US President Joe Biden strongly supported the reauthorisation of the African Growth and Opportunity Act (AGOA). This bipartisan law has been a cornerstone of U.S. trade with sub-Saharan Africa for over two decades.
The AGOA Forum is currently taking place in Johannesburg in South Africa. While Biden is not attending the event, the president has, through the White House, urged Congress to reauthorise AGOA.
The trade deal is set to expire in 2025, and there are calls for Congress to consider updating the program to reflect seismic economic, demographic, and geopolitical shifts since its inception nearly 25 years ago
Biden is looking to modernise the current agreement to align with the economic opportunities of the coming decade. AGOA plays a crucial role in facilitating private-sector-led economic growth in sub-Saharan Africa.
AGOA achieves this by enhancing the competitiveness of African products, expanding the variety of African exports, and generating tens of thousands of quality jobs across Africa. The agreement also provides eligible sub-Saharan African countries with duty-free access to the U.S. market for over 1,800 products, in addition to the more than 5,000 products eligible for duty-free access under the Generalised System of Preferences program.
This not only benefits Africa but also creates a more competitive environment for U.S. businesses operating in the region.
The President expressed a commitment to collaborate with Congress and African partners to extend AGOA beyond 2025. The goal is to strengthen trade relations, promote regional integration, and unlock Africa’s vast economic potential for mutual benefit.
President Biden emphasised that when Africa succeeds, it benefits the entire world, highlighting the significance of AGOA in shaping the future of international trade.
