What is AGOA ?

The African Growth and Opportunity Act (AGOA) constitutes the cornerstone of trade relations between the United States and Africa in the areas of trade and investment. This act was signed for the first time on 18 May 2000 and was extended to 2025. It accords tax-free treatment on almost all products exported by the beneficiary countries of Sub-Saharan Africa towards the United States.

AGOA provides the most liberal access to the beneficiary countries to American markets ever accorded to any country or region that has not negotiated a free-trade agreement with the United States. The advantages of AGOA have actually been extended to 38 Sub-Saharan African countries and to more than 1800 tariff lines, in addition to 4 600 articles already benefiting from tax exemptions within the framework of the United States Generalized Preferences System. The said system is aimed at promoting economic growth in developing countries by offering them a preferential deduction of custom duties for products from beneficiary developing countries and the great number of beneficiary less developed countries.

AGOA motivates African countries to become more globally competitive by instituting economic and commercial reforms. The main motivation is the possibility of exporting goods on a list of about 7 000 eligible to the United States without paying customs duty on imports. Exporting can be a difficult process, but it can equally be profitable for a person or firm that does it successfully. Exporters have to follow two steps in the procedure:

1. national laws and regulations governing exports;
2. laws and regulations governing imports from the destination country – in this case, the United States.

Regulations vary with the product and exporters have to do some research to be sure that their products meet the requirements for exports, in accordance with the eligibility of the product to AGOA.

AGOA African Country Eligibility

Useful Links

Government Web Sites

• www.agoa.gov/ : The official site on AGOA sponsored by the US Department of Trade contains up-to-date information on AGOA, including the addresses of other government agencies supporting AGOA.
• www.agoa.info/ : This site is for Sub-Sahara Africa. Its objective is to help beneficiaries take advantage of the AGOA programme by providing a range of information with statistics.
• www.ustr.gov/World_Regions/Africa/Section_Index.html : This site contains annual reports of the President of the United States on AGOA as well as all legislation relating to AGOA. The site equally contains links to other sites dealing with AGOA.
• www.usda.gov/ : This official site of the United States Department of Agriculture provides information for producers and potential exporters on: the services in charge of agricultural exports; agricultural export marketing and inspection of plant and animal products.
• www.ams.usda.gov/international/ : This international agricultural services site provides exporters and importers with information on: goods and  commercial product standards, scientific and intellectual property rights, markets and information relating to the means of transport.
• www.aphis.usda.gov/is/ : This site provides information on international phytosanitary norms, pests risk evaluation, export licences and contacts of regional APHIS offices.
• www.usgtn.net/ : This site which is sponsored by USAID is a trade fair open to buyers and sellers of agricultural products, textiles, handmade and manufactured products.
• www.customs.gov/xp/cgov/import/ : This site provides any information relating to customs regulations and procedures for importing products to the United States.
• www.portweb.usitc.gov/africa/ : This site which is hosted by the United States Committee for Trade contains the annual report on trade flows between the United States and Africa. It also contains studies and data relating to trade.
• www.ustr.gov/Trade_Development/Preference_Programs/GSP/Section_Index.html : This site which belongs to the office of the United States Trade Representative contains information on the US Generalized System of Preferences (GSP).

Sites Concerning Funding And Investment

• www.opic.gov/ : The Overseas Private Investment Corporation (OPIC) is a United States government agency in charge of mobilising and facilitating American capital investment in the economies of developing countries.
• www.exim.gov/ : EXIMB BANK is the American Government’s bank which finances exports throughout the world, notably Africa and the countries that have received the AGOA visa.