The U.S. International Trade Commission (ITC) today released U.S.-Trade and Investment with Sub-Saharan Africa, the first report in a new five-year series intended to assist the President in developing a comprehensive trade and development policy for the countries of Africa.

The ITC, an independent, nonpartisan, factfinding federal agency, is conducting the investigation for the United States Trade Representative (USTR).

As requested by USTR, the ITC's study is limited to the 48 countries of sub-Saharan Africa. The current report provides 1999 information 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. During the course of the investigation, quarterly data concerning U.S. trade with the countries of sub-Saharan Africa, as well as sectoral trade with those countries, will be maintained on the ITC web site at www.usitc.gov/miscell.htm.

Highlights of the report follow.

• For the second consecutive year, total two-way trade between the United States and the region declined, dropping by 4 percent from $19.9 billion in 1998 to $19.1 billion in 1999. With the exception of footwear, U.S. exports decreased in every major sector. Overall, U.S. exports to the region declined by 18.2 percent in 1999. U.S. imports from the region, on the other hand, increased in every major sector except agricultural goods. Total imports from the region increased by only 2.9 percent for the year. Energy-related products made up nearly 60 percent of U.S. imports from the region in 1999.

• In 1999, the U.S. trade deficit with sub-Saharan Africa increased by 23 percent due to a large decline in U.S. exports of non-petroleum products and an increase in imports of such products.

• Generalized System of Preferences (GSP) imports from sub-Saharan Africa increased almost 16 percent in 1999, to $2.8 billion. Angola continued as the largest sub-Saharan African GSP import supplier to the United States.

• Sub-Saharan Africa received about $5.6 billion in foreign direct investment (FDI) flows in 1999, an increase of 27.3 percent from the previous year. South Africa accounted for most of the increase in the region.

• U.S. direct investment flows to the region declined by nearly 59 percent, from $3.2 billion in 1998 to $1.3 billion in 1999. The U.S. direct investment position in sub-Saharan Africa totaled $15.1 billion in 1999, representing a 5.8-percent increase from 1998.

• U.S. government programs directed toward sub-Saharan Africa include those directed by the Export-Import Bank, the U.S. Trade and Development Agency, the Overseas Private Investment Corporation, and the U.S. Agency for International Development. Assistance to the sub-Saharan region through these programs increased significantly in 1999.

• Public Law 106-200, the African Growth and Opportunity Act, became law in May 2000. The statute provides for preferential tariff provisions under specific conditions for countries of the sub-Saharan African region. The law also spells out provisions to develop private sector equity investment funds for Africa.

U.S.-Trade and Investment with Sub-Saharan Africa (Investigation No. 332-415, USITC Publication 3371, December 2000) will be posted in the Publications and Reports section of the ITC's Internet site at www.usitc.gov. As a pilot project, the ITC is disseminating the report in color on CD-ROM. The CD-ROM 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. A black-and-white printed version may also be requested through the same channels. Technical questions concerning the CD-ROM version should be directed to Renea McGriff at 202-205-2752.

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 requester. General factfinding investigation reports are subsequently released to the public, unless they are classified by the requester for national security reasons.