With the African Growth and Opportunity Act (AGOA) set to lapse in 2025, Congress is urged to consider improvements to the preferential trade program. A new analysis from the Center for American Progress highlights AGOA's significance and outlines recommendations for its reauthorization to align with modern economic, environmental, and labor needs.
The analysis identifies several areas requiring attention, including low utilization rates, reliance on fossil fuels, and insufficient environmental standards. Addressing these issues will likely necessitate direct investment in African productive capacity, infrastructure, communities, and U.S. government personnel to help American manufacturers leverage new AGOA-eligible suppliers.
The column suggests that Congress should:
- Remove oil and gas products from AGOA duty-free access
- Update labor provisions to include employment discrimination protections and strong environmental safeguards
- Allocate development funds for AGOA-eligible countries to create utilization plans
- Invest in African mining and processing capabilities
- Include incentives for industry decarbonization on the continent
- Expand the Foreign Commercial Service presence 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.”
The full column titled "AGOA Reauthorization Offers an Opportunity for Expanded Commitments to Development, Labor, and Climate in Sub-Saharan Africa" is authored by Ryan Muholland, Doug Molof, Leo Banks, Anne Griffin, Sadhana Mandala, Trevor Sutton, Mike Williams, and Kalina Gibson.
For further information or expert commentary, contact Mishka Espey at [email protected].
