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ASIA

BANGLADESHI SHRIMP EXPORTERS BECOME WORLD CLASS

Hindered by a reputation for substandard product quality and environmental practices, Bangladeshi shrimp producers experienced a significant decline in exports in 2001. However, with help from the United States, the industry is changing both its practices and its image. USAID assistance is introducing shrimp exporters to hygienic processing practices and to environmentally friendly freshwater species. Further, through the Seal of Quality Program, the United States has helped the industry establish private third-party testing laboratories to ensure producers meet quality standards and establish international credibility. Exporters are required to meet international codes. As a result of implementing these industry “best practices,” exports have already grown by roughly 30 percent, to over $350 million.

BANGLADESH SHOE MANUFACTURERS LEARN TO THRIVE UNDER GLOBAL COMPETITION

Shoe manufacturers in Bangladesh were limited by a lack of product recognition in overseas markets and the high costs of establishing global business ties. U.S. assistance helped them harness the tools of e-commerce and dramatically expand their exports. Programs enabled companies to research market opportunities on the web and to communicate with buyers by email in order to keep costs down. U.S. assistance also helped produce a CD-ROM virtual tour of Bangladesh shoe factories. The CD was distributed at international trade shows, boosting buyer confidence in the quality of the product. Over the course of this program, the average profit per pair of shoes went up sharply.

AVIATION SAFETY ACADEMY PROJECT IN CHINA TAKES OFF, HELPS ENSURE HAPPY LANDINGS

The Boeing Company of Chicago, IL, in conjunction with Interflight Services Inc. (ISI), a subcontractor for Boeing, submitted a proposal to USTDA to establish an Aviation Safety Academy in China. The project aims to establish a public-private joint venture between Boeing and the Civil Aviation Administration of China (CAAC) to set up an Aviation Training Academy for CAAC inspectors and their airline counterparts. USTDA provided a $600,000 grant to establish five training modules at the academy to get the program started. The safety academy is being established with the help of the U.S. Federal Aviation Administration, the CAAC and ISI. ISI is responsible for conducting the majority of the training.

This project will help China to retain its Category 1 International Aviation Safety Assessment. If China were downgraded, the CAAC could not increase flights to the United States, nor codeshare with U.S. airlines. Today this facility is serving as a regional training facility and a model for future public-private partnerships.

CHINA NATURAL GAS TRAINING INSTITUE HELPS KEEP ENERGY FUTURE CLEAN

Working with the Gas Technology Institute (GTI) of Des Plaines, IL and the Chinese State Development Planning Commission, USTDA provided a $500,000 grant to establish a Natural Gas Training Institute in Beijing, China. The Training Institute is a public-private partnership that will utilize the knowledge of U.S. experts in the gas industry in training Chinese gas sector officials. The training, to be undertaken by GTI and private sector companies, will cover all aspects of the natural gas sector, including, but not limited to, pricing, distribution, regulation, financing, and safety. After the USTDA grant has been fully utilized, the training institute is expected to be self-sustaining and operate on a commercial basis.

China has recently begun a major shift away from the use of coal and more toward the utilization of cleaner burning natural gas. This focus on clean energy can be seen in the increased number of automobiles that run on natural gas, the construction of the 4,000 km West-East Natural Gas Pipeline designed to bring gas to Shanghai and surrounding areas, and the development of a number of Integrated Gasification Combined Cycle (IGCC) power plants. The recently-established Training Institute will introduce U.S. technologies and processes to China and help further develop the sector, by promoting relationships between the U.S. private sector and the Chinese government and industry. The $500,000 cooperative agreement with GTI was signed in September 2002.

SHANGHAI MODEL PORT CUSTOMS IT PROJECT

USTDA provided training in the use of U.S. information technology to the Shanghai Customs Authority. The intent was to modernize the Customs Authority’s information systems, thereby increasing the efficiency of the organization’s operations and reducing a barrier to trade with China. The IT project was a component of the widely-publicized Shanghai Model Port Project (SMPP), implemented in collaboration with the Shanghai Customs Authority, the U.S. Customs Department, and private enterprises conducting business in China. As part of the overall port project, private businesses, such as the IT providers that worked on USTDA’s portion of the project, supplied key ingredients for upgrading the port’s facilities.

