On April 1, 2004 a broad bipartisan coalition held a press conference in the Capitol to unveil new AGOA III legislation, titled the AGOA Acceleration Act.

The legislation is championed by Representatives Bill Thomas, (R-CA), Jim McDermott (D-WA), Phil Crane (R-IL), Charles B. Rangel (D-NY), Ed Royce (R-CA), William Jefferson (D-LA), Amo Houghton (R-NY), Donald Payne (D-NJ) and Richard Neal (D-MA).

The AGOA Acceleration Act, HR 4103, is closely modeled after the AGOA III Act but specifically designed to smoothly pass the Congress in quick fashion.

Statement by Jim McDermott, Member of Congress

Rarely does life present the opportunity to change the world in such a profoundly positive way. We are called to action today, inspired by legendary leaders who understood that today's actions and words will echo long into tomorrow.

Before the Congress of the United States is AGOA III, the Africa Growth and Opportunity Act. AGOA is a commitment to Africa's destiny, charted by Africans, encouraged by Americans, and expressed in hopes and dreams that have stirred great nations throughout history.

Africa can bridge the political divide. AGOA can bind Republicans and Democrats, embracing an African destiny that recalls American's own struggle for independence.

We establish this place to bring voices, and faces, and nations, together. To share, and learn, and understand. Join us. Contemplate what role America can play in Africa's destiny. Celebrate what Africa is, what Africa will be.

Additional statements posted on the website:

"For AGOA to continue to provide real economic opportunities, sub Saharan Africa must continue to diversify its economies. While this proposal helps the budding textile and apparel industry in the region that has sprouted as a result of AGOA, it also attempts to address larger barriers to economic growth. HR 4103 aims to help African farmers export more of their goods to the United States and it seeks to help the region develop the infrastructure necessary to attract investment, create jobs and increase trade capacity."

Jim McDermott

"Our bipartisan legislation will allow sub-Saharan Africa to continue its integration into the world economy. That is critically important, because Africa's economic condition cannot be improved through aid alone."

Phillip Crane

"The immediate need for this bill is the expiration of benefits for the lesser developed countries. We are not merely extending these AGOA benefits; we are accelerating Africa to take advantage of the original AGOA. Specifically, we are trying to expand African capacity and infrastructure to make it attractive for investment in regional fabric production."

Bill Thomas

"Today's bill introduction represents a truly bipartisan effort. This is fitting because the challenges in Africa are great, as are the United State's interest on the continent, and we should be unified in pursing the AGOA agenda. By broadening AGOA, we are encouraging even more countries to participate and allowing many more African industries to benefit," said Royce, who intends to hold an Africa Subcommittee hearing examining AGOA later this month.

Edward Royce

AGOA III Legislation

The Congress enacted AGOA in 2000.

In 2002, the Congress passed legislation that broadened the benefits provided under AGOA, this legislation was known as "AGOA II."

The immediate impetus for AGOA III legislation is the expiration of a provision in existing law that provides the poorest African countries with the ability to use non-African and non-U.S. fabric in their apparel exports (the "3rd country fabric rule"). SSA countries' textiles and apparel sectors have dramatically expanded under AGOA. That growth is jeopardized by the expiration of the 3rd country fabric provision, as well as expiration of global textiles and apparel quotas on January 1, 2005.

In addition, any new AGOA legislation should aim to diversify SSA exports so as to utilize SSA countries' comparative advantages. Commodities that are capital but not labor intensive - such as minerals and petroleum -- still represent the largest AGOA exports in monetary terms. Gains in other sectors have occurred, but more needs to be done, in part by providing additional access to African agriculture exports

Key Provisions of The AGOA Acceleration Act of 2004 (AGOA III Legislation that the House will soon consider)

Extends overall program from 2008 until 2015

Textile and Apparel Provisions

Third-Country Fabric: The bill extends 3rd country fabric provision for three years, from September 2004 until 2007, including a phase down of benefits in year three. Under current law, least-developed AGOA beneficiary countries can use third country fabric in qualifying apparel until 2004. This flexibility was included in AGOA I, because few of these countries have fabric-making capacity. The LDCs have expressed a strong desire to extend the third-country fabric provision, because sufficient fabric-making capacity still does not exist in the region, and because the countries are expecting a significant drop in orders with the elimination of world-wide apparel quotas in 2005.

Addresses the restrictive rule-of-origin requirements: The bill modifies the AGOA rule of origin to allow use of non-AGOA produced collars and cuffs for all import categories. Sponsors of the legislation have agreed to discuss other items to include in this category to ensure that the rules of origin track commercial realities.

Expands Coverage of Current "folklore" AGOA Provision: The bill allows ethnic fabrics that are made on machines to qualify for AGOA duty free treatment under AGOA's folklore provision.

Broader Issues

Infrastructure/Ecotourism: The lack of a developed infrastructure is one of the key barriers to economic growth in Africa. This bill provides assistance to develop sustainable infrastructure (transportation, telecommunication systems etc…) to increase trade capacity. It does this, in part, by encouraging the growth of the ecotourism industry in sub Saharan Africa. This industry is growing exponentially and is creating jobs and Africa hold a significant comparative advantage in this industry. Infrastructure that supports ecotourism will also support increased trade flows.

Technical assistance for agriculture exports: Three out of every four Africans participate in the agriculture industry, but African farmers lack the technical expertise to be sure that their exports meet the strict sanitary/phytosanitary standards of the U.S. The bill directs the President to assign 20 personnel to sub Saharan Africa for the purpose of providing assistance to select AGOA countries to assist and advise them, so that their exports can meet U.S. standards.

Public/Private Collaboration on transportation issues: The bill facilitates increased coordination between customs services at ports and airports in the United States and sub-Saharan countries to reduce time in transit and increase efficiency and safety procedures.

Support Regional Integration: The bill allows AGOA beneficiary countries the continued use of inputs from countries that have a free trade agreement with the United States and were former AGOA beneficiary countries.

Continues Executive Branch focus on Africa: The bill directs the Administration to implement interagency trade advisory committee.

Promotes African progress: The bill includes findings and statements of policy about the benefits to Africa of AGOA and supporting various sub-Saharan Africans efforts such as to reduce poverty, promote peace, attract investment and trade, and fight HIV-AIDS.