The Congress enacted AGOA in 2000.

In 2002, the Congress passed legislation that broadened the benefits provided under AGOA, this legislation was known as "AGOA II."

The immediate impetus for AGOA III legislation is the expiration of a provision in existing law that provides the poorest African countries with the ability to use non-African and non-U.S. fabric in their apparel exports (the "3rd country fabric rule"). SSA countries' textiles and apparel sectors have dramatically expanded under AGOA. That growth is jeopardized by the expiration of the 3rd country fabric provision, as well as expiration of global textiles and apparel quotas on January 1, 2005.

In addition, any new AGOA legislation should aim to diversify SSA exports so as to utilize SSA countries' comparative advantages. Commodities that are capital but not labor intensive - such as minerals and petroleum -- still represent the largest AGOA exports in monetary terms. Gains in other sectors have occurred, but more needs to be done, in part by providing additional access to African agriculture exports