The SMPP has been successful in three ways: (1) Effective capacity building for trade facilitation: President Bush and U.S. Secretary of State Colin Powell highlighted the project’s success at the Asian Pacific Economic Cooperation (APEC) CEO Summit and the APEC Leaders Meeting in Shanghai in 2001. (2) Model of a Public-Private Partnership: The project was structured around a collaborative effort between private U.S. businesses and China Customs. The participating private companies praised the beneficial relations established and the opportunity to display their products in the Chinese market. (3) Coordination between China Customs and U.S. Customs: This relationship will help to enhance future trade relations between the two countries. While USTDA’s assistance was a part of this larger initiative to facilitate trade between the United States and China, its success in modernizing the Shanghai Port’s IT system and enhancing relations between Shanghai Customs and IT providers should not be underestimated.

FINANCIAL SECTOR STRENGTHENING IN INDIA

In India, the Financial Institutions Reforms and Expansion-Regulatory (FIRE-R) project is helping the government of India to raise the efficiency, transparency and integrity of its financial services and capital markets to international standards. The project assists with Institutional capacity building of Securities and Exchange Board of India (SEBI), as well as self-regulatory organizations (exchanges, depositories and clearing houses) in systematic risk containment, surveillance, inspection, investigation and enforcement. The results include enhancement of investor protection and strengthening the regulatory framework. The improvement in India’s financial and insurance institutions improves the country’s competitiveness in services trade, as well as provides a better enabling environment for all trade.

INDONESIA IMPROVES PUBLIC GOVERNANCE

The government of Indonesia has faced challenges in fiscal policies and public governance. USAID’s Partnership for Economic Growth (PEG) project helped the country meet its technical assistance needs. PEG organized seminars and prepared key data tools (such as quarterly inflation and deflation watch reports for the monetary authorities) to support the government’s implementation of its Blueprint for Financial System Stability. USAID support also developed a pilot credit rating project and training case studies on bank audits. PEG strengthened the Ministry of Finance’s institutional capacity for analysis, leading to key tax reforms and the use of fiscal sustainability indicators. Given the critical role that good public governance plays in fostering trade growth, the successes of Indonesia, with support from PEG, are establishing the foundation for rapid, export-led poverty reduction.

HELPING NEPAL ACCEDE TO THE WTO

The United States supported Nepal’s efforts to accede to the WTO with technical assistance relating to customs administration, including implementation of the WTO Customs Valuation Agreement, and training related to the enforcement of intellectual property rights and implementation of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs). TRIPs assistance included hands-on training on patent and trademark examination and copyright registration in the United States. Bilateral discussions are underway about further assistance relating to customs valuation, the application of sanitary and phytosanitary measures (food safety, animal health, and plant health), and other needs that Nepal may identify.

THE PHILIPPINES CONFRONTS IPR CRIME

As with many nations, the Philippines confronts a serious problem in the growth of intellectual property rights (IPR) crimes. Counterfeit goods spanning the gamut from CDs and DVDs, pharmaceuticals, spare parts, and textiles, seriously damage the local economy. In addition to the threats to public health and safety, IPR crime hurts legitimate retailers, feeds lawlessness and corruption (including organized crime) and damages the Philippines reputation among investors. As a member of the World Trade Organization (WTO) and signatory to the Trade Related Aspects of Intellectual Property Rights (TRIPS) agreement, the Philippines is committed to confronting the scourge of IPR crime.

Given the explosion in IPR crime, the Philippine government needs to overcome a number of challenges. Laws and regulations must be modernized and made more efficient. Police, prosecutors and judges need the resources, including training and technology, to be able to investigate and punish criminals.

In partnership with Embassy Manila, to meet this need the U.S. State Department Bureau for International Narcotics and Law Enforcement Affairs (INL), working with the U.S. Department of Justice Office of Prosecutorial Development, Assistance and Training (OPDAT), funded a team of U.S, experts to put on a series of seminars in Manila.

Providing an overview of the special issues surrounding effective IPR crime enforcement, the seminars engaged an enthusiastic audience of Philippino judges, prosecutors, investigators and administrators who identified significant issues concerning Philippino laws and institutions, ranging from lengthy court dockets, difficulties with laws of evidence and a shortage of needed technology. Both sides formed invaluable personal contacts leading toward further mutual legal cooperation.

