Currently AGOA significantly enhances U.S. market access for 40 African nations
Country eligibility for AGOA is determined by the US President (and listed in section 107 of the African Growth and Opportunity Act), and takes into account whether countries meet with a number of requirements. Countries need to "have established, or are making continual progress toward establishing the following: market-based economies; the rule of law and political pluralism; elimination of barriers to U.S. trade and investment; protection of intellectual property; efforts to combat corruption; policies to reduce poverty, increasing availability of health care and educational opportunities; protection of human rights and worker rights; and elimination ofÂ
certain child labor practices."
The eligibility criteria for the Generalized System of Preferences (GSP) and AGOA substantially overlap, and countries must be GSP eligible in order to be eligible for AGOA. While GSP eligibility does not imply AGOA eligibility, the majority (45 of 48) of Sub-Saharan African countries are currently GSP eligible. 37 of these are also AGOA-eligible.
Separate rules of origin apply to wearing apparel: AGOA eligibility does not automatically imply eligibility for the 'Wearing Apparel' provisions. In order to export apparel (and certain textile items) to the U.S. duty-free under AGOA, countries must have implemented a 'Visa System' to the satisfaction of US authorities and one that ensures compliance with the AGOA rules of origin. As of May 2006, 25 of the 37 AGOA-eligible countries had complied with this condition and had obtained the necessary visa system, allowing them to export apparel to the US duty-free under AGOA. The most recent beneficiary is the Republic of Chad, which gained eligibility on April 26, 2006. Countries determined to be 'Lesser Developed Countries' (LDCs) are now allowed until September 2007 (-following amendments to AGOA under the ‘AGOA Acceleration Act of 2003’) to utilize external, non-originating textiles in the production of garments, without compromising the AGOA-eligibility status of the finished garment. Further information on the Rules of Origin for apparel is provided in the Apparel Rules of Origin Section.
For additional information on AGOA Eligibility and AGOA Eligible Countries please visit:
AGOA.info/about-agoa/country-eligibility.html:
