Africa United States trade AGOA - African Growth and Opportunity Act

Course summary (African Growth and Opportunity Act (AGOA))

The African Growth and Opportunity Act (AGOA) is a United States Trade Act that significantly enhances U.S. market access for (currently) 39 Sub-Saharan African (SSA) countries.

The Act originally covered the 8-year period from October 2000 to September 2008, but amendments signed into law by U.S. President George Bush in July 2004 further extend AGOA to 2015.

AGOA passed as part of the Trade and Development Act of 2000 provides beneficiary countries in Sub-Saharan Africa with the most liberal access to the U.S. market available to any country or region with which we do not have a free trade agreement. It reinforces African reform efforts, provides improved access to U.S. credit and technical expertise, and establishes a high-level dialogue on trade and investment in the form of a U.S.-Sub-Saharan Africa trade and Economic Forum.

The Africa Investment Incentive Act of 2006 (signed by President Bush on December 20, 2006) amends portions of the African Growth and Opportunity Act (AGOA) and is referred to as "AGOA IV". AGOA extends GSP for eligible Sub-Saharan African beneficiaries until September 30, 2015.

Example of the course (Africa United States Trade AGOA):

General Country Eligibility Provisions. The U.S. Government intends that the largest possible number of Sub-Saharan African countries are able to take advantage of AGOA.

Countries Eligible for AGOA Benefits: Angola; Benin; Botswana; Burkina Faso; Burundi; Cameroon; Cape Verde; Chad; Comoros; Republic of Congo; Democratic Republic of Congo; Djibouti; Ethiopia; Gabon; The Gambia; Ghana; Guinea; Guinea-Bissau; Kenya; Lesotho; Liberia; Madagascar; Malawi; Mali; Mauritius; Mozambique; Namibia; Niger; Nigeria; Rwanda; Sao Tome and Principe; Senegal; Seychelles; Sierra Leone; South Africa; Swaziland; Tanzania; Togo; Uganda; Zambia.

U.S. - Africa trade

Since its inception in 2000, AGOA has helped increase our two-way trade with Africa and diversify the range of products being traded. Two-way total trade (exports plus imports) between the United States and sub-Saharan Africa increased 37 percent to just over $60.6 billion in 2005.

U.S. total exports to Africa rose 22 percent to $10.3 billion, with notable gains in agricultural goods, machinery, and transportation equipment. U.S. total imports (AGOA and non-AGOA) from Africa increased by 40 percent to $50.3 billion, largely due to an increase in oil imports.

U.S. imports from sub-Saharan African countries under AGOA (including its GSP provisions) totaled $38.1 billion in 2005, up 44 percent over 2004, primarily due to an increase in oil imports.

Non-oil AGOA trade declined by 16 percent, to $2.9 billion in 2005, mainly due to declines in AGOA apparel imports ($1.4 billion, down 12 percent), minerals and metals ($493.9 million, down 32 percent), and transportation equipment ($273.6 million, down 49 percent).

These declines were due in part to increased global competition in the apparel sector, resulting in part from the end of global apparel quotas and the anticipated end of AGOA third country fabric provisions; an appreciation of key currencies such as the South African rand; decreased demand for key minerals and metals such as manganese; and production shifts in the South African automotive sector.

There were also some gains in AGOA trade in 2005. Thirty-three countries exported products to the United States under AGOA in 2005. Several countries expanded their AGOA exports including Malawi, Botswana, Mozambique, Tanzania, Mali, Niger, Guinea, and Rwanda.

Several non-oil sectors experienced increases, including footwear, toys, sportswear, fruits, nuts and cut flowers. and despite the overall decline in apparel exports, some countries (including Botswana, Uganda, Ethiopia, Tanzania and Mozambique)
experienced increases in their apparel exports to the United States.

The West Africa trade Hub (WATH) is a USAID financed center established to enhance West Africa's trade competitiveness.

Trade for African Development and Enterprise (TRADE) initiative. The Act establishes a framework of incentives to encourage greater economic growth and self-reliance through enhanced International trade and investment in Africa.

The Southern Africa Global Competitiveness Hub supports poverty reduction in Southern Africa by increasing trade and investment flows with the rest of the world and providing expertise to reduce trade barriers.

The Africa Portal Country pages include country specific - Market research, trade leads and trade events, as well as information on business opportunities in the respective countries.

The West Africa trade Hub is funded through and managed by the USAID regional Mission for West Africa (USAID/WA) to promote trade throughout the region and help African exporters compete in the international market, especially through the duty-free status created by African Growth and Opportunities Act (AGOA).

East and Central Africa trade Hub. The ECA trade hub provides technical assistance to African firms and governments to enhance the competitiveness in Global markets.

The Southern Africa Global Competitiveness Hub (the Trade Hub) is a central point where Southern Africans can gain access to United States markets through business linkages, capacity building services and problem-solving trade facilitation.

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