AGOA Renewal: Committing to Trade and Development in Africa

AGOA remains the cornerstone of Africa-U.S. preferential market access, and the legislation accounts for virtually all of Sub-Saharan Africa’s non-MFN exports to the U.S. Through AGOA, beneficiary countries only still face approximately 300 residual tariff lines that are not duty-free on entry into the U.S. In order to qualify for preferences, (a) a country must be a current AGOA beneficiary, (b) the product must be eligible for AGOA preferences as per the relevant special program indicator in the U.S. tariff book, and (c) products must originate in AGOA beneficiary countries in accordance to the rules of origin.

Key Points:

Given that AGOA expires in September 2025, there’s an opportunity to package together the renewal of Generalized System of Preferences (GSP) and AGOA in 2024, potentially avoiding delays with AGOA reauthorization. The commitment to adjust AGOA due to governance and human rights concerns has led to the suspension of several countries and the reinstatement of Mauritania as a beneficiary after a 16-year absence AGOA remains a cornerstone of Africa-U.S. preferential market access, supporting non-MFN exports from Sub-Saharan Africa to the U.S. market. In a nutshell; AGOA’s renewal will continue to present an opportunity to strengthen trade ties, foster economic growth, and advance sustainable development across the African continent.