The African Growth and Opportunity Act (AGOA) is an agreement between the United States and eligible sub-Saharan African countries that was signed into law in 2000. AGOA is often referred to as a free trade agreement, but the question remains: is AGOA a free trade agreement?
The answer is both yes and no. AGOA is a trade preference program that provides eligible countries duty-free access to the US market for a broad range of products. However, it is not a comprehensive free trade agreement.
Under AGOA, eligible countries can export a wide range of products to the United States without being subject to tariffs or other trade barriers. This includes apparel, agricultural products, and manufactured goods. In addition to these preferential trade benefits, AGOA also provides for technical assistance to help countries improve their capacity to trade.
However, AGOA is not a free trade agreement in the traditional sense. It does not eliminate all trade barriers between the US and eligible African countries. The agreement is limited in scope and does not cover all products or sectors. In addition, AGOA requires that participating countries meet certain eligibility requirements, such as protecting workers’ rights and intellectual property.
Overall, AGOA is a trade preference program that provides eligible African countries with duty-free access to the US market for selected products. While it is often referred to as a free trade agreement, it is not a comprehensive free trade agreement in the typical sense of the term. Nonetheless, AGOA has been instrumental in promoting increased trade and economic growth within sub-Saharan Africa.