AGOA Definition
AGOA (African Growth and Opportunity Act) is a U.S. trade preference program that aims to enhance market access for qualifying Sub-Saharan African countries by granting them duty-free access to the U.S. market.
- Purpose: AGOA was signed into law by the U.S. Congress in May 2000. Its primary goal is to strengthen commercial ties between the United States and sub-Saharan Africa. By providing preferential trade agreements, AGOA encourages economic growth and development in the region.
- Eligibility Criteria: To benefit from AGOA, countries must meet specific criteria, including adherence to principles of market-based economy, rule of law, and respect for human rights.
- Product Coverage: AGOA covers over 1,800 products, allowing eligible countries to export a wide range of goods to the U.S. market without paying duties.
- Trade Impact: Since its inception, AGOA has facilitated trade between the U.S. and Africa. Notably, petroleum productsconstitute a significant portion of African exports under AGOA.
- Renewal and Reform: AGOA has been extended several times, with the most recent extension in 2015, extending its validity until 2025. Discussions continue on its future and potential reforms.
AGOA plays a crucial role in fostering economic ties between the U.S. and Africa, benefiting both parties.
States benefiting from AGOA:
• Benin
• Botswana
• Cape Verde
• Chad
• Republic of Congo
• Djibouti
• Ghana
• Guinea-Bissau
• Kenya
• Lesotho
• Malawi
• Mauritius
• Mozambique
• Namibia
• Nigeria
• Rwanda
• Sao Tome and Principe
• Senegal
• South Africa
• Swaziland
• Tanzania
• Zambia
Source :
- WorldBank
- Trade.gov
- Wikipedia