African Growth and Opportunity Act (AGOA)

The African Growth and Opportunity Act (AGOA) was signed into law by President Clinton in May 2000, to expand U.S. trade and investment with Sub-Saharan Africa, to stimulate economic growth, to promote a high-level dialogue on trade and investment-related issues, to encourage economic integration, and to facilitate sub-Saharan Africa's integration into the global economy. As of April 2009, 40 sub-Saharan African countries were eligible for AGOA benefits.

At the center of AGOA are substantial trade preferences that, coupled with those under the Generalized System of Preferences (GSP), allow all marketable goods produced in AGOA-eligible countries to enter the U.S. market duty-free.

The U.S. Government provides assistance -- most notably through four regional trade hubs -- to African governments and businesses that are seeking to make the most of AGOA and to diversify their exports to the United States.

The U.S. Congress requires the President to determine annually whether sub-Saharan African countries are eligible for AGOA benefits based on progress in meeting certain criteria, including progress toward the establishment of a market-based economy, rule of law, economic policies to reduce poverty, protection of internationally recognized worker rights, and efforts to combat corruption.

Since its inception, AGOA has helped to increase U.S. two-way trade with sub-Saharan Africa.

U.S.-AGOA Trade Facts

In 2008, U.S. total imports from sub-Saharan Africa were more than triple the amount in 2001, and U.S. total exports to sub-Saharan Africa more than doubled during this period.

In recent years, over 98 percent of African exports to the United States entered duty-free, either under AGOA, GSP, or zero-duty Most Favored Nation rates.