African growth and opportunity act, electrify africa act. Getting serious about underperformance of the african. It promotes eco nomic development and expedites the integration of african economies into the world trading system, and provides a framework for. The agoa enhancement act hopes to build on and improve this successful law. Policy options for supporting trade potential in africa benjamin leo and vijaya ramachandran february 2014 summary with the african growth and opportunity act agoa scheduled to expire in september 2015, the us congress and obama administration will need to consider its status this year. D abstract this study uses the gravity model of trade to determine the effects of the african growth and opportunity act agoa on the volume of qualifying exports out of the sub. Presented to 17th agoa ministerial session july 10, 2018 washington, d. Agoa was enacted in 2000 and originally expired on 30th september, 2008 but as a result of the th july, 2004 signing of the agoa acceleration act, agoa was extended until 30th september 2015. African growth and opportunity act on may 18, 2000, the president signed into law the trade and development act of 2000, public law 106200, 114 stat.
The effectiveness of african growth and opportunity act agoa in. The african growth and opportunity act agoa is a nonreciprocal trade. The african growth and opportunity act agoa the african growth and opportunity act agoa was signed into law by president clinton on may 18, 2000 for an original period of eight years. Agoa tariff preference eligibility subject of annual. How effective has the african growth opportunity act agoa been at increasing trade from least developed countries. Since implementation of agoa, there have been sizable increases in u.
Agoa was designed by a bipartisan group of lawmakers with the goal of fostering opportunities for af. The african growth and opportunity act agoa was signed into law by the us congress on may 18th 2000, with the broad objective of boosting exports from subsaharan africa to the us by eliminating tariff barriers on a large number of their exports. An act to extend and modify the trade benefits under the african growth and opportunity act. President obamas decision to extend agoa, which was set to expire at the end of september 2015, for another ten years 2015 to 2025, was highly controversial. African growth and opportunity act agoa united states. Pdf the african growth and opportunity act, exports, and. 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. The program dates from 2000 and has the goal of promoting economic growth through good governance and free markets. These criteria include either the establishment of, or continual.
The african growth and opportunity act was signed into law by president clinton in may 2000 with the objective of expanding u. President bush later extended the program through 2015. African growth and opportunity act the united states will also form publicprivate partnerships with east african and u. Renewal and extension of agoa is incorporated into the tpea as title i. 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. Agoa is aimed at promoting freemarket system, expanding usa. Sense of the congress regarding efforts to combat desertification in africa and other. Agoa helps eligible nations diversify their exports to the united states, creating jobs and inclusive economic growth, by providing dutyfree. African growth and opportunity act t he african growth and opportunity act agoa, enacted in 2000, allows 37 eligible african countries to export most products dutyfree to the united states. It provides dutyfree access to the usa market for almost all products exported from more than 40 eligible subsahara african ssa countries, including south africa. The purpose of agoa is to assist the economies of subsaharan africa and to improve economic relations between the u. This act may be cited as the agoa acceleration act of 2004. Africas growth and opportunity act agoa was passed as part of the trade and development act of 2000 in the usa. The agoa act was enacted into law in 2000 and has since been renewed to 2025.
Since its inception, agoa has helped eligible ssa countries expand and diversify their exports to the united states by providing dutyfree access to the u. The african growth and opportunity act agoa, first authorized in 2000. An importer of records failure to exercise reasonable. This act provides qualifying subsaharan african ssa countries with dutyfree and quotafree treatment for eligible apparel articles exported to the united states. Strengthening the african growth and opportunity act.
Chairman of the house foreign affairs committee, ed royce rca39 n otes that, stronger u. The primary purpose of the agoa legislation is to establish a new trade and investment policy for subsaharan africa, along with expanding trade benefits to the caribbean basin. Agoa is a unilateral preference program established in the trade and development act of 2000 public law 106200. For the first time, the united states established a trade policy that was specific to subsaharan africa. Enacted in may 2000 and reauthorized by congress in june 2015, the african growth and opportunity act agoa is the cornerstone of u. There are 49 candidate ssa countries with 39 currently eligible for the. The united states also hopes to expand its collaboration with other regional economic communities in africa, including in cooperation. Agoa certificate of origin for preferential treatment under the african growth and opportunity act the exporter is required to prepare a certificate of origin and provide it to the importer. Us president obama signing the agoa trade preferences extension act of 2015 into law. For well over a decade, agoa has served as the key foundation to u.
