The thinking behind AGOA was based on the existing Generalize System of Preferences (GSP), used in the international trade regime since 1971. This is a non-reciprocal concession under which developed countries allow duty-free or low-duty entry of imports from selected developing countries up to a certain limit or quota, covering 4600 products. However, in the case of the US, it excluded critical developing world exports, such as textiles, clothing and footwear. It was also subject to political influence, and could be withdrawn.
AGOA built on the same idea but expanded product coverage by an additional 1800 product lines (which have since increased further), and included many critical developing world exports, in particular textiles and apparel. Local content restrictions were also subsequently eased for particular products.
A major thrust of AGOA has been to support the ability to African economies to use the textile and apparel sectors as potential engines of economic growth, in much the same way as historically happened in South and South East Asia.
A ‘special rule’ permits lesser developed AGOA beneficiary countries to utilize fabric manufactured anywhere in the world, unless the fabric is designated as being in ‘abundant supply’ from within sub-Saharan Africa. All apparel-eligible countries qualify for the special rule, except Gabon, Seychelles, and South Africa.
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Date
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AGOA act
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Summary
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2000
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AGOA
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Provided beneficiary countries in
Sub-Saharan Africa with the most liberal access to the US market available to
any country or region with which the US does not have a free trade agreement
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2002
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AGOA II
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Botswana/Namibia included as LDCs; additional
textile provisions
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2004
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AGOA III
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Extended
AGOA until Sept. 2015 and the third country fabric provision until Sept.
2007; increased
emphasis on US technical assistance in agriculture; Mauritius also included
as an LDC
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2006
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AGOA IV
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Extended
third country fabric provision until 2012 and adds abundant supply provisions
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