Benefits Of Preferential Trade Agreements

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39 Absorption, however, has a bilateral impact on the lives of the thousands of women who have joined the sector. The flow of FDIs from Taswan drove masses of women from poor farms in rural areas to work in the clothing industry under AGOA. By joining this sector, most women have found ways to ensure the survival and personal prospects of their families. However, women employed in the sector are generally uneducated and these jobs have a short lifespan. The non-presence of indigenous people poses a serious threat to the future of this industry, which is necessary for sustainable development. Analysts believe that the lack of political leadership is one of the main reasons why indigenous peoples do not help to compete around the world. Women do not have the opportunity to reach their prospects, as chronic unemployment is widespread in both countries, especially in rural areas from which most of these women have emigrated. The development of the industry under AGOA has led to an increase in exposure to non-decent work. The poverty trap in which these women find themselves is at the heart of these interconnected sub-processes. These inefficiencies must be addressed, as they clearly confirm that export-oriented industry and trade liberalization are not always the main determinants of the fight against poverty or that the static and micro-political effects of liberalization will always benefit the recipient country. Poverty cannot be adequately addressed in the recipient country if investors do not respect the rules of good business practice. The speech by international organizations such as the WTO and the World Bank calls on African countries to open up their economies to the EIS and join the trade liberalization movement to develop.

It is recalled, however, that the international epZ framework tends to better protect foreign investors than countries that receive foreign direct investment. While the positive effects of the country`s membership in the PTA are recognized in obtaining products directly di, as indicated in Buther and Milner [2008] and at Easter [2009], monitoring investor behaviour should also be part of the trade agreement. Although not considered economically prosperous, Swaziland and Lesotho are two sites for the weakest FDIs because they are politically and socially stable. Exchange rate fluctuations are the only major risk to economic interests. This allows these countries to capital at these lower risks in order to attract more viable IFs from other investors in their industrial development. 12 Some credible records from 2002 clearly indicate that AGOA has increased trade flows between the United States and sub-Saharan Africa. It also claims to create jobs and stimulate investment in target sectors. These statements are an important step towards achieving the goal of equal competition and improving Africa`s export conditions. In this context, DATA [2003] reported that in the two years since its adoption in 2000, Africa`s clothing exports to the United States increased by 46 per cent to $1.1 billion in 2002.