AGOA by the Numbers

The African Growth and Opportunity Act (AGOA), which expanded duty-free access for imports from eligible countries in sub-Saharan Africa, was signed into law in 2000.  Over the course of 15 years, AGOA created economic opportunities in and boosted competitiveness of beneficiary countries, while also improving US-African ties and adding new markets for US exports and investments.  Although there have been substantial gains from AGOA, there is room for improvement.  A couple key points include long-term extension necessary to encourage investments, as well as expansion of product scope. 

With the program due to expire in September 2015, the AGOA Extension and Enhancement of 2015 was introduced in both the Senate and the House earlier this year.  In May, by a vote of 91-1, the Senate approved the extension and offered a clear sign of the bipartisan support for the program. The bill also passed the House, in June, with an equally overwhelming majority, 397-32.  To help observers better understand the importance of AGOA's renewal, we have listed some key figures below:

• 10 – Congress has passed a 10-year extension of AGOA, the longest the program has ever been extended.  More information on the additional issues addressed in the bill for AGOA renewal can be found Congressional Research Service (CRS) report on AGOA reauthorization.

• 39 – There are currently 39 sub-Saharan African countries eligible for preferential treatment under AGOA.  For a full list of eligible countries, visit the International Trade Administration’s (ITA) website.

• 56 – The percentage of imports from AGOA-eligible countries that entered the United States duty-free in 2014 under either AGOA or the U.S. Generalized System of Preferences (GSP), according to CRS.  Taking into consideration the products that also enter duty-free under Most-Favored Nation (MFN) rates, the percentage could actually be much higher.  According to the Office of the US Trade Representative, 91% of imports from AGOA-eligible countries entered duty-free in 2013.

• 6,400 – AGOA expanded the number of product tariff lines granted duty-free treatment under GSP by an additional 1,800 lines, from 4,600 products to 6,400 products. To see if your imported products qualify for AGOA preferences, visit the ITA’s resource on Determining the AGOA-Eligibility of a Specific Product.

• 450,000 – In a White House blog post earlier this year, Ambassadors Michael Froman (USTR) and Susan Rice (US National Security Advisor) cited from apparel sector trade groups that AGOA has “support[ed] an estimated 350,000 direct jobs and hundreds of thousands of indirect jobs.”  That number reflects the number of jobs created in sub-Saharan Africa, but the program is also responsible for creating over 100,000 jobs in the United States.  Both numbers are also cited in the House Report accompanying the AGOA Extension and Enhancement Act of 2015.

• 4.4 billion – Both the ITA and CRS report that the value of trade from AGOA-eligible countries was $4.4 billion in 2014, an almost 300% increase in imports since the program’s inception (approximately $1.3 billion in 2001).

What numbers would you include?  Comment below to let us know of any additional facts and figures used to describe AGOA’s impact over the last 15 years and its potential going forward.

Tyson Smith
tsmith@trademoves.net
240-389-9003