Public Management

U.S./Africa: African Union advocates for a "no-change" renewal of the AGOA program

U.S./Africa: African Union advocates for a "no-change" renewal of the AGOA program
Saturday, 04 November 2023 03:57

Several American officials, including the U.S. Deputy Trade Representative for African Affairs, have announced in recent months that the Biden administration aims to review the AGOA or replace it with a new trade agreement.

The African Union (AU) called on Thursday, November 2, for the U.S. Congress to renew the African Growth and Opportunity Act (AGOA), a trade preference program granted by the United States to Sub-Saharan African countries since 2000, for at least an additional ten years without making any changes.

"[An extension of] 10-20 years is very critical to the investment community. Anything lower than that would generate uncertainty,” said Albert Muchanga, AU Commissioner for Economic Development, Trade, Industry, and Mines during the 20th AGOA Forum held in Johannesburg. Muchanga also indicated that "if there are any enhancements to be made, those should be done after the extension”.

Launched in May 2000, the AGOA program enables eligible Sub-Saharan African countries to export over 1,700 products to the United States without paying duties. These products add to about 5,000 other items that can access the American market duty-free under the generalized system of preferences.

Each year, Washington updates the list of AGOA-eligible countries, considering their commitment to market economies, respect for the rule of law, and poverty alleviation policies. The initiative also takes into account the democratic progress or setbacks of the countries involved.

With the AGOA program set to expire in September 2025, several African nations are advocating for an early ten-year extension without changes to reassure businesses and new investors. Renewing the trade preference system is also supported by some members of the U.S. Congress, who fear that revising the program might delay or jeopardize its renewal.

In late September, U.S. Senator John Neely Kennedy introduced a bill in the upper house of Congress proposing the extension of AGOA until 2045. He mentioned that the program will greatly help Americans counter the increasing influence of China in Sub-Saharan Africa.

However, several U.S. officials, including Deputy U.S. Trade Representative for African Affairs Constance Hamilton, have advocated in recent months for the revision or replacement of AGOA with a new trade agreement.

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Company seeks to raise 485.8 billion naira through share offering Funds to support expansion and reduce debt Strategy aims to boost local sugar...
AFC raises $100 million from India’s Exim Bank over five years Funding to support infrastructure and industrial projects in Africa Deal reflects...
New fund aims to mobilize CFA200 billion to finance 300,000 projects Targets SMEs and rural economy through Sharia-compliant financing Move seeks to...
France will provide a €100 million ($117.5 million) loan to support urban infrastructure in South Africa. The funding complements a $925...
Most Read
01

(EBID) - EBID aims to allocate nearly 41% of its commitments to projects with environmental and...

EBID makes giant strides for a green transition in west africa
02

Mahindra & Mahindra is considering a CKD assembly plant near Durban to strengthen its presence i...

Mahindra & Mahindra Eyes Major Shift to Full Vehicle Assembly in South Africa
03

AFC disbursed €43 million for Côte d’Ivoire solar project Financing supports 66 MW pla...

AFC Backs First Green Project Finance Bond for 66MW Côte d’Ivoire Solar Plant
04

Operators review 2025 investments, outline 2026 expansion plans Consumer complaints persist...

Cameroon Presses Telecom Operators on Service Quality as Complaints Rise
05

MTN Ghana launches crackdown on mobile money agent fraud Audits trigger warnings, suspensions...

MTN Ghana tightens controls on mobile money agents over fraud concerns
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.