Updated July 17, 2024
African Growth and Opportunity Act (AGOA)
Overview
utilization by beneficiaries and diversification of exports
What is AGOA? AGOA (P.L. 106-200, as amended)
under AGOA; support regional cooperation on trade
created a nonreciprocal U.S. trade preference program, also
facilitation; and educate African entrepreneurs on
referred to as AGOA, to provide duty-free access to the
complying with U.S. security policies.
U.S. market for most exports from eligible countries in sub-
Supporting views. Supporters of AGOA have argued that
Saharan Africa (SSA). The act also requires an annual
the program affords African producers an important
gathering, known as the AGOA Forum, held between U.S.
competitive advantage in the U.S. market, thereby fostering
and AGOA country officials to discuss trade-related issues
greater exports, encouraging investment in the region,
and AGOA implementation. Additionally, AGOA provides
boosting private sector activity and economic growth, and
direction to selected U.S. government agencies regarding
potentially generating demand for U.S. goods and services
their trade and investment support activities in the region.
as the region’s economies develop.
AGOA has been a cornerstone of U.S. trade policy toward
SSA since 2000. Through AGOA, Congress seeks to
Opposing views. Many AGOA opponents are U.S.
increase U.S. trade and investment with the region, promote
producers that may face increased import competition from
sustainable economic growth through trade, and encourage
AGOA countries. Their concerns have tended to be
the rule of law and market-oriented reforms. Congress has
product-specific. Their concerns also have been limited due
the authority to extend the program, which is scheduled to
to the low volume of U.S. imports under AGOA, but import
expire in September 2025, and also modify the program to
competing U.S. producers have lobbied to keep certain
promote other congressional priorities with the region, such
products, particularly sugar, out of the program.
as strengthening U.S. trade and investment ties in SSA and
U.S. Imports Under AGOA
increasing regional participation in the global value chain.
In 2023, U.S. AGOA imports totaled $9.3 billion, down 4%
Country eligibility. There are currently 32 AGOA-eligible
from $9.6 billion in 2022 and more than double 2020
SSA countries, of 49 potential candidates for program
values, during the height of the COVID-19 pandemic.
benefits. AGOA eligibility criteria address issues such as
AGOA imports remain concentrated in a few countries and
trade and investment policy, governance, worker rights,
industries, but diversification has grown since the 2000s.
human rights, and foreign policy, among other issues,
Figure 1. Top AGOA Countries, U.S. Non-Energy
which countries must satisfy to be beneficiaries of the
Product Imports
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
Source: Analysis by CRS. Data from USITC.
exports have been suspended since July 31, 2018, following
• Energy product imports (e.g., crude oil) decreased from
an out-of-cycle review (outside of the annual review period)
$4.6 billion in 2022 to $4.2 billion in 2023, and
in response to increased Rwandan tariff barriers on used
comprised 46% of AGOA imports. They remain lower
clothing imports from the United States.
than the 2011 peak value of $48 billion. Nigeria was the
top supplier of energy products in 2023 ($3.6 billion).
Authorization. Congress established AGOA in 2000, and
•
has amended its authorization law several times. The Trade
Non-energy imports in 2023 were valued at $5.0 billion.
Preferences Extension Act of 2015 (P.L. 114-27) extended
Top non-energy import categories include motor
AGOA’s authorization for ten years to September 2025.
vehicles ($1.9 billion), textile and apparel ($1.1 billion),
The African Growth and Opportunity Act and Millennium
agricultural and food products ($732 million), metals
Challenge Act Modernization Act of 2018 (P.L. 115-167)
($484 million), and chemicals ($308 million).
required the Administration to provide information on
AGOA through an official AGOA website; promote AGOA
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link to page 1 African Growth and Opportunity Act (AGOA)
• South Africa is the top supplier of AGOA non-energy
Reciprocal trade negotiations. Since 2000, Congress has
imports (Figure 1). Motor vehicles and parts accounted
directed the executive branch to seek reciprocal trade and
for 58% of its AGOA-eligible products in 2023.
investment negotiations with AGOA countries. The first
Key Aspects of AGOA
attempt, with the Southern African Customs Union, was
suspended in 2006 due to divergent views over scope. In
Trade preferences. AGOA’s main component is duty-free
2022, the Biden Administration announced the U.S.-Kenya
treatment of U.S. imports of eligible products from
Strategic Trade and Investment Partnership (STIP), a
beneficiary countries, a benefit designed to help AGOA
platform for “enhanced cooperation leading to high
exporters compete with lower-cost producers elsewhere.
standard commitments,” in lieu of continuing free trade
Relation to GSP. AGOA preferences include all products
agreement (FTA) negotiations begun under the Trump
covered by the Generalized System of Preferences (GSP), a
Administration, which would have addressed market
broader U.S. trade preference program, as well as some