FILIPINO FARMERS (IN MINDANAO) GAIN ACCESS TO BUSINESS DEVELOPMENT SERVICES

In the Philippines, USAID’s Growth with Equity in Mindanao (GEM) program is helping local vegetable growers expand their markets by selling to institutional buyers. In order to help them meet the large volume demand of these buyers, USAID has worked with small growers to create linkages with other growers, as well as with business intermediaries, packing companies, and refrigerated transportation companies. These collaborations have allowed small growers to sell a higher-quality product at a more profitable price by taking advantage of economies of scale which would otherwise be unavailable to them.

UNITED STATES-VIETNAM BILATERAL TRADE AGREEMENT STRENGTHENED BY TRIPs TRAINING

The Vietnamese National Office of Intellectual Property and the Vietnamese Supreme People’s Court, with assistance from the U.S. Patent and Trademark Office, the International Intellectual Property Institute (IIPI) and USAID, conducted a series of workshops for 200 individuals on intellectual law matters under the TRIPs Agreement and the U.S. Vietnam Bilateral Trade Agreement. Participants included local and national court judges; government administrators; trade, customs and border administrations; and law enforcement officials. Following the training, Vietnam successfully implemented new IPR regulations, improved IPR legal and enforcement structures, strengthened intra-government cooperation and accelerated progress on accession to several WIPO conventions.

CENTRAL & EASTERN EUROPE

ALBANIA MODERNIZES AIR TRAFFIC MANAGEMENT, CONNECTS WITH EUROPE

USTDA helped make this project possible by providing the Government of Albania two feasibility study grants worth a total of $406,000: The Albanian Council of Ministers recently agreed to Phase I of a contract with Lockheed Martin to develop a major new investment in the country's air traffic management infrastructure. The project will have an estimated value of $33 million and will represent the first major U.S. commercial investment in Albania. The seven-year modernization will improve communications and navigation equipment, link surveillance capabilities with the nearby airports of Skopje, Brindisi, and Kerkira, expand airspace structure, and enhance the tower building at the Mother Teresa (formerly Rinas) airport. The project structure would bring in additional import taxes and provide more than 250 technical jobs for Albanians. Most importantly, the improvements would bring the airport, currently without radar capabilities, into compliance with Eurocontrol safety standards. The radar environment would also permit a significantly larger volume of over-flight traffic, particularly from Western Europe to Athens. Lockheed believes that airlines would choose the shorter route via Albania due to significant fuel savings.

REGIONAL MARKET FOR ELECTRICITY IN SOUTH EAST EUROPE GETS JUMP START FROM CROATIA

With USAID's support, Croatia has developed a new transmission tariff methodology, making it among the first of the countries in the region to meet this important requirement of the Athens Memorandum. The Athens Memorandum is a non-binding agreement signed by the countries of South East Europe to create a regional electricity market, whereby each country is required to develop a system of non-discriminatory third party access to its transmission network based on published tariffs.

To disseminate the Croatian transmission tariff model to other countries in the region, the United States Agency for International Development (USAID), Croatian Ministry of Economy, Croatian Electric Company (HEP), and the United States Energy Association (USEA) organized a regional workshop on “Developing Unbundled Transmission Tariffs” on May 28-29, 2003. Utility executives, regulatory authorities and representatives of ministries charged with oversight of electric power from Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Macedonia, Romania, and Serbia and Montenegro participated in the two day workshop, which was designed to examine methodologies used to separate charges for use of the electric power transmission network.

In addition to the tariff methodology developed by HEP, case studies were presented on tariff methodologies in Spain, Slovenia and from Ohio in the United States. Participants from the region discussed the status of the efforts to unbundle their own transmission tariffs, including obstacles to developing the transmission tariff under the Athens Memorandum. The workshop concluded with a hands-on interactive case study of the transmission tariff methodology developed by HEP, during which the participants worked on HEP's transmission tariff spreadsheets to simulate the development of transmission tariffs in their own countries.

USAID SUPPORTS FORMER YUGOSLAV REPUBLIC OF MACEDONIA ACCESSION TO WTO

With technical support from USAID’s WTO Accession Project, Macedonia became the 146th member of the WTO on April 4, 2003. USAID provided expert technical assistance drafting documentation, identifying inconsistencies in the Macedonian trade regulations, training Macedonian officials to extend their understanding of WTO agreements and preparing them for negotiations. As a result, the previously stalled accession process was completed in less than three years of negotiations. The accession will help Macedonia integrate into the world trading system, facilitate trade and investment, and strengthen the private sector by expanding the market for Macedonian goods and services.

