About 40 African finance and trade ministers, along with a large contingent of senior United States government officials will descend upon the coastal city of Lomé, Togo for the annual African Growth and Opportunity Act (AGOA) Forum. This forum serve as a medium for African countries to share motives on the continent’s development.
Reports confirmed that the forum will be led by the U.S. delegation to the Forum, U.S. Trade Representative (USTR) Ambassador Robert Lighthizer. He will also be accompanied by representatives from the State Department, Treasury Department, USAID, Department of Agriculture, among other agencies.
However, AGOA was first approved in May 2000 and subsequently reauthorized. It provides duty-free access for more than 6,000 items exported from eligible sub-Saharan African countries. The programme is intended to stimulate economic growth through a market based approach that will help Africa integrate into the global economy.
At the programme, it is expected that the American delegation will emphasize the importance of adhering to the eligibility criteria of AGOA, particularly on issues related to “the elimination of barriers to United States trade and investment.”
In addition, AGOA review process gives the Administration a significant, and flexible, tool to push African governments on their priority issue – ensuring American companies can fairly compete on the world stage. This process has helped many African countries to benefit significantly from the programme.
One of the benefits is a recent successful March 2017 petition for an off-cycle review by the Secondary Materials and Recycled Textiles Association (SMART) claiming that the East African Community’s recent decision to ban imports of used clothing and footwear is a violation of the AGOA eligibility criteria.
In further reaction to this, Last month, the Trade Policy Staff Subcommittee of USTR held an open hearing on the matter and is currently reviewing public comment and testimony with a decision expected by the end of the year. At stake is the full or partial duty free benefits of Rwanda, Tanzania, and Uganda. Many Africans do not accept the ban on the commodity as it has provided many means of survival for many Africans.
Reports confirmed that Africans are rightly concerned about the future of AGOA and its associated benefits. Some believed it will be difficult to continue justifying the one-way trade preference when AGOA expires in eight years. Discussions should be begin now on what the U.S. – Africa trade relationship will consist of in a post-AGOA world.
In order to further strengthen the U.S. Congress, the House Foreign Affairs Committee, is considering ways to improve and strengthen AGOA. Last week, Chairman Ed Royce and a group of bipartisan committee leaders introduced the AGOA and MCA Modernization Act (H.R. 3445). This legislation encourages policies that promote trade and cooperation, while providing much-needed technical assistance to help eligible partners fully utilize AGOA. Given the recent economic trends of embracing regional trade, this legislation also importantly grants the Millennium Challenge Corporation increased flexibility to support regional integration by allowing up to two simultaneous compacts with an eligible country.
African Growth and Opportunity Act (AGOA) Forum has been confirmed to be held in Togo. Many partnering countries have benefited immensely from this programme. It has also strengthened business transactions between the partner countries and the United States.
