A BIPARTISAN group of US senators introduced a bill to renew the African Growth and Opportunity Act (AGOA) ahead of its expiration next year, aiming to strengthen economic ties with sub-Saharan Africa.
The bill, led by Senators Chris Coons (Democrat) and James Risch (Republican), along with support from Senators Dick Durbin, Michael Bennet, Chris van Hollen, Todd Young, and Mike Rounds, seeks to extend AGOA for 16 years through 2041. Coons’ aide highlighted the urgency, stating, ‘It’s a high priority to reauthorise AGOA this year.’
According to document sighted by Reuters, the legislation includes provisions to assist countries in maximizing the benefits of AGOA and adjusts eligibility criteria to accommodate countries’ economic growth trajectories.
Under the proposed changes, countries would undergo eligibility reviews every two years instead of annually. The bill grants flexibility for out-of-cycle reviews by the US president and key congressional leaders, ensuring continuous evaluation of countries’ qualifications for AGOA benefits.
President Joe Biden has previously expressed support for AGOA’s reauthorisation. In 2022, AGOA facilitated duty-free entry of over $10bn worth of African exports into the United States, according to the US Trade Representative’s office.
Business groups in America underscored the importance of AGOA’s renewal to provide certainty for African exporters amid global trade dynamics. Senate Finance Committee Chairman Ron Wyden affirmed his commitment to developing a bipartisan, bicameral bill, stating, ‘Senator Wyden supports renewing AGOA and looks forward to working with the committees of jurisdiction and other interested members.’
The introduction of this bill reflects ongoing bipartisan efforts in Congress to sustain and enhance trade relations between the United States and sub-Saharan Africa, promoting economic development and mutual prosperity.