FORMER SOVIET REPUBLICS

MOLDOVA- IMPLEMENTING WTO RULES OF ORIGIN

A major obstacle for Moldova in implementing WTO Rules of Origin regulations has been the trafficking of non-Moldovan goods through disputed territories on the Transdniestria border. The US helped Moldova tackle this issue by assisting in drafting passable legislation which meets WTO obligations. Today, importing countries are assured that goods coming from Moldova indeed originate there. The U.S. is continuing its efforts by working with the GOM Customs Office to develop implementation procedures for the new Rules of Origin regulations.

LATIN AMERICA AND THE CARIBBEAN

U.S. HELPS TRAIN BRAZILIAN OFFICIALS ON ENVIRONMENTAL LAWS AND ENFORCEMENT

RURAL INCOMES RAISED IN EL SALVADOR

The capacity of rural communities in El Salvador to recover from devastating earthquakes has been hampered by low agricultural productivity, poor product quality, and lack of information on and access to national, regional and international buyers. The United States and its private sector partners are working with farmers to expand trade opportunities and increase incomes by providing assistance in five areas: (1) Improving market intelligence and marketing techniques; (2) Raising productivity in non-traditional horticultural crops; (3) Meeting food safety and quality standards; (4) Modernizing processing techniques; and (5) Developing business support services and skills.

Since the program started in April 2002, six hundred farm households have participated in these activities. The project has generated $3 million in new sales so far, expanding into new local and international markets, and the participating farmers’ average income has more than doubled.

AGRICULTURAL SECTOR IN HAITI DIVERSIFIED BY USAID SUPPORT

Low rural incomes in Haiti contribute to the persistence of poverty. The USAID Mission in Haiti has achieved success in increasing the export competitiveness of this sector. In 2002, the quality of Haitian cocoa was significantly improved. More than 30 percent of Haiti cocoa exports are now sold as premium quality cocoa to M&M Mars, one of the largest U.S. manufacturers. In addition, the quality of Haitian Bleu Coffee was also improved, reversing a downward trend in quality over the last five years. The volume of Haitian Bleu and Fair Trade coffees exported by members of the coffee growers’ association doubled in 2002. Nearly 35,000 farmers through a network of 85 organizations have participated in project marketing activities. Seventy of these organizations have marketing contracts, mostly with exporters, generating nearly 6,500 seasonal jobs.

USAID SUPPORT HELPS HONDURAN FARMERS DIVERSIFY AG EXPORTS

To support diversification of the Honduran agricultural sector, USAID has been working closely with local farmers to expand exports of non-traditional agricultural products. By funding technical assistance in production, processing technologies, marketing and business development services, USAID helped its approximately 7,500 clients increase sales and exports of non-traditional agricultural products by more than $6.2 million in 2002. The program has enjoyed great success in its first two years of implementation, increasing client sales by 120% and tripling the income of some farmers. In one project, technical assistance was provided by Land O’ Lakes to operate 28 milk collection centers which are projected to generate about $10 million in benefits.

SBED ASSISTS JAMAICAN FIRMS (WOMAN-OWNED) ENTER EXPORT MARKETS

With technical assistance made available through USAID's Small Business Export Development program (SBED) to foster improved business skills, greater efficiency, improved access to export markets, trade shows and low-cost finance for small businesses, Jamaican entrepreneur Sharon McConnell-Cooke’s “Starfish Oils” has grown into a thriving export-driven enterprise. Through the program, Starfish Oils received guidance on production and product line identity, technical assistance on basic business and office management skills, and help in identifying trade shows, finding low-cost raw materials, and accessing a virtually interest-free $350,000 loan and a $35,000 World Bank loan. With 10 products now on sale, export sales are 40% of total sales for this year and expected to rise to 60% over the next 12 months.

EXPANDING MEXICAN TRADE FLOWS

The U.S. Trade and Development Agency (USTDA) sponsored a feasibility study that helped an operator of the North East Rail Line in Mexico develop an efficient intermodal system, thereby facilitating commercial traffic. The expansion and upgrade of terminals resulted in traffic efficiency that stimulated trade at the three ports that were the target of USTDA’s assistance. The new intermodal terminals have increased the ports’ commercial area by 50 percent between 2001 and 2002. Because of the new and upgraded terminals, the operator experienced a 15-percent growth in trade volume between 2001 and 2002. The majority of that growth was from regional trade with the United States.

