The US Congress has recently put forward proposals aimed at extending and enhancing the African Growth and Opportunity Act (Agoa) until 2041. Spearheaded by Senators Chris Coons and James Risch, the bipartisan Agoa Renewal and Improvement Act of 2024 seeks to prolong Agoa’s coverage to 54 African countries and integrate it with the African Continental Free Trade Agreement (AfCFTA).
Agoa, enacted in 2000 and set to expire next year, has been a pivotal trade agreement facilitating exports from sub-Saharan Africa to the United States. The proposed extension aims to further bolster trade ties between the US and Africa, particularly by supporting the development of intra-African supply chains through integration with AfCFTA.
US Secretary of Commerce Gina Raimondo affirmed the administration’s commitment to renewing Agoa, emphasizing President Biden’s prioritization of the matter. The proposed bill seeks to refine Agoa’s eligibility criteria, increase transparency, and hold US agencies accountable for their advice to the president.
One notable change introduced by the bill is the elimination of textile visas, which are currently required for apparel exports to the US under Agoa. This move is expected to boost Kenya’s apparel and clothing exports to the US by removing unnecessary bureaucratic hurdles.
Furthermore, the proposed bill mandates an annual Agoa Forum and tasks the US International Trade Commission with studying the economic effects of adding additional products to Agoa’s list of covered goods.
In a bid to encourage more countries to benefit from Agoa, the bill proposes modifying rules of origin to allow inputs from North African AfCFTA members to count towards the product’s value requirement. Additionally, it addresses concerns about income graduation by allowing countries to maintain eligibility until they have sustained “high-income” status for five consecutive years.
Moreover, the bill strengthens prohibitions on imports made with forced labor, aligning with the Uyghur Forced Labor Prevention Act to ensure compliance with US laws.
The proposed Agoa Renewal and Improvement Act has been met with optimism by Kenya’s private sector, with hopes of stimulating more exports to the US.
The extension and enhancement of Agoa until 2041, as proposed by the US Congress, signify a concerted effort to bolster economic ties between the US and Africa, promote intra-African trade, and address key challenges facing the continent’s exporters.
