Cameroon–US; decades of trade relations

The U.S. and Cameroon signed a Bilateral Investment Treaty (BIT) in 1986 that came into force in 1989 it is close to 30 years since the United States entered a bilateral trade agreement with the Cameroon Government, such a relationship could be descried as fruitful and successful though much can still be done.

The U.S. bilateral investment treaty (BIT) program helps to protect private investment, to develop market-oriented policies in partner countries, and to promote U.S. exports.

The BIT program’s basic aims are, to protect investment abroad in countries where investor rights are not already protected through existing agreements (such as modern treaties of friendship, commerce, and navigation, or free trade agreements), to encourage the adoption of market-oriented domestic policies that treat private investment in an open, transparent, and non-discriminatory way; and to support the development of international law standards consistent with these objectives.

The BIT generally affords the better of national treatment or most-favored-nation treatment for the full life-cycle of investment — from establishment or acquisition, through management, operation, and expansion, to disposition.

The US-Cameroon Trade Portal to begin with, offers a wide range of services to American businesses wishing to engage or expand their operations in Cameroon, the largest economy in the Central African market also work with Cameroonian businesses seeking to purchase the highest quality American products or to export to the United States under the African Growth and Opportunity Act (AGOA).

AGOA The African Growth and Opportunity Act (AGOA) was signed into law by President Clinton in May 2000 with the objective of expanding U.S. trade and investment with sub-Saharan Africa, to stimulate economic growth, to encourage economic integration, and to facilitate sub-Saharan Africa’s integration into the global economy.

The Act establishes the annual U.S.-sub-Saharan Africa Economic Cooperation Forum (known as the AGOA Forum) to promote a high-level dialogue on trade and investment-related issues. At the center of AGOA are substantial trade preferences that, along with those under the Generalized System of Preferences (GSP), allow virtually all marketable goods produced in AGOA-eligible countries to enter the U.S. market duty-free.

Since its inception, AGOA has helped to increase U.S. two-way trade with sub-Saharan Africa including Cameroon.

The U.S. Congress requires the President to determine annually whether sub-Saharan African countries are eligible for AGOA benefits based on progress in meeting certain criteria, including progress toward the establishment of a market-based economy, rule of law, economic policies to reduce poverty, protection of internationally recognized worker rights, and efforts to combat corruption.

Benefits In this light, as of August 2014, 41 sub-Saharan African countries were eligible for AGOA benefits.

The U.S. Government provides assistance — most notably through four regional trade hubs — to African governments and businesses that are seeking to make the most of AGOA and to diversify their exports to the United States.

Speaking in Yaounde on May 12 2012, former Ambassador Robert P Jackson at an AGOA Workshop in Mont in Fébé Hôtel, said the 11-year-old AGOA remains the U.S. government’s signature trade initiative with Sub-Saharan Africa including Cameroon.

He said since AGOA was passed in 2000, African exports to the U.S. not including oil exports — have quadrupled and that Commercial relations between Cameroon and the U.S. have grown over the same period.

It should be noted that two way trade between Cameroon and the U.S. in 2011 rose 26% compared to 2010 (according to the U.S. International Trade Commission), with Cameroonian exports rising almost eight percent.

Ambassador Jackson added that over the years the Embassy has provided more business services to American companies interested in doing business in Cameroon in 2012 than in the previous two years combined.

“Not all African countries are AGOA-eligible, but Cameroon is among the 40 that are. Thanks to AGOA, Cameroonians have duty-free access to the American market for over 6,400 products. The states man said.

The most success story back in 2012 is La Maraichère’s five-year contract to export 6,000 tons of Cameroonian black-eyed peas per year. In its first year, the Enhanced AGOA Resource Center in Douala helped Cameroonians export textiles, handicrafts, pepper, and other agricultural products.

The ambassador however noted that Cameroonians must all engage the private sector, develop more formal and informal public-private partnerships, and expand the use of technology, including the Internet and mobile applications, like “Mobile Money.”

Economic cooperation between Cameroon and the USA has much to show in terms of mutually-beneficial trade, investment and the improvement of the business climate.

Although statistics show that trade between the two countries over the years has been negative for Cameroon, as it imports more than it exports to USA, the exchanges have however been stable.

Cameroon, reports say, does not figure yet on the list of first ten African countries that have tapped maximum benefits from the 2000 American legislation, the Africa Growth and Opportunity Act (AGOA), owing to its inability to produce quantity and quality products highly needed in the American markets.

Experts say the absence of a regular consultative framework between the two countries led to the reticence of America which would have otherwise facilitated the clearance of certain hindrances to the smooth flow of goods and services.

Reports in 2011, show, an improvement in trade between the two countries as their volume of trade grew by 26 per cent. Today, there is noticeable interest of American companies in Cameroon notably in sectors like mining, agriculture, telecommunications, hotel management, agriculture and aviation.

U.S.-Cameroon Trade Facts After decades of economic cooperation, even though the ratio of gain is not one: one is the right time to draw a balance sheet, celebrate where need be and strengthen cooperation for more gains.

