Independent research & practical ideas for global prosperity

Reviving AGOA

09/29/2010

The African Growth and Opportunity Act (AGOA) of 2000 marked a major change in U.S. trade policy for poor countries by extending duty-free treatment to almost all imports from eligible countries, with the goal of expanding trade and encouraging growth-oriented reforms. African exports to the United States did increase markedly, but they were concentrated in a few products from a handful of countries. Moreover, AGOA’s success in boosting clothing exports was not sustained as global competition increased later in the decade. To revive the program and expand its benefits, the Obama administration and Congress should work together on two main priorities:

Remove or significantly ease remaining restrictions on agricultural products.
Collaborate more effectively with African partners to improve the business climate and competitiveness.

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