On July 24th, the Wilson Center hosted the African Growth and Opportunity Act (AGOA) Civil Society and Organized Labor Forum. The event aimed to convene African civil society organizations, labour unions, and small business partners to inform the forthcoming AGOA renewal deliberation in Congress. With the program set to expire in September 2025, many view this authorization as a pivotal moment to enhance the efficiency of this 25-year-old trade and economic development initiative.
AGOA, at present, is a nonreciprocal U.S. trade preference program that grants eligible sub-Saharan African countries duty-free access to U.S. markets. Important to the ILO, AGOA eligibility requires that a country address worker rights and human rights, including the right of association, the right to organize and collectively bargain, minimum wage, hours of work restrictions, occupational safety and health, and forced and child labour.
Senators Chris Coons (Delaware - Democrat) and James Risch (Idaho - Republican) co-sponsor bipartisan legislation to extend AGOA until 2041. Senator Coons has previously expressed concerns that short-term renewals could undermine long-term economic stability in the region and decrease certainty for both American and African enterprises.
The AGOA Summit highlighted AGOA's success in strengthening the U.S.-Africa relationship, enforcing human rights (including labour rights), and supporting small and mid-size enterprises, including women-owned businesses. Africa continues to grow in economic impact and population, with many of the fastest-growing economies benefiting from expanded trade, including significant trade with China. In 2023, U.S. trade imports under AGOA totaled $9.7 billion.
Secretary of State, Antony Blinken, emphasized AGOA's role in producing tens of thousands of good jobs here in America, strengthening and diversifying U.S. companies' supply chains, and offering consumers more affordable, innovative products. Blinken also highlighted AGOA's contribution to a more stable and transparent marketplace, which attracts more direct investment for African enterprises. He also praised AGOA's role in reducing poverty and defending the rights of American workers. President Biden supports reauthorizing AGOA, with amendments to make the program more adaptable to climate change, pandemic response, and future global demands.
AGOA enjoys bipartisan support in Congress; additionally, former President Donald Trump supported AGOA during his term, as a component of his African Strategy. President Trump is the Republican Presidential nominee for this year's general election in November. The topic for Congressional debate is focused not on whether to extend the program, but rather on the duration and conditions of its renewal.
We will continue to monitor these developments and keep you informed on the progress and implications of the 2025 AGOA reauthorization.
