US President Joe Biden has expressed his strong support for the reauthorization and modernization of the African Growth and Opportunity Act (AGOA), a key trade program that grants duty-free access to the US market for eligible sub-Saharan African countries.
Biden made this statement on Thursday, ahead of the AGOA Forum, a three-day meeting of US and African trade officials in Johannesburg, South Africa. The forum, which started on Friday, is the first high-level engagement between the US and Africa since Biden took office in January.
AGOA, first enacted in 2000 and expires in 2025, has been hailed as a cornerstone of US-Africa trade relations, fostering economic growth, job creation, and regional integration in Africa. According to the US Census Bureau, AGOA supported over $10 billion worth of African exports to the US in 2022, mainly in oil, minerals, textiles, and agriculture.
However, AGOA has also criticized for being unilateral, non-reciprocal, and limited scope and impact. Some African countries have argued that AGOA does not address the structural barriers and challenges that hinder their trade competitiveness, such as infrastructure, logistics, standards, and market access. Others have called for a more comprehensive and mutually beneficial trade partnership that reflects the changing dynamics and opportunities in Africa.
In his statement, Biden acknowledged the need to improve AGOA and to work with Congress and African partners to renew the law beyond 2025. He wanted to shape a “stronger, new and forward-looking vision” for US-Africa trade to deepen trade relations, advance regional integration, and realize Africa’s immense economic potential.
Biden’s statement was welcomed by African leaders and trade experts, who saw it as a positive signal of the US commitment to strengthen its ties with the continent. They also hoped that the AGOA Forum would provide a platform for constructive dialogue and concrete actions to enhance trade cooperation and address the common challenges posed by the COVID-19 pandemic, climate change, and digital transformation.
The US Secretary of State Antony Blinken, who is leading the US delegation to the forum, said that the US was ready to work with Africa to “build back better” from the crisis and to “unlock the full potential of our trade and investment relationship”. He also announced several new initiatives and programs to support African trade and development, such as the Prosper Africa Build Together Campaign, the Trade Africa Academy, and the Women’s Global Development and Prosperity Initiative.
The AGOA Forum, which ends on Sunday, is expected to produce a joint statement and a plan of action for the future of US-Africa trade relations. The forum is also a precursor to the US-Africa Leaders Summit, which Biden has invited all African heads of state and government to attend in Washington DC next year.
Source: Nairametrics
