An expert unpacks what it’s achieved in 23 years.
African governments are seeking an extension of the African Growth and Opportunity Act beyond 2025. The law was enacted in 2000 to “encourage increased trade and investment between the United States and sub-Saharan Africa”. We asked David Luke, who specialises in African trade policy and negotiations, what benefits Agoa has brought for qualifying African countries and how it can be improved.
Perhaps Ethiopia, which was suspended from Agoa in January 2022, best exemplifies the impact of the trade window on Africa’s industrialisation.US cuts off Ethiopia, Mali, Guinea from Africa duty-free trade programme Ethiopia’s exports to the US increased from US$29 million to US$525 million in 2020, 45.3% of it under Agoa.
The positive impact on value chains explains why African countries such as Kenya, Lesotho and Mauritius have put so much diplomatic capital, and on occasion lobbying funding, into articulating a continuing case for Agoa’s renewal.