The African Growth and Opportunity Act, or AGOA (Title I, Trade and Development Act of 2000; P.L. 106–200) is a piece of legislation that was approved by the U.S. Congress in May 2000. The stated purpose of this legislation is to assist the economies of sub-Saharan Africa and to improve economic relations between the United States and the region. After completing its initial 15-year period of validity, the AGOA legislation was extended on 29 June 2015 by a further 10 years, to 2025.
History
The African Growth and Opportunity Act (AGOA) was the brainchild of Congressman Jim McDermott (a former Foreign Service medical officer based in Zaire), and his Chief of Staff, Michael Williams. McDermott, along with Congressman Ed Royce, helped move the earliest versions of the legislation through Congress. Later, Rosa Whitaker, who served as the first ever Assistant U.S. Trade Representative (USTR) for Africa in the administrations of Presidents William J. Clinton and George W. Bush helped develop and implement the law. Passage of the legislation followed nearly a decade of leadership on the part of activists such as Paul Speck at Environmental and Energy Institute, Witney Schneidman, Steve Lande, Mel Foote, Tony Carroll, Claude Fontheim, and Mark Neuman, and others. AGOA was signed by President Clinton into law in May 2000. The legislation was reviewed again in 2015, was extended for 10 years following contentious debate. The revisions made it easier to become eligible and focused on improving the future business environment in developing African countries.
The scheduled expiration in 2025 makes the future of U.S.–Africa relations uncertain. In part, this is due to a changing trade environment with respect to Africa; for example, intracontinental and intercontinental economic integration have increased significantly. Similarly, following the conclusion of economic partnership agreements between the European Union and African, Caribbean, and Pacific (ACP) countries, trade ties are shifting from unilateral preferences to reciprocal relations. In order for African producers and manufacturers to become more fully integrated into supply chain networks, it may be beneficial to consider restructuring U.S.–Africa economic relations outside of the AGOA. The United States and sub-Saharan African countries have already discussed potential post-AGOA policy architectures.
Eligibility
The legislation authorized the President of the United States to determine which sub-Saharan African countries would be eligible for AGOA on an annual basis. The eligibility criteria were to improve labor rights and movement toward a market-based economy. Each year, the President evaluates the sub-Saharan African countries and determines which countries should remain eligible.
Having AGOA eligibility does not imply automatic eligibility for a "Wearing Apparel" provision. To export apparel and certain textile to the United States under the AGOA duty-free, an eligible country must have implemented a "Visa System" that satisfies American authorities and proves compliance with the AGOA Rules of Origin.
A country "graduates" from AGOA and thereby loses eligibility if it becomes a "high-income" country as defined by the World Bank.
Countries' inclusion has fluctuated with changes in the local political environment. In December 2009, for example, Guinea, Madagascar, and Niger were all removed from the list of eligible countries; by October 2011, though, eligibility was restored to Guinea and Niger, and by June 2014, to Madagascar as well. Notice was given that Burundi would lose its AGOA eligibility status as of 1 January 2016. In August, 2017, Togo was recognized as an eligible country.
On January 1, 2022, the United States removed Ethiopia, Mali and Guinea from the AGOA programme over alleged human rights violations and recent coups. In a statement the US Trade Representative explained the removal was “due to actions taken by each of their governments in violation of the AGOA Statute”. Burkina Faso lost its eligibility in 2023 due to successful coups in January and September. As of January 1, 2023, 35 countries are eligible to participate in AGOA.