What is AGOA stands for?
Background. The African Growth and Opportunity Act (AGOA) provides duty-free treatment to goods of designated sub-Saharan African countries (SSAs).
What does South Africa benefit from AGOA?
SA exported agricultural products worth $175 million, which represents 57% of agricultural exports to the US. (2.1% of SA’ total exports to the US). AGOA has helped to support regional integration and to stimulate regional value chains (automotive and textile sectors).
What countries are part of AGOA?
To date, only 18 out of the 39 beneficiary countries have developed a national utilization strategy for AGOA. These countries include: Botswana, Eswatini, Ethiopia, Ghana, Kenya, Lesotho, Madagascar, Malawi, Mali, Mauritius, Mozambique, Namibia, Rwanda, Senegal, Sierra Leone, Tanzania, Togo, and Zambia.
What does the US gain from AGOA?
The primary objectives of AGOA are to: 1) promote increased trade and investment between the United States and SSA countries; 2) promote increase access and opportunities for US investors and businesses in SSA countries, and 3) promote economic development and reforms in SSA countries.
Why was AGOA created?
The stated purpose of this legislation is to assist the economies of sub-Saharan Africa and to improve economic relations between the United States and the region. After completing its initial 15-year period of validity, the AGOA legislation was extended on 29 June 2015 by a further 10 years, to 2025.
What type of agreement is AGOA?
AGOA is a trade program meant to establish stronger commercial ties between the United States and sub-Saharan Africa. The act establishes a preferential trade agreement between the U.S. and selected countries in the sub-Saharan region.
How much did Ethiopia benefit from AGOA?
Between 2000 and 2020, Ethiopia exported $722 million worth of garments to the US duty-free under AGOA, with three quarters of that in the past three years alone. Ethiopia benefits from very favourable rules of origin under AGOA, which allow the utilization of third country fabrics as qualifying input materials.
What does the US import from Ethiopia?
U.S. imports from Ethiopia include coffee, oil seeds, textiles and garments. The United States has signed a trade and investment framework agreement with the Common Market for Eastern and Southern Africa, of which Ethiopia is a member.
When did Lesotho join AGOA?
2 October 2000
Lesotho was designated as eligible for the trade benefits that are offered under AGOA on 2 October 2000. Lesotho satisfied the requirements of AGOA with effect from 23 April 2001 and started exporting textiles under AGOA in the same year.