access. Kenya’s trade minister has stated that a potential
products excluded from GSP (e.g., autos and certain types
final agreement would complement AGOA. USTR has
of textiles and apparel). To remain eligible for AGOA, sub-
stated that it aims to finish negotiations by the end of 2024.
Saharan African countries must meet the eligibility
STIP addresses trade issue areas such as agriculture, digital
requirements for both programs (19 U.S.C. §2466). Both
trade, regulatory practices, and trade facilitation and
GSP and AGOA grant additional benefits to least-
customs procedures, but does not address market access. It
developed countries. AGOA beneficiaries have maintained
could also complement ongoing African trade integration
access to both programs, even when GSP authorization has
initiatives (e.g., the African Continental Free Trade Area,
lapsed, which occurred on January 1, 2021.
AfCFTA). Some African officials have argued for a broader
regional approach to future trade negotiations with the
Apparel and third-country fabric provision. AGOA’s
United States, as opposed to bilateral negotiations. African
duty-free treatment of certain apparel products is significant
countries’ varying development levels and trade policy
because (1) apparel articles face relatively high U.S. import
approaches could complicate broader regional negotiations.
tariffs; (2) they are generally excluded from GSP; (3) they
can be readily manufactured in developing countries as
Issues for Congress
their production requires relatively limited skilled labor and
• AGOA reauthorization. In April 2024, Senators Coons
capital investment; and (4) production in this sector can be
and Risch introduced S. 4110, which, among other
a first-step toward higher value-added manufacturing. The
things, would extend AGOA through September 2041;
third country fabric provision in AGOA is a major factor in
allow inputs from non-AGOA, AfCFTA implementing
AGOA countries’ competitiveness in the sector. This
countries; and make the review process timeline
provision allows limited amounts of U.S. apparel imports
biennial, rather than annual. Congress may consider
from least-developed SSA countries to qualify for AGOA
whether such proposed changes may further support
duty-free treatment even if the yarns and fabrics used in
AGOA’s objectives.
their production are imported from non-AGOA countries
•
(e.g., apparel assembled in Kenya with Chinese fabrics can
Trade negotiations. Should the Administration in
qualify for duty-free treatment under AGOA).
consultation with Congress, determine whether to
pursue trade negotiations or other trade and investment
Trade capacity building (TCB). AGOA directs the
initiatives in the region (e.g., the STIP negotiations with
President to provide TCB to AGOA beneficiaries. The U.S.
Kenya), key considerations may include (1) what
Agency for International Development (USAID)
flexibilities from comprehensive U.S. trade agreements
administers certain TCB-related projects in support of
commitments are appropriate; (2) potential effects on
AGOA, including funding African trade and investment
broader AGOA utilization; and (3) potential effects on
hubs, which work to increase AGOA utilization and
regional initiatives like the AfCFTA.
regional producers’ access to international markets.
• Supply chain resiliency. As the U.S. government seeks
AGOA Forum. AGOA requires the President annually to
to strengthen supply chains in critical sectors (e.g.,
convene a forum on trade and investment relations, and
semiconductors and electric vehicles [EV]), Congress
AGOA implementation. The AGOA Forum typically
may consider whether, and, if so, how AGOA could
alternates between the United States and an AGOA country.
support SSA’s integration into the global value chain.
The U.S. Trade Representative (USTR) is scheduled to host
Some experts have suggested adding AGOA countries
the AGOA Forum in late July 2024.
to the list of countries from which critical minerals
Country eligibility reviews. The President determines
could be sourced for U.S. EV tax credits provided under
AGOA country eligibility based on statutory criteria (19
the Inflation Reduction Act of 2022 (P.L. 117-169).
U.S.C. §2462 and 19 U.S.C. §3703) and a process that
•
includes an annual public comment period and hearing. The
Third-party agreements. Reciprocal agreements
between AGOA beneficiaries and third parties (e.g.,
2015 reauthorization amended the program to allow for out-
of-cycle reviews
EU-South Africa) may disadvantage some U.S.
in response to public petitions. The
Administration may remove country eligibility entirely or
exporters. Congress may examine possible U.S.
responses to maintain U.S. businesses’ competitiveness
for specific products, subject to notifying Congress 60 days
in the region.
in advance.
Reporting requirements. The 2015 reauthorization
Liana Wong, Analyst in International Trade and Finance
requires USTR to report biennially on U.S.-Africa trade and
investment relations. USTR issued the latest report in 2024.
IF10149
https://crsreports.congress.gov

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African Growth and Opportunity Act (AGOA)


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https://crsreports.congress.gov | IF10149 · VERSION 21 · UPDATED

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