African ministers responsible for trade from AGOA eligible countries, united in their pursuit of economic prosperity, called for the renewal and enhancement of AGOA at the 2024 AGOA Annual forum that took place in Washington DC from 24-26 July. Recognizing the potential of the African Continental Free Trade Area (AfCFTA) to boost intra-African trade, the ministers urged the US to allow for cumulation with all AfCFTA signatories to strengthen the complementarities between AGOA and the AfCFTA.

To maximize the benefits of both agreements, ministers proposed increased market access for African goods in sectors like agriculture, textiles, and minerals. They also advocated for enhanced support to small and medium-sized enterprises, capacity building initiatives, and flexible rules of origin to stimulate value addition within Africa. The ministers further encouraged the US to invest in Africa’s value chains by sourcing and processing critical minerals at source in the continent. This approach, aligned with the Inflation Reduction Act, can foster job creation and economic growth in Africa while securing critical supplies for the US.

Here are some key points from the African Ministers’ read-out on how African countries can benefit from AGOA:

• Long-term Renewal -Advocating for a minimum 16-year renewal to ensure predictability and stability in trade and investment relationships.
• Enhancing Utilization -Promoting regional value chains, simplifying rules of origin, and developing national and regional AGOA utilization strategies.
• Eligibility and Reviews – Urging the U.S. to adjust AGOA eligibility reviews to a three-year cycle and avoid using non-trade considerations in eligibility criteria.

Africa seeks a mutually beneficial partnership with the US to drive economic growth, create jobs, and address global challenges. By enhancing AGOA and aligning it with the AfCFTA, the US can contribute significantly to Africa’s industrialization and economic diversification.

The AGOA Forum is a foundation of US-Africa economic cooperation. To maximize the benefits of AGOA, the African Union Commission, through its Washington D.C. based Representational Office to the United States and the Department of Economic Development, Tourism, Trade, Industry, and Mining (ETTIM), will continue to actively monitor and support AU AGOA eligible countries in the implementation and utilization of AGOA preferences. This is in addition to supporting AGOA beneficiary countries in conducting mid-year reviews and preparing for the statutory AGOA Annual Forums. This strategic approach ensures African nations are well-positioned to capitalize on AGOA’s opportunities.

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