U.S. CONTRIBUTIONS TO TRADE CAPACITY BUILDING CARICOM NETWORK GETS STRONGER

CARICOM requested computers and related equipment for its Regional Negotiating Machinery to create a virtual secretariat. The purpose was to improve coordination of trade policy positions across the 15 member states. USAID responded by purchasing and installing a computer network in each CARICOM member’s trade ministry. The network provides true workgroup collaboration, email, document management, and forums to enable members to collaborate and exchange information on trade-related matters. Other activities in support of CARICOM include hiring an information technology specialist to administer the virtual secretariat network, conducting special focus seminars on trade issues for key stakeholders, and training on trade matters to build institutional capacity within the governments of the region.

USDA SEED FUNDING SPURS THE INTER-AMERICAN INSTITUTE FOR COOPERATION ON AGRICULTURE (ICCA) WTO PROGRAM

To help Western Hemisphere countries better implement international trade agreements, USDA provided over $500,000 to the Inter-American Institute for Cooperation on Agriculture (IICA) so it could support attendance at WTO/SPS Committee meetings in Geneva by appropriate trade and regulatory agencies of the 34 IICA Member Countries. This year, 32 Member Countries have sent representatives to three meetings. After the USDA funding is depleted, IICA plans to provide budgetary support to continue the effort.

NORTH AFRICA AND THE MIDDLE EAST

CREATING A WTO UNIT IN EGYPT

Negotiation and implementation of WTO agreements requires continuous coordination among a range of government offices. It also requires consultation with interested private sector and civil society stakeholders. With the help of USAID and the Commercial Law Development Program of the Department of Commerce, Egypt met this challenge by creating a WTO Unit within its Ministry of Foreign Trade. U.S. assistance helped Egypt develop and execute the unit’s implementation plan, and continuing assistance provides training to unit officials on trade policy formulation and export promotion. This unit is now primarily responsible for Egypt’s preparation for WTO meetings, including the Fifth WTO Ministerial in Cancún.

JORDAN INITIATES NEGOTIATION FOR WTO GOVERNMENT PROCUREMENT AGREEMENT

USAID is helping Jordan become one of the first developing countries to be a signatory to the Agreement on Government Procurement. The United States is providing technical assistance in drafting procurement legislation and is training government officials to draft and implement transparent procurement regulations.

ECONOMIC REVIVAL IN JORDANIAN PORT CITY OF AQABA

Beginning in 2000, USAID has supported the rebirth of Jordan’s port city of Aqaba, through assistance for development of the Aqaba Special Economic Zone (ASEZ). USAID has helped the local government replace national laws with a streamlined regulatory regime, create a business friendly environment with low taxes and no duties, and establish the utilities, physical infrastructure, and public and private sector institutions needed for a flourishing economic base. As a result, over half a million dollars of private investment has been flowing into the ASEZ annually.

SUB-SAHARAN AFRICA

ETHIOPIAN FARMERS GET A FAIR PRICE THROUGH FAIR TRADE AND SPECIALTY COFFEE MARKETS

The world coffee crisis, which has seen prices at a thirty-five-year low, is creating severe hardships for Ethiopia's 1.2 million coffee farmers. Many cannot cover the basic cost of production and are operating at a loss.

In this bleak picture, coffee cooperatives and coffee unions such as the Oromiya Coffee Farmers Cooperative Union (OCFCU) are a bright spot. USAID, through the ACDI/VOCA Agricultural Cooperatives in Ethiopia (ACE) program, is helping OCFCU's 23,000 small-scale coffee producers weather the storm of the coffee crisis. With training and technical assistance from ACDI/VOCA, the OCFCU succeeded in gaining international certification for its organic coffee and has also become a member of the Fair Trade Labeling Organization. This has opened the specialty coffee market to the OCFCU, which is able to obtain a higher price-$1.26 per pound for Fair Trade ($1.41 for certified organic coffee)-that is three times the price paid by local coffee dealers and exporters. OCFCU directly exports its specialty coffee to the United States and other markets. By avoiding middlemen, the OCFCU is able to return 70 percent of the value of the exported coffee to the farmers, rather than the 30 percent they would receive going through the traditional marketing channels.

