The African Growth and Opportunity Act (AGOA) was signed into law by President Clinton in May 2000 with the objective of expanding U.S. trade and investment with sub-Saharan Africa, to stimulate economic growth, to encourage economic integration, and to facilitate sub-Saharan Africa’s integration into the global economy. The Act establishes the annual U.S.-sub-Saharan Africa Economic Cooperation Forum (known as the AGOA Forum) to promote a high-level dialogue on trade and investment-related issues. At the center of AGOA are substantial trade preferences that, along with those under the Generalized System of Preferences (GSP), allow virtually all marketable goods produced in AGOA-eligible countries to enter the U.S. market duty-free. Since its inception, AGOA has helped to increase U.S. two-way trade with sub-Saharan Africa.
On June 25, 2015, the U.S. Congress overwhelmingly approved legislation to re-authorize the African Growth and Opportunity Act for an additional ten years. This is a strong signal that investors can and should invest with confidence in Africa.
Total African exports under AGOA more than quadrupled since the program’s inception. As of June 2015, AGOA eligible countries have exported nearly $480 billion worth of goods to the United States under AGOA and the U.S. Generalized System of Preferences.
By providing duty-free access to the U.S. market, AGOA has succeeded in helping eligible nations grow, diversify their exports to the United States, and create employment and inclusive economic growth. Under AGOA, eligible countries can export products, including value-added manufactured items such as textiles, to the United States duty-free.
The AGOA Exporter Toolkit section was developed with support from the USAID Southern Africa Trade Hub and in collaboration with the USAID Trade Hubs in East Africa and West Africa. The Toolkit provides exporters and potential exporters with a wealth of information on US government policies, fundamental US import regulations, sector-specific information and studies, as well as general business tools such as trade exhibition tips and US market entry strategies. While a number of current toolkit resources hosted by this site were created for West African audiences, they generally apply equally to exporters in Southern or East Africa.Â
The International Trade Administration (ITA) strengthens the competitiveness of U.S. industry, promotes trade and investment, and ensures fair trade through the rigorous enforcement of our trade laws and agreements. ITA works to improve the global business environment and helps U.S. organizations compete at home and abroad. ITA supports President Obama’s recovery agenda and the National Export Initiative to sustain economic growth and support American jobs.
Click here to see the ITA’s trade data on the African Growth and Opportunity Act (AGOA).
