Backgroundthe african growth and opportunity act agoa provides dutyfree treatment to goods of designated subsaharan african countries. Presidential proclamation to take certain actions under. African growth and opportunity act agoa united states trade. Department of commerce office of textiles and apparel at 2024823117. Previous empirical qualitative researches blamed underperformance of the african growth and opportunity act agoa on trade policy arguing that the legislation is a contradiction with world trade organization wto rules and that it is a onesided agreement as there was little african involvement in its preparation abdul, 2009, p. South africa can draw on its skilled labor to grow into a globally competitive manufacturing hub focused on highvalueadded categories such as automotive, industrial machinery and equipment, and chemicals.
The african growth and opportunity act introduction. African growth and opportunity act the united states will also form publicprivate partnerships with east african and u. African growth and opportunity act and millennium challenge act modernization act or the agoa and mca modernization act. African growth and opportunity act young african leaders. It significantly enhances unhindered market access to the usa for nigeria. Department of labor works with the united states trade representative, department of state, and other united states government agencies to implement the african growth and opportunity act agoa, focusing in particular on the labor provisions of the act. The african growth and opportunity act agoa is a nonreciprocal trade preference program that provides dutyfree treatment to u. Gilman, from the committee on international relations, submitted the following r e p o r t together with dissenting views to accompany h. What every member of the trade community should know. Presidential proclamation to take certain actions under the. Big five growth opportunities that exists in south africa. Jul 29, 20 the african growth and opportunity act agoa, one of the defining characteristics of the trade relationship between the united states and africa, will expire on september 30, 2015, sparking. After completing its initial 15year period of validity, the agoa legislation was extended on 29 june 2015 by a further 10 years, to 2025.
African growth and opportunity act the african growth and opportunity act agoa was signed into law on may 18, 2000 as title 1 of the trade and development act of 2000. The program dates from 2000 and has the goal of promoting economic growth through good governance and free markets. Lesotho is a good example of how agoa makes a differ ence. The african growth and opportunity act, a us trade failure. Since 2000, the african growth and opportunity act agoa has been the cen. The african growth and opportunity act, known as agoa, is the u. The african growth and opportunity act united nations. African growth and opportunity act agoa has helped many african countries lesotho, swaziland and kenya, for example to create tens of thousands of new jobs and boost their international competitiveness. It covers nontextile as well as textile goods and was most recently reauthorized through september 30. It provides trade preferences for quota and dutyfree entry into.
African growth and opportunity act agoa united states. Countries marked with a star have lost their agoa beneficiary status. The african growth and opportunity act and millennium challenge act modernization act agoa and mca modernization act signed in to law by the presidenton april 23, 2018 gives mcc the increased flexibility it needs to promote regional collaboration, trade, and economic growth by authorizing mcc to enter into an additional, concurrent compact with a country partner specifically to promote regional integration. It is an important symbol of the united states larger partnership with subsaharan africa and of our commitment to supporting the regions longterm economic growth. The african growth and opportunity act agoa, one of the defining characteristics of the trade and commercial relationship between the united states and. To take certain actions under the african growth and. The purpose of this legislation is to assist the economies of subsaharan africa and to improve economic relations between the united states and the region.
The african growth and opportunity act council on foreign. Its purpose is to assist subsaharan economies as nigeria improving economic relations with usa. The act offers tangible incentives for african countries to continue their efforts to open their economies and build free markets. Background and reauthorization congressional research service summary the african growth and opportunity act agoa is a nonreciprocal trade preference program that provides dutyfree treatment to u. Presidential proclamation to take certain actions under the african growth and opportunity act and for other purposes foreign policy issued on. Oct 25, 2011 section 506aa 1 of the trade act of 1974, as amended the 1974 act 19 u. The african growth and opportunity act agoa, one of the defining characteristics of the trade and commercial relationship between the united states and africa, will expire on september 30, 2015. The united states also hopes to expand its collaboration with other regional economic communities in africa, including in cooperation. The legislation significantly enhances market access to the us for qualifying subsaharan african ssa countries. This paper looks at the impact of the trade preferences that are the central element of agoa on african countries exports to the u. The african growth and opportunity act has boosted u.
