African trade ministers urges US to renew AGOA in 2024 for min 16 yrs

As the annual reviews reduce investor appetite, the ministers called for a three-year review instead.

They reiterated the need to expeditiously renew the AGOA by the end of this year, without any controversial enhancements and amendments for minimum 16 years to offer the required predictability and certainty to US-Africa trade ties and preserve existing regional value chains.

This was expressed in a read-out statement of African ministers under the African Union (AU) at the 21st AGOA Forum in Washington, DC.

AGOA offers eligible sub-Saharan African countries duty-free access to the US market for most products without having to reciprocate. Enacted in 2000, the piece of legislation is scheduled to expire in September 2025.

“We urge the US Administration to refrain from using non-trade considerations in determining AGOA eligibility criteria and to ensure the developmental dimension of the AGOA programme, particularly in relation to infrastructure, industrial development and technology transfer. We stress the importance of addressing graduation in order not to jeopardise the achieved gains,” the statement issued by the African ministers said.

Several experts believe AGOA’s benefits have not been evenly distributed across the continent due to its rigorous eligibility requirements, African media outlets reported. Large economies oriented around extractive industries in Angola, Kenya, Nigeria and South Africa have significantly benefited from AGOA, while smaller participant nations generally have not.

“We call upon the US administration to simplify the current rules of origin and provide for additional improvements for manufactured products, to enhance market access,” the statement added.

Fibre2Fashion News Desk (DS)