2023-10-26 16:10:50
The United States should make changes to its flagship trade initiative with Africa to increase its impact as part of a possible reauthorization by Congress, a senior U.S. trade official said Thursday.
Launched in 2000, the African Growth and Opportunity Act (AGOA) grants exports from eligible countries duty-free access to the U.S. market. It is set to expire in September 2025, but discussions are already underway to determine whether and for how long it should be extended.
“We have to do better,” Constance Hamilton, deputy U.S. trade representative for African affairs, said at a news conference ahead of a meeting between U.S. officials and African trade ministers, which will be held next week in South Africa.
“Some countries have benefited greatly from AGOA, but the majority have not,” she added.
A research report requested by U.S. lawmakers and released earlier this year found that AGOA has helped reduce poverty and create jobs in some countries, particularly for women.
However, more than three-quarters of duty-free non-oil exports to the United States under the program for 2014-2021 came from just five countries: South Africa, Kenya, Lesotho, Madagascar and Ethiopia.
African governments and industry groups are pushing for an early extension of 10 years without changes to reassure businesses and new investors who may be worried about the future of AGOA.
Such a renewal is also supported by some members of Congress, who fear that revising the program could delay or derail its renewal.
Last month, Republican Senator John Kennedy proposed a 20-year extension of AGOA without changes, saying it would play a key role in deterring “China’s growing influence throughout the region.”
Mr. Hamilton, however, said the Office of the U.S. Trade Representative hoped Congress would consider measures “to make the program more effective,” without elaborating.
“Not trying to change the program and improve it is a wasted opportunity,” she said.
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