The US and Mozambique signed a Trade and Investment Framework Agreement (TIFA) on 21 June 2005. The TIFA will build on the recently enacted US/Mozambique Bilateral Investment Treaty (BIT), a platform created for the bilateral trade and investment relationship between the two governments. 'The TIFA will expand our bilateral trade and investment relationship with Mozambique. It is an important next step in our increasingly strong trade relationship and it builds on our BIT, the African Growth and Opportunity Act (AGOA), our work in the World Trade Organization (WTO) and Mozambique's Millennium Challenge Account compact', said US Ambassador Shiner. The TIFA will provide a forum to improve the relationship between the two countries, explore common objectives, review options and investigate possibilities for greater co-operation and a more comprehensive trade and investment dialogue. Some issues that will be discussed include trade capacity-building, intellectual property, labour, environmental issues and enhancing the participation of small and medium-sized enterprises in trade and investment.
Significance: Trade between the US and Mozambique increased by 24% in 2004 and was valued at US$87.2 million. US exports to Mozambique totalled US$76.4 million, while US imports from Mozambique made up the remaining US$10.8 million during the year. Mozambique's exports to the US accounted for a meagre 1% of its total worldwide exports. The TIFA is hoping to improve this ratio substantially.World Markets Analysis
