11 Jul In brief: The future of US-Africa trade and investment
With AGOA due to expire in 2025, policymakers in the US and Africa must decide the basis for stronger US-Africa trade going forward.
WORTH A THOUSAND WORDS
In 2022, US imports of goods utilizing AGOA (or GSP) benefits was valued at $10.2 billion. Like overall US imports from Africa, imports from AGOA beneficiaries have changed over time, driven mostly by the value of oil imports from countries like Nigeria and Angola.
Since 2000, the cornerstone of US trade policy for Africa has been the African Growth and Opportunity Act also known as AGOA.
Past work by the Atlantic Council suggests that Africa sits at the nexus of current development, climate, and security challenges. With global competition over resources, technology and influence growing, the strategic importance of establishing a new kind of relationship with Africa has become clear to the United States. With an African market of over 1.3 billion people and a combined Gross Domestic Product (GDP) of over $3.4 trillion, expanding US-Africa trade and investment is now a clear strategic priority for both the United States and African countries.
The Atlantic Council’s Africa Center is examining trade between the US and Africa to date and the impact of AGOA, and analyzing the future of AGOA after its potential expiration in 2025. Our work draws on a survey and interviews conducted with leaders in government, business, international organizations, and civil society. The report identifies key constraints limiting trade expansion and examines emerging challenges and opportunities that will shape its future. Drawing on this analysis, the report provides actionable recommendations for policymakers and other key stakeholders on the future of AGOA.
AGOA has come to define much of United States’ commercial relationship with Africa. With AGOA set to expire in 2025 and the shifting world economy providing new challenges and opportunities, now is the time to decide the future of US-Africa trade. The analysis in this report, as well as the findings from survey responses and interviews, suggest recommendations covering three areas:
- AGOA itself
- the future of US-Africa trade more broadly, and
- the even broader future of US-Africa relations.
How to seize the moment
AGOA has symbolized the shift in…
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