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What is AGOA?
The African Growth and Opportunity Act (AGOA) is historic, bipartisan legislation enacted in 2000.
AGOA marked a fundamental shift in U.S. policy toward Africa - for the first time, the United States emphasized increased trade as a means of promoting economic development, as much as the traditional forms of development assistance. AGOA sought to increase trade by allowing qualifying sub-Saharan African (SSA) countries to export most products to the United States duty-free. In order to qualify for AGOA benefits, countries must make progress toward improving the rule of law, human rights, and respect for core labor standards including addressing child labor issues. Thirty-seven countries now qualify for AGOA benefits.
AGOA has delivered results. Since its enactment in 2000, many SSA economies have expanded despite a worldwide economic contraction.
In 2001, U.S. imports from SSA increased 61.5 percent over the previous two years.
U.S. imports under AGOA were valued at $9 billion in 2002, a 10 percent increase from 2001.
The latest figures for 2003 indicate that imports from AGOA-eligible countries are up 59% from 2002.
AGOA is also a boon to U.S. exports, as African buying power has increased. In 2001, U.S. exports to AGOA-eligible countries reached record levels, growing over 17 percent from 2000. The most recent trade figures for 2003 represent an 8.6 percent increase in U.S. exports to AGOA-eligible countries.
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