Through assistance to the OCFCU, and also the newly established Sidama Coffee Farmers Cooperative Union and the Yirgacheffee Coffee Farmers Cooperative Union, USAID is reaching 147,000 small-scale coffee farmers in Ethiopia to improve coffee quality, access higher value specialty markets, enhance productivity and increase profits. The foundation has been laid through cooperative strengthening, enhanced market linkages, product quality improvement, and product certification to enable many of Ethiopian's coffee producers to regain their competitiveness and profitability in this vital economic sector.

GHANA BENEFITS FROM PUBLIC-PRIVATE PARTNERSHIP

Small- and medium-scale agricultural exporters in Ghana needed to improve their phytosanitary standards and expand their variety of crops to compete in global markets. In response, USAID formed a partnership with a large grocery retailer, a university, and other private sector organizations to provide expertise on meeting these standards. In addition to new sales of premium pineapples, this partnership enabled exporters to meet SPS standards, expand market access, and increase the value of exported products.

PROMOTING AGRICULTURAL SUBSECTORS AND AGRIBUSINESS IN MALI

Rural poverty in West Africa is rooted in chronically low agricultural productivity. In response, the United States is assisting agribusiness operators to improve product testing and certification, access market information and research, strengthen business planning and marketing skills, obtain access to trade financing, and acquire new processing technologies and methods. Major results to date include facilitation of regional trade of over 50,000 metric tons of cereals and enhanced livestock trade, including the export of Malian cattle to Guinea.

ECOTOURISM IN KENYA—FROM CORN TO CONSERVATION

In recent years, elephants have destroyed crops and degraded water supplies in the Kwale District of southern Kenya, contributing to high levels of poverty, hunger, and insecurity. To resolve this situation, the United States, the Kenya Wildlife Service, and the Born Free Foundation formed a partnership with more than 200 local families to establish the Mwaluganje Elephant Sanctuary (MES). By contributing land to the sanctuary, participants became MES shareholders and managers. They now receive annual dividends from ecotourism generated by MES. The sanctuary also generates employment opportunities for guards, guides, game scouts, tourism service providers, and construction workers. A recent study shows sanctuary shareholders earn twice as much per acre from the MES as they would from growing corn.

MOZAMBICAN MANUFACTURERS REGAIN COMPETITIVENESS IN GARMENT PRODUCTION

Thanks to the Africa Growth and Opportunities Act (AGOA) and U.S. technical assistance, the garment sector has been reborn. Through USAID funded local technical assistance, the Mozambican Customs and the Ministry of Trade passed critical regulations required by the U.S. for garment imports under AGOA. USAID support to the Mozambican Employers' Federation also helped in the establishment of the governments AGOA visa system (which certifies Mozambican origin) and in the changing of onerous rules that unnecessarily raised costs in the industry. Within a year, two Mozambican factories were shipping a total of over 200,000 garments a month to the United States. These AGOA-induced garment exports prove that Mozambique can compete in global markets. It also demonstrates how a better work environment and increased employment opportunities can be created in one of the poorest countries in Africa.

GROWTH IN NIGERIA’S COMMUNICATIONS SECTOR

The Leland Initiative works toward communication policy reform in Nigeria. Reforms in tariffing help to lower wholesale Internet access prices. Other reforms establish a competitive level playing field to attract private entrepreneurs to become Internet access and information services providers. In 2002, the government of Nigeria used USAID Leland assistance to initiate significant regulatory improvements. Leland helped the Nigerian regulatory agency carry out an aggressive program of licensing new entrants to the telecommunications sector, with 25 new firms paying over $1 billion in license fees and installing 1.2 million new telephone lines in the first year. These lines generate over $60 million for their private investors each month. Nigeria also launched a new consumer bureau modeled after the U.S. Federal Communications Commission (FCC). Since its inception, USAID's Leland Initiative has helped 21 countries make significant progress in this area.

NIGERIA: LONG TERM MORTGAGE CORPORATION BUILDS FINANCIAL SECTOR

USTDA is providing a $272,000 technical assistance (TA) grant to the U.S.-Nigeria Development Institute (USNDI) to assess options for Nigeria to pursue the creation of a private secondary mortgage market. USNDI, operating through the Societas-International Institute for Real Estate Finance (a non-profit organization), requested assistance in evaluating the potential for a private long-term mortgage corporation to help facilitate home ownership in Nigeria, much like Fannie Mae and Freddie Mac in the United States. The leading state governments of Nigeria are supportive of USNDI in its efforts to pursue a secondary mortgage corporation. This type of assistance is invaluable when instituting plans for sustainable development. This TA will introduce to the Government of Nigeria various mortgage financing options that instill fair and efficient mechanisms to provide affordable housing. The main objective is to pave the way for private financial institutions to partner with the Nigerian Government to develop this secondary mortgage market, which would increase home sales, the overall standard of living, and indirectly allow for increased trade in pre-fabricated homes and financial services.

