Monday, February 23, 2026

What is AGOA?

What is AGOA? The African Growth and Opportunity Act (P.L. 106-200, as amended) created a nonreciprocal U.S. trade preference program, also referred to as AGOA, to provide duty-free access to the U.S. market for most exports from eligible countries in sub-Saharan Africa (SSA). The act also requires an annual U.S.-SSA consultative forum to discuss trade-related issues and AGOA implementation. Additionally, AGOA provides direction to selected U.S. government agencies regarding their trade and investment support activities in the region. AGOA has been a cornerstone of U.S. trade policy toward SSA since 2000. Through AGOA, Congress seeks to increase U.S.-SSA trade and investment ties, promote economic growth through trade, and encourage the rule of law and market-oriented reforms. Congress may renew the program, which is scheduled to expire in December 2026 following a one-year extension (P.L. 119-75), and modify the program to promote other priorities in the region, such as strengthening U.S. trade and investment ties with SSA and increasing regional participation in global value chains.Authorization. Congress established AGOA in 2000, and has extended and modified the program several times. Most recently, Section 5019, Division I of the Consolidated Appropriations Act, 2026 (P.L. 119-75) reauthorized AGOA through December 2026 and retroactively extended duty-free benefits from September 2025 when the previous authorization expired. AGOA was last amended under the African Growth and Opportunity Act and Millennium Challenge Act Modernization Act of 2018 (P.L. 115-167), which required the Administration to provide information on AGOA via an official website; promote AGOA utilization by beneficiaries and export diversification under AGOA; support regional trade facilitation; and educate African entrepreneurs on U.S. counterterrorism policies.

Apparel and Third-Country Fabric Provision. AGOA's duty-free treatment of certain apparel products is significant because apparel articles (1) face relatively high U.S. tariffs; (2) are mostly excluded from GSP; and (3) can be readily manufactured in developing countries as their production requires relatively limited skilled labor and capital investment. Production in this sector can be a first-step toward higher value-added manufacturing. The third-country fabric provision in AGOA is a major factor enabling AGOA countries' competitiveness in the sector. This provision extends AGOA duty-free benefits to limited amounts of U.S. apparel imports from least-developed SSA countries even if the yarns and fabrics used in their production are sourced from non-AGOA countries (e.g., apparel assembled in Kenya with China-sourced fabrics can qualify for duty-free treatment under AGOA).

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