Agoa.info - African Growth and Opportunity Act
TRALAC - Trade Law Centre
You are here: Home/News/Article/US-Africa duty free program has had mixed results - trade panel report

US-Africa duty free program has had mixed results - trade panel report

Published date:
Monday, 17 April 2023
Author:
David Lawder
Source:

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 reduce poverty and create jobs in certain countries, particularly for women.

But over three quarters of duty-free non-petroleum exports to the United States under AGOA during 2014-2021 came from just five countries: South Africa, Kenya, Lesotho, Madagascar and Ethiopia, the report said.

The research, requested by the U.S. House of Representatives Ways and Means Committee, will help shape debate in Congress on whether to renew or restructure AGOA, which expires on Sept. 30, 2025. The program, an anchor for U.S.-African trade relationship, was launched in 2000 to help develop Sub-Saharan African economies and foster democracy.

The report highlighted apparel as the biggest success story for the program, with the industry having a positive impact on poverty reduction in major exporters Madagascar, Kenya, Lesotho, Mauritius and Ethiopia.

"AGOA benefits appear to be essential for Sub-Saharan Africa countries to maintain their apparel exports to the United States," the USITC report said, noting that loss of AGOA benefits by failing to meet eligibility criteria results in significant declines in exports to the United States.

The report also noted less success in AGOA's influence in reducing poverty for workers in other sectors including cotton farming, cocoa production, and chemicals, due to lack of development of higher value-added downstream product production.

"While certain sectors and countries have benefited from the program, AGOA has not achieved all that we had hoped, and more work must be done to improve our economic relationships," said U.S. Representative Richard Neal, the top Democrat on the Ways and Means Committee.


  Download the full report here

 

Read 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

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...

19 January 2022

Hearing on US trade and investment with sub-Saharan Africa: Recent developments

Dates: January 9, 2018: Deadline for filing requests to appear at the public hearing. January 11, 2018: Deadline for filing pre-hearing briefs and statements. January 23, 2018: Public hearing. [Download relevant submissions HERE] January 30, 2018: Deadline for filing post-hearing briefs and statements. February 6, 2018: Deadline for filing all other written submissions. April 30, 2018: Transmittal of Commission report to...

24 January 2018

US begins investigation into trade with Sub-Saharan Africa

The US International Trade Commission has initiated an investigation into recent developments in the country's trade and investment with sub-Saharan Africa, as well as the region's trade performance and export prospects. In requesting the investigation, the Office of the US Trade Representative said that as the US works to encourage fair and reciprocal trade with African partners it is important to have factual information on where the US is...

20 November 2017

You are here: Home/News/Article/US-Africa duty free program has had mixed results - trade panel report