The ITC, an independent, nonpartisan, factfinding federal agency, conducted the investigation for the United States Trade Representative (USTR). As requested, the ITC's study is limited to the 48 countries of sub-Saharan Africa. The current report provides an update for 2000 on U.S.-Africa trade and investment flows in major sectors; an identification of major developments in U.S. trade and economic policy and commercial activities that significantly affect bilateral trade and investment with the region; information on changing trade and economic activities within individual countries; and an update on progress in regional integration in Africa. The report also contains an economic profile for each of the countries of sub-Saharan Africa. In addition, the ITC posts updated data from the report periodically on the ITC website. Data on quarterly U.S. trade with sub-Saharan African countries as well as sectoral trade with those countries can be accessed at www.usitc.gov/tradereports/africa/. The website contains trade data relating to the new African Growth and Opportunity Act (AGOA).

Following are some highlights of the report:

• In 2000, a very large increase in U.S. imports from, and a small increase in exports to, sub- Saharan Africa resulted in a 97.8 percent increase in the long-standing U.S. trade deficit with the region. The 2000 deficit measured $16.7 billion, with much of its increase due to an 88 percent increase in U.S. imports of oil and energy-related products. Excluding trade in petroleum, the U.S. trade deficit with the region increased by 134 percent from $1.6 billion in 1999 to $3.8 billion in 2000.

• U.S. merchandise exports to sub-Saharan Africa increased from $5.3 billion in 1999 to $5.6 billion in 2000. The largest U.S. exports to sub-Saharan Africa were transportation equipment (32.4 percent share), electronic products (12.6 percent), agricultural products (13.8 percent), and chemicals and related products (12.8 percent). The largest increases in U.S. exports to the region were in transportation equipment ($101 million) and chemicals and related products ($99.6 million). U.S exports of electronic products to the region decreased by $64.6 million in 2000.

• Total U.S. merchandise imports from the region increased 61.5 percent to $22.2 billion. This increase was mainly due to a $7 billion (87.7 percent) increase in U.S. imports of energy-related products from the region. Nigeria alone contributed $5 billion to the increase in U.S. imports with a 134 percent increase in sales of Nigerian oil and energy-related products to the United States.

• Major U.S. import sectors from the region include energy-related products (67.6 percent share), minerals and metals (14.4 percent), and chemical and related products (6.5 percent). Total U.S. imports from the region increased in all major categories, with the exception of footwear, transportation equipment, and miscellaneous manufactures.

• Imports from sub-Saharan Africa that entered the United States under the Generalized System of Preferences (GSP) increased by 45.2 percent in 2000 to $3.9 billion. The largest share of GSP imports from the region came from Angola (72.4 percent share, or $2.8 billion) in part due to a measure implemented in 1997 that made crude oil imports from least developed beneficiary countries GSP-eligible. Angola especially benefitted from this change. In 2000, GSP imports also increased 29.8 percent from South Africa and 52.7 percent from the Democratic Republic of the Congo (DROC).

• The first U.S. imports the AGOA were in January 2001. During the first half of 2001, the U.S. imports covered under AGOA totaled $3 billion. The principal suppliers under AGOA were Nigeria ($2.3 billion), Gabon ($448.5 million), and South Africa ($135.5 million). Other AGOA suppliers imports in the first half 2001 included Ghana ($18.9 million), Cameroon ($16.2 million), and Kenya ($16.1 million).

• U.S. imports under AGOA consisted primarily of energy-related products. U.S. imports of energy-related products during the first half 2001 totaled $2.8 billion, 94.2 percent of the AGOA total. The remaining AGOA imports consisted of much smaller quantities of textiles and apparel, minerals and metals, agricultural products, transportation equipment, and footwear.

• U.S. direct investment flows to the region totaled $77 million in 2000, or less than 0.1 percent of total U.S. direct investment abroad. In 2000, U.S. direct investment flows to sub-Saharan Africa decreased by 92.3 percent. The decline is mainly due to a 91.6 percent decrease in flows to South Africa, and a 73.9 percent decrease in flows to Nigeria. The largest recipients of U.S. direct investment in sub-Saharan Africa in 2000 were Angola (32.5 percent) and South Africa (20.7 percent). U.S. holdings are principally in the petroleum sector in Angola and Nigeria, and in the mining and manufacturing sector in South Africa.

U.S. Trade and Investment with Sub-Saharan Africa (Investigation No. 332-415, USITC Publication 3476, December 2001) will be available on the ITC's Internet server at www.usitc.gov. A printed copy may be requested by calling 202-205-1809 or by writing the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.

ITC general factfinding investigations, such as this one, cover matters related to tariffs or trade, and are generally conducted at the request of the U.S. Trade Representative, the Senate Committee on Finance or the House Committee on Ways and Means. The resulting reports convey the Commission's objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the ITC submits its findings and analyses to the requestor. General factfinding investigation reports are subsequently released to the public, unless they are classified by the requestor for national security reasons.