In a concerted effort to enhance trade and stimulate job creation, African ministers are calling for the renewal and expansion of the African Growth and Opportunity Act (AGOA). They urge the United States to allow cumulation with all African Continental Free Trade Area (AfCFTA) members, which would simplify the rules of origin and further promote trade across the continent. This initiative aligns with the broader goals of Agenda 2063.
Key Points from the African Ministers’ Read-Out:
- Long-term Renewal: Advocating for a minimum 16-year renewal of AGOA to ensure predictability and stability in trade and investment relationships.
- Enhancing Utilization: Promoting regional value chains, simplifying rules of origin, and developing national and regional AGOA utilization strategies to maximize benefits.
- Eligibility and Reviews: Urging the U.S. to adjust AGOA eligibility reviews to a three-year cycle and to avoid using non-trade considerations in determining eligibility.
To maximize the benefits of AGOA, the African Union Commission, through its Washington D.C. Representative Office and the Economic Development, Tourism, Trade, Industry, and Mining (ETTIM) Department, will continue to conduct regular assessments and preparations for the annual forum. This strategic approach ensures that African nations are well-positioned to capitalize on AGOA’s opportunities.
In a notable development, the Democratic Republic of Congo is set to host the 2025 AGOA Forum, underscoring the continent’s commitment to fostering economic growth through international trade.
For a detailed read-out of the African ministers’ recommendations, download the AGOA READ-OUT here.