AGOA reauthorization – time is running out

AGOA reauthorization – time is running out

“We’re running out of time,” moderator Witney Schneidman, nonresident fellow at the Brookings Institution, exclaimed as he opened the January 28 panel discussion at last week’s Africa Policy Breakfast entitled AGOA Today and Beyond: The Future of the US-Africa Commercial Relationship. 

While AGOA technically expires this September, for many African companies exporting apparel to the United States there is less than two months left in the nine month U.S. supply cycle. 

For U.S. importers, the fact that AGOA is not yet authorized leads to the inevitable question as to when will it be authorized and should the importer source elsewhere.

Against this backdrop, the panel of experts comprised of Ambassador Eliachim Molapi Sebatane of the Embassy of Lesotho – representing the African Diplomatic Corps; Ms. Rahama Wright - Founder of Shea Yeleen – a small US business utilizing AGOA; and Scott Eisner – Vice President for African Affairs at the U.S. Chamber of Commerce, spoke in unison about the crucial role that the Africa Growth and Opportunity Act continues to play in strengthening of U.S.-Africa trade relations.  Panel Moderator Schneidman described AGOA as “a launching pad for U.S. companies” to do business on the continent, a sentiment echoed by Scott Eisner.

Ambassador Eliachim Molapi Sebatane spoke to the Policy Breakfast audience about recent bipartisan and bicameral meetings an African Union Delegation of Ministers had with Members of the House and Senate on AGOA in January; noting that the delegation left the US with a strong sense of support from all of the members they met and that the real question was when, not if, the reauthorization would occur.

Keynote Speaker United States Trade Representative Ambassador Froman emphasized the growth in exports experienced by AGOA participating countries since the inception of legislation.  Exports from the continent have more than tripled, going from $6 billion to $24 billion in a few short years.  Ambassador Froman emphasized that we “shouldn’t wait until the last minute to get it renewed,” which drew heavy applause from the audience.

Panelist Rahama Wright was representative of the many small business owners who rely on AGOA as a tool to remove unnecessary barriers to growing their businesses. Ms. Wright, whose skincare products can be found in close to 100 stores in the U.S., noted that she started her company with $6,000 dollars.  She stressed that AGOA removed crucial barriers that protected her limited finances and allowed her company to grow.  Ms. Wright also spoke of the importance of AGOA to women entrepreneurs in particular.

Ambassador Froman, who testified at two Congressional hearings on January 27 held by the Senate Finance and House Ways and Means Committees respectively [see transcript at the following LINK] reiterated the bi-partisan support enjoyed by AGOA.  USTR Froman cited the remarks made by House Ways and Means Chairman Ryan in support for a seamless and early renewal of AGOA.  Panelists and members of the audience agreed that AGOA could be characterized as the beginning of a strong and expansive trade relationship between the U.S. and the nations of Africa -- a “stepping stone,” with the hope of a stronger and more permanent reciprocal relationship in the future.

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