AGOA Expiration Sparks New Era for African Trade and Economic Growth

Africa: How the End of AGOA Opens Up New Opportunities The African Growth and Opportunity Act (AGOA), a trade agreement between the United States and sub-Saharan African nations, is set to expire on September 30. The expiration of this 25-year-old agreement will likely have significant effects on export figures and job opportunities in dozens of African countries. According to Zoryana Olekseyuk, an expert at the German Institute of Development and Sustainability (IDOS), studies show that AGOA has had positive effects, particularly in the textile industry. "Exports to the USA have increased," she says. However, IDOS research also indicates that some countries will suffer significant losses: Lesotho could lose almost 6% of its total exports, Madagascar over 3%, and Botswana and Chad around 2%. AGOA was signed into law in 2000 by President Bill Clinton to promote economic growth and development in sub-Saharan Africa. The agreement provided duty-free access to the US market for eligible African countries, allowing them to export goods such as textiles, apparel, and agricultural products. The expiration of AGOA has sparked concerns among African nations, which have come to rely heavily on the trade agreement. However, some experts believe that this could also present opportunities for new partnerships and agreements. "The end of AGOA is not necessarily a bad thing," says Olekseyuk. "It's an opportunity for African countries to diversify their trade relationships and explore other markets." In preparation for the expiration of AGOA, several African countries have been working on developing their own trade policies and negotiating new agreements with other nations. For example, the African Continental Free Trade Area (AfCFTA) agreement aims to create a single market for goods and services across the continent. The current status of negotiations between the US and African countries is uncertain. While some are still hopeful for a last-ditch effort to clinch a follow-up agreement, others believe that the expiration of AGOA marks the beginning of a new era in trade relations between Africa and the US. As the deadline approaches, African nations will be closely watching developments in Washington and Brussels, where negotiations on a potential successor agreement are underway. The outcome will have significant implications for the continent's economy and its people. Background: AGOA was signed into law by President Bill Clinton in 2000 to promote economic growth and development in sub-Saharan Africa. The agreement provided duty-free access to the US market for eligible African countries, allowing them to export goods such as textiles, apparel, and agricultural products. Additional Perspectives: Experts believe that the expiration of AGOA could also have a positive impact on African nations' ability to develop their own trade policies and negotiate new agreements with other nations. "The end of AGOA is an opportunity for African countries to take control of their own trade destiny," says Olekseyuk. Current Status: Negotiations between the US and African countries are ongoing, but the outcome remains uncertain. While some are still hopeful for a last-ditch effort to clinch a follow-up agreement, others believe that the expiration of AGOA marks the beginning of a new era in trade relations between Africa and the US. Next Developments: As the deadline approaches, African nations will be closely watching developments in Washington and Brussels. The outcome will have significant implications for the continent's economy and its people. *Reporting by Dw.*