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SUMMARY
OF AGOA ACCELERATION ACT OF 2004 -- AGOA III
By
modifying certain provisions of the African Growth and Opportunity
Act (AGOA), the AGOA Acceleration Act of 2004 (AGOA III, signed
by President Bush on July 12, 2004) extends preferential access
for imports from beneficiary Sub Saharan African countries
until September 30, 2015; extends third country fabric provision
for three years, from September 2004 until September 2007;
and provides additional Congressional guidance to the Administration
on how to administer the textile provisions of the bill.
These
modifications - often collectively referred to in the region
as "AGOA III" - are effective on July 13, 2004.
AGOA Acceleration Act of 2004 (AGOA III) Summary:
-
Extends overall the program from 2008 until 2015.
- Extends
third country fabric provision for three years, from September
2004 until September 2007, including a phase down in year
three. The cap would remain at the full current level available
in years one and two. In the third year, the cap would be
phased down by 50 percent.
- Includes
a statement of Congressional policy that textile and apparel
provisions under the program should be interpreted in a
broad and trade-expanding manner to maximize opportunities
for imports from Africa, accompanied by minor technical
corrections to reverse restrictive interpretations by Customs
officials. These minor technical corrections include a modification
to the rule of origin to allow articles assembled either
in the United States or Sub-Saharan Africa to qualify for
AGOA treatment (hybrid).
- Expands
current eligibility to allow non-AGOA produced collars,
cuffs, drawstrings, padding/shoulder pads, waistbands, belts
attached to garments, straps with elastic, and elbow patches
for all import categories to be eligible. Also included
is the continued use of fabric from AGOA countries that
also become free trade partners with the United States.
- Increases
the De Minimis Rule from its current level of seven percent
to 10 percent. This rule states that apparel products assembled
in Sub-Saharan Africa which would otherwise be considered
eligible for AGOA benefits but for the presence of some
fibers or yarns not wholly formed in the United States or
the beneficiary Sub-Saharan African country will still be
eligible for benefits as long as the total weight of all
such fibers and yarns is not more than a certain percent
(currently seven percent) of the total weight of the article.
- Includes
findings and statements of policy about the benefits of
AGOA to Africa and supporting various Sub-Saharan Africans
efforts such as reducing poverty, promoting peace, attracting
investment and trade, and fighting HIV-AIDS.
- Provides
a Sense of the Congress that Africans should support WTO
negotiations and trade liberalization.
- Expands
the current "folklore" AGOA coverage to include
certain machine-made ethnic printed fabric made in Sub-Saharan
Africa or the United States.
-
Encourages bilateral investment agreements.
- Directs
the Administration to implement an interagency trade advisory
committee.
-
Encourages the development of infrastructure projects that
increase trade capacity through the ecotourism industry.
- Directs
the President to assign personnel for the purpose of providing
agricultural technical assistance to select AGOA countries
and advising them on improvements in their sanitary and
phytosanitary standards to help them meet U.S. requirements.
- Promotes
investment in infrastructure projects that support the development
of land transport, roads, railways, ports, the expansion
of modern information and communication technologies, and
agriculture.
- Facilitates
increased coordination between customs services at ports
and airports in the United States and Sub-Saharan countries
to reduce time in transit and increase efficiency and safety
procedures.
Amendment
to AGOA Acceleration Act of 2004 Summary:
- The
"Micsellaneous Trade and Technical Corrections Act
of 2004" signed into law on December 3, 2004 includes
an amendment to the "AGOA Acceleration Act of 2004."
The amendement grants lesser-developed beneficiary country
status to Mauritius. This status qualifies the country for
the Special Rule for Apparel, allowing Mauritius to use
non-U.S. fabric and yarn in apparel wholly assembled in
Mauritius and still qualify for duty- and quota-free treatment.
The amendment limits Mauritius to a cap of 5% of the Special
Rule cap, about 27 million square meter equivalents (SMEs).
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