The African Growth and
Opportunity Act
- The Office of Africa and
the Near East
Market Access and
Compliance
- US Department of
Commerce
Which countries are
eligible for AGOA?
In October 2000, President
Clinton designated the
following 35 sub-Saharan
African countries as eligible
for AGOA: Benin, Botswana,
Cape Verde, Cameroon, Central
African Republic, Chad, Republic
of Congo, Djibouti,
Eritrea, Ethiopia, Gabon, Ghana,
Guinea, Guinea-Bissau, Kenya,
Lesotho, Madagascar, Malawi,
Mali, Mauritania, Mauritius,
Mozambique, Namibia, Niger, Nigeria,
Rwanda, Sao Tome and Principe,
Senegal, Seychelles, South
Africa, Swaziland,
Tanzania, Uganda and Zambia.
Are you interested in
markets for ICT related
products?
Click on the hyperlinked
countries in the previous
section for detailed
information about the market
for Information and
Communications related
products. You can learn
more about other markets for
ICT related products by
visiting: http://www.emich/edu/ict_usa.
Why aren’t all
Sub-Saharan African countries
eligible for AGOA?
Eligibility for AGOA was
designed to reward and provide
incentives for sub-Saharan
African countries that are
making progress in political
and economic reforms. Each
sub-Saharan African
country’s performance was
assessed using the following
criteria: establishment of
market-based economies;
development of political
pluralism and the rule of law;
elimination of barriers to
U.S. trade and investment;
protection of intellectual
property rights; efforts to
combat corruption; policies to
reduce poverty, increase
access to health care and
education; protection of human
rights and worker rights; and
elimination of certain child
labor practices. Designation
followed a public comment
period and extensive
interagency deliberations over
each country’s performance
against the eligibility
criteria.
The U.S. Government will work
with eligible countries to
sustain their efforts to
institute policy reforms and
with the remaining 13
sub-Saharan African countries
to help them achieve
eligibility.
Which products are
eligible for AGOA?
On December 21, 2000, the
President extended duty-free
treatment under the
Generalized System of
Preferences (GSP) to AGOA
eligible countries for more
than 1,800 tariff line items
in addition to the standard
GSP list of approximately
4,600 items available to non-AGOA
GSP beneficiary countries. The
additional GSP line items,
which include such previously
excluded items as footwear,
luggage, handbags, watches and
flatware were implemented
after an extensive process of
public comment and review. A
complete list of products
eligible for AGOA is available
at http://www.agoa.gov
.
Which products or sectors
are the most likely to benefit
from AGOA?
AGOA-eligible governments
and private sectors are
carefully examining the 6,000
plus list of eligible products
to determine how they can
benefit. This process is still
ongoing. Apparel, leather
goods and apparel and
agricultural products are some
sectors that are likely to
benefit.
What have been the
commercial results of AGOA to
date?
We are encouraged by the
trend, which indicates a boost
in U.S. trade with Africa.
Exports to the 35 AGOA-eligible
countries surged 35 percent in
the first half of this year,
while imports were up 7
percent. Imports of apparel
expanded 28 percent,
especially from Madagascar,
Mauritius, Lesotho, and South
Africa.
How will U.S. firms
benefit from AGOA?
By creating tangible
incentives for African
countries to implement
economic and commercial reform
policies, AGOA contributes to
better market opportunities
and stronger commercial
partners in Africa for U.S.
companies. The Act should help
forge stronger commercial ties
between Africa and the United
States, while it helps to
integrate Africa into the
global economy. U.S. firms may
find new opportunities in
privatizations of African
state-owned enterprises, or in
partnership with African
companies in infrastructure
projects. U.S. firms can also
benefit by forming joint
ventures with African or other
firms to take advantage of
AGOA benefits.
How can U.S. exporters
take advantage of AGOA?
To fully take advantage of
AGOA, African companies will
need to expand their
production capacity in order
to tap into the large U.S.
market. African firms will
need to source inputs, capital
goods and services to produce,
transport and market their
goods in the United States.
This presents opportunities
for exports of U.S.
manufacturers of needed inputs
and machinery as well as
services. The U.S.
Department of Commerce’s
Foreign Commercial Service
offices in Africa, in
consultation with U.S.
Embassies, are poised to
provide information on market
opportunities and trade leads.
Are AGOA-eligible
countries required to source
from the U.S.?
No, AGOA eligible countries
are not required to source
their goods or services from
the United States. To export
apparel to the U.S. without
facing a quota, African
companies will need to source
fabric and yarn from the
United States. By increasing
Africa’s familiarization
with the U.S. market, AGOA
will also expose African
companies to U.S. products and
services.
What U.S. government
programs have been developed
in support of AGOA?
The AGOA legislation urges
Ex-Im Bank to expand its
financial commitments in
sub-Saharan Africa under its
loan, guarantee and insurance
programs. In an effort to
increase African businesses’
ability to access financing,
Ex-Im is providing more
flexible financing terms under
its Short-term Insurance Pilot
Program and is pursuing
guarantee agreements with
African banks.
The Overseas Private
Investment Corporation
established the Africa
Millennium Fund as mandated by
the AGOA legislation. This
$350 million fund will invest
in telecommunications,
transportation, electricity,
water and sanitation projects.
OPIC has also committed $1
million to support
micro-finance in Africa.
In addition, President Bush
established the U.S.-African
Trade and Economic Cooperation
Forum, which will be convened
annually to discuss trade and
investment expansion between
Africa and the United States.
Where can I get more
information about AGOA?
The U.S. Department of
Commerce created a website on
the AGOA. The Internet address
is http://www.agoa.gov.
This website contains
information about the trade
legislation, eligible
countries, resources and links
to other Africa-focused
organizations. If you have a
specific question on AGOA, you
can send an email to: AGOAmail@ita.doc.gov
or call the Department of
Commerce’s Office of Africa,
(202) 482-4928.
Additional companion pages
related to Africa on Eastern
Michigan Universities
Information and Technology
Site can be found here:
You may also wish to visit
our related series of
WebGuides - Africa
- Mideast WebGuides
Date
Updated: March 27, 2007
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