US Trade Representative Michael Froman delivers remarks on the future of
the African Growth and Opportunity Act (AGOA) August 5, 2013, at the
Brookings Institute in Washington, DC. Signed into law in May 2000, AGOA
offers African countries that open their economies and build free
markets trade incentives with the United States. AFP
By BDAfrica.com REPORTER
In Summary
- The future of AGOA, which expires in September 2015, is a key issue for African leaders in Washington.
- An African Ministerial Council meeting has agreed to seek a 15-year extension of the preferential trade law.
African leaders have agreed to push for a 15-year
extension of the Africa Growth and Opportunity Act (AGOA), which waives
duty on a long list of exports to the United States.
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According to Kenya’s Foreign Affairs and
International Trade Cabinet secretary Amina Mohammed, the decision was
reached at an African Ministerial Council meeting in Washington to
discuss a common position on the future of AGOA.
The ministers unanimously agreed
to seek an extension at the largest-ever meeting between African leaders
and US government officials, which begins this week in the American
capital.
The future of AGOA, which expires
in September 2015, is a key issue for leaders attending Monday’s
meeting with US President Barack Obama. Signed into law on May 18, 2000
as Title 1 of The Trade and Development Act of 2000, it offers
incentives for African countries to open their economies and build free
markets.
“The (14-year-old trade)
programme has had mixed results”, writes Washington-based trade reporter
Doug Palmer on the influential Politico.com, “with oil from countries
like Nigeria and Angola accounting for the lion’s share of exports under
the programme, rather than value-added goods that create more jobs.”
Despite this, many leaders
believe a new compact is essential to helping Africa trade its way out
of poverty within a generation.
Last week, US Trade
Representative Michael Froman called for a new “compact” that goes
beyond market access and considers help overcoming infrastructure
challenges and other problems that prevent Africa from competing
effectively in world trade. He also suggested simplifying “rules of
origin”, devising reciprocal trade arrangements and expanding the list
of allowed goods.
Ambassador Mohammed also said
that Kenya has expressed support for Uganda's bid to host the AGOA forum
in 2017. The forum is the only annual US Government ministerial meeting
with officials and businesses from sub-Saharan Africa. It brings
together senior US and African officials, African regional
organizations, as well as business and civil society representatives.
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