US sets sights on improved AGOA
This was the message of a briefing by United States officials ahead of this week’s AGOA forum in Johannesburg, where the trade pact’s renewal will be discussed.
The trade deal — which provides eligible sub-Saharan African countries with duty-free access to the US market — is due to expire in 2025. Agoa beneficiaries will be asking for the Act, which was signed into law during Bill Clinton’s administration, be renewed for another 10 years.
“When Agoa was enacted in 2000, we hoped that it would be a game-changer for the continent in terms of our relationship with individual countries and with the ability to support regional integration across the continent,” said assistant US trade representative for Africa Constance Hamilton during the briefing.
But she noted that after 25 years very few countries have taken full advantage of Agoa.
“So the question I think that is going to drive the conversation at the Agoa forum in Johannesburg in just a few days is how can we improve the programme,” Hamilton said.
Joy Basu, deputy assistant secretary at the US bureau of African affairs, echoed this sentiment. She also underlined that fostering ties with economies in Africa is a priority of US president Joe Biden’s administration.
She noted that the timely renewal of Agoa is also a goal of the Biden administration, but this falls with the US congress. The US is nearing an election in 2024, the outcome of which could radically change Agoa’s prospects.
Hamilton noted concerns that efforts to tweak the Act may result in congress taking its time with it. “But we do believe that not addressing and not trying to change the programme and make it better is a wasted opportunity.”
Agoa beneficiaries are hoping for the earlier renewal of the deal. This will give US investors greater certainty about Africa’s investment prospects, Trade and Industry Minister Ebrahim Patel said during a briefing last week.
According to Patel, the forum will take place as Africa seeks to redefine its role in the global economy. A key element of this is the African Continental Free Trade Area (AfCFTA), which aims to boost regional trade on the continent.
The forum, Patel said, will allow stakeholders to find ways to get more out of Agoa. To this end, member states will seek to make Agoa’s rules more user-friendly, to add more products to the duty-free list, to attain all beneficiary countries and for Agoa to be complemented by investment and measures that allow more medium-sized firms to access the US market.
Hamilton said she hoped that congress would take the AfCFTA, and the continent’s move towards regional integration, into account in its reworking of Agoa.
“We’re really supportive of the AfCFTA,” Basu said, “and we hope that Agoa can be complementary to it.”
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
Spotlight on trade Act renewal at the 2024 AGOA Forum in DC
The trade legislation known as AGOA is the focus of discussions this week in Washington, DC between senior U.S. officials and Africa trade ministers, along with key regional economic organizations, labor and civil society groups and private sector representatives. The African Growth and Opportunity Act, which extends duty-free treatment to goods from eligible sub-Saharan African countries, was first enacted in 2000 and renewed by...
25 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
South Africa plans US mission to lobby against US review of ties
South Africa’s newly formed government will use an upcoming forum on US preferential trade access to push back against a Senate review of ties between the two countries. The House of Representatives last month passed a law requiring a full assessment off bilateral relations and submitted it to the Senate for approval. South African business lobby groups have warned the legislation threatens to curb trade with the world’s biggest economy...
15 July 2024
USTR Katherine Tai to host AGOA Forum in Washington D.C., on 24-26 July
United States Trade Representative Katherine Tai today announced that she will host the 21st U.S.–sub-Saharan Africa Trade and Economic Cooperation Forum (AGOA Forum) in Washington, D.C., from July 24 to 26, 2024. “AGOA has been the cornerstone of our economic partnership with sub-Saharan Africa for over twenty years,” said Ambassador Tai. “This Forum is an opportunity to discuss how we can make the program more...
01 July 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
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