What is AGOA?
The Africa Growth and Opportunity Act (AGOA) was signed into law in May 2000. It offers eligible African countries duty-free and quota-free access to the U.S. market for almost all products. There are currently 35 countries on the list of AGOA beneficiaries.
What is the Eligibility Criteria for AGOA?
AGOA authorizes the President to designate countries as eligible to receive benefits if they are determined to have established, or are making continual progress toward establishing the following:
1. Countries must be GSP eligible in order to receive AGOA trade benefits, which include both expanded GSP benefits and provisions regarding apparel (see GSP Q&A)
2. In order to be eligible for GSP benefits, a country must have a per capita Gross National Product (GNP) below US$10,000 per year.
3. Market-based economies
4. The rule of law and political pluralism
5. Elimination of barriers to U.S. trade and investment
6. Protection of intellectual property
7. Efforts to combat corruption
8. Policies to reduce poverty, increasing availability of health care and educational opportunities
9. Protection of human rights and worker rights
10. Elimination of certain child labor practices.
11. Established, or continual progress toward establishing, protection of internationally recognized worker rights
How do Workers’ Rights come into AGOA?
The President is authorized to designate a sub-Saharan African country as an eligible sub-Saharan African country if the President determines that the country has established, or is making continual progress toward establishing, protection of internationally recognized worker rights. These include:
1. Freedom of association;
2. Freedom to organize and bargain collectively;
3. Prohibition on the use of any form of forced or compulsory labor;
4. A minimum age for the employment of children;
5. Protections for decent working conditions, including a minimum wage, maximum hours of work, and occupational safety and health standards. (Section 104(a))
Section 502 states that “the President shall not designate any country as a beneficiary country if the country has not taken or is not taking steps to afford internationally-recognized worker rights” (see above) or “if the country has not implemented its commitments to eliminate the worst forms of child labor,” as defined by the International Labor Organization’s Convention 182. However, the President may still grant AGOA eligibility if he determines that it would be in the national economic interest of the United States.
What is the Annual Review Process?
Sub-Saharan African countries designated as eligible or beneficiary countries must undergo an annual review of their status, during which they may be added or withdrawn from the list. The USTR makes recommendations to the President regarding the designation of AGOA beneficiary countries based on the results of countries’ progress and efforts in the areas listed above.