Monrovia — The administration of U.S. President Joe Biden has expressed its continued commitment to the African Growth and Opportunity Act, the U.S. program for sub-Saharan nations to access American markets with thousands of products from the continent. The commitment, made at the 21st AGOA Forum in Washington D.C. earlier this month, is the latest attempt to renew the U.S. legislation that has bolstered trade relations with Africa.
“We also discussed opportunities to modernize the Agoa program to realize its full potential as a tool for development,” Assistant U.S. Trade Representative for Africa Constance Hamilton said during an online briefing on Monday. Hamilton used the occasion to call for U.S. and AGOA partners to work together to promote “stronger, high-standard” investment opportunities, while also reaffirming the American President’s “strong support” for the “modernization and the re-authorization” of the program.
AGOA was enacted in 2000 as a major U.S. policy instrument to reinforce its economic engagement with Africa. Products – such as African fabrics and textiles – from eligible countries are allowed duty-free in U.S. markets, promoting economic growth on the continent. Participants at the just-ended forum, held under the theme, “Beyond 2025: Re-imagining AGOA for an Inclusive, Sustainable and Prosperous Tomorrow”, called on U.S. lawmakers to further extend the AGOA program which comes to an end next year when the 10-year extension granted by Congress in 2015 comes to an end.
Although AGOA remains an important instrument for trade relations between both regions of the world, the U.S. Deputy Assistant Secretary for African Affairs, Joy Basu, was keen to stress during Monday’s briefing that there are many other programs the U.S. Govt uses in its relations with Africa that work in a “symbiotic way” with AGOA, “which were also featured very prominently at our forum”.
Basu spoke of the range of “tools” at the U.S. disposal, including at the State Department, the U.S. Trade Relations Office, USAID, as well as Prosper Africa (another U.S. govt initiative also focused on trade and investment relations with Africa) that enhance not just economic activity on the continent, “but to really strengthen the partnership between the U.S. and Africa”.
On how the U.S. is working with partner nations to ensure more utilization of the AGOA programs, Basu said the State Department enhanced its focus on “commercial diplomacy”, by empowering U.S. embassies to work directly with the business community in their host countries to create awareness of AGOA benefits, “but also that they are reaching back to Washington to help those companies produce higher-quality products at greater quantities”. She said more than 100 individuals have been hired across eligible countries to offer “targeted advisory services” for African companies on their AGOA-related questions.
On the lingering issue of removing barriers in the U.S. market to allow citrus fruits from South Africa, including the parts of the country that have been excluded due to the “sanitary and phytosanitary” concerns, U.S. Assistant U.S. Trade Representative Hamilton said the U.S. Department of Agriculture is working with its South African counterpart to resolve any outstanding issue, a reference to recent hurdles with the free trade agreement between the two nations that have hampered the multi-million dollar industry.
Last week’s forum brought together senior government officials from across the U.S. Government and AGOA-eligible countries, and representatives from key regional economic organizations, labor, civil society, and the private sector. The gathering meant stakeholders could evaluate the program’s successes and shortcomings. Analysts say some of the 32- eligible countries, including South Africa, were seeking to repair their relations with the U.S. which has “faltered” in the last few years.