SOUTH AFRICA: NATURAL GAS UTILIZATION INVESTMENT STRATEGY LINKS LOCAL DEVELOPMENT WITH GLOBAL EXPERTISE

USTDA approved two grants totaling $455,300 to provide technical assistance (TA) to the Petroleum Agency South Africa (PetroSA), which has been designated by the South African Government to facilitate the delivery of natural gas throughout the country’s Western Cape. The grants will fund the preparation of a natural gas utilization investment strategy for the Western Cape natural gas project, as well as a financial and economic model of the required gas distribution and processing infrastructure. This $4 billion development project is a top economic priority of the South African Government, and serves as the crux of future sustainable development in the Western Cape.

This TA provide will also allow the Government of South Africa, acting through its designated agent PetroSA, to access independent expertise from foreign consultants to construct a model and an investment strategy outlining the most economical, social, and environmentally efficient mechanisms to manage their natural gas supplies. The construction of technologically sound investment models will facilitate increased public-private cooperation in the on-going development of the natural gas sector in South Africa.

SAIBL ASSISTS SOUTH AFRICAN BUSINESSES (WOMAN-OWNED) EXPAND OPPORTUNITIES

In South Africa, the USAID supported South African International Business Linkages project (SAIBL) has been helping small historically disadvantaged businesses expand market opportunities by linking them with domestic and international partners. SAIBL provided ISO 9002 training and other technical assistance to KPL Aluminum & Die-Casting, a small, woman-owned business in a township near Johannesburg, helping the company secure a $2.7 million contract to produce parts for the Ford Motor Company. As KPL hires more employees and expands its business further, the company continues to work with SAIBL to manage its growth and take advantage of new opportunities.

USAID SUPPORT HELPS TANZANIA CURB ILLEGAL GEM TRADE

One of the most serious policy problems facing the minerals sector in Tanzania has been establishing tighter controls on small mining and its marketing network without crushing it. A recent collapse in the Tanzanite market brought that issue to the fore. In October 2001, the Wall Street Journal published an article alleging that al-Qaeda terrorists were trading in Tanzanite, and American jewelers who sold it were thereby supporting terrorists. Several major jewelry chains withdrew from the market, setting off a sharp drop in international prices. Prices of Tanzanite fell 30 percent or more in November and December 2001, causing widespread unemployment in both mining and tourism in northern Tanzania.

Through a cooperative agreement with Chemonics International, USAID assisted the government of Tanzania to establish procedures to document and track the path of Tanzanite from mine to consumer. This helped to ensure transparent trade by registered dealers throughout the global chain. Al-Qaeda and other terrorist groups will not find it easy to circumvent these tight new procedures. These USAID-assisted corrective measures in the gem trade also contributed to economic revival in northern Tanzania. The Tanzanite market has since recovered and stabilized. In 2002, major U.S. retailers again carried Tanzanite in their major fall marketing season.

UGANDAN AGOA APPAREL EXPORTS TRIPLED

USAID’s mission in Uganda has assisted Uganda in complying with the requirements for taking advantage of the Africa Growth and Opportunity Act (AGOA). In December 2002, Uganda sent its first ever shipment of apparel to the United States. The $27,000 shipment tripled the total for AGOA-exports from Uganda in 2001. The Ugandan exporter reports that this is just the beginning, claiming to currently have orders for 6 million garments worth up to $10 million. Not only does this have great significance for U.S.-Ugandan trade, but it also means a great deal to the mostly women workers … and their families … who make up the company’s 1,200 person workforce.

GLOBAL COMPETITIVENESS HUB ASSISTS ZAMBIA TO INCREASE EXPORTS TO AGOA COUNTRIES

USAID’s Global Competitiveness Hub in Gabarone, Botswana assisted the Zambian government in complying with the export visa regulations of the Africa Growth and Opportunity Act (AGOA). As a result, Swarp Spinning Mills has exported $5,761,305 worth of yarn to Botswana, Mauritius and South Africa for producing garments for the AGOA market.

