U.S. trade chief Tai calls for improvements to African trade program

By David Lawder

WASHINGTON (Reuters) – U.S. Trade Representative Katherine Tai told African counterparts on Tuesday that she wants to improve participation in the U.S. trade preferences program that provides access to U.S. markets for nearly 40 African countries.

Tai said she wanted to conduct an “honest assessment” of the African Growth and Opportunity Act (AGOA), which has underpinned U.S.-Africa trade for more than two decades, during remarks to a meeting of trade ministers from Africa at the start of a regional leaders summit in Washington.

AGOA, first enacted in 2000 to foster growth, development and governance reforms in Africa, provides duty-free access to U.S. markets for nearly 40 countries, but is due to expire on Sept. 30, 2025. The program also requires steps such as such as eliminating barriers to U.S. trade and investment.

Tai said in her remarks that she was “interested in discussing today ways in which we can improve AGOA – including how we can increase the utilization rates, particularly among smaller and less-developed countries, as well as ensure that the program’s benefits fully reach all segments of society.”

She added that she wanted the program to unlock more sustainable growth, “and ultimately, to unlock the potential of our people, for our people.”

Research from the Brookings Institution last year showed that only about half of AGOA-eligible countries had strategies in place to make full use of their benefits under the program.

Tai said that the world was “very different” from AGOA’s initial years, with fallout from the COVID-19 pandemic and Russia’s invasion of Ukraine exposing the fragility of supply chains, along with a worsening climate crisis.

At an event on Monday, Tai said that the United States would also sign a memorandum of understanding with the 55-state African Continental Free Trade Area to explore work on the next phases of the U.S.-African trade relationship.

She said AGOA offered promise as a “stepping stone to address regional and global challenges,” especially with Africa’s young and entrepreneurial population.

“The future is Africa, and engaging with this continent is the key to prosperity for all of us,” Tai added.

Among the biggest beneficiaries of AGOA are oil exporters Nigeria and Angola, as well as the region’s largest economy, South Africa. Kenya, which depends on AGOA for its growing apparel exports to the United States, has engaged in a non-tariff trade and investment dialogue with Washington, which may lead to more comprehensive trade negotiations.

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