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U.S. Government's AGOA Page
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Foundation for Democracy in Africa
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Key Provisions of AGOA III
(The AGOA Acceleration Act of 2004 - HR 4103)

  • Extends AGOA from 2008 until 2015

  • Textile and Apparel Provisions

  • Third-Country Fabric: The bill extends 3rd country fabric provision for three years, from September 2004 until 2007, including a phase down of benefits in year three. Under current law, least-developed AGOA beneficiary countries can use third country fabric in qualifying apparel until 2004. This flexibility was included in AGOA I, because few of these countries have fabric-making capacity. The LDCs have expressed a strong desire to extend the third-country fabric provision, because sufficient fabric-making capacity still does not exist in the region, and because the countries are expecting a significant drop in orders with the elimination of world-wide apparel quotas in 2005.

  • Addresses the restrictive rule-of-origin requirements: The bill modifies the AGOA rule of origin to allow use of non-AGOA produced collars and cuffs and other non-essential components for all import categories.

  • Expands Coverage of Current "folklore" AGOA Provision: The bill allows ethnic fabrics that are made on machines to qualify for AGOA duty free treatment under AGOA's folklore provision.

  • Broader Issues

  • Infrastructure/Ecotourism: The lack of a developed infrastructure is one of the key barriers to economic growth in Africa. This bill provides assistance to develop sustainable infrastructure (transportation, telecommunication systems etc...) to increase trade capacity. It does this, in part, by encouraging the growth of the ecotourism industry in sub Saharan Africa. This industry is growing exponentially, is creating jobs, and Africa holds a significant comparative advantage in this industry. Infrastructure that supports ecotourism will also support increased trade flows and support economic growth.

  • Technical assistance for agriculture exports: Three out of every four Africans participate in the agriculture industry, but African farmers lack the technical expertise to be sure that their exports meet the strict sanitary/phytosanitary standards of the U.S. The bill assigns 20 personnel to sub Saharan Africa for the purpose of providing assistance to select AGOA countries to assist and advise them, so that their exports can meet U.S. standards.

  • Public/Private Collaboration on transportation issues: The bill facilitates increased coordination between customs services at ports and airports in the United States and sub-Saharan countries to reduce time in transit and increase efficiency and safety procedures.

  • Support Regional Integration: The bill allows AGOA beneficiary countries the continued use of inputs from countries that have a free trade agreement with the United States and were former AGOA beneficiary countries. This is particularly important because the U.S. is currently negotiating a free trade agreement with the Southern African Customs Union.

  • Continues Executive Branch focus on Africa: The bill directs the Administration to implement interagency trade advisory committee for the purpose of identifying barriers to trade and remedies to address those barriers

  • Promotes African progress: The bill includes findings and statements of policy about the benefits to Africa of AGOA and supporting various sub-Saharan Africans efforts such as to reduce poverty, promote peace, attract investment and trade, and fight HIV-AIDS.



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