Publication Number: 3675

Report Title: Trade Under AGOA Continues to Expand

Author's name(s): Selamawit Legesse, Laurie-Ann Agama

Date Published: February 2004

Report Description/Introductory Text: On May 18, 2000, President Bill Clinton signed the African Growth and Opportunity Act (AGOA) into law. Subsequently, on August 6, 2002, President George W. Bush signed the Trade Act of 2002, modifying the AGOA legislation and providing expanded preferential access for imports from Sub-Saharan Africa (SSA) beneficiary countries. These modifications are collectively referred to as AGOA II. This article discusses AGOA, its subsequent modifications, and U.S. trade with SSA beneficiary countries.

Conclusion:
Total trade between the United States and the SSA countries increased between 1999 and 2003. AGOA has also encouraged interregional trade among African countries. In addition, AGOA created the U.S.-Africa Trade and Economic Cooperation Forum, an institutionalized mechanism to increase direct contact between the United States and SSA countries. The Act provides incentives for accelerated trade reforms, as well as the renovation and building of infrastructure important to U.S.-SSA trade. Many public, private, and nongovernmental organizations are involved in utilizing and expanding AGOA. A proposal to extend and expand AGOA–AGOA III–was recently introduced in the United States Senate and House of Representatives. AGOA III proposes to extend AGOA until at least 2015, as well as extend for 4 more years the special apparel provision that allows lesser developed beneficiary countries to use third-country fabric and still remain eligible for AGOA’s duty-free treatment for apparel exports to the United States. Thus, AGOA has strengthened U.S.-Sub-Saharan Africa trade and economic relations.

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