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Libya Is Now Eligible For USDA Export Promotion, Export Credit Guarantee, and Export Assistance Programs
On September 20, 2004, President Bush signed a series of executive orders that ended sanctions against Libya, effective September 21, 2004. He also waived the application of section 908(a)(1) of the Trade Sanctions Reform and Export Enhancement Act of 2000, title IX, Public Law 106-387 (TSRA) with respect to Libya. The effect of this waiver is that Libya is now fully eligible for USDA export promotion, export credit guarantee, and export assistance programs. Previously, under TSRA, United States exporters could ship food and medicine to Libya but only without U.S. Government assistance. USDA funds can now be used by our industry partners to re-introduce Libyan agribusiness to American products after a 20 year absence. USDA export credit guarantee programs can also be used.
The country is an attractive market for a variety of U.S. agricultural commodities. Several FAS cooperators are planning to conduct a range of activities from trade servicing, training on commercial contracting, inviting trade teams to the United States, milling training, and other technical trade servicing and training. FAS is exploring the feasibility of using export credit guarantees.
In 2004, Libya is expected to import $1.0-1.2 billion in agricultural products to feed its population of roughly 5 million – primarily wheat, wheat flour, corn, rice, vegetable oil, and dairy products. The EU is the dominant supplier, having captured roughly 50 percent of the import market. Over time, the United States could gain a share of the Libyan import market equal to the 10-20 percent share enjoyed by the United States in other North African markets. At current import levels, this would translate into a potential U.S. export market of $100-240 million a year.
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