AGOA eligibility continues in 2012 for 40 African countries
Forty sub-Saharan African countries will remain eligible in 2012 for US trade preferences and benefits aimed at improving lives and livelihoods on the continent.
During the 2011 review process, President Obama determined that all the countries currently eligible for trade preferences and other benefits under the African Growth and Opportunity Act (AGOA) would remain eligible and that no new countries would be added as AGOA beneficiaries, US Trade Representative Ron Kirk announced December 29.
“President Obama’s determination today is good news for the people of these African nations, as well as for the American businesses and workers trading with these countries,” Kirk said. “We are proud to announce, after a thorough review by the Obama administration, that all 40 of these important U.S. trading partners will continue to receive benefits under the African Growth and Opportunity Act - a vital and growing pillar of US-Africa trade policy.”
Each year the administration examines whether the countries named in the act had met AGOA’s eligibility criteria. Those criteria include establishing, or making continual progress toward establishing, a market-based economy, rule of law, economic policies to reduce poverty, protection of internationally recognized worker rights and efforts to combat corruption.
Countries eligible for AGOA also may not engage in activities that undermine U.S. foreign policy interests, or engage in gross violations of internationally recognized human rights.
On October 25, President Obama signed a presidential proclamation designating Côte d’Ivoire, Guinea and Niger as eligible for AGOA benefits. Each of these countries was previously ineligible, but during a separate review process, the president determined that they had met the act’s eligibility criteria.
Total two-way goods trade with sub-Saharan Africa countries during 2010 was $82 billion. U.S. imports under AGOA totaled $44.2 billion. Non-oil imports under AGOA totaled $4 billion and included value-added products such as apparel, footwear, processed agricultural products and manufactured goods.
The top five beneficiary countries were Nigeria, Angola, South Africa, Republic of Congo and Chad. Other leading AGOA beneficiaries included Gabon, Lesotho, Kenya, Mauritius and Swaziland.
AGOA was signed into law by President Bill Clinton in May 2000 with the objectives of expanding U.S. trade and investment with sub-Saharan Africa, stimulating economic growth, promoting a high-level dialogue on trade and investment-related issues and facilitating sub-Saharan Africa’s integration into the global economy.
At the center of AGOA are substantial trade preferences that, along with those under the Generalized System of Preferences and Most-Favored Nation tariff treatment, allow almost all goods produced in the AGOA-eligible countries to enter the U.S. market duty-free.
View related news articles
US to remove Burkina Faso from AGOA effective 1 January 2023: White House
U.S. President Joe Biden revealed on Wednesday his intent to exclude Burkina Faso from a U.S.-Africa trade pact, citing a lack of progress toward protecting the rule of law and political pluralism. Biden said that Washington will terminate Burkina Faso's designation as a beneficiary sub-Saharan African country under the African Growth and Opportunity Act (AGOA), starting January 2023 as it has not met"eligibility requirements." The decision...
02 November 2022
In Ethiopia, Guinea and Mali, fears rise over losing duty-free access to US market
For Sammy Abdella, the new year has brought bad tidings: the prospect of a steep drop in sales of scarves, rugs, baskets and other textile goods produced by Sammy Handmade in Ethiopia. “The U.S. market is our main destination,” said Abdella, who estimates it accounts for nearly two-thirds of sales for his Addis Ababa-based home decor and fashion company. “So, losing that put us in a very, you know, bad situation.” The source of...
20 January 2022
What does the US decision to delist three African countries from AGOA status imply?
Trade is one highly significant part of Africa’s story. Its pre-colonial, colonial and post-colonial transitions are all marked by trade. But for many years, African trade has struggled with several challenges: poor infrastructure, high transaction costs, opportunism and unfriendly policies. So when President Bill Clinton signed the African Growth and Opportunity Act (AGOA) in 2000, African countries were given a competitive edge by...
11 January 2022
US takes Ethiopia, Mali, Guinea off AGOA program
The United States on Saturday cut Ethiopia, Mali and Guinea from access to a duty-free trade program, following through on President Joe Biden's threat to do so over accusations of human rights violations and recent coups. "The United States today terminated Ethiopia, Mali and Guinea from the AGOA trade preference program due to actions taken by each of their governments in violation of the AGOA Statute," the U.S. Trade Representative's...
01 January 2022
Despite a late push, Ethiopia is set to exit the US trade pact
Despite a last-minute drive backed by diaspora members who fear that Washington may lose an ally, Ethiopia is likely to lose important commercial privileges in the United States on January 1 due to human rights concerns. President Joe Biden said on November 2 that Ethiopia, a longtime US ally and the continent’s second most populous country, will be removed from the African Growth and Opportunity Act in the New Year, citing “grave...
30 December 2021
US President terminates AGOA preferences for Ethiopia, Mali and Guinea
U.S. President Joe Biden announced yesterday that he has “determined that Ethiopia, Guinea, and Mali do not meet” the AGOA requirements described in section 506A(a)(1) and has proceeded to “terminate the designation of the three countries as beneficiary sub-Saharan African countries …effective January 1, 2022.” On November 21, the Ethiopian Ministry of Foreign Affairs lamented the impending decision by the U.S. to remove Ethiopia...
24 December 2021
Senator Van Hollen, Representative Bass urge Biden Administration to reconsider Ethiopia's suspension from AGOA
Today, U.S. Senator Chris Van Hollen (D-Md.) and Congresswoman Karen Bass (D-Calif.) urged President Biden to reconsider his Administration’s November 2, 2021 decision to terminate Ethiopia’s designation as a beneficiary country under the African Growth and Opportunity Act (AGOA) at the end of this year. As the lawmakers note in their letter (download a copy at the link alongside), this decision will hurt the nation’s most vulnerable...
23 December 2021
US terminates duty-free trade access to Ethiopia over conflict
Ethiopia’s duty-free export access to the U.S. has been revoked by President Joe Biden due to its failure to meet the requirements, according to the White House. The action comes after 13 months of civil war in the country. Ethiopia is disqualified from participation in the Africa Growth and Opportunity Act due to gross violations of human rights, the U.S. Trade Representative said when it notified Ethiopia in November....
23 December 2021
'Ethiopia approaches civil war - but Team Biden should avoid harming AGOA'
As day turns to night in Ethiopia, International crisis negotiators are feverishly working to avoid an all-out civil war. America’s top diplomat, Secretary of State Antony J. Blinken is in nearby Kenya trying to help resolve the crisis. America utilized several pressure tactics to try to bring this outbreak to a resolution but none have worked so far. The latest is to give Ethiopia a 60-day notice of withdrawal from the African Growth...
17 November 2021
Why US is suspending Ethiopia, Mali, Guinea trom AGOA 'trade deal'
In response to human rights violations, the United States announced this week that it plans to suspend Ethiopia, Mali and Guinea from duty-free access to American markets as of January 1, 2022.U.S. President Joe Biden said in a statement to Congress, released Tuesday (see alongside), that these nations were no longer in compliance with the eligibility requirements for the African Growth and Opportunity Act (AGOA). He cited various...
09 November 2021
Statement from Ambassador Tai on the AGOA eligibility review
WASHINGTON – Ambassador Katherine Tai today released the following statement on the African Growth and Opportunity Act (AGOA): “Today, President Biden announced three countries will be terminated from the AGOA trade preference program as of January 1, 2022, absent urgent action to meet statutory eligibility criteria. Our Administration is deeply concerned by the unconstitutional change in governments in both Guinea and Mali, and by...
02 November 2021