Ethiopian Informer
ADDIS ABABA (EI): African countries and the African Union (AU) have called for the renewal and enhancement of the US trade act, the African Growth and Opportunity Act (AGOA).
The AU, in a press statement issued following the 2024 AGOA Annual forum that took place in Washington DC from July 24-26, said African ministers responsible for trade from AGOA eligible countries, united in their pursuit of economic prosperity, called for the renewal and enhancement of AGOA.
The African Growth and Opportunity Act (AGOA) is a US trade act that grants duty-free access to the US market for eligible Sub-Saharan African countries.
Recognizing the potential of the African Continental Free Trade Area (AfCFTA) to boost intra-African trade, the ministers urged the US to allow for cumulation with all AfCFTA signatories to strengthen the complementarities between AGOA and the AfCFTA, according to an AU statement.
To maximize the benefits of both agreements, the African ministers proposed increased market access for African goods in sectors like agriculture, textiles, and minerals. They also advocated for enhanced support to small and medium-sized enterprises, capacity building initiatives, and flexible rules of origin to stimulate value addition within Africa.
They further encouraged the US to invest in Africa’s value chains by sourcing and processing critical minerals at source in the continent. This approach, aligned with the Inflation Reduction Act, can foster job creation and economic growth in Africa while securing critical supplies for the US.
Among some of the key points from the African ministers’ read-out on how African countries can benefit from AGOA, include long-term renewal, enhancing utilization as well as eligibility and reviews.
The long-term renewal advocates for a minimum 16-year renewal to ensure predictability and stability in trade and investment relationships, while the enhancing utilization envisaged promoting regional value chains, simplifying rules of origin, and developing national and regional AGOA utilization strategies.
As part of the eligibility and reviews, African ministers urged the US to adjust AGOA eligibility reviews to a three-year cycle and avoid using non-trade considerations in eligibility criteria.
The AU, noting that Africa seeks a mutually beneficial partnership with the US to drive economic growth, create jobs and address global challenges, said by enhancing AGOA and aligning it with the AfCFTA, the US can contribute significantly to Africa’s industrialization and economic diversification.
Describing the AGOA Forum as “a foundation of US-Africa economic cooperation,” the AU said to maximize the benefits of AGOA, the AU Commission, through its Washington D.C. based Representational Office to the United States and the Department of Economic Development, Tourism, Trade, Industry and Mining (ETTIM), will continue to actively monitor and support AU AGOA eligible countries in the implementation and utilization of AGOA preferences.
It said the efforts are in addition to supporting AGOA beneficiary countries in conducting mid-year reviews and preparing for the statutory AGOA Annual Forums. This strategic approach ensures African nations are well-positioned to capitalize on AGOA’s opportunities.
Following the 2024 AGOA Annual forum that was held in Washington DC, US from 24-26 July, the Democratic Republic of Congo (DRC) will host the 2025 AGOA Forum, it was noted.
(Image illustration of AGOA. Credit agoa.info)
