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Updated May 5, 2023
African Growth and Opportunity Act (AGOA)
Overview
promote sustainable economic growth through trade, and
What is AGOA? AGOA (P.L. 106-200, as amended), a
encourage the rule of law and market-oriented reforms.
cornerstone of U.S. trade policy toward sub-Saharan Africa
Supporting views. Supporters of AGOA argue that the
since 2000, is a nonreciprocal U.S. trade preference
program affords African producers an important
program that provides duty-free access to the U.S. market
competitive advantage in the U.S. market, thereby enabling
for most exports from eligible sub-Saharan African
exports, encouraging investment in the region, boosting
countries. In addition to preferential market access, the act
private sector activity and economic growth, and ultimately
also requires an annual forum, known as the AGOA forum,
generating demand for U.S. goods and services as the
held between U.S. and AGOA country officials to discuss
region’s economies develop.
trade-related issues. Additionally, AGOA provides
direction to select U.S. government agencies regarding their
Opposing views. Opposition is mostly from U.S. producers
trade and investment support activities in the region.
that may face increased import competition from AGOA
countries. Such concerns are generally limited due to the
Which countries are eligible? AGOA lists 49 sub-Saharan
low volume of U.S. imports under AGOA, but import
African countries that are potential candidates for program
competing U.S. producers have lobbied to keep certain
benefits. AGOA eligibility criteria address issues such as
products, particularly sugar, out of the program.
trade and investment policy, governance, worker rights, and
human rights, among other issues, which countries must
U.S. Imports Under AGOA
satisfy to be beneficiaries of the program. The President
Total U.S. AGOA imports were $9.4 billion in 2022, up
annually reviews and determines each country’s eligibility.
57% from $6.0 billion in 2021 and more than double 2020
There are currently 35 AGOA-eligible countries. In
values, which was the height of the Coronavirus Disease-
November 2022, President Biden terminated AGOA
2019 pandemic. Imports remain concentrated in a few
preference benefits for Burkina Faso, effective January 1,
countries and industries, but diversification has grown.
2023, after determining that it failed to meet the rule of law
Figure 1.Top AGOA Countries, Non-Energy Products
eligibility criteria. The President also terminated preference
benefits for Ethiopia, Guinea, and Mali for failing to meet
eligibility requirements regarding human rights (Ethiopia,
Mali), political pluralism and the rule of law (Guinea,
Mali), and worker rights (Mali) in December 2021.
Ten other sub-Saharan African countries remained
ineligible for the program’s preference benefits in 2022.
They are (with noted eligibility violations) Burundi
(political violence), Cameroon (human rights), Equatorial
Guinea (income graduation), Eritrea (human rights),
Mauritania (worker rights), Seychelles (income graduation),
Somalia (never eligible), South Sudan (political violence),
Sudan (never eligible), and Zimbabwe (never eligible).
Rwanda’s AGOA benefits for apparel exports have been
Source: Analysis by CRS. Data from USITC.
suspended since July 31, 2018, following an out-of-cycle
• Energy product imports (e.g., crude oil) increased from
eligibility determination in response to increased tariff
$1.9 billion in 2021 to $4.5 billion in 2022, and
barriers on used clothing imports from the United States.
accounted for 47% of AGOA imports. It remains lower
What is the authorization status? AGOA was first
than the 2011 peak value of $48 billion. Nigeria was the
established by Congress in 2000 and has been amended
top supplier of energy products in 2022 ($3.4 billion).
several times. The Trade Preferences Extension Act of
• AGOA non-energy imports increased by 21% in 2022 to
2015, P.L. 114-27, extended AGOA’s authorization for ten
$5.0 billion. Top non-energy import categories include
years to September 2025. The African Growth and
motor vehicles ($1.5 billion), textile and apparel ($1.4
Opportunity Act and Millennium Challenge Act
billion), agricultural products ($679 million), metals
Modernization Act of 2018, P.L. 115-167, required the
($626 million), and chemicals ($286 million).
Administration to provide information on AGOA through
• South Africa is the top supplier of AGOA non-energy
an official AGOA website, promote AGOA utilization,
imports (Figure 1), with eligible imports increasing
product diversification, and regional cooperation, and
46% from 2021 to 2022, partly driven by higher motor
educate African entrepreneurs.
vehicle imports. Imports from Madagascar increased by
What is the goal? Through AGOA, the U.S. Congress
45%, making the country the third-largest AGOA
seeks to increase U.S. trade and investment with the region,
beneficiary of non-energy imports.
https://crsreports.congress.gov
African Growth and Opportunity Act (AGOA)
Key Aspects of AGOA
(SACU), was suspended in 2006 due to divergent views
Trade preferences. AGOA’s main component is duty-free
over scope. In a new effort, the Trump Administration
treatment of U.S. imports of certain products from
began free trade agreement (FTA) negotiations with Kenya
beneficiary countries. This tariff savings can help AGOA
in 2020 and then-USTR Robert Lighthizer described the
exporters compete with lower-cost producers elsewhere.
talks as an opportunity to negotiate a new “model” bilateral
FTA with an African country. In July 2022, the Biden
Relation to GSP. The Generalized System of Preferences
Administration announced the U.S.-Kenya Strategic Trade
(GSP) is another U.S. trade preference program, but unlike
and Investment Partnership (STIP), a platform for
AGOA, GSP is not regionally based. The AGOA
“enhanced cooperation leading to high standard
preferences include all products covered by GSP, as well as
commitments,” in lieu of pursuing a free trade agreement
some products excluded from GSP, such as autos and
that addresses market access. Kenya’s trade minister has
certain types of textiles and apparel. To remain eligible for
stated that a potential final agreement would complement
AGOA, sub-Saharan African countries must meet the
AGOA. The first round of negotiations was held in mid-
eligibility requirements for both programs (19 U.S.C.
