Agoa to be extended by 16 years to 2041

The US Congress has put down proposals that would see the African Growth and Opportunity Act extended to 2041, thus remaining in effect for 16 years.

Senator Chris Coons (Democrat-Delaware) and Senator James Risch (Republican-Idaho) last week introduced the bipartisan Agoa Renewal and Improvement Act of 2024, which would see Agoa cover 54 out of the previous 32 African countries.

The extension is expected to integrate Agoa with the Africa Continental Free Trade Agreement to support the development of intra-African supply chains.

First enacted in 2000, Agoa is due to expire next year with President Biden’s administration keen to extend it.

Speaking in Nairobi during the fourth edition of the regional American Chamber of Commerce Kenya (AmCham) business summit, US Secretary for Commerce Hon Gina Raimondo said the plans to extend Agoa were on course following the enactment of a bipartisan bill before the US Senate.

“President Biden and our administration have made it as a priority to renew Agoa. Obviously it is the decision of the US Congress so we have to work with some of the members of Congress,” said Raimondo in an interview with the Nation.

“Before I came to Kenya I spoke to some of the leading senators and they were committed to having Agoa renewed. So we have to work harder at it but I am cautiously optimistic.” Coons and Risch’s proposed update would integrate Agoa with the African Continental Free Trade Agreement (AfCFTA).

And it would incentivise Agoa beneficiaries to create utilisation strategies to increase their exports under the agreement.

“Agoa plays a significant role in U.S.-sub-Saharan Africa trade and investment, as well as in U.S. foreign policy,” Sen. Risch said.

“This bipartisan bill aims to refine Agoa’s eligibility criteria, increase transparency, and hold U.S. agencies accountable for their advice to the president.”

The proposed bill would require the Agoa Forum to be held annually no later than September 30. Current statute requires Agoa beneficiaries to transmit a “textile visa” to U.S. Customs and

Border Protection (CBP) with every shipment of apparel. Kenya’s private sector welcomed the new proposals and hoped that it would spur more exports to the US.

“There is a bill already before the senate which I have read. They have opened it quite a lot. They have tried to consider our views for the last 20 years,” said Jas Bedi, chairperson of the Kenya Private Sector Alliance (Kepsa).

The new Agoa bill would provide for trade capacity building assistance to countries that develop a utilization strategy.

With this assistance, the United States would help these countries implement their strategies and facilitate growth in trade.

Agoa covers most—but not all—goods exported to the US from sub-Saharan Africa.