrafts, and solid minerals. The GON also selected some products for each of the focus sectors. ¶4. In the agricultural sector the focus products are shea butter, cashew nuts, ginger, sesame seed and oil, yam, processed cassava products, spices, sea food products including shrimp, and specialty foods, while in the textile and garment sector the focus products include t-shirts, shirts, sports wear, jeans wear, boxers, African prints, African wax, folkloric local fabrics such as Aso-Oke and Adire. ¶5. In the leather sector, the focus products are foot wear, belts, hand bags, and crest leather, while in the handcrafts sector, the focus products are interior decorative products, raffia products, and artworks. The focus products in the solid minerals sector are granite and precious stones. . Next Steps -------------- . ¶6. Comment: The GON's decision to outline focus sectors is a step in the right direction and follows USG engagement under the Trade and Investment Framework Agreement (TIFA) umbrella. This action hopefully provides a basis for developing workable strategies for improving Nigeria's non-oil export performance, and eventually diversifying the economy and reducing its dependence on crude oil exports. The first step is for the GON to take the initiative in providing the necessary financial resources and policy changes to improve the export environment. The GON will require USG technical assistance in developing a workable plan and implementation to support exports where it has true price and quality advantages. USAID has just undertaken an analysis of the barriers to trade that has been presented to some members of the GON and it will follow up discussions with the Ministry of Commerce and Industry as soon as possible. From the list of sectors and past knowledge, the USG team will want to assess further the competitiveness of the identified GON sectors. The Mission's Framework for Partnership with the GON and its Trade and Investment Working Group and the next TIFA Council Meeting in January 2009 provide an opportunity for further USG coordinated assistance. End Comment. SANDERS