Cameroon is currently our 113th largest goods trading partner with $698 million in total (two way) goods trade during 2013.

Goods exports totaled $331 million; Goods imports totaled $367 million. The U.S. goods trade deficit with Cameroon was $36 million in 2013.

Cameroon was the United States’ 114th largest goods export market in 2013. U.S. goods exports to Cameroon in 2013 were $331 million, up 31.0% ($78 million) from 2012.

The top export categories (2-digit HS) in 2013 were: Machinery ($139 million), Iron and Steel Products ($24 million), Electrical Machinery ($21 million), Vehicles ($20 million), and Optic and Medical Instruments ($19 million). U.S. agricultural exports to Cameroon in 2013 were $27 million.

Cameroon was the United States’ 99th largest supplier of goods imports in 2013. U.S. goods imports from Cameroon totaled $367 million in 2013, a 19.1% increase ($59 million) from 2012.

The five largest import categories in 2013 were: Mineral Fuel and Oil ($270 million), Wood ($33 million), Rubber ($25 million), Cocoa ($22 million), and Special other (returns) ($3 million).

U.S. imports of agricultural products from Cameroon totaled $50 million in 2013. Leading categories were: and rubber ($25 million), and cocoa paste and cocoa butter ($22 million).

The U.S. goods trade deficit with Cameroon was $36 million in 2013, a 35.6% decrease ($20 million) from 2012.

Meanwhile U.S. foreign direct investment (FDI) in Cameroon (stock) was $203 million in 2012 (latest data available), a 5.7% increase from 2011.

Cameroonians in America Speaking to THE SUN in a telephone conversation, one of the top Cameroonians in America Politics and Business, Ebot Joseph Eyong who was on hand to welcome the Head of State in Washington said, Cameroonians living the United States enjoy a favorable business climate.

He said he is assuring that there is a very huge potential to boost the trade relationship between Washington DC and Yaounde.

According Joe Eyong as he is fondly known the delegation that accompanied the Head of State President Paul Biya indicated that Cameroon meant business in terms of trade with the US.

He said he had a chat with the Minister of Finance, Communication, Advicer at the Presidency amongst others and they were happy with the economic relationship between Cameroon and the US.

American Chamber of Commerce- Cameroon Another body that is pushing for better trade relations between Cameroon and the United States is the American Chamber of Commerce- Cameron known as Amchamcam.

The American Chamber of Commerce in Cameroon is a voluntary association of the companies and individuals doing business in Cameroon with primary objective to advance the development of trade, commerce, and investment between the United States of America and Republic of Cameroon.

Amcham Cameroon’s members meet, regularly, every month to discuss and interact on the topics of current significance to conducting business in or with Cameroon and USA.

The Current president and CEO of the Cameroonian American Chamber of Commerce is Eddie Ford Brown and he is equally the founder of the Africa Investment Agency and General Manager of Beneficial Insurance Group.

Competing with China According to experts, and prior to the USA Africa Summit, one cannot help but praise and, at the same time, criticize Washington’s belated effort to promote its interests in Africa.

The lack of attention shown by the White House toward the continent in recent years was a blunder made all the more apparent by China’s success in advancing its business ties in the region.

A glaring case in point, according to economic analysts, is that the United States has much ground to cover in order to catch up with China in its economic affairs with Cameroon, a nation called “Africa in miniature”, whose known natural resources are increasing daily.

It should be noted that according to research, over the past decade, China’s trade ties with Cameroon have continued to expand at great pace, with bilateral trade increasing to more than $1.5 billion in 2013.

At the same time, China’s investments in local infrastructure have paved the way for Chinese companies to benefit from the lucrative mining opportunities that are being discovered with increasing frequency in the country.

Analysts say US interests in Cameroon, however, remain well behind the curve. US-Cameroon trade was estimated at $700 million in 2013, behind not only China but also Cameroon’s other three major trade partners – the European Union, Nigeria and India.

It is also said that with Cameroon set to become Africa’s next thriving emerging market, the US must urgently develop a country-specific strategy to diversify its trade partnerships in crucial industries, such as mining and energy, as well as agribusiness and clothes.

As the Cameroonian government continues to modernize, early investments in the private sector will prove highly lucrative for US companies and the American economy, as a whole. Boasting a young labor force, fertile land and a stable government, the flourishing market should not be missed.

Given Africa’s traditionally healthy diplomatic relations with the US and its reform-oriented business climate, there is no viable reason for relatively poor economic ties.

US Africa Summit: The Solution? With all these one hopes that after the just ended US Africa Summit, the White House, therefore, would develop country-specific strategies, or a continental approach, that take account of the peculiarities of the markets.

The first ever Africa Summit which took place in Washington was therefore a sine qua non chart the way forward.

Fortunately, though it is held on the theme, “Investing for the next generation.” And for the future generations to reap more benefits from the cooperation therefore there is need to surmount challenges like local processing of products before exports, improvement of the business climate which has been a persistent concern of the Americans and the easing of administrative procedures for investment, experts say the American government could seize the opportunity of the rich natural resources and the country’s socio-political stability to start business for win-win cooperation.