House Ways and Means Committee Chairman asks US trade commission to investigate impact of AGOA program
Today, House Ways and Means Committee Chairman Richard E. Neal (D-MA) sent a letter to U.S. International Trade Commission (Commission) Chairman Jason E. Kearns requesting that the Commission initiate a fact-finding investigation on the African Growth and Opportunity Act (AGOA), a trade program that fosters economic development in the countries of sub-Saharan Africa (SSA).
Chairman Neal’s request reflects deep interest among members of the Committee on the U.S.-Africa trade and investment relationship and follows recent Committee activity. Late last year, the Trade Subcommittee held a hearing on increasing U.S.-Africa trade and investment.
The Committee has also led congressional engagement with African trade ministers during the 2021 AGOA forum and hosted a meeting with the President of Kenya.
“Currently, the AGOA program expires on September 30, 2025. As the Committee considers the future of the program, I request, on behalf of the Committee, pursuant to section 332(g) of the Tariff Act of 1930, that the U.S. International Trade Commission (the Commission) conduct an investigation and provide a report on the AGOA program in general and its usage,” wrote Chairman Neal.
“The report should also provide industry case studies to better understand the relative competitiveness of each sector and its impact on workers, economic development, and poverty reduction.”
Specifically, Chairman Neal requested an overview of the AGOA program and its use, including the role that AGOA has played in regional integration, as well as the extent to which AGOA has impacted workers and underserved communities, and contributed to economic development—including job growth and poverty reduction—in SSA countries. In addition, Neal requested case studies on the cotton, apparel, chemicals, and cocoa industries in sub-Saharan Africa.
“I request that the Commission transmit its report no later than 14 months following receipt of this request,” concluded Neal. “It is my intent to make the Commission’s report available to the public in its entirety; therefore, the report should not include any confidential business information.”
Full text of the letter can be downloaded from the link above.
View related news articles
USITC: AGOA boosts job growth in Sub-Saharan Africa's apparel sector
The impact of the African Growth and Opportunity Act (AGOA) programme on beneficiary countries within Sub-Saharan Africa (SSA) can be substantial depending on the sector, according to a report by the US International Trade Commission (USITC). The programme has had a positive impact on poverty reduction and job growth in some countries, particularly in the apparel sector. AGOA benefits accrue to a subset of countries and sectors within...
19 April 2023
US-Africa duty free program has had mixed results - trade panel report
A major U.S. trade preference program for Sub-Saharan Africa has been successful for developing the region's apparel sector in selected countries, but its benefits are not widespread throughout all countries and sectors, a new report to the U.S. Congress showed on Monday. The U.S. International Trade Commission (USITC) said its report on the African Growth and Opportunity Act (AGOA) trade benefits shows that they have helped...
17 April 2023
Bipartisan lawmakers in Congress are calling for the renewal of AGOA
As President Joe Biden hosts nearly 50 African leaders in a summit aiming to boost U.S.-Africa relations, one prominent issue has circulated across the Hill: the renewal of the African Growth and Opportunity Act, which is set to expire in 2025. What is it? The 22-year-old program works to provide eligible sub-Saharan African nations with additional duty-free access to more than 1,800 designated products, with the aim of...
13 December 2022
US Senator requests return of Ethiopia to AGOA
A U.S senator has requested the senate to return Ethiopia to AGOA as it has been progressing in many aspects. U.S. Senator from Virginia Mark Warner said the U.S. should strengthen and improve the trade relationship between Africa specifically Ethiopia. The Ethiopian government has been pending progress in many aspects, especially the ceasefire. The trade relation between Africa specifically with Ethiopia is important. “We do that...
05 April 2022
Sen. Toomey: Administration’s failure to move FTAs forward comes at huge cost to US
During today’s Senate Finance Committee Hearing with U.S. Trade Representative Katherine Tai, Senator Pat Toomey (R-Pa.) questioned the Biden Administration’s inaction on free trade agreements (FTAs) and the implication that FTAs are not a tool for the 21stcentury. On the importance of free trade agreements: “Every single presidential administration since Reagan has initiated negotiations on a new [free trade agreement]. They’ve done...
31 March 2022
US legislators seek to codify the Prosper Africa Act
In January 2022, representatives McCaul (R-TX) and Murphy (D-FL) put forward the Prosper Africa Act (H.R.6455) to codify the existing Prosper Africa initiative into law. This program strives to increase investment and trade cooperation among the United States and African nations. Since 2019, the initiative enabled almost 800 deals worth $50 billion. The codification of Prosper Africa will benefit the program by...
14 March 2022
US Congress: Representatives McCaul, Murphy introduce Prosper Africa Act
House Foreign Affairs Committee Lead Republican Michael McCaul (R-TX) and Congresswoman Stephanie Murphy (D-FL) introduced the Prosper Africa Act to codify interagency efforts and promote, facilitate and increase two-way trade and investment between the United States and Africa. “Advancing two-way trade and investment between the U.S. and African partners must be a key foreign policy priority,” said Rep....
21 January 2022
Senator Van Hollen, Representative Bass urge Biden Administration to reconsider Ethiopia's suspension from AGOA
Today, U.S. Senator Chris Van Hollen (D-Md.) and Congresswoman Karen Bass (D-Calif.) urged President Biden to reconsider his Administration’s November 2, 2021 decision to terminate Ethiopia’s designation as a beneficiary country under the African Growth and Opportunity Act (AGOA) at the end of this year. As the lawmakers note in their letter (download a copy at the link alongside), this decision will hurt the nation’s most vulnerable...
23 December 2021
Trade Subcommittee hearing on strengthening the US-Africa trade and investment relationship
(As prepared for delivery) Date: Wednesday, November 17, 2021 - 11:00am Chairman Blumenauer opening statement: Today’s hearing is the next step in this Committee’s ongoing work on the U.S. – Africa trade and investment relationship. We met with the President of Kenya as well as Kenya’s Ambassador to the United States to discuss trade matters. And, recently, we led congressional engagement with African trade...
17 November 2021
Two US Senate, House Republicans urge Ethiopia to 'correct coure' to avert 'revocation of AGOA benefits'
Senate Foreign Relations Committee Ranking Member Jim Risch (R-Idaho) and House Foreign Affairs Committee Ranking Member Michael McCaul (R-Texas), issued a statement (see text below) expressing their “hope that the Ethiopian government can correct course and avert a revocation of AGOA benefits.” The statement came as the Biden Administration is expected to announce its decision on Ethiopia’s eligibility to continue to...
27 October 2021