In a bipartisan move aimed at fostering economic cooperation and stability in sub-Saharan Africa, U.S. senators have proposed legislation to extend the African Growth and Opportunity Act (AGOA) until 2041. Led by Senators Chris Coons and James Risch, the bill seeks to provide continuity and support for participating African nations.
The proposed legislation, disclosed exclusively to Reuters, outlines a comprehensive approach to extend AGOA for an additional 16 years, emphasizing the importance of tailored strategies to maximize its benefits. Notably, the bill includes provisions to maintain eligibility for countries as they progress economically, ensuring sustained participation in the program.
Under the proposed legislation, countries would undergo eligibility reviews biennially, rather than annually, streamlining the process while maintaining rigor. Additionally, the bill allows for out-of-cycle reviews by the U.S. president and congressional leaders, providing flexibility in assessing countries' eligibility status.
While the bill refrains from singling out specific countries for review, concerns persist regarding South Africa, a key beneficiary of AGOA. Despite initial proposals mandating immediate reviews, the current version adopts a broader approach to out-of-cycle assessments.
President Joe Biden has expressed support for the reauthorization of AGOA, recognizing its significance in facilitating trade relations between the United States and Africa. AGOA facilitated duty-free entry of over $10 billion worth of African exports into the U.S. in 2022, highlighting its economic impact.
Business groups emphasize the need for certainty surrounding AGOA, asserting that a stable trade framework is crucial for African nations to leverage global economic opportunities effectively. As discussions progress, stakeholders anticipate a collaborative effort to develop bipartisan legislation aligned with the shared goal of fostering economic growth and trade relations.
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