Stakeholders seek US Congress nod for AGOA’s extension
Ahead of the United States’ African Growth and Opportunity Act (AGOA) Forum, to be hosted by South Africa next week, Assistant U.S. Trade Representative for Africa, Constance Hamilton, has expressed hope that the U.S. Congress would renew AGOA once again and ensure increased support for regional integration in Africa.
Hamilton spoke yesterday during a digital press briefing to highlight the importance of U.S.-Africa economic ties and the 20th AGOA Forum as an opportunity to receive feedback from African partners and private sector investors on improving the impact and strategic value of AGOA.
He admitted that the initiative could have been more impactful and hoped that the forum would bring about effectiveness to the regime, should it be extended or renewed.
Various stakeholders have been pushing for the extension and renewal of AGOA, U.S. preferential trade framework for the next ten years; however, questions around South Africa’s dalliance with Russia over its invasion of Ukraine among other geo-political considerations have created uncertainty on whether the U.S. will extend AGOA, which in its current form is due to expire in 2025.
Participating African countries and regional value chains have benefitted greatly from AGOA since its enactment in 2000, including through access to the U.S. market for African goods.
Currently, AGOA allows 35 participating countries to export 1,835 types of goods to the U.S. consumer market, and, in turn, affords the U.S. access to critical minerals, product value chains and investment opportunities in Africa.
The AGOA Forum holding from November 2 to 4, next week, will see the U.S. government and those of AGOA-eligible countries, including Nigeria, as well as representatives from the private sector, civil society and labour, engage on trade and investment matters.
More than 160 business participants and trade unions are expected to engage on trade and investment matters, with a total of 2,000 participants expected to visit this year’s forum in South Africa.
Notably, 520 firms, including services, automotive, coffee, and clothing and textiles businesses, will be displaying their products in a “Made in Africa” exhibition, which will showcase industrial capability on the continent.
Also at the briefing, Deputy Assistant Secretary, Bureau of African Affairs, Joy Basu, affirmed that fostering new engagement in Africa is a priority for the U.S. administration and that AGOA has been a cornerstone in engagement between the two regions.
She hoped for constructive dialogue during the forum, including on issues that exporters still experience, since AGOA is not being used up to its full potential. There is much scope for improved value addition on the continent, she added.
Meanwhile, South Africa’s Trade, Industry and Competition Minister, Ebrahim Patel, speaking on state of readiness for the forum, expressed confidence that the South African government’s relations with the U.S. are strong, adding that early certainty about AGOA’s extension would bring enormous confidence for investors.
He said the forum would be a celebration of economic relationships with a view to upscale and further improve these relationships to create more economic linkages among African countries, particularly as the African Continental Free Trade Area (AfCFTA) takes shape.
She noted that the forum builds on U.S. commitment emphasised at the U.S.-Africa Leaders Summit, last year, to build stronger economic engagement with multiple partners across Africa.
She said: “I would also say that timely authorisation of AGOA is a goal of the Biden-Harris administration and an opportunity to change it for the better. That being said, obviously Congress writes the laws, and so we are here to support them however they need, as they consider that choice. But I’d also emphasise that the AGOA programme is about more than just trade; it’s really a strong opportunity for diplomatic engagement.
“And as you all know well, AGOA also supports policies to reduce poverty, to combat corruption, to protect human rights and worker rights, and we see all of that as a collective reinforcing mechanism to strong economic growth. We hope that those can continue to work together to create the opportunities that we know we need for many, many young Africans to bring their talents and their goods and services to the world.”
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
Exploring synergies between AGOA and AfCFTA: The case for African exports
Africa is often characterised as a continent poised for economic growth and development. Often, prosperity and development in Africa can be linked back to exports and the benefits that they generate. This brings to the forefront the African Growth and Opportunity Act (AGOA) and its role in opening American markets to 35 African countries, as well as the African Continental Free Trade Area (AfCFTA), which aims to increase socio-economic...
09 November 2023
African and US trade unions call for decent work in trade and economic cooperation
The African Growth and Opportunity Act (AGOA) Forum took place in Johannesburg, South Africa, 2-4 November, to strategize ways to strengthen an inclusive trading partnership between the US and 35 eligible African countries. AGOA is a US law which was signed in 2000 aimed at creating duty free access for eligible African countries to the US markets. Eligibility criteria includes adopting market-based economies, the rule of law, political...
09 November 2023