President obama signed the trade preferences enhancement act of 2015 on june 29, 2015. It covers nontextile as well as textile goods and was most recently reauthorized through september 30. House passes agoa enhancement act congresswoman karen. Lo o k i n g ba c k, lo o k i n g fo r wa r d iv stronger developmental impact, which will. African growth and opportunity act rwanda trade portal. The african growth and opportunity act, or agoa, was passed into law by the 200th congress on may 18, 2000. Be it enacted by the senate and house of representatives of the united states of america in congress assembled, section 1. Congress on june 25, 2015, and signed into law by president barack obama on june 29, 2015.
Kenya, agoa has been credited for creating more than 30,000 jobs by reviving a previously indolent capacity for textile and clothing manufacturing in the country. Backgroundthe african growth and opportunity act agoa provides dutyfree treatment to goods of designated subsaharan african countries ssas. The african growth and opportunity act otexa international trade. Highlights of the agoa forum ministerial will include best practices for an effective agoa utilization strategy, addressing supplyside constraints to agoa utilization, e. The african growth and opportunity act agoa enacted on may 18, 2000, agoa is a key element of u. In section 102 of the act the congress noted that subsaharan africa represent a region of enormous economic potential and of enduring political significance to the united state. The african growth and opportunity act agoa is a nonreciprocal preferential trade programme that the us offers to 49 subsaharan african countries. The trade preferences extension act tpea of 2015 h. 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 agoa legislation was initially enacted to cover the period 2000 2008, but has been extended a number of times since then, most recently in 2015 through an act of congress and following a lengthy hearings process. The agoa civil society organization cso and the african women entrepreneurship program awep session of the. Looking back, looking forward 4 africa growth initiative, the brookings institution june 2012.
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. To promote access to benefits under the african growth and opportunity act, and for other purposes. The csa is practiced in the rural african farming but have not been so. Held on april 20, 2016, african growth and opportunity act agoa was cohosted by idea and the u. The african growth and opportunities act agoa which was signed into law in 2000 as part of u. Recommendations for the reauthorization of the african. Agoa was signed into law on may 18, 2000, as title 1 of the trade and development act of 2000. Addresses unfair practices by the european union that condition. Importers and others have an opportunity to seek changes in the eligibility of subsaharan african countries to receive benefits under the african growth and opportunity act as part of the office of the u.
Retains agoas existing product coverage and includes third country fabric provision. The act offers tangible incentives for african countries to continue their efforts to open their economies and build free markets. The certificate of origin includes information such as contact information for the importer, exporter and producer. Since many cut flowers from agoa countries are first shipped to the.
Opportunity act the agoa, extends certain trade benefits to subsaharan africa. The african growth and opportunity act, or agoa title i, trade and development act of 2000. 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. African growth and opportunity act agoa and generalized.
The african growth and opportunity act agoa is a nonreciprocal trade preference program that provides dutyfree treatment to u. Pdf the agoa extension and enhancement act of 2015, the. 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 effectiveness of african growth and opportunity act. Title i of the trade and development act of 2000 act of 2000 is referred to as the african growth and opportunity act agoa and authorizes the president to extend certain trade benefits. The bill was renewed up to the year 2025 in 2015, during the obama administration.
Agoa certificate of origin, declaration of ownerconsignee. The africa growth and opportunity act agoa, included in the trade and development. The african growth and opportunity act agoa accords dutyfree treatment to virtually all products exported by beneficiary subsaharan ssa countries to the united states. The textile and apparel provisions of agoa background. More than 14 years ago, the congress passed the african growth and opportunity act, which, of course, is known as agoa. African privatesector engagement is good for the african people, especially women, and. The legislation significantly enhances market access to the us for qualifying subsaharan african ssa countries. Pdf the african growth and opportunity act agoa is the flagship of u. The department of state is urged to promote the use by eligible subsaharan african countries of the.
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