April 2023. STIP, which addresses a number of trade issue
§2466). Both GSP and AGOA grant additional benefits to
areas (e.g., agriculture, digital trade, regulatory practices,
least-developed countries. AGOA beneficiaries maintain
and trade facilitation and customs procedures), could also
access to both programs, even when GSP authorization
complement ongoing African trade integration initiatives
lapses, which occurred on January 1, 2021.
such as the African Continental Free Trade Area
Apparel and third-country fabric provision. AGOA’s
(AfCFTA). Some African officials have argued for a
duty-free treatment of certain apparel products is significant
broader regional approach to future trade negotiations with
because (1) apparel articles face relatively high U.S. import
the United States, as opposed to bilateral negotiations. The
tariffs; (2) they are generally excluded from GSP; (3) they
varying levels of development and trade policy approaches
can be readily manufactured in developing countries as
among African countries could complicate broader regional
their production requires less skilled labor and capital
negotiations.
investment; and (4) production in this sector can be a first-
Issues for Congress
step toward higher value-added manufacturing. The third
•
country fabric provision in AGOA, which is a major factor
AGOA reauthorization. AGOA is authorized through
in AGOA countries’ competitiveness in the sector, allows
September 2025. USTR Katherine Tai has urged
limited amounts of U.S. apparel imports from least-
consideration of improvements to encourage investment,
developed sub-Saharan African countries to qualify for
and help small and women-owned businesses and more
duty-free treatment even if the yarns and fabrics used in
countries make use of the program. Nearly 90% of U.S.
their production are imported from non-AGOA countries
non-energy imports under AGOA in 2022 came from
(e.g., apparel assembled in Kenya with Chinese fabrics can
five countries. Congress may consider whether and
qualify for duty-free treatment under AGOA).
when to reauthorize AGOA and if reforms are needed.
• FTA negotiations. An FTA with an AGOA-eligible
Trade capacity building (TCB). AGOA also directs the
country would have implications for AGOA and U.S.
President to provide TCB to AGOA beneficiaries. The U.S.
trade relations in the region. As the Administration, in
Agency for International Development (USAID)
consultation with Congress, determines whether to
administers certain TCB-related projects in support of
pursue trade negotiations or other trade and investment
AGOA, including funding African Trade and Investment
initiatives in the region, including with Kenya, key
Hubs, which work to increase AGOA utilization and
regional producers’ access to international markets
considerations include (1) what flexibilities from typical
.
U.S. FTA commitments are appropriate; (2) potential
AGOA forum. AGOA requires the President annually to
effects on broader AGOA utilization; and (3) potential
convene a forum on trade and investment relations, and
effects on regional initiatives like the AfCFTA.
AGOA implementation. The forum typically alternates
• Increased U.S. tariffs. The Trump Administration
between the United States and an AGOA country. The
imposed tariff increases (Section 232) on steel and
USTR hosted the AGOA Ministerial in December 2022.
aluminum imports, which raise the cost of imports from
Country eligibility reviews. The President determines
AGOA countries, notably South Africa, a top U.S.
eligibility based on statutory criteria. The process includes
supplier of aluminum. The tariffs remain in place unless
an annual public comment period and hearing, and, as
the Biden Administration or Congress (through
amended by the 2015 reauthorization, allows for out-of-
legislation) removes or amends them. Congress may
cycle reviews (outside the annual review period) in
examine the tariffs’ effects on AGOA participants.
response to public petitions. The Administration may
• Third-party agreements. Reciprocal agreements
remove country eligibility entirely or for specific products,
between AGOA beneficiaries and third parties (e.g.,
but must notify Congress 60 days before any termination.
EU-South Africa) may disadvantage U.S. exporters.
Congress may examine possible U.S. responses.
Reporting requirements. The 2015 reauthorization
requires USTR to report biennially on U.S.-Africa trade and
This In Focus was originally authored by Brock R.
investment relations. USTR issued the latest report in 2020.
Williams, former CRS Specialist in International Trade and
Finance.
Reciprocal trade negotiations. Since 2000, Congress has
directed the executive branch to seek reciprocal trade and
Liana Wong, Analyst in International Trade and Finance
investment negotiations with AGOA countries. The first
attempt, with the Southern African Customs Union
IF10149
https://crsreports.congress.gov
African Growth and Opportunity Act (AGOA)
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
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https://crsreports.congress.gov | IF10149 · VERSION 19 · UPDATED