The American government has extended Botswana’s capability to export certain commodities to the US without duty frees under its flagship trade programme for the continent – the African Growth and Opportunity Act (AGOA).
AGOA provides duty-free access to the U.S. market for most agricultural and manufactured products exported by eligible African countries. It has been renewed twice and is due to expire in September 2025.
The Act was passed in 2000 under former President Bill Clinton to deepen trade ties with Sub-Saharan Africa and help African countries develop their economies.
The extension is significant in that the U.S. has terminated AGOA benefits for Gabon, Niger, the Central African Republic, and Uganda. The U.S. Trade Representative (USTR) cited unconstitutional changes of government in Gabon and Niger and “gross violations of internationally recognised human rights being perpetrated by [the] governments” of the Central African Republic and Uganda.
USTR representative Tai said she will “provide each of these countries with clear benchmarks for a pathway toward reinstatement” and that the U.S. will work with them to achieve that objective.
In an announcement this week, President Joe Biden’s administration issued a proclamation showing that for 2024 Botswana has been designated as one of the beneficiary Sub-Saharan African countries. Other countries eligible for AGOA in the latest updated list are Angola, Benin, Cabo Verde, Chad, Comoros, Cote d’Ivoire, Democratic Republic of Congo, Djibouti, Eswatini (formerly Swaziland), Gambia, Ghana, Guinea-Bissau, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mauritania, Mauritius, Mozambique, Namibia, Nigeria, Republic of Congo, Rwanda, Sao Tome & Principe, Senegal, Sierra Leone, South Africa, Tanzania, Togo, and Zambia. The Biden administration also indicated that the following are not currently designated as beneficiary SSA countries: Burkina Faso, Burundi, Cameroon, Central African Republic, Equatorial Guinea, Eritrea, Ethiopia, Gabon, Guinea, Mali, Niger, Seychelles, Somalia, South Sudan, Sudan, Uganda, and Zimbabwe.
According to the proclamation, “importers and others can now seek changes in the eligibility of sub-Saharan African countries to receive benefits under the African Growth and Opportunity Act as part of the Office of the U.S. Trade Representative’s annual review.” It says the USTR will hold a virtual public hearing on June 27; pre-hearing written comments, requests to testify, and written testimony are due by June 6; and post-hearing written comments, briefs, supplementary materials, and written statements are due by July 11.
It states that public comments will be considered in developing recommendations on AGOA country eligibility for 2025. In addition, comments related to the AGOA child labour criteria may be considered by the Department of Labour as it prepares its required report on that issue.
In 2000, the US Congress enacted the African Growth and Opportunity Act (AGOA). This trade preference programme aims to promote economic growth and development in sub-Saharan Africa.
It provides duty-free access to the US market for products from eligible sub-Saharan African countries, impacting approximately 6,800 tariff lines in the US tariff schedule.
In order to be eligible for AGOA, a beneficiary country must demonstrate respect for rule of law, human rights and core labour standards. Beneficiary countries also should not seek to undermine US foreign policy interests.
The US President may designate a country as eligible for AGOA duty-free treatment for certain additional products not included in the Generalised System of Preferences, as well as preferential treatment for certain textile and apparel articles if that country meets the applicable eligibility criteria. These requirements include that the country has established or is making substantial progress toward establishing, among other things, a market-based economy, the rule of law, political pluralism, the right to due process, the elimination of barriers to U.S. trade and investment, economic policies to reduce poverty, a system to combat corruption and bribery, and the protection of internationally recognised worker rights. In addition, the country may not engage in activities that undermine U.S. national security or foreign policy interests or engage in gross violations of internationally recognised human rights. If the president determines that an AGOA beneficiary is not making continual progress in meeting the eligibility requirements, the designation of that country as a beneficiary must be terminated. However, the president may also withdraw, suspend, or limit the application of duty-free treatment with respect to specific articles from a country if doing so would be more effective in promoting compliance with AGOA eligibility requirements.
AGOA – first enacted in 2000 and currently in effect through Sept. 30, 2025 – grants duty-free access to products imported from qualifying sub-Saharan African countries. About 85 percent of all tariff lines are eligible for duty-free access to the U.S. if imported from any AGOA beneficiary, a figure that increases to about 97 percent for beneficiaries with full textile and apparel product benefits (which in 2022 included 24 of 36 countries). At least 35 percent of a product’s value must be grown, produced, or manufactured in the AGOA-eligible country, and exports must be directly shipped to the U.S. Different rules of origin apply concerning the sourcing of inputs for textile and apparel products.
