Washington, D.C. — With the African Growth and Opportunity Act (AGOA) set to lapse in 2025, it is time for Congress to consider how it could improve the preferential trade program in line with changes to the global economy, the climate, and the needs of workers on both sides of the relationship.
A new analysis from the Center for American Progress explains the importance of AGOA and what a reauthorization should include to meet the needs of the 21st century.
Reaching this potential means addressing several failings, including low utilization, the dominance of fossil fuels, and a lack of environmental and climate standards. This will almost certainly require direct investment in African productive capacity, infrastructure, and communities, as well as in the U.S. government personnel needed to help American manufacturers take advantage of new AGOA-eligible suppliers to fuel production in the United States.
The column recommends that Congress should:
- Remove oil and gas products from AGOA duty-free access
- Ensure labor provisions are updated, including employment discrimination, and add strong environmental protections
- Appropriate development funds to help all AGOA-eligible countries develop utilization plans
- Invest in AGOA beneficiaries such as African mining and processing capabilities
- Include provisions that incentivize decarbonization of industry on the continent
- Expand the Foreign Commercial Service footprint in sub-Saharan Africa
“Congress should reauthorize AGOA, but it should consider how best to align this important trade program with the needs and realities of the 21st century when it undertakes reauthorization,” said Ryan Muholland, senior fellow for international economic policy at CAP and co-author of the column. “Different and better outcomes from AGOA will require more than just a simple reauthorization.”
Read the column: “AGOA Reauthorization Offers an Opportunity for Expanded Commitments to Development, Labor, and Climate in Sub-Saharan Africa” by Ryan Muholland, Doug Molof, Leo Banks, Anne Griffin, Sadhana Mandala, Trevor Sutton, Mike Williams, and Kalina Gibson
For more information or to speak with an expert, contact Mishka Espey at [email protected].