The african growth and opportunity act, passed in may 2000 and signed by president bill clinton, aims to increase trade between the united states and subsaharan africa. Let me begin by commending you and representatives payne, houghton, campbell, chabot, radanovich, and meeks for your particularly strong efforts in support of the african growth and opportunity act, as well as the other 60plus cosponsors, for introducing. Labor and the african growth and opportunity act u. Government publishing office page 1275 african growth and opportunity act and millennium challenge act modernization act page 2 stat. Frazer hosts ask the state department122906 proclamation to take certain actions under the african growth and opportunity act and the generalized system of preferences122906 statement on the african growth and opportunity act 121406 president bush attends white. The african growth and opportunity act agoa if you have any questions about this program, please contact becky geiger at the u. Backgroundthe african growth and opportunity act agoa provides dutyfree treatment to goods of designated subsaharan african countries ssas. Agoa is a trade program meant to establish stronger commercial ties between the united states and subsaharan africa.
Agoa is a longterm commitment with broad bipartisan support in the united states. The african growth and opportunity act was signed into law by president clinton in may 2000 with the objective of expanding u. At its top level, it divides the world of legislation into fifty topicallyorganized titles, and each title is further subdivided into any number of logical subtopics. Agoa authorizes the president to designate countries as eligible to receive its benefits if they are determined to. Madagascar has once again been recognized as a member of the african union and southern african development community sadc, and is eligible for the african growth opportunity act agoa. Section 506aa 1 of the trade act of 1974, as amended the 1974 act 19 u. Agoa provides eligible subsaharan african countries with dutyfree access to the u. Section 506aa1 of the trade act of 1974, as amended the 1974 act 19 u. The african growth and opportunity act agoa was signed into law on may 18, 2000 as title 1 of the trade and development act of 2000.
Reinforces african reform efforts and improves access. The african growth and opportunity act, a us trade failure by rick helfenbein 040615 06. This bill directs the president to establish a website for the collection and dissemination of information regarding the african growth and opportunity act agoa. The african growth and opportunity act agoa was signed into law by president clinton in may 2000 with the objective of expanding u. The african growth and opportunity act agoa, one of the defining characteristics of the trade relationship between the united states and africa, will expire on. What every member of the trade community should know about. Agoa helps eligible nations diversify their exports to the united states, creating jobs and inclusive economic growth, by providing dutyfree. The african growth and opportunity act, or agoa is a piece of legislation that was approved by the u. Usgs signature trade initiative with subsaharan africa.
This publication is intended to provide guidance and information to the trade community. The african growth and opportunity act agoa was adopted by the united states with the enactment of the trade and development act of 2000 pub. Held on april 20, 2016, african growth and opportunity act agoa was cohosted by idea and the u. The african growth and opportunity act agoa is a united states trade act. The african growth and opportunity act agoa is the cornerstone of u. But experts say african states must build trade capacity to benefit fully. In proclamation 7350 of october 2, 2000, the president designated the republic of cameroon cameroon as a beneficiary subsaharan african country for purposes of section 506aa1 of the trade act of 1974, as amended the trade act, as added by section 111a of the african growth and opportunity act the agoa title i of public. To realize this opportunity, south african manufacturers will have to pursue new markets and step up innovation and productivity. Enacted in may 2000, the african growth and opportunity act agoa is the cornerstone of u. African growth and opportunity act agoa overview what is agoa. The united states code is meant to be an organized, logical compilation of the laws passed by congress.
The african growth and opportunity act, or agoa title i, trade and development act of 2000. There are 49 candidate ssa countries with 39 currently eligible for the preference benefits. The current agoa is set to expire on september 30, 2015. President trump signs agoa and mca modernization act into. So far, there have been heightened discussions both by african and u.
It reflects the position on or interpretation of the applicable laws or regulations by u. Africa trade and is viewed favorably by economists. Since its enactment in 2000, the african growth and opportunity act agoa has been at the core of u. The act establishes a preferential trade agreement between the u. Reinforces african reform efforts and improves access to capacity building through regional trade hubs.
The african growth and opportunity act, exports, and. President trump signs agoa and mca modernization act into law. Agoa is a trade program meant to establish stronger commercial ties between the united. The african growth and opportunity act agoa is a united states trade act, enacted on 18 may 2000 as public law 106 of the 200th congress. The african growth and opportunity act agoa was signed into law in 2000 to help promote free markets in subsaharan african ssa countries, stimulate. African growth and opportunity act east african community. The african growth and opportunity act united nations economic. Enacted in may 2000 and reauthorized by congress in june 2015, the african growth and opportunity act agoa is the cornerstone of u. The african growth and opportunity act agoa is at a critical juncture for americas economic engagement with africa.
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