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1 1 (July 18, 2019)

handle is hein.crs/govbamc0001 and id is 1 raw text is: African Growth and Opportunity Act (AGOA) Overview What is AGOA? AGOA, a cornerstone of U.S. trade policy toward sub-Saharan Africa since 2000, is a nonreciprocal U.S. trade preference program that provides duty-free access to the U.S. market for most exports from eligible sub-Saharan African countries. In addition to preferential market access, the Act also requires an annual forum, known as the AGOA Forum, held between U.S. and AGOA country officials to discuss trade-related issues. Additionally, AGOA provides direction to select U.S. government agencies regarding their trade and investment support activities in the region. Which countries are eligible? AGOA lists 49 sub-Saharan African countries that are potential candidates for AGOA benefits. AGOA eligibility criteria address issues such as trade and investment policy, governance, worker rights, and human rights, among other issues, which countries must satisfy to be beneficiaries of the AGOA preferences. The President annually reviews and determines each country's AGOA eligibility. There are currently 39 AGOA-eligible countries. President Trump reinstated benefits for The Gambia and Swaziland on December 22, 2017 and removed AGOA benefits for Mauritania effective January 1, 2019. In 2018, the Administration also conducted an out-of-cycle eligibility review for several countries in the East African Community (EAC) regarding increased tariff barriers on used clothing imports from the United States. The President determined that Rwanda did not take adequate steps to remove the import restrictions and partially suspended Rwanda's AGOA benefits, removing duty-free eligibility for its apparel exports, effective July 31, 2018. What is the authorization status? AGOA was first established by Congress in 2000 and has been amended several times. The Trade Preferences Extension Act of 2015, P.L. 114-27, extended AGOA's authorization for ten years to September 2025. In April 2018, Congress passed the AGOA and Millennium Challenge Act Modernization Act, P.L. 115-167, which requires the Administration to increase transparency, including through an official AGOA website with information on, among other things, the outcomes of the annual AGOA Forum. It also directs the Administration to promote AGOA utilization, product diversification, and regional cooperation, and to educate African entrepreneurs on quality standards and production strategies. What is the goal? Through AGOA, the U.S. Congress seeks to increase U.S. trade and investment with the region, promote sustainable economic growth through trade, and encourage the rule of law and market-oriented reforms. Supporting Views-Supporters of AGOA argue that the program affords African producers an important competitive advantage in the U.S. market, thereby enabling exports, encouraging investment in the region, boosting Updated July 18, 2019 private sector activity and economic growth, and ultimately generating demand for U.S. goods and services as the region's economies develop. Opposing Views-Opposition is mostly from U.S. producers that may face increased import competition from AGOA countries. Such concerns are generally limited due to the low volume of U.S. imports under AGOA, but import competing U.S. producers have lobbied to keep certain products, particularly sugar, out of the program. U.S. Imports Under AGOA Total U.S. AGOA imports were $12.0 billion in 2018, down from $13.8 billion in 2017. Imports remain concentrated in select countries and industries but diversification is increasing, with some countries, particularly Ethiopia, increasing exports in recent years. * Energy products, mainly crude oil, accounted for $8.0 billion of U.S. AGOA imports (66%) in 2018, with Nigeria, Angola, and Chad as the top suppliers. Crude imports remain more than $40 billion below their 2011 peak, due to lower prices and increased U.S. production. * Non-energy imports under AGOA have grown from $1.3 billion in 2001 to $4.0 billion in 2018. Top non- energy import categories include textiles and apparel ($1.2 billion), minerals and metals ($773 million), transportation equipment ($699 million), agricultural products ($599 million), and chemicals ($488 million). * South Africa remains the top supplier of AGOA non- energy imports (58% or $2.4 billion in 2018), but its dominance is declining. U.S. motor vehicle imports from South Africa have fallen $1.6 billion from their 2013 peak to $572 million in 2018. Kenya, Lesotho, Madagascar, Ethiopia, and Mauritius are the other top non-energy beneficiaries, exporting mostly apparel products. Together with South Africa these countries accounted for 91% of all non-energy imports in 2018. Figure I. U.S. Non-Energy AGOA Imports by Country ($ in millions, 2018) South Africa Kenya i Lesotho m Madagascar E Ethiopia Mauritius All Other 0 500 1,000 1,500 2,000 2,500 Source: Analysis by CRS. Data from USITC. Note: Non-energy refers to all goods except HTS Chapter 27. https://crsreports.congressge

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