AGOA

Overview

The African Growth and Opportunity Act (AGOA) is a unilateral trade preference programme enacted by the United States to enhance market access for eligible Sub-Saharan African countries. It allows qualifying countries to export selected goods to the U.S. market duty-free, with the aim of promoting economic growth and development.

Objectives of AGOA

The main objectives of AGOA are to stimulate export-led growth, encourage diversification of African economies, and strengthen trade and investment relations between the United States and Sub-Saharan Africa. The programme also aims to support good governance, market-based economic reforms, and regional integration.

Key Features

AGOA provides duty-free access to the U.S. market for thousands of products, including apparel, agricultural goods, and manufactured products, subject to rules of origin requirements. Eligibility is reviewed annually, and beneficiary countries must meet specific criteria related to governance, labour standards, and economic policy. The scheme is non-reciprocal, meaning beneficiary countries are not required to offer trade concessions in return.

Relationship with WTO Rules

AGOA operates within the WTO framework under the Enabling Clause, which allows developed countries to grant preferential treatment to developing countries without extending the same benefits to all WTO members. This makes AGOA compatible with WTO principles while supporting development objectives.

Significance in African Trade

AGOA has played an important role in expanding African exports to the United States, particularly in sectors such as textiles and apparel. It has contributed to job creation, industrial development, and deeper trade ties between Africa and the U.S., while complementing broader regional initiatives such as AfCFTA.