Agoa Free Trade Agreement

AGOA has had limited success in some countries. In addition to the growth of the textile and apparel industry, some AGOA countries have begun exporting new products to the United States, such as cut flowers, horticultural products, automotive components and steel. While Nigeria and Angola are AGOA`s main exporters, other countries, particularly South Africa, have been more diversified and do not focus primarily on the energy sector, unlike the former. For some countries, including Lesotho, Swaziland, Kenya and Madagascar, AGOA remains essential. Agricultural products are a promising area for AGOA trade; However, much remains to be done to help African countries comply with U.S. health and plant health standards. The U.S. government provides technical assistance to AGOA-eligible countries to help them benefit from the legislation, through the U.S. Agency for International Development (USAID) and other agencies. To this end, the U.S. government has established three regional shopping centres in Africa, in Accra, Ghana; Gaborone, Botswana; and Nairobi, Kenya. Increases the current authorization to qualify non AGOA collars, maniches, cords, padding/shoulders, belts, belts attached to clothing, belts with elastic and elbow patches for all import categories.

The continued use of tissues from AGOA countries, which also become free trade partners with the United States, is also included. When President Bill Clinton signed the African Growth and Opportunity Act (AGOA) in 2000, African countries gained a competitive advantage by providing unilateral duty-free exports for 6,500 African products to the United States. Twenty years after AGOA`s first adoption, we see that it has created long-term sustainable growth by stimulating the private sector and creating jobs in a region where many countries face high unemployment, the challenges of the region. In addition, Clinton has strengthened the regional approach to the trade agreement for both major players such as South Africa and by smaller players such as Lesotho. In many ways, this approach is in line with “trade instead of aid.” In recent months, the United States has begun negotiations for a bilateral free trade agreement with Kenya. These negotiations are in line with the current government`s vision for trade reciprocity, not unilateral trade preference programs. While these negotiations could result in the first bilateral trade agreement between the United States and a sub-Saharan African country, the transfer of preferential regional agreements to bilateral free trade agreements could jeopardize the growth of small countries that may not have sufficient economic interest for the United States. Bilateral agreements could also undermine efforts to create a regional economic bloc through the Continental Free Trade Area (AfCFTA). To meet AGOA`s strict authorisation requirements, countries must establish an economy based on the market economy, the rule of law, political pluralism and the right to due process, or continue to grow.

In addition, countries must remove barriers to trade and investment in the United States, adopt measures to reduce poverty, fight corruption and protect human rights. AGOA offers trade preferences for importing certain products into the United States duty-free and expands the benefits of the Generalized Preferences Program (GSP).