The White House: Supporting the U.S.-Africa Partnership Through the AGOA Extension and Enhancement Act of 2015
Last week, Congress introduced several bills that are important to the economic future and national security interests of the United States.
Central among them is a 10-year extension of the African Growth and Opportunity Act, legislation that has served as the cornerstone of the U.S.-African economic relationship and has dramatically expanded U.S trade with Africa over the past 15 years.
In Ghana in 2009, President Obama highlighted the importance of U.S. engagement with Africa when he said, “I do not see the countries and peoples of Africa as a world apart; I see Africa as a fundamental part of our interconnected world – partners with America on behalf of the future we want for all of our children. That partnership must be grounded in mutual responsibility and mutual respect.” At the United States-Africa Leaders’ Summit last year, he called on Congress to renew AGOA well before its expiration in September 2015, and we are pleased that the bill introduced last week not only extends AGOA for the longest extension in its history but also makes improvements that modernize and increase the effectiveness of the program.
Since AGOA was signed into law in 2000, it has been a catalyst for the growing partnership between Africa and the United States. At a pivotal time in the continent’s development, AGOA has provided vital economic opportunities by supporting regional integration, helping African companies become more competitive, and fostering an enabling environment for private sector investment. AGOA non-oil exports have more than tripled since the program was introduced supporting an estimated 350,000 direct jobs and hundreds of thousands of indirect jobs, according to apparel sector trade groups. AGOA supports and reflects our shared values by providing incentives to adopt good governance, pro-growth and pro-development policies, including on worker rights and human rights.
By supporting African development, AGOA also provides tangible economic benefits for the United States. Since 2000, U.S. exports to sub-Saharan Africa have more than tripled as Africa’s growing middle class is increasingly able to buy high-quality Made in America products. African businesses have sought more U.S. inputs, expertise, and joint partnerships. U.S. investment in Africa is creating good jobs and higher incomes for workers on both sides of the Atlantic. By encouraging prosperity, peace, and development, trade programs like AGOA support U.S. foreign policy and strategic goals, in Africa and elsewhere.
The AGOA Extension and Enhancement Act – introduced in the Senate and House builds on these accomplishments and creates a strong platform for the future. It would extend the program for ten years, giving companies the certainty needed to develop supply chains and sustain long-term investments. It would encourage the development of key industries and promote regional integration by allowing AGOA beneficiaries to combine inputs to qualify for the preferences. It would give the Administration greater flexibility in engaging with AGOA beneficiaries to resolve eligibility issues including market access issues, and encourage governance and policy improvements in key areas such as worker rights and human rights.
President Obama has made clear his support for a seamless, long-term extension of AGOA on many occasions, including in a letter to the Congressional trade leadership last month, where he said a long-term extension of AGOA would “signal unquestionably our shared strategic interest in supporting a prosperous future for the African continent.” The AGOA Extension and Enhancement Act is also an important step in strengthening U.S. economic leadership and engagement with the developing world. It deserves bipartisan support and swift approval in Congress.
Ambassador Michael Froman is the U.S. Trade Representative. Ambassador Susan E. Rice is the U.S. National Security Advisor.
Read related news articles
African trade coalition backs AGOA 16-year renewal bill to boost trade prospects
The African Coalition for Trade (ACT) has voiced its support for the African Growth and Opportunity Act (AGOA) Renewal and Improvement Act of 2024 and credits the bill with creating hundreds of thousands of direct jobs in Africa and the US. The AGOA Renewal and Improvement Act of 2024 which was introduced by Senators Chris Coons and James Risch would extend the bill for 16 years until 2041 and continue to boost Africa’s duty-free status as...
18 April 2024
US apparel and footwear industry supports 16 year AGOA renewal
The American Apparel & Footwear Association applauds Senator Chris Coons (D-DE) and Senator James Risch (R-ID) for introducing the AGOA Renewal and Improvement Act of 2024.Currently set to expire in September 2025, AGOA is a pivotal trade preference program that provides duty-free access to the U.S. market, fostering economic growth and opportunity between the U.S. and eligible African countries. This program is the cornerstone of...
11 April 2024
US senators will introduce bill to renew Africa trade pact through 2041 [Download copy]
A bipartisan group of senators will introduce a bill to renew the United States' trade pact with sub-Saharan Africa ahead of its expiration next year, an aide to one of the senators said on Thursday. [ Download it here and download a summary here] The bill was introduced by Senators Chris Coons, a Democrat, and James Risch, the top Republican on the Senate Foreign Relations Committee. A cross-party group of...
11 April 2024
US manufacturing subsidies for Africa could help revive AGOA
Experts at the Center for Global Development argue that the unconventional approach could bring billions in new trade opportunities and would fit with US “friend-shoring” efforts. The US should pay ‘negative tariffs’ in Africa – essentially targeted manufacturing subsidies – to help revive its faltering African Growth and Opportunity Act (AGOA), according to a new report from the Washington-based Center for Global...
05 April 2024
US and African civil society stakeholders seek AGOA extension
A Civil Society Organisation, Network and other stakeholders from across the United States and African Growth and Opportunity Act-eligible countries have petitioned the President of the United States of America, Joe Biden, to consider an extension of the initiative. The CSO made the plea in a letter dated February 16, 2024, titled ‘Petition for Timely Re-Authorisation and Enhancement of the African Growth and Opportunity Act Beyond...
16 February 2024
House Ways and Means Committee leadership statement on meeting with ambassadors from select AGOA countries
Ways and Means Committee Chairman Jason Smith (MO-08) and Ranking Member Richard E. Neal (MA-01) released the following statement after hosting a bipartisan roundtable with Committee members and ambassadors from several African Growth and Opportunity Act (AGOA) countries. AGOA is a U.S. trade program focused on strengthening economic ties between the United States and nations in Sub-Saharan Africa. “We appreciate the ambassadors from...
18 January 2024
WEF - How has AGOA benefited African countries?
The African Growth and Opportunity Act (AGOA) is a trade agreement between the United States and sub-Saharan African countries. Agoa has helped to increase trade and investment between Africa and the US. It has also helped to create jobs and boost economic growth in Africa. African countries are calling for it to be extended. To what extent has the AGOA goal been achieved? The duty- and quota-free access to the US market granted by Agoa...
16 November 2023
South Africa’s AGOA forum: Crafting future pathways for US-Africa trade partnership
Ultimately the African Growth and Opportunity Act (AGOA) could be extended by 16 years, that means until 2041, indicating its importance for strengthening Africa’s trade and economic cooperation with United States. That was, in fact, the main focus during Johannesburg’s early November forum that brought together more than 30 trade ministers, astute investors plus representatives from the regional economic blocs and the African Union. At...
14 November 2023
Africa-US trade: AGOA expires in 2025 - what has it achieved in 23 years?
African governments are seeking an extension of the African Growth and Opportunity Act (Agoa) beyond 2025. The law was enacted in 2000 to “encourage increased trade and investment between the United States and sub-Saharan Africa”. We asked David Luke, who specialises in African trade policy and trade negotiations, what benefits Agoa has brought for qualifying African countries and how it can...
12 November 2023
US Senator Chris Coons proposes AGOA extension by 16 years, immediate review of SA’s AGOA eligibility
Powerful US Democratic Party Senator Chris Coons is circulating a discussion draft of a Bill to renew the African Growth and Opportunity Act (Agoa) for 16 years that would also require an immediate “out-of-cycle” review of South Africa’s eligibility for Agoa. That could lead to South Africa being removed next year from the programme, which has provided considerable benefits to SA exporters to the US of cars, fruits and wine, in...
07 November 2023
AGOA extension crucial for Ghana’s industrialisation
The Deputy Minister of Trade and Industry Nana Ama Dokua Asiamah-Adjei is supporting the push for the extension of the African Growth and Opportunity Act (AGOA) to enhance trade between Ghana and the US. A United States Trade Act enacted on 18 May 2000 as Public Law 106 of the 200th Congress, the AGOA legislation has been renewed on different occasions, most recently in 2015, when its period of validity was extended to September 2025. The...
06 November 2023