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Updated January 6, 2022
African Growth and Opportunity Act (AGOA)
Overview
Supporting views. Supporters of AGOA argue that the
What is AGOA? AGOA (P.L. 106-200, as amended), a
program affords African producers an important
cornerstone of U.S. trade policy toward sub-Saharan Africa
competitive advantage in the U.S. market, thereby enabling
since 2000, is a nonreciprocal U.S. trade preference
exports, encouraging investment in the region, boosting
program that provides duty-free access to the U.S. market
private sector activity and economic growth, and ultimately
for most exports from eligible sub-Saharan African
generating demand for U.S. goods and services as the
countries. In addition to preferential market access, the act
region’s economies develop.
also requires an annual forum, known as the AGOA forum,
Opposing views. Opposition is mostly from U.S. producers
held between U.S. and AGOA country officials to discuss
that may face increased import competition from AGOA
trade-related issues. Additionally, AGOA provides
countries. Such concerns are generally limited due to the
direction to select U.S. government agencies regarding their
low volume of U.S. imports under AGOA, but import
trade and investment support activities in the region.
competing U.S. producers have lobbied to keep certain
products, particularly sugar, out of the program.
Which countries are eligible? AGOA lists 49 sub-Saharan
African countries that are potential candidates for program
U.S. Imports under AGOA
benefits. AGOA eligibility criteria address issues such as
trade and investment policy, governance, worker rights, and
Total U.S. AGOA imports were $4.2 billion in 2020, down
human rights, among other issues, which countries must
51% from $8.4 billion in 2019, due mostly to a decline in
satisfy to be beneficiaries of the program. The President
crude oil imports. Imports remain concentrated in few
annually reviews and determines each country’s eligibility.
countries and industries, but diversification has grown.
There are currently 36 AGOA-eligible countries. In a
Energy product imports (e.g., crude oil) declined by
December 2021 proclamation, President Biden terminated
85% in 2020 to $707 million, and accounted for 17% of
AGOA preference benefits for Ethiopia, Guinea, and Mali,
AGOA imports. This represents a significant shift, as
effective January 1, 2022. The President found these
such imports historically accounted for the vast majority
countries failed to meet eligibility requirements regarding
of AGOA imports (e.g., $48 billion at their 2011 peak).
human rights (Ethiopia, Mali), political pluralism and the
Nigeria was the top supplier of energy products in 2020
rule of law (Guinea, Mali), and worker rights (Mali).
($474 million).
Ten other sub-Saharan African countries remain ineligible
AGOA non-energy imports declined by 10% in 2020 to
for the program’s preference benefits in 2022. They include
$3.4 billion, but have tripled since the program began in
(with noted eligibility violations): Burundi (political
2001. Top non-energy import categories include textiles
violence), Cameroon (human rights), Equatorial Guinea
and apparel ($1.2 billion), motor vehicles ($651
(income graduation), Eritrea (human rights), Mauritania
million), agricultural products ($627 million), minerals
(worker rights), Seychelles (income graduation), Somalia
and metals ($336 million), and chemicals ($332
(never eligible), South Sudan (political violence), Sudan
million).
(never eligible), and Zimbabwe (never eligible). In addition,
South Africa is the top supplier of AGOA non-energy
Rwanda’s AGOA benefits for apparel exports have been
imports (Figure 1), but its dominance has declined.
suspended since July 31, 2018, following an out-of-cycle
Decreasing motor vehicle imports from South Africa
eligibility determination in response to increased tariff
and increasing apparel imports from other top countries
barriers on used clothing imports from the United States.
are the main trends underlying this shift.
What is the authorization status? AGOA was first
Figure 1.Top AGOA Countries, Non-Energy Products
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. 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 utilization,
product diversification, and regional cooperation, and
educate African entrepreneurs.
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
Source: Analysis by CRS. Data from USITC.
encourage the rule of law and market-oriented reforms.
https://crsreports.congress.gov
African Growth and Opportunity Act (AGOA)
Note: Ethiopia is ineligible for AGOA preferences in 2022.
Reciprocal trade negotiations. Since 2000, Congress has
directed the executive branch to seek reciprocal trade and
Key Aspects of AGOA
investment negotiations with AGOA countries. The first
Trade preferences. AGOA’s main component is duty-free
attempt, with the Southern African Customs Union
treatment of U.S. imports of certain products from
(SACU), was suspended in 2006 due to divergent views
beneficiary countries. This tariff savings can help AGOA
over scope. In a new effort, the Trump Administration
exporters compete with lower-cost producers elsewhere.
