The Office of the United States Trade Representative Friday released its 2024 Biennial Report on the Implementation of the African Growth and Opportunity Act (AGOA) Report.
In 2023, U.S. imports under AGOA (including the Generalized System of Preferences program, which remains available for AGOA beneficiaries) totaled $9.7 billion. This consisted of approximately $4.2 billion in crude oil and $5.5 billion in other products, including $1.1 billion in apparel and more than $900 million in agricultural products.
Total two-way goods trade between the US and sub-Saharan Africa increased by 6.2% to $47.5 billion in 2023. US goods exports to the region grew by 10.4% to $18.2 billion, primarily driven by increased exports of aircraft and petroleum products. US goods imports from sub-Saharan Africa also rose by 3.8% to $29.3 billion, mainly due to increased imports of petroleum and silverware [sic].
In 2022, U.S. exports of services to Africa increased to $14.4 billion, with leading sectors including travel services, financial services, and business consulting. Similarly, U.S. imports of services from Africa rose to $10.4 billion, with travel and business consulting being the top sectors.
The top destination markets for US exports were South Africa, Nigeria, Ethiopia, Ghana, and Angola, while the top suppliers to the US were South Africa, Nigeria, Ghana, Angola, and Côte d’Ivoire.
In 2022, Burkina Faso was terminated as a beneficiary of the AGOA program due to an unconstitutional change of government. In 2023, the Central African Republic, Gabon, Niger, and Uganda lost their eligibility, while Mauritania's benefits were reinstated in 2024 based on progress in worker rights.
Somalia for the first time, is seeking to become a beneficiary country under the African Growth and Opportunity Act trade preferences program.
At a hearing Thursday as part of the US Trade Representative’s Office annual eligibility review, representatives for the Somali government urged that the country is ready to join AGOA and meets the eligibility requirements.
The increased economic activity that will come from participation in AGOA will help bring economic prosperity and offer an alternative to terrorist groups like al-Shabaab, witnesses argued.
Meanwhile, Uganda is seeking reinstatement of its AGOA benefits, which were suspended in 2022, due to US concerns about human rights, including the use of child labor and draconian anti- homosexuality laws.
Uganda has taken considerable steps to improve its child labor laws, the inter-agency panel was told. In addition, there have been some refinements to the anti-homosexuality law, but overall, the law reflects the societal views of the Ugandan people.
Ethiopia also is seeking restoration of its AGOA benefits. The US decision to remove Ethiopia from the program “continues to hurt ordinary Ethiopians, particularly women,” according to a statement from the government.
USTR provided benchmarks for Ethiopia to be reinstated in to the program, including taking tangible steps to address gross violations of internationally recognized human rights, cooperating with humanitarian efforts, and halting military operations to establish a durable ceasefire.
“Ethiopia has already met all the benchmarks set by the USTR, which should qualify it to be reinstated for AGOA benefits,” according to Ethiopian officials.
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