OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
EXECUTIVE OFFICE OF THE PRESIDENT
WASHINGTON, D.C.
JUNE 21, 2005

United States and Mozambique Sign Trade and Investment Framework
Agreement

WASHINGTON - U.S. Trade Representative Rob Portman and the Mozambican
Minister of Industry and Commerce Antonio Fernando signed a Trade and
Investment Framework Agreement (TIFA) today that will provide a forum to
address trade issues and will help enhance trade and investment
relations between the United States and Mozambique. The TIFA will build
on our bilateral trade and investment relationship with the Government
of the Republic of Mozambique and the recent enactment of the
U.S.-Mozambique Bilateral Investment Treaty (BIT).

"Mozambique is viewed as a positive model because of its impressive
track record on democracy, political stability, economic growth,
openness to foreign direct investment, and expanding exports. This TIFA
will provide us an opportunity to work together to further expand trade
between our two countries. It will also allow us to work more closely
with the Government of Mozambique to support continued progress and
success," said Ambassador Portman.

Joining Ambassador Portman in signing the agreement were Deputy U.S.
Trade Representative Josette Sheeran Shiner, U.S. Ambassador to
Mozambique Helen Meagher La Lime, members of the African Diplomatic
Corps, Special Assistant to the President and Senior Director for
African Affairs Cindy Courville and senior representatives from the U.S.
and Mozambique government and private sector.

"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 Bilateral Investment Treaty,
the African Growth and Opportunity Act, our work in the WTO, and
Mozambique's Millennium Challenge Account compact," said Ambassador
Shiner.

The TIFA provides a mechanism for improving the U.S.-Mozambican trade
relationship, exploring common objectives, reviewing options, and
investigating possibilities for greater cooperation and a more
comprehensive trade and investment dialogue.

Created by the TIFA, a United States-Mozambican Council on Trade and
Investment will be formed to address a wide range of trade and
investment issues that include, but are not limited to, trade capacity
building, intellectual property, labor, environmental issues, and
enhancing the participation of small and medium sized enterprises in
trade and investment. The TIFA Council will establish an ongoing
dialogue which will help increase commercial and investment
opportunities by identifying and working to remove impediments to trade
and investment flows between the United States and Mozambique.

The United States has TIFAs with other important trading partners. In
sub-Saharan Africa, the United States has concluded TIFAs with South
Africa, Nigeria, Ghana, the Common Market for Eastern and Southern
Africa (COMESA), and the West African Economic and Monetary Union
(WAEMU/UEMOA). These agreements have provided the United States with a
constructive mechanism for facilitating improved trade and investment
relations with our TIFA partners.

Background:

Mozambique has made significant leaps in its development following the
end of the civil war in 1992, and continues to be an international model
of war-to-peace transition. The substantial, sustained economic growth
rate of 8 percent in Mozambique is the result of market-oriented reforms
implemented over the last years.

Total trade between the United States and Mozambique was valued at $87.2
million in 2004, an increase of 24 percent over the prior year. U.S.
exports totaled $76.4 million in 2004; U.S. imports from Mozambique
amounted to $10.8 million in that same year. Mozambique's exports to
the United States, however, make up only about 1 percent of its total
worldwide exports. Hence, the opportunities for an expanded trading
relationship between the United States and Mozambique are significant.
Mozambique is also interested in developing its tourism industry, and
U.S. foreign-direct investment in this sector could be very useful in
achieving the country's development goals.

The United States is aggressively working to open markets globally,
regionally, and bilaterally and to expand American opportunities in
overseas markets. U.S. Trade Representative Robert Portman plans to
pursue an aggressive agenda with a focus on opening new markets,
enforcing our trade agreements and trade laws, spreading economic
freedom, and working in close partnership with Congress.

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