AFRICAN trade ministers have urged the US government to do away with the annual reviews of the African Growth and Opportunity Act (Agoa) and expressed concerns over the unilateral removal of eligible members from the trade agreement by the US.
The ministers also expressed the importance of an expeditious renewal of Agoa by the end of 2024, with non-controversial enhancements and amendments for a minimum of 16 years to provide the required predictability and certainty to the trade and investments relationships between the two sides and to address graduation side by side with the extension of Agoa to preserve existing regional value chains.
This was expressed in a read-out statement of African ministers under the AU yesterday at the 21st Agoa Forum in Washington DC, where they are seeking an early renewal of the trade deal.
Agoa gives eligible sub-Saharan African countries duty-free access to the US market for most products without having to reciprocate.
It allows more than 30 African countries to export 1 835 types of goods to the US consumer market, and in turn affords the US access to critical minerals, product value chains, and investment opportunities in Africa.
The legislation, which was first enacted in 2000, is scheduled to expire in September 2025, but there is a new bill seeking to extend the preferential trade agreement by 16 years, pushing out the programme’s expiry date from 2025 to 2041.
“We take note that the annual reviews contribute to uncertainty and unpredictability, and urge the US Administration to adjust the Agoa eligibility review from the current practice of annual review to a three-year cycle, in alignment with other US preference schemes,” read the statement.
“We call upon the US Administration to reassess the impact of annual and out of cycle reviews, which reduces investor appetite.
“We urge the US Administration to refrain from using non-trade considerations in determining Agoa eligibility criteria and to ensure the developmental dimension of the Agoa programme, particularly in relation to infrastructure, industrial development, and technology transfer. We stress the importance of addressing graduation in order not to jeopardise the achieved gains.
“A review of Agoa conditionalities should ensure the prioritisation of continued mutual benefits.”
Many experts have argued that the Agoa legislation lacked input from African partners at its conception and operational flaws hinder its effectiveness.
In addition, they say that Agoa’s benefits have not been evenly distributed across the continent due to its rigorous eligibility requirements.
Large economies oriented around extractive industries in Angola, Kenya, Nigeri, and South Africa have significantly benefited from Agoa, while smaller participant nations generally have not.
“We express serious concerns that the unilateral removal of Agoa eligible member countries will continue to lead to serious disruption of regional integration efforts on the continent. We emphasise the importance of collaborative efforts between the two sides and the need for capacity-building programmes to support African eligible countries to meet the Agoa requisite standards,” read the ministers’ statement.
“We call upon the US Administration to simplify the current rules of origin and provide for additional improvements for manufactured products, to enhance market access.
“We commit to implement practical measures to address low-utilisation rate by developing national and regional Agoa utilisation strategies, including clustering, awareness campaigns and trade fairs, and call on the US to provide assistance in this regard.”
African trade ministers also agreed on the Democratic Republic of Congo to host the 2025 Agoa Forum, and the host committed to meet the Agoa Forum hosting requirements.