- African Growth and Opportunity Act
TRALAC - Trade Law Centre
You are here: Home/News/Article/US apparel and footwear industry supports 16 year AGOA renewal

US apparel and footwear industry supports 16 year AGOA renewal

US apparel and footwear industry supports 16 year AGOA renewal
Published date:
Thursday, 11 April 2024

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 the U.S. economic relationship with Sub-Saharan Africa. By lowering the cost of trade and encouraging investment in the region, AGOA has created valuable opportunities for U.S. businesses, workers, and consumers, while promoting sustainable economic growth and development throughout the region.

The proposed AGOA Renewal and Improvement Act of 2024 would extend AGOA by 16 years, pushing the program’s expiration from 2025 to 2041.

This long-term extension would provide businesses the certainty needed to invest in sub-Saharan Africa, further supporting economic growth and development in the region.

The extension mirrors the 16-year sunset provision included in the U.S.-Mexico Canada Agreement (USMCA).

AGOA is also a bridge to trade agreements, such as the African Continental Free Trade Area (AfCFTA) and the U.S.-Kenya Strategic Trade and Investment Partnership (STIP).

"As companies work to diversify out of China today more than ever, immediate and long-term renewal of AGOA for a 16-year period would be incredibly impactful and timely," says AAFA president and CEO Steve Lamar.

"AGOA renewal would bring quality work opportunities for African workers, many of whom are women, as companies commit to retain or grow orders from African factories as vital partners in their sourcing matrices."

"Sourcing decisions are already being made for goods that will be shipped after AGOA’s current expiration," adds Beth Hughes, AAFA vice president of trade and customs policy.

"As we fast-approach the September 2025 expiration date, we do not want to see trade begin to drop off as sourcing is shifted away from African countries.

The current expiration of Generalized System of Preferences – which we are hoping will also be renewed for a long term during 2024 – is fuelling speculation that a similar fate awaits AGOA. Action now, well before the program expires, eliminates that uncertainty."

   Update: The Bill was introduced in the Senate Finance Committee on 11 April. Download it here.

   Update: Download a summary here

   Official Title as introduced: A bill to reauthorize the African Growth and Opportunity Act.

   Sponsor: Sen. Coons, Christopher A.    [D-DE]


Sen. Risch, James E.    [R-ID]*              

Sen. Young, Todd    [R-IN]*

Sen. Bennet, Michael F.    [D-CO]*

Sen. Van Hollen, Chris.   [D-MD]*

Sen. Rounds, Mike    [R-SD]*

Sen. Durbin, Richard J.    [D-IL]*

* = Original cosponsor

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 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

US Senator Chris Coons proposes AGOA extension by 16 years, immediate review of SA’s AGOA eligibility

Powerful US Democratic Party Senator Chris Coons is circulating a discussion draft of a Bill to renew the African Growth and Opportunity Act (Agoa) for 16 years that would also require an immediate “out-of-cycle” review of South Africa’s eligibility for Agoa. That could lead to South Africa being removed next year from the programme, which has provided considerable benefits to SA exporters to the US of cars, fruits and wine, in...

07 November 2023

AGOA extension crucial for Ghana’s industrialisation

The Deputy Minister of Trade and Industry Nana Ama Dokua Asiamah-Adjei is supporting the push for the extension of the African Growth and Opportunity Act (AGOA) to enhance trade between Ghana and the US. A United States Trade Act enacted on 18 May 2000 as Public Law 106 of the 200th Congress, the AGOA legislation has been renewed on different occasions, most recently in 2015, when its period of validity was extended to September 2025. The...

06 November 2023

You are here: Home/News/Article/US apparel and footwear industry supports 16 year AGOA renewal