began free trade agreement (FTA) negotiations with Kenya
in 2020 and then-USTR Robert Lighthizer described the
Relation to GSP. The Generalized System of Preferences
talks as an opportunity to negotiate a new “model” bilateral
(GSP) is another U.S. trade preference program, but unlike
FTA with an African country. Although some in Congress
AGOA, GSP is not regionally based. The AGOA
have urged the Biden Administration to resume the FTA
preferences include all products covered by GSP, as well as
negotiations with Kenya, they remain on hold currently as
some products excluded from GSP, such as autos and
the Administration develops its trade policy priorities.
certain types of textiles and apparel. To remain eligible for
President Uhuru Muigai Kenyatta of Kenya is a major
AGOA, sub-Saharan African countries must meet the
proponent of a potential bilateral U.S.-Kenya FTA, and
eligibility requirements for both programs (19 U.S.C.
argues it could provide an entry point for U.S. businesses
§2466). Both GSP and AGOA grant additional benefits to
on the continent, which may be advantageous in light of
least-developed countries. AGOA beneficiaries maintain
ongoing African trade integration initiatives such as the
access to both programs, even when GSP authorization
African Continental Free Trade Area (AfCFTA). Some
lapses, which occurred on January 1, 2021.
African officials have argued for a broader regional
Apparel and third-country fabric provision. AGOA’s
approach to future trade negotiations with the United States,
duty-free treatment of certain apparel products is significant
as opposed to bilateral negotiations. The varying levels of
because (1) apparel articles face relatively high U.S. import
development and trade policy approaches among African
tariffs; (2) they are generally excluded from GSP; (3) they
countries could complicate broader regional negotiations.
can be readily manufactured in developing countries as
their production requires less skilled labor and capital
FTAs hold the promise of transformative change in ways
investment; and (4) production in this sector can be a first-
that are not possible through [. .] preference programs.
step toward higher value-added manufacturing. The third
country fabric provision in AGOA, which is a major factor
2020 Biennial Report on AGOA Implementation
in AGOA countries’ competitiveness in the sector, allows
limited amounts of U.S. apparel imports from least-
Issues for Congress
developed sub-Saharan African countries to qualify for
duty-free treatment even if the yarns and fabrics used in
AGOA reauthorization. AGOA is authorized through
their production are imported from non-AGOA countries
September 2025. USTR Katherine Tai has urged
(e.g., apparel assembled in Kenya with Chinese fabrics can
consideration of improvements to encourage investment,
qualify for duty-free treatment under AGOA).
and help small and women-owned businesses and more
countries make use of the program. Nearly 90% of U.S.
Trade capacity building (TCB). AGOA also directs the
non-energy imports under AGOA in 2020 came from
President to provide TCB to AGOA beneficiaries. The U.S.
five countries. Congress may consider whether and
Agency for International Development (USAID)
when to reauthorize AGOA and if reforms are needed.
administers certain TCB-related projects in support of
FTA negotiations. An FTA with an AGOA-eligible
AGOA, including funding African Trade and Investment
country would have implications for AGOA and U.S.
Hubs, which work to increase AGOA utilization and
regional producers’ access to international markets
trade relations in the region. As the Administration, in
.
consultation with Congress, determines whether to
AGOA forum. AGOA requires the President annually to
pursue trade negotiations in the region, including with
convene a forum on trade and investment relations, and
Kenya, key considerations include: (1) what flexibilities
AGOA implementation. The forum typically alternates
from typical U.S. FTA commitments are appropriate; (2)
between the United States and an AGOA country. Due to
potential effects on broader AGOA utilization; and (3)
the pandemic, a virtual AGOA ministerial involving U.S.
potential effects on regional initiatives like the AfCFTA.
and African trade officials was held in October 2021.
Increased U.S. tariffs. The Trump Administration
Country eligibility reviews. The President determines
imposed tariff increases (Section 232) on steel and
eligibility based on statutory criteria. The process includes
aluminum imports, which raise the cost of imports from
an annual public comment period and hearing, and, as
AGOA countries, notably South Africa, a top U.S.
amended by the 2015 reauthorization, allows for out-of-
supplier of aluminum. The tariffs remain in place unless
cycle reviews (outside the annual review period) in
the Biden Administration or Congress (through
response to public petitions. The Administration may
legislation) removes or amends them. Congress may
examine the tariffs’ effects on AGOA participants.
remove country eligibility entirely or for specific products,
but must notify Congress 60 days before any termination.
Third-party agreements. Reciprocal agreements
between AGOA beneficiaries and third parties (e.g.,
Reporting requirements. The 2015 reauthorization
EU-South Africa) may disadvantage U.S. exporters.
requires USTR to report biennially on U.S.-Africa trade and
Congress may examine possible U.S. responses.
investment relations. USTR issued the latest report in 2020.
https://crsreports.congress.gov
African Growth and Opportunity Act (AGOA)
IF10149
Brock R. Williams, Specialist in International Trade and
Finance
Disclaimer
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https://crsreports.congress.gov | IF10149 · VERSION 16 · UPDATED