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AGOA
African Growth and Opportunity Act
AGOA is not only meant to strengthen economic ties between the US and certain countries in sub-Saharan Africa, but is also considered to be an economic development program for beneficiary countries. Like other FTAs, AGOA provides preferential trade status for recipient countries, giving them quota and duty-free entry in to the US market on certain goods; in this regard, AGOA is essentially an expansion on the GSP system.
AGOA has had a significant effect on textile and apparel goods being exported to the US, which has spurred significant investment in the apparel industry in certain African countries. This growth however, has not necessarily corresponded with strengthened labor standards, and in some cases has in fact weakened them. More so, many critics have argued that AGOA is by no means a sufficient development program, as it only addresses issues of trade, but does not address the enormous debt burdens of the countries involved.
Also of concern is the fact that the “Eligibility Requirements” of AGOA demand that in order to receive any of the preferential trade incentives, countries must cut government spending, cut corporate taxes and provide legislative support for foreign corporations to buy and control natural resources. The implications for labor rights are troubling if one is familiar with the history of corporate practices on the African continent, and even more so under AGOA, where there remain virtually no checks and balances on corporate practices in the countries in which the corporations invest. The Congress of South African Trade Unions (COSATU), among other reputable African labor federations, has opposed AGOA.
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