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African Growth and Opportunity Act

African Growth and Opportunity Act
Great Seal of the United States
Other short titles United States-Caribbean Basin Trade Partnership Act
Long title An Act to authorize a new trade and investment policy for sub-Saharan Africa, expand trade benefits to the countries in the Caribbean Basin, renew the generalized system of preferences, and reauthorize the trade adjustment assistance programs.
Acronyms (colloquial) AGOA
Nicknames Trade and Development Act of 2000
Enacted by the 106th United States Congress
Effective May 18, 2000
Citations
Public law 106-200
Statutes at Large 114 Stat. 251
Codification
Titles amended 19 U.S.C.: Customs Duties
U.S.C. sections created 19 U.S.C. ch. 23 § 3701 et seq.
Legislative history

The African Growth and Opportunity Act, or AGOA (Title I, Trade and Development Act of 2000; P.L. 106–200 ) is a piece of legislation that was approved by the U.S. Congress in May 2000. The purpose of this legislation is to assist the economies of sub-Saharan Africa and to improve economic relations between the United States and the region. After completing its initial 15-year period of validity, the AGOA legislation was extended on 29 June 2015 by a further 10 years, to 2025.

Rosa Whitaker, who served as the first ever Assistant U.S. Trade Representative (USTR) for Africa in the administrations of Presidents George W. Bush and William J. Clinton took the final lead in developing and implementing the African Growth and Opportunity Act (AGOA) following nearly a decade of leadership on the part of activists such as Paul Speck at Environmental and Energy Institute, and lawmakers, including Congressman Jim McDermott (a former Foreign Service medical officer based in Zaire) and Senator John Kerry, both senior lawmakers in the area of international trade. AGOA was initially signed by President Clinton into law in May 2000. The legislation is due to be reviewed again in 2015 and is expected to be renewed immediately. The revisions will make it easier to become eligible and will focus on improving the future business environment in developing African countries.

The legislation authorized the President of the United States to determine which sub-Saharan African countries would be eligible for AGOA on an annual basis. The eligibility criteria was to improve labor rights and movement toward a market-based economy. Each year, the President evaluates the sub-Saharan African countries and determines which countries should remain eligible.

Countries' inclusion has fluctuated with changes in the local political environment. In December 2009, for example, Guinea, Madagascar, and Niger were all removed from the list of eligible countries; by October 2011, though, eligibility was restored to Guinea and Niger, and by June 2014, to Madagascar as well. Notice was given that Burundi would lose its AGOA eligibility status as of 1 January 2016.

Having AGOA eligibility does not imply automatic eligibility for a "Wearing Apparel" provision. To export apparel and certain textile to the United States under the AGOA duty-free, an eligible country must have implemented a "Visa System" that satisfies American authorities and proves compliance with the AGOA Rules of Origin.


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