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INSTITUTE OF AGRICULTURAL AND ENVIRONMENTAL RESEARCH TENNESSEE STATE UNIVERSITY |
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Seminar Series Abstract
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Forest Products Trade Between Africa and the United States: Assessing the Possibilities, Benefits, and Constraints Stephen H. Kolison, Jr. and Anonya A. Akuley-Amenyenu Cooperative
Agricultural Research Program
Seminar Series Introduction. The end of the Cold War and the dawn of a new century provide an opportunity to redefine the relationship between the U.S. and Africa. For the U.S., the potential benefits of such a relationship were highlighted by President Clinton's historic visit to Africa in March 1998. There are also ongoing discussions on the "African Growth and Opportunity Act" in the U.S. Congress. In the African and African-American summit held in Zimbabwe in July 1997, discussions were held about what form or shape this relationship should take in the new millennium. Increasing trade between Africa and the U.S. is being proposed as a "new avenue" through which the U.S. can continue to assist in the economic growth of the continent. Objectives. The primary objective of this study was to conduct a preliminary assessment of the potential of the forestry or wood products sector in selected African countries to be a viable sector in the new era of trade between the U.S. and these countries. Methodology. To assess the potential for countries in Africa to increase or establish trade with the U.S., a study of wood products exports from Ghana to the U.S. was conducted. Ghana was chosen because of its long history of forestry and wood products trade with western nations. A survey of wood product manufacturers in Ghana was conducted to measure interest in the U.S. market and the capacity of the industry in Ghana. Additionally, a survey of selected U.S. importers of tropical wood was conducted to gauge demand. Results. Some wood product manufacturers in Ghana and other African countries already export some of their products to the U.S. However, the majority export their products to Europe. Given its potential linkages to many other sectors of production in a given economy, the wood products sector was found to be an excellent sector for trade between Ghana and the U.S. Increasing wood product exports would create more jobs in Ghana, strengthen the country's economy, and help fulfill some of the goals of the "African Growth and Opportunity Act" currently pending in the U.S. Congress. Furthermore, the principal raw material that the sector is dependent upon is sustainable, environmentally friendly and generates other positive externalities. Increasing wood products exports from Ghana to the U.S. could open markets for U.S. manufacturers of forestry and wood processing equipment and parts, thus expanding employment opportunities in the U.S. Given that the U.S. itself is a major wood producing country, the study also assessed the possibility of an economic conflict in the U.S. arising from increased imports from Ghana. The tropical woods imported from Ghana or Africa are not indigenous to the U.S., and therefore could fill specific demands such as for high value furniture and furniture parts. Among the constraints expressed by Ghanaian manufacturers was the cost of shipping to the U.S. Because of the distance and the fact that there are relatively few shipping companies operating from the U.S. to the West African ports, the cost for shipping is usually high. Impact. This study adds to the body of knowledge needed by U.S. policy makers currently debating the merits of promoting trade between Africa and the U.S. |
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