THE RED SEA LIVESTOCK COMMISSION: EXPANIDING TRADE IN THE GREATER HORN OF AFRICA

In late 2000, eight nations in the Greater Horn of Africa (GHA) were banned from shipping their livestock to the Middle East due to disease. Without a market for livestock, there is little way to buy food for one's family, and there is no way to pay for children's education, thus breeding the sort of hunger that can lead to unrest and even sow the seeds of terrorism.

With funding from USAID's Global Development Alliance, AU-IBAR is now working with countries throughout the Greater Horn and Middle East to form a private sector-based trade regulation and certification body. Known as the Red Sea Livestock Trade Commission, this body in the future will help ensure that quality livestock and livestock products are exported from the GHA. Activities include accreditation and supervision of private animal health inspection agencies, livestock disease prediction, Halal (traditional Muslim production and slaughter) quality assurance, harmonization of livestock movement and import regulations, and promotion and niche marketing of livestock from the GHA. A constant dialogue will be maintained and exporters will be encouraged to take pro-active measures to meet these standards.

AFRICAN EXPORTS INCREASINGLY MEET SPS STANDARDS

When African countries voiced concern about their ability to comply with U.S. agricultural regulations and thereby maximize their benefits under the African Growth and Opportunity Act (AGOA), the U.S. Government responded with practical, targeted assistance. The U.S. Department of Agriculture assigned an official from its Animal Plant and Health Inspection Service (APHIS) to the Global Competitiveness Hub in Gaborone, Botswana, to advise southern African nations on agricultural trade within the region and internationally. The assistance has paid immediate dividends: by the end of 2003, African nations will have completed 15–20 pest risk assessments on products ranging from asparagus and cut beans to baby corn, table grapes, and apricots.

AFRICAN COUNTRIES GAIN ACCESS TO NEW INFORMATION SERVICES

The ability to fully access new information and telecommunication services is critical to Africa’s integration into the global economy. The U.S. Government supported the launch of NetTel@Africa, an alliance of African and U.S. universities, regulators, the Federal Communications Commission and resource experts. NetTel@Africa is designing and delivering high quality training and professional certification courses. This support helps to establish an enabling environment for trade, an efficient regulatory framework, and the competitive delivery of new services.

SOUTHERN AFRICAN COUNTRIES DEVELOP SHORT TERM ELECTRICITY MARKET WITH HELP FROM USAID

USAID provided technical assistance for the development of an unprecedented competitive short term electricity market (STEM) system in Southern Africa in which nine utilities (Botswana, Democratic Republic of the Congo, Lesotho, Mozambique, Namibia, South Africa, Swaziland, Zambia and Zimbabwe) are key participants and beneficiaries. STEM helps reduce the cost of traded electricity and provides an enabling framework that reduces legal, institutional and political barriers to commercial energy markets. Liberalization of the energy sector and increased competition in electricity trade, reduces energy costs, and increased access to electricity promotes economic development.

NON-TARGETED GLOBAL PROGRAMS

AGRICULTURAL SCIENCE AND TECHNOLOGY CONFERENCE PROMOTES LDC COMPETITIVENESS

In June 2003, USDA hosted Ministers of Agriculture, Environment, Science, and Trade from 117 nations for a global Ministerial Conference and Expo on Agricultural Science and Technology. One outcome was dissemination of information about new technologies, including biotechnology, that enhance global competitiveness. Ministers and experts shared information on how to attract investment and develop appropriate policy and regulatory frameworks that promote agricultural competitiveness and trade. Highlighted technologies included food identity preservation and quality assurance, supermarket management, and improving “cold chain” infrastructure. Technologies and issues related to improving global sanitary and phytosanitary conditions, including food safety, were also featured.

WTO/SPS-RELATED TRAINING IN AFGHANISTAN, SOUTH AFRICA AND LATIN AMERICA

A workshop for Afghanistan animal, plant health, and food safety officials and stakeholders introduced participants to the rules-based international trading system under WTO, including the SPS agreement and its impact and requirements as related to international agricultural trade.

A regional seminar in South Africa, funded by the U.S. Agency for International Development (USAID), helped the Southern Africa Development Community (SADC) Secretariat as well as 12 SADC member countries chart tangible action steps to address intra-regional and global trade constraints.

In Costa Rica, USDA organized a November 2002 regional strategic planning session for 20 Latin American and Caribbean nations to improve communication among nations on geographic indicators, traceability, biotechnology, food safety related to tourism, and capacity building for food standards and regulations.