TRALAC - Trade Law Centre

AGOA Extension Awaits US Congress Approval

Monday, 14 June 2004

Source: United States Congress (Washington, DC)

Today, the House unanimously passed legislation [H.R. 4103] to extend and modify the trade benefits under the African Growth and Opportunity Act (AGOA), landmark trade legislation first passed in 2000 to develop a trade relationship between the United States and the nations of Sub-Saharan Africa. As Chairman of the House Subcommittee on Africa and an original co-sponsor of the legislation, U.S. Rep. Ed Royce (R-CA-40) applauded its passage and called on the Senate to take immediate action on the legislation.

"In a short few years, AGOA has managed to draw hundreds of millions of dollars of foreign investment to the African continent, creating hundreds of thousands of desperately needed jobs. This makes AGOA the most effective of our development programs for Africa that I'm aware of," said Royce.

Today's bill builds upon the proven success of AGOA, extends the third country fabric provisions, which permits African apparel producers to use non-African produced fabric, and takes other measures to boost U.S. Africa trade.

"AGOA has encouraged difficult economic reforms, as African countries have strived to maintain their AGOA eligibility. If the U.S. Congress fails to pass this AGOA legislation before the third country fabric provision expires in September, we will be undoing much of the good that AGOA has done," said Royce.

Issued by the Subcommittee on Africa, U.S. House of Representatives, Edward R. Royce, Chairman.