US lawmakers plan extension of AGOA trade pact
initially passed in 2000, AGOA is scheduled to expire in 2025.
US senators have introduced a bill to extend the country's African Growth and Opportunity Act (AGOA) trade program with sub-Saharan African nations until 2041.
US senators have introduced a bill to extend the country's African Growth and Opportunity Act (AGOA) trade program with sub-Saharan African nations until 2041.The legislation, introduced by Senators Jim Risch and Chris Coons seeks to extend duty-free access to the United States for about 40 sub-Saharan African nations. Initially passed in 2000, AGOA is scheduled to expire in 2025.
“AGOA plays a significant role in U.S.-sub-Saharan Africa trade and investment, as well as in U.S. foreign policy... I encourage my colleagues to swiftly reauthorize AGOA and the next administration to pursue a broader, two-way strategy with Africa that goes beyond trade preferences and meets the needs of the 21st century,” Risch said.
“Over the past 24 years, AGOA has created jobs and economic growth in one of the fastest-growing regions of the world and created investment opportunities for American businesses.” fellow legislator Coons said.
“The AGOA Renewal and Improvement Act is necessary to support continued economic development on the continent while further strengthening ties between the United States and partners in sub-Saharan Africa.”
The Senate Foreign Relations Committee said in a statement that the AGOA Renewal and Improvement Act is necessary to support continued economic development on the continent while further strengthening ties between the United States and partners in sub-Saharan Africa.
"The extension would offer businesses the certainty they need to increase investment in sub-Saharan Africa at a time when many firms are looking to diversify their supply chains away from China,” it said.
Sub-Saharan Africa is home to the world’s youngest population and many fast-growing economies, and AGOA has played a critical role in advancing economic development and strengthening US economic engagement in the region.
President Joe Biden terminated the eligibility for the benefits of the act for four nations last year due to their failure to meet Congress's requirements regarding human rights and democracy.
Presently, about 12 African countries, including Uganda, South Sudan, and Niger are ineligible for U.S. AGOA trade in 2024
The legislation would modify AGOA’s rules of origin to allow inputs from North African nations that are members of the African Continental Free Trade Area.