Thursday July 18, 2024
By LUKE ANAMI
Delegates at the 20th Agoa summit in Johannesburg on November 2, 2023. File Photo | AFP
US President Joe Biden's administration will host trade ministers from developing countries in Washington DC next week to discuss plans to extend the African Growth and Opportunity Act (Agoa) until 2041.
Ambassador Katherine Tai, United States Trade Representative, announced that her country will host the 21st US-Sub-Saharan Africa Trade and Economic Cooperation Forum (Agoa Forum) in Washington DC from July 24 to 26.
The ministerial programme will feature plenary sessions on the present and future of Agoa and US-Africa trade and investment cooperation, as well as breakout sessions on a variety of topics.
The Agoa Forum will bring together the governments of the United States and Agoa-eligible countries, as well as representatives of key regional economic organisations, civil society, labour and the private sector.
“This forum is an opportunity to discuss how we can make the programme more effective, to address today’s challenges and deliver real benefits to more people across the continent. I look forward to welcoming my fellow ministers and guests to Washington,” said Amb Tai.
“Agoa has helped to grow Africa’s extraordinary economic potential and has made a difference for many Africans, but we have an opportunity to make it even better.”
The theme of this year's Agoa Forum is "Beyond 2025: Reimagining Agoa for an Inclusive, Sustainable, and Prosperous Tomorrow."
“Over the course of the event, participants will engage in discussions on how the United States and sub-Saharan African partners can work together to make Agoa more transformative and ensure that the programme can be an effective tool to drive inclusive, sustainable economic growth for more people and advance regional integration efforts,” she said.
Enacted in 2000, Agoa provides eligible sub-Saharan African countries with duty-free access to the US market for more than 1,800 products, in addition to the more than 5,000 products eligible for duty-free access under the Generalized System of Preferences programme.
In 2023, US imports under Agoa, including the Generalised System of Preferences programme that remains available to Agoa beneficiaries, totalled $9.7 billion.
This includes about $4.2 billion in crude oil and $5.5 billion in other products, including $1.1 billion in apparel and more than $900 million in agricultural products.
Kenya and Ethiopia are the leading exporters of apparel and clothing to the US market.
Last year, African countries eligible for Agoa used the programme's preferences to export nearly $10 billion in goods to the United States.
Enacted in 2000, Agoa is set to expire in 2025.
The US Congress has introduced proposals to extend Agoa until 2041.
Senators Chris Coons of Delaware and James Risch of Idaho introduced the bipartisan Agoa Renewal and Improvement Act of 2024 in March 2024, which would see Agoa cover 54 African countries.
The extension is expected to integrate Agoa with the African Continental Free Trade Agreement (AfCFTA) to support the development of intra-African supply chains.