Renew and Modernize AGOA, Urges U.S. Chamber
The U.S. Chamber on May 15 submitted comments to the Office of the U.S. Trade Representative (USTR) on ways to modernize the African Growth and Opportunity Act (AGOA). The comments were in response to USTR’s April 29 Federal Register notice.
Long-Term Renewal: The comments call for AGOA’s long-term renewal (i.e., for 15 years), which the Chamber argues will help limit uncertainty faced by the business community and account for supply chain realities and investment logistics. The document reads in part:
“The looming expiration affects commerce and investment trends well in advance of the program’s actual termination. Continued cooperation between the U.S. and the African Union beyond AGOA will also be critical in facilitating African partner country aspirations to deepen regional integration, develop plans to engage the U.S. in bilateral and multilateral trade agreements, and support growth in regional trade.
“ The uncertainty spurred by short-term renewals discourages these long-term sourcing commitments. Supply chains require predictability across lead times, compliance, logistics, scale, and vendor capability.... Depending on the sector, some companies note that it takes 7-10 years to establish and build out supply chains to begin to recoup respective investments. Its reauthorization should take into account such timeline realities to deliver intended benefits.”
Investment and Growth: The submission urges policymakers to simplify and harmonize regulations across AGOA beneficiaries to reduce investment barriers, create transparency and attract more investment in key sectors, including but not limited to, telecommunications, health and technology infrastructure. It also elevates the critical role of development financing as a lynchpin for the program’s broader success:
“Across categories, supplier competitiveness depends on the broader ecosystem around production: upstream inputs, reliable infrastructure, workforce capability, processing and packaging capacity, cold chain, traceability, compliance systems, and the ability to meet U.S. standards at scale. Building these capabilities in AGOA countries would directly benefit the United States by creating more resilient and diversified supply chains, expanding opportunities for U.S. inputs, equipment, logistics, technology, financing, and compliance services, and helping retailers deliver affordable products to American consumers. In this way, development finance and technical assistance – especially in the form of specialized trade hubs – can translate AGOA preferences into durable commercial relationships that support African supplier growth while advancing U.S. economic interests.”
For further information, please contact Senior Vice President for Africa Kendra Gaither ( kgaither@uschamber.com )