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A senior U.S. official has acknowledged that the US wants to vary its flagship African Development and Alternative Act (AGOA) to develop into extra impactful throughout a reauthorization course of in Congress.
The Assistant U.S. Commerce Consultant for African Affairs, Constance Hamilton conveyed this assertion throughout a press briefing held in anticipation of a gathering between U.S. officers and African commerce ministers scheduled to happen in South Africa subsequent week.
She stated,
- “We have to do higher, Some nations have benefited tremendously from AGOA, however most haven’t. Not making an attempt to vary the programme and make it higher is a wasted alternative.”
She famous that the reauthorization course of would devise measures to “make the programme extra impactful”
Concerning the AGOA coverage
Initiated within the 12 months 2000, the African Development and Alternative Act (AGOA) gives duty-free entry to the U.S. marketplace for exports from eligible nations.
Whereas initially set to run out in September 2025, ongoing deliberations are specializing in whether or not to increase it and the period of any potential extension.
African governments and trade associations are advocating for an early, uninterrupted 10-year extension of AGOA to supply assurance to companies and appeal to new buyers who could be apprehensive about its future.
Some members of Congress additionally again this reauthorization, fearing that modifying this system may impede or jeopardize its renewal.
Final month, Republican Senator John Kennedy proposed a 20-year extension with out alterations, emphasizing its pivotal function in countering “China’s increasing affect within the area.”
Blended outcomes from AGOA coverage
A analysis report, commissioned by U.S. lawmakers and launched earlier this 12 months, revealed that AGOA had successfully contributed to poverty discount and employment technology in particular nations, significantly amongst girls.
Nonetheless, a good portion, over three-quarters, of duty-free non-petroleum exports to the U.S. by this system from 2014 to 2021 originated from simply 5 nations: South Africa, Kenya, Lesotho, Madagascar, and Ethiopia.
Two-way commerce between the US and Nigeria underneath the AGOA coverage was value $8.1 billion in 2022.
Nigeria’s exports to the U.S. primarily embody crude oil, cashew nuts, cocoa and animal feeds whereas the U.S. sells automobiles, equipment and many others to Nigeria.
Though figures for crude oil exports to the U.S. have dwindled from about 1.1 million bpd in 2005 to simply over 105 thousand bpd in 2022.
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