US trade chief Tai says African trade program needs to foster more investment
The duty-free access for nearly 40 African countries in a 22-year-old U.S. trade program is no longer enough to boost their development and a focus on improving investment is needed, U.S. Trade Representative Katherine Tai said on Tuesday.
Tai, after a meeting with African counterparts at the start of a Sub-Saharan African leaders summit in Washington, said the African Growth and Opportunity Act (AGOA) needs improving to foster more equitable and sustainable growth.
Speaking at a U.S. Export-Import Bank conference, Tai said ministers told her they needed more investment in addition to market access.
"We want you to work with us on fostering...economic environments that are conducive to greater confidence for investors," Tai said was message from ministers.
Earlier, Tai told ministers she wanted to conduct an "honest assessment" of AGOA, which has underpinned U.S.-Africa trade for more than two decades.
AGOA, first enacted in 2000 to boost growth, development and governance reforms in Africa, is due to expire on Sept. 30, 2025. The program also requires steps such as such as eliminating barriers to U.S. trade and investment.
Tai said she was "interested in discussing today ways in which we can improve AGOA - including how we can increase the utilization rates, particularly among smaller and less-developed countries, as well as ensure that the program's benefits fully reach all segments of society."
Research from the Brookings Institution last year showed that only about half of AGOA-eligible countries had strategies in place to make full use of their benefits under the program.
The world was "very different" from AGOA's initial years, Tai said, with fallout from the COVID-19 pandemic and Russia's invasion of Ukraine exposing the fragility of supply chains, along with a worsening climate crisis.
AGOA offered promise as a "stepping stone to address regional and global challenges," especially with Africa's young and entrepreneurial population, she said.
"The future is Africa, and engaging with this continent is the key to prosperity for all of us," Tai added.
Among the biggest beneficiaries of AGOA are oil exporters Nigeria and Angola, as well as the region's largest economy, South Africa.
Kenya, which depends on AGOA for its growing apparel exports to the United States, has engaged in a non-tariff trade and investment dialogue with Washington, which may lead to more comprehensive trade negotiations.
At an event on Monday, Tai said the United States would also sign a memorandum of understanding with the 55-state African Continental Free Trade Area to explore work on the next phases of the U.S.-African trade relationship.
Read related news articles
Key provisions of the US’s AGOA Improvement Act
The office of the US trade representative has been leading the 2024 US-Sub-Saharan Africa Trade & Economic Co-operation African Growth & Opportunity Act (Agoa) Forum in Washington this week. Convening under the theme “Beyond 2025: Reimagining Agoa for an Inclusive, Sustainable and Prosperous Tomorrow”, the forum brings together senior government officials from the US and Agoa-eligible countries, as well as representatives from...
26 July 2024
Rosa Whitaker: 'America can't be first if we keep putting Africa last'
Given the press of events closer to home, Africa is hardly top of mind in Washington right now. That President Joe Biden's foreign policy, economic and trade A-team is meeting with its African counterparts here this week is unlikely to change that. In a more rational world, it would. The meeting is the 21st AGOA Forum, named after the African Growth and Opportunity Act, requires that the get-together be held annually. This year's session is...
23 July 2024
Trade with AGOA beneficiaries growing as program nears expiration
U.S. trade with African Growth and Opportunity Act beneficiary countries has increased over the past two years, a recent report from the Office of the U.S. Trade Representative finds. AGOA provides eligible sub-Saharan African countries with duty-free access to the U.S. for more than 1,800 products in addition to the more than 5,100 products eligible under the Generalized System of Preferences. Although GSP expired Dec. 31, 2020, tariff lines...
03 July 2024
USTR releases 2024 biennial report on implementation of AGOA
The Office of the United States Trade Representative today released its 2024 Biennial Report on the Implementation of the African Growth and Opportunity Act (AGOA) Report. “AGOA has helped to grow Africa’s extraordinary economic potential and has made a difference for many Africans, but we have an opportunity to make it even better,” said Ambassador Katherine Tai. “A lot has changed on the continent...
28 June 2024
2024 AGOA annual review virtual hearing
On Monday, July 24, 2023, the United States Trade Representative (USTR) will hold a virtual public hearing to receive oral testimony related to sub-Saharan African countries' eligibility for AGOA benefits. The hearing is scheduled to begin at 10:00 AM EDT. During the virtual hearing, the livestream will be available at www.ustr.gov/live. See the downloadable document alongside for the witness list, including panel assignments.
07 June 2024
US-Africa trade deal turns 25 next year: AGOA's winners, losers and what should come next
The African Growth and Opportunity Act (Agoa) is a landmark piece of trade legislation enacted by the United States in 2000. Its goal is to promote economic growth, development and poverty reduction in sub-Saharan Africa by providing qualifying countries with duty-free access to the US market for over 6,500 products. By eliminating import tariffs and quotas, Agoa aims to stimulate trade, attract foreign investment and foster economic...
06 May 2024
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 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
USTR releases President Biden’s 2024 trade policy agenda and 2023 annual report
The Office of the United States Trade Representative today released President Biden’s 2024 Trade Policy Agenda and 2023 Annual Report to Congress, which details USTR’s work to advance President Biden’s trade agenda. The President’s 2024 Trade Policy Agenda stands up for workers’ rights and sustainable trade practices, supports U.S. farmers, ranchers, fishers, and food manufacturers, bolsters supply chain resilience,...
05 March 2024