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1 1 (July 17, 2024)

handle is hein.crs/goveqam0001 and id is 1 raw text is: Congressional Research Service Informing the egs ative dbate sice 1914 African Growth and Opportunity Act (AGOA) Uverview What is AGOA? AGOA (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 gathering, known as the AGOA Forum, held between U.S. and AGOA country officials 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. trade and investment with the region, promote sustainable economic growth through trade, and encourage the rule of law and market-oriented reforms. Congress has the authority to extend the program, which is scheduled to expire in September 2025, and also modify the program to promote other congressional priorities with the region, such as strengthening U.S. trade and investment ties in SSA and increasing regional participation in the global value chain. Country eligibility. There are currently 32 AGOA-eligible SSA countries, of 49 potential candidates for program benefits. AGOA eligibility criteria address issues such as trade and investment policy, governance, worker rights, human rights, and foreign policy, among other issues, which countries must satisfy to be beneficiaries of the program. The President annually reviews and determines each country's eligibility. As a result of the 2023 annual review, President Biden terminated AGOA preference benefits for Central African Republic, Gabon, Niger, and Uganda, effective January 1, 2024, after determining that they failed to meet the rule of law and/or human rights eligibility criteria. Thirteen other SSA countries remained ineligible for the program's preference benefits in 2024. They are (with non-eligibility criteria noted): Burkina Faso and Guinea (rule of law); Burundi and South Sudan (political violence); Cameroon, Eritrea, and Ethiopia (human rights), Equatorial Guinea and Seychelles (income graduation), Mali (human rights, rule of law, worker rights); and Somalia, Sudan, and Zimbabwe (never eligible). Rwanda's AGOA benefits for apparel exports have been suspended since July 31, 2018, following an out-of-cycle review (outside of the annual review period) in response to increased Rwandan tariff barriers on used clothing imports from the United States. Authorization. Congress established AGOA in 2000, and has amended its authorization law several times. The Trade Preferences Extension Act of 2015 (P.L. 114-27) extended AGOA's authorization for 10 years to September 2025. The African Growth and Opportunity Act and Millennium Challenge Act Modernization Act of 2018 (P.L. 115-167) required the Administration to provide information on AGOA through an official AGOA website; promote AGOA Updated July 17, 2024 utilization by beneficiaries and diversification of exports under AGOA; support regional cooperation on trade facilitation; and educate African entrepreneurs on complying with U.S. security policies. Supporting views. Supporters of AGOA have argued that the program affords African producers an important competitive advantage in the U.S. market, thereby fostering greater exports, encouraging investment in the region, boosting private sector activity and economic growth, and potentially generating demand for U.S. goods and services as the region's economies develop. Opposing views. Many AGOA opponents are U.S. producers that may face increased import competition from AGOA countries. Their concerns have tended to be product-specific. Their concerns also have been 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. mports Under AGOA In 2023, U.S. AGOA imports totaled $9.3 billion, down 4% from $9.6 billion in 2022 and more than double 2020 values, during the height of the COVID-19 pandemic. AGOA imports remain concentrated in a few countries and industries, but diversification has grown since the 2000s. Figure I. Top AGOA Countries, U.S. Non-Energy Product Imports South Africa Kenya Madagasca Lesotho Ghana E 2023 Other 2022 $ Millions 0 1,000 2,000 3,000 Source: Analysis by CRS. Data from USITC. * Energy product imports (e.g., crude oil) decreased from $4.6 billion in 2022 to $4.2 billion in 2023, and comprised 46% of AGOA imports. They remain lower than the 2011 peak value of $48 billion. Nigeria was the top supplier of energy products in 2023 ($3.6 billion). * Non-energy imports in 2023 were valued at $5.0 billion. Top non-energy import categories include motor vehicles ($1.9 billion), textile and apparel ($1.1 billion), agricultural and food products ($732 million), metals ($484 million), and chemicals ($308 million).

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