Country Information - Madagascar
ECONOMIC BACKGROUNDNote: Madagascar was suspended from AGOA at the end of 2009
Madagascar faces problems of chronic malnutrition, underfunded health and education facilities, a roughly 3% annual population growth rate, and severe loss of forest cover, accompanied by erosion. Agriculture, including fishing and forestry, is the mainstay of the economy, accounting for one-third of GDP and contributing more than 70% to export earnings.
Industry features textile manufacturing and the processing of agricultural products. Growth in output in 1992-97 averaged less than the growth rate of the population. Growth has been held back by antigovernment strikes and demonstrations, a decline in world coffee prices, and the erratic commitment of the government to economic reform. The extent of government reforms, outside financial aid, and foreign investment will be key determinants of future growth. (Source: World Factbook, 2002)
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BI-LATERAL TRADE OVERVIEWNote: Madagascar was suspended from AGOA at the end of 2009
Trade between Madagascar and the United States has grown very rapidly over the past few years, although this is largely due to the substantial expansion of Madagascar's exports. Since 1999, the country's exports to the U.S. have grown almost 3-fold, while imports from the U.S. continue to remain low. This has resulted in a 2002 recorded trade surplus of $ 200 million (2001: $ 250 million) in favour of Madagascar.
US imports from Madagascar are of a highly concentrated nature, and consist predominantly of 'textiles and apparel' and 'agricultural products'. Other categories play only a relatively minor role. Madagascar qualified for the AGOA 'Wearing Apparel' provisions on March 6, 2001, making it one of the first Sub-Saharan African (SSA) countries to do so. In addition, it is deemed to be a 'Lesser Developed Country', making it eligible - until September 30, 2004 at least - to utilise third country textile inputs in the production of AGOA-eligible garments.
The importance of 'textile and garment' exports to Madagascar cannot be overemphasised, although 2002 saw a major decline in its exports to the US. Counting in Madagascar's favour is the fact that it is attracting significant new investment in these sectors from neighbouring countries such as Mauritius, also due to the fact that wage rates in Madagascar are more competitive.
In 2002, approximately 84% (2001: 90%) of Madagascar's 'textile and apparel' exports are currently AGOA-eligible, while almost 40% of the country's total exports to the U.S. are AGOA compliant (see link to Country Trade Profile below).
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21 AGOA FORUM 2013: Ethiopia will host the 2013 US-Africa AGOA Forum. AGOA.info has been informed that the Forum will not take place as envisaged on 28 June - 1 July, but at a later date yet to be determined. The theme for this year’s Forum is “Trade and Technology for sustained change”“
21 December 2012: Guinea-Bissau and Mali lose AGOA eligibility
APRIL 2013: Monthly data has been updated to include February 2013 data, quarterly includes full year 2012 data.
New US strategy towards Africa: White House Factsheet on new strategy towards Africa, plus overview of past US engagement with Africa. Click here for the file and this link for a summary article.
02 August 2012: Bill to extend third country fabric provision passes Congress Download the House of Reps. Bill at this link
South Sudan declared AGOA-eligible on 26 March 2012. Earlier, Cote d'Ivoire, Niger and Gambia declared AGOA eligible on 25 October 2011. See news item, presidential declaration and trade overview at this link (S Sudan) and here (others).
US GSP extended and GSP benefits to be applied retrospectively for the year 2011 since expiry of previous GSP. See AGOA.info legal documents section at the following link.
AGOA at 10: Reflections on US-Africa trade with a focus on SACU: Tralac Working Paper that can be downloaded at this
December 2010: The Democratic Republic of Congo loses its AGOA eligibility status. See proclamation here (pdf download available at this link
ITC investigation of textiles and apparel: Further details at this link
AGOA IV – Changes to AGOA explained
For disaggregated trade data covering each AGOA country, follow the relevant link in the Country Sections (left column) or click here.
For detailed AGOA maps click here